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Press release from Marketwire

Mining code changes pose investment threat

Tuesday, February 05, 2013

Mining code changes pose investment threat04:00 EST Tuesday, February 05, 2013JERSEY, CHANNEL ISLANDS--(Marketwire - February 05, 2013) -TSX-V:IAERANDGOLD RESOURCES LIMITEDIncorporated in Jersey, Channel IslandsReg. No. 62686LSE Trading Symbol: RRSNASDAQ Trading Symbol: GOLDMINING CODE CHANGES POSE THREAT TO FUTURE INVESTMENT IN AFRICACape Town, 5 February 2013- Mining code changes proposed by a numberof African countries will deter further investment there, RandgoldResources chief executive Mark Bristow cautioned today.Speaking at the Mining Indaba, Bristow said that with gold explorationand mining shifting from the developed countries to the world'semerging prospective regions, Africa had to compete for investment withSouth America, Asia, the Pacific Rim, Eastern Europe and Russia. WhileAfrica had the advantage of great mineral wealth, its competitorsgenerally had better infrastructures, greater skills pools and moresophisticated economies.Bristow pointed out that in the countries where Randgold hasoperations - Mali, the Cote d'Ivoire and the Democratic Republic ofCongo - the present mining codes returned a substantial slice of thenet revenue pie to the State in spite of the fact that Randgold hadfunded the entire discovery and development cost and carried all therisks."The host country is already a significant if not the mainbeneficiaryof its mining activities. That is why it is disturbing that there is agrowing tendency among the sub-Saharan mining countries to want morewithout giving anything back. Even a moderate change in their currentcodes will diminish these countries' ability to compete for directfixed investment or to encourage reinvestment," Bristow said."There's amuch better way for these countries to get more from theirmining industries, and that is to participate positively in the valuecreation process. As we've seen only too often in the mining industry,mergers and acquisitions hardly ever deliver value to shareholders, letalone other stakeholders. Real value, as I believe Randgold hasdemonstrated over the years, is created by the discovery ofmulti-million ounce gold deposits and their development into profitablemines. Governments' role in this should be firstly to provide astable, business-friendly regime that will attract or at least notdrive away investors, and then to partner the mining company in thedevelopment cycle, helping to drive the project up the value curve andsharing fairly in its proceeds."Click on, or paste the following link into your web browser, to viewthe associated PDF document. This information is provided by RNS The company news service from the London Stock ExchangeENDFOR FURTHER INFORMATION PLEASE CONTACT: Contact Information: RNSCustomerServices0044-207797-4400rns@londonstockexchange.com