Randgold CEO says Ivory Coast power cuts weigh on Tongon

TONGON, Ivory Coast, April 25 (Reuters) - Power cuts in Ivory Coast have hurt output and equipment at Randgold Resources' Tongon gold mine in the first three months of this year, Chief Executive Mark Bristow said.

Ivory Coast, French-speaking West Africa's largest economy, is struggling to meet a surge in demand for electricity to power its expanding postwar economy. Power shortages are a widespread problem in Africa.

"The cuts and the instability of the current impact not only the production but also the equipment," Bristow told journalists late on Sunday. He added that production had been low in the first quarter but did not give details.

Randgold CEO said its mine was Ivory Coast's biggest power consumer, paying 8 billion CFA francs ($14 million) per year for power.

The mining sector is in talks with the government to cut power prices.

Despite the cuts, Randgold forecasts the mine's output to rise this year to 290,000 oz, from 242,948 oz last year, Bristow said.

The mine will also increase its own power capacity to 25 megawatts by acquiring six power generators for $4 million.

Bristow said Randgold, which owns an 89-percent stake in the mine, still had high hopes that its exploration permits for Boundiali region in the north would reveal new resources.

"I'm convinced we can have a mine in Boundiali but we have to continue the research to see if it can be economically profitable," he said.

($1 = 582.845) (Reporting by Loucoumane Coulibaly; Writing by Marine Pennetier; Editing by Makini Brice and)