TIDMRRS
RNS Number : 2215Z
Randgold Resources Ld
04 February 2014
RANDGOLD RESOURCES LIMITED
Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
Nasdaq Trading Symbol: GOLD
BRISTOW TO AFRICA'S MINING COUNTRIES: MUST TRY HARDER
Cape Town, 4 February 2014 - Growing uncertainty about the
regulatory environments and tax regimes in Africa's mining
jurisdictions is discouraging international investment in these
countries' mining industries, Randgold Resources chief executive
Mark Bristow said today.
Speaking at the annual Mining Indaba, Bristow said that for
Africa's abundant mineral wealth to be brought to account, the
governments of the mineral-rich countries and the investors in and
developers of those assets should recognise that their interests
are closely aligned and work together. "In other words, what Africa
needs are partnerships for prosperity," he said.
Bristow noted that the Fraser Institute in Canada, which
annually surveys some 100 mining jurisdictions across the world to
rate their overall attractiveness to investors, or Policy Potential
Index (PPI), had recently downgraded Africa's average PPI for the
fifth year running. Survey respondents cited increasing uncertainty
about African countries' intentions regarding their mineral
resources as the key factor in diminishing investor confidence.
"The mining code reviews of the past few years and those
currently underway in a number of African countries have
undoubtedly aggravated this uncertainty by creating the impression
that their governments not only want a bigger slice of the pie,
they want to take that before the pie is even baked," he said.
This, he added, was happening at the time when the gold mining
industry was severely pressured by the drop in the gold price and
was cutting back on exploration and project development.
"Randgold's own experience has shown that, despite the stresses
on both sides, mutually beneficial partnerships between governments
and miners are still possible," Bristow said.
He cited Randgold's involvement in Côte d'Ivoire as one example
of such a partnership. Thanks to strong local relationships, the
company was able to develop its Tongon mine in the aftermath of a
civil war and then commissioned it successfully during another
period of strife. It also worked with the government in its
revision of the country's mining code and this cooperation has
resulted in an investor-friendly final draft currently being
ratified.
Bristow said Côte d'Ivoire's willingness to work with mining
companies on equitable terms had not gone unnoticed. Several
international companies were expanding their presence there and
Randgold itself was building a portfolio of very promising Ivorian
permits.
Mali has also demonstrated the benefits a committed partnership
could deliver, he added. Randgold has been in that country for
almost 20 years and while dealing with its share of challenges has
grown into a major contributor to the Malian economy - the
company's Loulo-Gounkoto complex there ranks as one of the largest
in Africa - and elevated Mali into Africa's top three gold
producers.
On the downside, Bristow said, the current mining code review
process in the Democratic Republic of Congo - host to Randgold's
recently commissioned Kibali mine - had been rather confused. "I
hope there will soon be a high-level government intervention to
ensure that the investment platform the DRC created is not now
damaged," he said.
Senegal, where Randgold's Massawa project is located, was
another cause for concern. The country has announced its intention
of revising its mining code with the clear intention of collecting
more revenue and, unlike Randgold's other host countries, it
proposes to do this without an open engagement with the
industry.
"We think this is misguided," Bristow said. "Despite its record
of political stability, Senegal has not succeeded in attracting any
significant investment in its fledgling mining industry. Its focus
should be on encouraging investment in building that industry on
the back of the country's undisputed prospectivity."
RANDGOLD ENQUIRIES
Chief executive Investor & media relations
Mark Bristow Kathy du Plessis
+44 788 071 1386 +44 20 7557 7738
+223 66 75 01 22 Email: randgold@dpapr.com
Website: www.randgoldresources.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Except for
the historical information contained herein, the matters discussed
in this news release are forward-looking statements within the
meaning of Section 27A of the US Securities Act of 1933 and Section
21E of the US Securities Exchange Act of 1934, and applicable
Canadian securities legislation. Forward-looking statements
include, but are not limited to, statements with respect to the
future price of gold, the estimation of mineral reserves and
resources, the realisation of mineral reserve estimates, the timing
and amount of estimated future production, costs of production,
reserve determination and reserve conversion rates. Generally,
these forward-looking statements can be identified by the use of
forward-looking terminology such as 'will', 'plans', 'expects' or
'does not expect', 'is expected', 'budget', 'scheduled',
'estimates', 'forecasts', 'intends', 'anticipates' or 'does not
anticipate', or 'believes', or variations of such words and phrases
or state that certain actions, events or results 'may', 'could',
'would', 'might' or 'will be taken', 'occur' or 'be achieved'.
Assumptions upon which such forward-looking statements are based
are in turn based on factors and events that are not within the
control of Randgold Resources Limited ('Randgold') and there is no
assurance they will prove to be correct. Forward-looking statements
are subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity,
performance or achievements of Randgold to be materially different
from those expressed or implied by such forward-looking statements,
including but not limited to: risks related to mining operations,
including political risks and instability and risks related to
international operations, actual results of current exploration
activities, conclusions of economic evaluations, changes in project
parameters as plans continue to be refined, as well as those
factors discussed in Randgold's filings with the US Securities and
Exchange Commission (the 'SEC'). Although Randgold has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Randgold does not undertake
to update any forward-looking statements herein, except in
accordance with applicable securities laws. CAUTIONARY NOTE TO US
INVESTORS: The SEC permits companies, in their filings with the
SEC, to disclose only proven and probable ore reserves. We use
certain terms in this release, such as 'resources', that the SEC
does not recognise and strictly prohibits us from including in our
filings with the SEC. Investors are cautioned not to assume that
all or any parts of our resources will ever be converted into
reserves which qualify as 'proven and probable reserves' for the
purposes of the SEC's Industry Guide number 7.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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