Bloomberg News

Resolute, Golden Rim Drop After Coup in Mali: Sydney Mover

March 23, 2012

Resolute Mining Ltd. (RSG) and Golden Rim Resources Ltd., Australian mining companies with operations in Mali, tumbled in Sydney trading after a military coup in the West African country.

Resolute fell 5.8 percent to A$1.79, the biggest decline since Dec. 28 and Golden Rim, which has 79 percent of its assets in Africa, according to data compiled by Bloomberg, fell 4.7 percent to 20.5 Australian cents, its lowest close since Feb. 14. The benchmark S&P/ASX 200 index dropped 0.1 percent.

A curfew was declared in Mali, Africa’s third-biggest gold producer, and its borders closed yesterday by a group of army officers who said they toppled the government. Perth-based Resolute said today its Syama project, located 300 kilometers (190 miles) from the capital Bamako, hasn’t been affected and was operating as normal. Golden Rim (GMR), also based in Perth, said it is monitoring the situation in Mali, where it has two projects in the western and southern parts of the country.

Resolute has 64 percent of its assets located in Mali and generated 25 percent of sales there in fiscal 2011, according to Bloomberg data. Companies including AngloGold Ashanti Ltd. (ANG), the world’s third-largest producer of the metal, and Randgold Resources Ltd. (RRS), also have operations in the African country, which produced about 44 metric tons of gold in 2011.

The mines owned by Johannesburg-based AngloGold, Randgold and IAMGOLD Corp. (IMG) in Mali are also operating normally, the companies said yesterday. AngloGold’s Sydney-traded shares fell 3 percent to A$7.11, the lowest since July 5.

Gunfire continued in Bamako after the army officers said they’d toppled President Amadou Toure’s government and suspended the constitution amid a dispute over the handling of a Touareg insurgency in the north. Troops blocked roads around the presidential palace in the capital on March 21.

To contact the reporter on this story: Soraya Permatasari in Melbourne at soraya@bloomberg.net

To contact the editors responsible for this story: Rebecca Keenan at rkeenan5@bloomberg.net; Andrew Hobbs at ahobbs4@bloomberg.net


Burger King's Young Buns
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus