RRS24 Mar 2012 10:02
JOHANNESBURG (Dow Jones)--Gold miners with operations in Mali said Friday they continue to operate unaffected by the coup that took place in the country this week.
"Nothing has changed. We continue to monitor the situation," a spokesman for AngloGold Ashanti Ltd. (ANG.JO) told Dow Jones Newswires. "Our operations, which are some distance from Bamako, have not been affected."
Randgold Resources Ltd. (GOLD) said its Mali mines, which account for about 64% of its annual production, also continue to operate as normal.
Despite reassurances that mine output hasn't been hit, shares for mining companies with assets in the country fell again Friday as the market continued to digest the news that rebel soldiers in Mali, Africa's third largest gold producer, sent the country's president into hiding.
AngloGold's Morila mine, which has an annual gold output of around 85,000-95,000 ounces, is about 180 kilometers southeast of Bamako, the nation's capital. The company also has interests in Mali's Yatela and Sadiola gold mines, both located in southwest Mali.
Randgold also operates the Loulo mine with 80% ownership and 20% owned by the government, and runs the Morila mine jointly with AngloGold Ashanti Ltd. (ANG.JO).
Political risk analysts warned, however, that protracted unrest following the coup could hinder companies ability to transport goods in and out of the country, with borders closed.
"The coup will cause direct operational disruptions, yet security in large extractive projects is unlikely to be a risk in the short term," a risk analyst group Maplecroft said.
Gold exports are important for Mali, accounting for about 75% of total exports in 2011, Maplecroft said, adding any changes in government may not see drastic mine grabs. But there could be increases in mining taxes to help fund a counter-insurgency against the heavily armed Tuareg uprising in the north.
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