10th Feb 2015 09:10
LONDON (Alliance News) - Mark Bristow, chief executive of Randgold Resources PLC, on Tuesday said there must be a renewed commitment in Africa to working with the global mining sector to ensure economic growth in the region.
Speaking at the Mining Indaba event, Bristow said the boom in commodity prices has spurred economic development in the continent, but said both the mining industry and the continent itself must adapt and work together to achieve growth.
"Mining can play a major part in Africa's realising its potential but our potential to contribute fully to the continent's continuing transformation is handicapped by an irresponsible short-term culture which is an unfortunate legacy of the boom years," Bristow says.
"The harsh truth of the matter is that the mining sector has inflicted debt, impairments and write-downs on itself without making provision for its own long-term future, and is in a sorry state. In fact, even at current prices - and this applies to gold in particular - the industry is not viable without a major reinvention," he added.
"Yet even now, almost all Africa's mining countries are revising their mining codes and regulations to increase their share of the miners' revenues. To put it bluntly, they are demanding more money from an industry that is basically insolvent," Bristow said.
"There is only one way to secure mining's future as a creator of real and lasting value for Africa and its people, and that is for the industry and its host governments to renew and strengthen their commitment to a mutually profitable partnership. That partnership should not be focused on the next quarter or the next term of office, but on the long-term development of sustainable industries capable of rewarding all their stakeholders," he argues.
Shares in Randgold were down 1.3% to 5,343.75 pence on Tuesday, one of the worst performers in the FTSE 100.
By Sam Unsted; [email protected]; @SamUAtAlliance
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