The Malian government has agreed to grant a 50% corporate tax reduction for the next four years to support the development of a super pit at Randgold Resources’ Gounkoto mine in southwest Mali. The expanded pit will be one of the largest opencast gold mines in Africa and will make a significant contribution to the Loulo-Gounkoto complex’s 10-year plan, which envisages profitable production of more than 600,000 ounces per year (oz/y) at a gold price of $1,000/oz.
Randgold’s agreement with the government is a concession under the original Gounkoto mining convention, which included the right to apply for additional tax exonerations should additional investments be made. Depending on the gold price and input costs, the potential revenue to the Malian government from the Gounkoto expansion would increase by more than 100% when compared with the original Gounkoto feasibility study completed in 2009.
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