Randgold Resources pays off Tongon mine shareholder loans

Randgold Resources has paid off its shareholders' loans used to partially fund the Tongon gold mine.

The FTSE 100 mining company announced on Monday it had repaid the loans worth a total of $448m, which was used to partially fund its capital investment of $580m.

It moves the Côte d’lvoire mine into a dividend-paying position.

Chief executive Mark Bristow said it is a significant achievement, particularly in the context of a global gold mining industry characterised by capital write-downs and impairments.

"Tongon has already paid close to $90m to the Ivorian state in the form of royalties and taxes,” he said.

“The country will now benefit even more from the dividends the Government will receive through its 10% carried interest in the mine as well as the increased revenue when Tongon starts paying full corporate tax at the end of this year.”

Bristow noted the mine has already contributed more than $600m to the Ivorian economy since it was commissioned five years ago.