Randgold Resources hopeful of resolving Mali tax dispute

Randgold Resources' chief executive Mark Bristow said late on Wednesday that the company is hopeful it will be able to resolve a tax dispute with Mali's government, and that operations in the country are continuing to deliver a robust performance.

Speaking at media briefing in Bamako, Bristow said ongoing exploration success within the Loulo and Gounkoto permits had enabled it to replace all the gold depleted by mining last year and was continuing to deliver additional reserves and resources. Preparation work was also underway on the Gounkoto super pit, which would further strengthen the complex's position as a long-life producer with an annual output of at least 600 000 ounces.

Meanwhile, at Morila, all the permitting for the development of the Domba satellite has been completed after two years of community consultation, and mining there is scheduled to start in September. Morila has also agreed to acquire portions of Birimian's Ntiola and Viper permits which, together with Domba, will extend its life to the end of 2019 and possibly to early 2020.

Bristow said that while there are a number of new mines in the Malian pipeline, the future of its gold mining industry depend on successful exploration for the next generation of discoveries and their ability to attract the necessary investment.

"The question is whether the country's existing mining code and fiscal regime are sufficiently attractive to foreign investors. The industry and the government, led by the minister of mines, have had a very constructive engagement on this and other issues - such as the destructive impact of illegal mining - and we've agreed to work together to find mutually acceptable solutions," he said.

"As far as Randgold's disputed tax claims are concerned, we're continuing our discussions with the authorities and are hopeful that we will be able to reach an amicable solution on the outstanding files instead of another round of arbitration proceedings. We've had a long and mutually rewarding partnership with Mali and its people - depending on the gold price, Randgold accounts for between 6% and 10% of the country's GDP each year - and it's obviously in both our interests to resolve this matter equitably."

At 1025 BST, the shares were up 1.9% to 7,045p.