December 15, 2017

Kibali Gold Mine Project, DRC

Kibali Gold Mine project is a joint venture between Randgold Resources, AngloGold Ashanti and Sikomo a Congolese parastatal.

Randgold Resources is an African focused gold mining and exploration company listed on the London Stock Exchange and NASDAQ and will manage and operate the Kibali Gold Mine project.

The development covering an area of 1 836km2 is located 17 km from Watsa, in the administrative district of Haut-Uélé’ in Oriantale, north-east of the DRC, and 150 km west of Uganda.

The development being constructed in two overlapping phases is set to become one of the largest Gold mines in Africa.Phase one with an estimated budget of US$920 million before provisions, contingencies and escalation commenced construction in the First Quarter of 2012 and is earmarked for completion by the last quarter of 2013.

The scope of the main development entails the construction of the metallurgical plant, the first phase of the tailings storage facility, the first phase of the hydropower stations, the back-up power plant and the completion of the resettlement programme.

The completed development will comprise of an integrated underground and open-pit mine, twin-circuit sulphide and oxide plant with a throughput of 6 million tons per annum, and four self-constructed hydropower stations as well as a standby high-speed thermal power generator for back-up during dry season.

The current life of mine envisages an average annual production of approximately 600, 000 ounces for the first 12 years, with an average grade of 4.1g/t.

Randgold Resources appointed Group Five’ s Projects with vast experience in the structural, mechanical, electrical, instrumentation and piping (SMEIP) disciplines to supply, construct and commission the project within a year.

Group Five Civils were awarded the Civils and Earthworks contract in Joint Venture with two other parties,

Group Five’s Projects and Civil Engineering divisions’ scope of work entailed the majority of the civils surface work, the civils for a hydroelectric power plant, the process plant and a major portion of the tailings and the building of the plant itself. In addition, the installation and erection of steelwork, plate work, mechanical and electrical equipment.

The material on the SMEIP Contract comprise approximately 4000 tons of steelwork, 1400 tons of plate work, 600 tons conveyors, 75km of piping and 90kms of electrical cables .Group Five was also responsible for quality control and expediting of Free Issue steel and piping.

The contract, with an estimated value of R623 million (US$62 million) and R129 million (US$13 million) for SMPP and E&I respectively commenced in September 2012 and is earmarked for completion by September 2013.


Challenges of the contract involved working in a very remote location, which involves complicated logistics, compliance with ever changing and unclear DRC legislation, as well as short time frame of the contract.  Since Group Five Projects has over 6 years’ experience in working in the DRC, the group was well placed to address these challenges. The synergy between the Civils, SMEIP and the engineer DRA allowed the contract to be carried out in short space of time, for instance 840 tons of plate work was welded on site within a space 7 months.

The contract, managed by Jerlyn Richards, has a fulltime Training Officer on site to assist with skills transfer in the areas of boiler making and welding that will benefit the local community and will be utilised by the mine at a later stage.

This contract demonstrates Group Five’s comprehensive multi-disciplinary mining plant and materials handling construction expertise. This continues to be a differentiator in South African and African mining.

Group Five is the recognised leader in African Mining Construction and has successfully carried out contracts in Ghana, Mali, Sierra Leone, Burkina Faso, Nigeria, DRC, Zambia, Zimbabwe, Tanzania, Mozambique and Angola.

Group Five further has permanent operations in Ghana, Burkina Faso, DRC and Tanzania.  These operations carry out mine maintenance and small projects for the local mines in the area they are based.

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