Tuesday, April 20, 2021

KIBALI GOLDMINES REJECTS ITS SHAREHOLDER'S CLAIM

KINSHASA, DR Congo

Kibali Goldmines said yesterday that it had learned that the Congolese parastatal Société Minière de Kilo-Moto (Sokimo) was attempting, for a second time, to extort certain benefits from the company by filing new proceedings with the commercial court in Kinshasa.

Sokimo is a 10% shareholder in the Kibali gold mine which is operated by Barrick Gold, which holds a 45% interest in the mine. The remaining 45% interest is held by AngloGold Ashanti.

According to Kibali, Sokimo had withdrawn its first claim “of this kind” after it had been shown to be without foundation.

Kibali said it rejects the current proceedings on the basis that it was “similarly spurious and without substance and would seek its dismissal as it had done with the previous claim”. 

Kibali has operated for the past 12 years under a joint venture agreement with a clear dispute resolution mechanism which in these instances had been ignored by Sokimo, the company said.

These events follow after Sokimo intended to sell its 10% stake in Kibali to TSX-listed gold junior AJN Resources in February 2019.

At the time, Barrick and AngloGold indicated that they would pursue legal action against AJN Resources, with Barrick arguing that the mine’s partners had pre-emptive rights over Sokimo’s stake.

The partners subsequently agreed to pay dividends from Kibali to the Democratic Republic of Congo government earlier than initially agreed on.

In the mean time, the Barrick Gold operated Kibali mine in the DRC produced 191,612 ounces of gold in the first quarter of 2021, keeping it on plan and on track to achieve its full year target, Barrick president and chief executive Mark Bristow told a media briefing here today.

The mine’s underground operation again drove production and continuing improvements in the plant’s throughput and recovery rates also contributed to Kibali’s on-plan delivery.  

Efficiency improvement projects completed during the quarter, including an upgrade of the hoisting infrastructure, are expected to boost its performance further. 

Power generation costs benefitted during the quarter from higher river levels as the mine’s three hydropower plants supplied the bulk of its energy requirements.  The power grid was further enhanced by the installation of a 9MW battery support system.  

The new system will also decrease the need for diesel-generated backup, in line with the mine’s strategy of reducing its carbon footprint.

Strict adherence to Covid-19 prevention protocols largely shielded the mine from the impact of the pandemic’s second wave.

Looking ahead, Kibali continues to replace resources and secure further open pit opportunities to balance its underground mine, and to replace reserves and add flexibility to the operation in support of its robust 10-year plan. By Osoro Nyawangah (osoropj@gmail.com)

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