The share price of Randgold Resources tumbled following reports of an attempted coup in Mali, where it has three mines. Rebel soldiers have shut down border crossings and forced Mali’s President, Amadou Toumani Toure, to flee his palace. It has been claimed that many of the rebels had fought as mercenaries for Colonel Gaddafi in Libya, before returning home to join the rebellion against the government, armed to the teeth at the late Colonel's expense.
Details remain sketchy, but Randgold insists that its operations at Loulo and Gounkoto, in addition to the firm's Morila joint venture, are unaffected by the strife. Less than 24 hours earlier, Randgold’s chief executive, Mark Bristow, announced the establishment of “standalone operation” with the Mali government to administer operations at the Gountoko mine near the border with Senegal.
This highlights the fact that political insurrection remains a risk in the region, despite a period of relative stability. Admittedly, the operations of Randgold were unaffected by the residual effects of post-election turmoil in neighbouring Côte d'Ivoire, but, at the very least, operations could be hit if transport routes in and out of landlocked Mali are compromised.
