SOURCE: Randgold Resources Ld

October 16, 2012 12:13 ET

African countries may harm own economies

JERSEY, CHANNEL ISLANDS--(Marketwire - Oct 16, 2012) -


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


Kinshasa, DRC, 16 October2012 - Randgold Resources chief executive
Mark Bristow today warned African governments that they risked damage
to their economies by trying to squeeze quick returns from the mining
companies in their countries. Randgold has gold mines in Mali and Cote
d'Ivoire and is currently developing the giant Kibali gold project in
the Democratic Republic of Congo.

Speaking at the DRC's Mining and Energy Indaba, Bristow said current
moves in a number of African countries to amend mining codes on terms
less favourable to the mining companies were dangerously short-sighted
as they did not take into account the increased risk this might present
to the long-term sustainability of the resources industry and its
ability to contribute to job creation and economic development.

Bristow noted that when the Kibali gold mine pours its first gold
scheduled for the end of next year, it would rank as one of the largest
gold mines in Africa and would be an economic boom to the whole of the
DRC."To achieve that, we need the support of all our stakeholders in the
DRC, including the government, as well as of our international
investors," he said."Over a projected lifetime of 16 years, it is
anticipated that more
than 50% of the net pre-tax value generated by the project will be
distributed to the State in the form of taxes, royalties and
dividends. The DRC state will in fact receive more than the other
shareholders who are financing 100% of the project. This figure does
not reflect the jobs it will create or the money it will spend with
local businesses. What's important to note is that the estimates from
our feasibility study are based on the DRC's current mining code and
fiscal parameters. Any drastic changes to these will have a negative
impact on costs, profits and even the life of the mine."

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