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Shaft Sinkers Starts Work on Randgold’s Kibali Underground Mine

Shaft Sinkers Holdings Plc (SHFT) began work on an underground mine for the Kibali gold project operated by Randgold Resources Ltd. (RRS) in the Democratic Republic of Congo.

The South African developer of shafts for underground mines started work on a 760-meter (2500-foot) vertical shaft, it said in a statement today. It won the contract, with a value of about 82.2 million pounds ($132 million), last year and seeks to complete it in November 2017.

Kibali, which started production in September, will be one of the largest gold mines in Africa when it reaches its annual output target of 600,000 ounces after the underground mine is completed, Randgold’s Chief Executive Officer Mark Bristow said in the statement. Randgold and AngloGold Ashanti Ltd. (ANG) each own 45 percent of the mine.

Shaft Sinkers built its business in South Africa, where some of the world’s deepest mining shafts are located. It sees growing demand outside its home market for developing vertical shafts to supplement existing open-pit operations, Chief Executive Officer Alon Davidov said in the statement.

The company in August was named as the preferred bidder for a $75 million contract to build a shaft for Kazchrome JSC in Kazakhstan.

To contact the reporter on this story: Firat Kayakiran in London at fkayakiran@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

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