2nd UPDATE: Mali Junta Requests Gold Mining Continues
29 March 2012 - 2:20AM
Dow Jones News
Coup leaders in Mali, Africa's third largest gold producer, met
with gold mining companies this week to request that gold miners
continue operating and to reassure them that the all is under
control and the state still functioning, two gold miners said.
Randgold Resources Ltd. (GOLD), Mali's largest producer, and
Australia-based Oklo Resources Ltd. (OKU.AU) along with five other
major foreign-owned gold producers in Mali met with senior
representatives of the coup leaders Monday.
The representatives assured them that the "situation was under
control" and that the "state was still functioning," said Randgold,
which derives about 64% of its gold from its mines in Mali.
Meanwhile Oklo, which is developing two gold mines in Mali, said
one of the senior representative "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.
Randgold said all borders, including Bamako airport, opened for
traffic as of Tuesday. 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 was able to bring fuel through
the Senegal border to its mine in the country over the weekend and
continues to operate all it mines in the country.
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 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 and Alex MacDonald in London
contributed to this report.)
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