May 17, 2020

Randgold Resources and the Tongon Gold Mine

mining
Dale Benton
2 min
Randgold Resources and the Tongon Gold Mine
Randgold Resources, the major gold miner with exploration projects in the greenstone belts of West and Central Africa, is currently negotiating with som...

Randgold Resources, the major gold miner with exploration projects in the greenstone belts of West and Central Africa, is currently negotiating with some of its employees to end an illegal sit in at the Tongon mine.

We take this opportunity to find out a little more about the Tongon mine:

Located within the Nielle exploration permit, the Tongon Mine is situated in the north of Cote d’lvoire, jusr south of the border with Mali.

Randgold owns 89 percent of the mine, with the State of Cote d’lvoire owning 10 percent and 1 percent held by a local company.

Mining began at Tongon in 2010, with gold production from the open pit operation beginning in December the same year.

Tongon is made up of two open pit operations, helpfully named the Southern and Northern Zones. With a seven-year life of mine, Randgold is aiming to add to the current reserves through exploration which will of course succeed in extending that.

Since mining at Tongon began, a total of 242,948 oz of gold has been produced, earning a profit of $75.4 million. Tongon has an estimated 2 Moz in total reserves.

Randgold, through Tongon, is committed to minimising the influx of outsiders into the area and avoiding any disruption to community life. The company employs locally first and spreading recruitment between local villages, followed then by regionally and then nationally before internationally.  Well, the proof is in the pudding – or in this case, the numbers: upwards of 97 percent of employees at the mine are Ivoirians. As of 2015, 79 percent of the operational labour is from local villages and overall, the operational labour complement for Tongon comprises 1,767 personnel.

 

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Dec 16, 2020

Zimbabwe targets £8.8bn mining industry by 2023

Zimbabwe
exploration
Gold
Dominic Ellis
3 min
Government plans to fast-track exploration, evaluation and digitalisation of selected reserved mining areas
Government plans to fast-track exploration, evaluation and digitalisation of selected reserved mining areas...

Zimbabwe’s government plans to fast-track exploration, evaluation and digitalisation of selected reserved mining areas under the Ministry of Mines and Mining Development as part of wider measures to achieve a £8.8 billion mining industry by 2023, according to a senior government minister.

Information Minister Monica Mutsvangwa said other plans include stopping the issuance of special grants in the reserved areas under the Ministry of Mines and Mining Development until the exploration and evaluation is complete and a robust value addition program for diamonds is implemented. 

Mutsvangwa was speaking at a post-cabinet media briefing on December 15.

She adds that the issuance and renewal of special grants for energy should also be based on the financial and technical capacity to value add all types of coal, as well as for ideal exploration of Coal Bed Methane.

For renewal of special grants, consideration should take into account the period the Special Grant has been held as well as plans with milestones for value addition of the special grant, Mutsvangwa says. She adds that the Zimbabwean government expects gold to drive the mining sector in order to achieve the ambitious target, with the precious metal expected to contribute approximately £2.96 billion to the overall target.

Mining is one of Zimbabwe’s major contributors to its economy, alongside agriculture, which is the mainstay. The mining sector accounted for more than 60 percent of the country’s foreign currency receipts in 2019, and contributed around 16 percent to national Gross Domestic Product, the Chamber of Mines says.

The country’s mining industry is focused on a diverse range of small to medium mining operations. The most important minerals produced in Zimbabwe include gold, asbestos, chromite, coal and base metals.

Zimbabwe expects its economy to expand by 7.4 percent in 2021 from a projected contraction of 4.5 percent this year, due to the effects of drought and the COVID-19 global pandemic.

When presenting the 2021 National Budget in November this year, Finance and Economic Development Minister, Professor Mthuli Ncube, said that the mining sector is projected to rebound by 11 percent next year after surviving a COVID-19 induced shock that saw the sector contract by 4.7 percent in 2020. In September, mining bans in national parks were introduced, according to news agencies.

He added that the National Budget would allocate £1 billion towards the operations of the ministry for planning, promotion and exploration, data capturing, and automation, among other key mining processes.

Other factors necessary for the achievement of the £8.8 billion target include a stable macroeconomic environment, policy consistency, and availability of long-term capital to fund mining projects along the entire mineral value chain, the minister said. 

Stopping "illicit financial flows" from gold smuggling is another key issue to address, according to media reports.

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