Mining

Barrick Gold will oppose attempt by DRC state-owned firm to sell 10% stake in Kibali

BARRICK Gold would not grant approval for the Democratic Republic of Congo (DRC) to sell its 10% stake in Kibali, the 750,000 ounce a year gold mine the two parties share with AngloGold Ashanti.

Media reports say the state-owned Société Minière de Kilo-Moto SA (SOKIMO) had signed a memorandum of agreement to sell its Kibali stake to AJN Resources.

“Barrick wishes to make it clear that SOKIMO is contractually bound by Barrick and its joint venture partner AngloGold Ashanti not to sell or otherwise transfer its shares in Kibali Goldmines SA, the owner of the Kibali gold mine, without their approval,” the firm said.

“No such approval has been sought, nor will it be granted.”

This is not the first in recent times that the DRC has agitated in respect of SOKIMO’s stake in Kibali. In September 2018, the DRC said it would “assert its rights” on hearing that Randgold Resources, which developed Kibali with AngloGold Ashanti, was to merge with Barrick Gold. In the end, the matter was resolved following discussions with the joint venture partners.

Kibali is a valuable mine. Developed for $2.5bn, the mine beat guidance of 750,000 oz in Barrick’s 2019 financial year delivering a record 814,027 oz.t. “All in all, Kibali is well on track not only to meet its 10-year production targets but to extend them beyond this horizon,” said Mark Bristow, CEO of Barrick, in comments to the group’s year-end results.

The post Barrick Gold will oppose attempt by DRC state-owned firm to sell 10% stake in Kibali appeared first on Miningmx.

Source: miningmx.com

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