SOURCE: Randgold Resources

April 12, 2010 12:32 ET

Partnership Between Private and Public Sectors Essential for African Gold Mining

DAKAR, SENEGAL--(Marketwire - April 12, 2010) -  The development of sustainably profitable gold mining industries in Africa requires a committed long-term partnership between the mining companies, their investors and the governments of their host countries, Randgold Resources (NASDAQ: GOLD) chief executive Mark Bristow said here today.

Speaking on the first day of the Senegal International Mining Conference, Bristow said while West and Central Africa held great potential for further world-class gold discoveries, the overpromotion of marginal assets by speculators had disappointed many expectations, including those of the host countries.

"The reality is that driving a mining asset up the value curve is a tough business which takes time -- five to ten years -- as well as tenacity, expertise and resources. Not many companies can marshal this combination of qualities," he said.

Bristow said that, taken as a whole, Africa was no more risky for mining companies than other emerging regions. It did, however, present certain specific challenges, notably in terms of capacity and infrastructure. Governments should diminish these hurdles by providing a physical and regulatory environment which was supportive of mining development.

"True value creation is a complex, lengthy and integrated process. The mining companies who succeed in Africa have a proper growth strategy and a commitment to the long term. They are not focused on the next quarter's results but have a vision which ranges all the way from realistic feasibility studies to post-mining rehabilitation. Particularly in Africa, with its history of exploitation, success in mining also requires a genuine partnership between companies, their shareholders, and the governments and people of their host countries. This partnership should share a real interest in building capacity and delivering returns. That way it will generate not only sustainably profitable mining businesses but make a meaningful and much-needed contribution to the wider economic welfare of these countries," he said.

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RANDGOLD RESOURCES LIMITED
Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
Nasdaq Trading Symbol: GOLD

Contact Information

  • RANDGOLD RESOURCES ENQUIRIES:
    Chief Executive
    Dr Mark Bristow
    +223 6675 0122
    +44 788 071 1386

    Group General Manager West Africa
    Mahamadou Samaké
    +223 6675 6136

    Senegal Country Manager
    David Mbaye
    +221 77 638 57 48

    Investor & Media Relations
    Kathy du Plessis
    +44 20 7557 7738
    Email Contact

    Website: www.randgoldresources.com