Projects and Evaluation

KIBALI PROJECT

Progress on the Kibali project was in line with the project development schedule.  The Relocation Action Plan (RAP) continued with 250 families from the Chauffeur village, the first of 14 villages, being resettled.  Houses are now being built at a rate of 35 houses per week and construction of the Catholic Church complex has commenced.  The first primary and secondary schools became operational at the beginning of September to coincide with the start of the new school year.

The appointment of three Congolese contractors as partners in the construction of the RAP houses is expected to enhance the building capacity significantly in Q4.  Development of the construction camp was also initiated by a local contractor in the third quarter.

The detailed mining design progressed and open pit mining tenders are in adjudication.  All major long lead items, including the winder, mills, turbines and open pit mining equipment have been secured.  Grade control drilling in the KCD pit has started and the opening of the pit is planned for the end of Q1 2012.

The earth moving and civil engineering contract packages have been put out to tender and a short list of contractors has been identified.  Final adjudication is in progress and is scheduled to be awarded in Q4 2011.

During the quarter, DRA finalised the detailed design of the metallurgical process facility, all shared service facilities, the TSF and general mine infrastructure.  The current design and engineering contract with DRA is expected to be negotiated and converted to a suitable building and commissioning contract of the metallurgical facility, shared infrastructure and hydrofacilities.

A number of review meetings took place internally and between the partners.  These meetings were aimed at ensuring consensus between the partners in all technical and economic aspects.  Final reviews between the partners are scheduled for Q4 to facilitate design and construction sign-off in the first quarter of 2012.