UPDATE:Mali Junta Requests Gold Mining Continues--Oklo Resources
28 March 2012 - 8:37PM
Dow Jones News
Coup leaders in Mali, Africa's third largest gold producer, met
with gold mining companies this week and requested that work
continue, Oklo Resources Ltd. (OKU.AU) said Wednesday.
Australia-based Oklo Resources, which is developing two gold
mines in Mali, said a senior representative of the coup leaders met
with seven major foreign-owned gold producers operating in Mali on
Monday. He "acknowledged" the importance of gold mining to Mali's
economy and made promises to allow fuel and other mine supplies to
come into the country.
Airspace above Mali is already open and the junta has promised
to open parts of the borders that remain closed. Many of landlocked
Mali's supplies pass across its south west border with Senegal far
from the violence in the north of the country. Randgold Resources
Ltd. (GOLD) was able to bring fuel via the Senegal border to its
mine in the country over the weekend.
Gold mining is vitally important to Mali, with the sector
accounting for 70% of the country's exports, global political risk
research and consulting firm Eurasia Group said in a note in
January.
Last week disgruntled Malian soldiers stormed the state
broadcaster's offices and swept through the presidential palace,
sending the president into hiding one month before Mali was set to
hold elections.
Mali's army has been caught up fighting in the Azawad region
against a separatist army of ethnic Tuaregs many of whom had
returned home with their weapons from Libya where they had served
in the forces of leader Moammar Gadhafi. Soldiers have complained
that the government was too slow to allocate heavier weaponry.
Oklo has a 75% interest in two gold development projects in the
far west of the country near the Mauritania border. The company
said its projects are operating normally.
Other gold miners in the country, including Randgold Resources
and Anglogold Ashanti Ltd. (ANG.JO), said work continues as normal
after the coup.
Gold Fields said it stopped drilling for a day but then resumed
work. The mining company said it has enough supplies on site to
drill for a few more weeks if borders remain closed.
-By Devon Maylie, Dow Jones Newswires, +27 11 783 7848;
devon.maylie@dowjones.com
(Drew Hinshaw in Senegal contributed to this report.)
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