Congo state miner warns Randgold on transfer of Kibali mine to Barrick

By Kitco News / September 29, 2018 / www.kitco.com / Article Link

DAKAR, Sept 28 (Reuters) - Congo's state miner Sokimo warnedRandgold Resources on Friday that Sokimo would "assertits rights" in Barrick Gold Corp's acquisition of Rangold'sstake in the Kibali project under a takeover deal, but Sokimodid not clarify its plans.


Canada's Barrick Gold agreed to buy RandgoldResources Ltd this week in a $18.3 billion share deal tocreate the world's largest gold company by value and output. Randgold has a stake in several projects in the DemocraticRepublic of Congo, including the Kibali mine, a joint venturewith AngloGold and Congolese state miner Sokimo. Theproject, one of Africa's biggest gold mines, is 45 percent ownedby Randgold, 45 percent by AngloGold and 10 percent by Sokimo.


"Sokimo ... will assert its rights," the company said in astatement. It said the transaction represented an effort by theforeign companies "to impose themselves, without any priordiscussion, in the countries from which the resources that makeup their wealth are extracted."


The same language about asserting rights was used by Congo'sother state miner, Gecamines, against Freeport, when in 2016 itannounced the sale of its stake in the Tenke copper mine toChina Molybdenum. Gecamines received $100 million in asettlement.


Randgold and the Congolese authorities have been locked in abitter dispute this year over a new mining code that hikes taxesand removes a 10-year stability clause on mining firms' existingdeals with the government.
(Reporting by Tim Cocks; Editing by Cynthia Osterman)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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