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NOTE 1. NATURE OF OPERATIONS
The company and its subsidiaries (the “group”) together with its joint ventures carry out gold mining activities and exploration. Currently there are two operating mines in Mali, West Africa:
- the Morila mine, which commenced production in October 2000, and the Loulo mine, which commenced production in November 2005. The group also has a portfolio of exploration projects in West and East Africa. The interests of the group in its operating mines are held through Morila SA (“Morila”) which owns the Morila mine and Somilo SA (“Somilo”) which owns the Loulo mine. Randgold Resources holds an effective 40% interest in Morila, following the sale to AngloGold Ashanti Limited on 3 July 2000 of one half of Randgold Resources’ wholly-owned subsidiary, Morila SA. Management of Morila Limited, the 80% shareholder of Morila, is effected through a joint venture committee, with Randgold Resources and AngloGold Ashanti each appointing one half of the members of the committee. During 2007, AngloGold Services Mali SA (“Anser”), a subsidiary of AngloGold Ashanti, was the operator of Morila. On 15 February 2008, Randgold Resources assumed responsibility for the operatorship.
- Randgold Resources holds an effective 80% interest in Loulo. The remaining 20% interest is held by the Malian government. Randgold Resources is the operator of Loulo.
- The group has various exploration programmes ranging from substantial to early stage in western Mali, around Morila and in Senegal, Burkina Faso, Tanzania, Côte d’Ivoire and Ghana.
- Site establishment has started at Tongon in Côte d’Ivoire ahead of the main construction programme and orders have been placed for all the long lead time items, including the mills and mining fleet. Progress has been made regarding the approval of the mining convention.
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