Mali and Randgold Agree on a Revised Investment Convention to Support Super Pit Development

Bamako, Mali (FSCwire) - The Malian government has agreed to grant Randgold's Gounkoto mine a 50% corporate tax reduction for the next four years to support its development of a super pit which will be one of the largest opencast gold mines in Africa.

The agreement, which is a concession under Gounkoto's original mining convention that gave Gounkoto the right to apply for additional tax exonerations should it make additional investments, will see the mine's life extended by more than five years.  Likewise the super pit will make a significant contribution to the Loulo-Gounkoto complex's 10-year plan, which envisages profitable production in excess of 600 000 ounces annually at a gold price of $1 000 per ounce.  Depending on the gold price and input costs the potential revenue to the State would increase by more than 100% when compared with the original Gounkoto feasibility study completed in 2009.

Randgold chief executive Mark Bristow said the deal was another milestone in the mutually rewarding partnership between the company and the Malian government.

"Over more than 20 years, that partnership has enabled us to bring Syama to account, develop Morila and build Loulo-Gounkoto into one of the world's largest gold mines.  During that time, our operations have contributed $5.9 billion to the Malian economy in the form of taxes, royalties, dividends, salaries and payments to local suppliers.  The Malian government received $2.5 billion of that amount, which represents more than 60% of the net cash generated by the mines.  Every year since 2010, Randgold's operations in this country have accounted for some 6% of Mali's GDP," he said.

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