20th Oct 2014 15:46
LONDON (Alliance News) - Randgold Resources Ltd Monday appealed to the Democratic Republic of Congo to provide a "fiscal and regulatory environment" to encourage further investment in Randgold and other mining companies, as the Kibali gold mine in which it has a 45% stake ramps up production.
Speaking to local media, Chief Executive Mark Bristow said that he trusts the government's review of its mining code would produce "an investor-friendly" result, and noted that the existing code is skewed in "the State's favour in comparison to mining codes in the surrounding African countries competing for investment."
He also expressed hope that "troublesome issues such as access to new ground and the continuing problem of illegal mining would be addressed effectively."
The company said that the Kibali mine is approaching operation steadiness, and is on track to achieve its goal of an average 650,000 ounces of gold per year over the next 10 years. Randgold says the development of Kibali has injected USD600 million into the Democratic Republic of Congo's economy.
In a speech at the Geological Society at the University of Kinshasa, Bristow urged for a partnership between the mining industry and the government.
"During the recent gold price boom, throughout the world both parties were guilty of seeking short term gains instead of using it as an opportunity to build sustainably profitable mining businesses," Bristow said in the speech. "We must now urgently reconsider our complementary roles in extracting the maximum value from what are major national assets, and ensuring that the proceeds are shared fairly by all the stakeholders."
Shares in Randgold Resources closed down 0.6% at 4,200.00 pence Monday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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