News Column

African countries may harm own economies

Oct 16 2012 12:00AM



JERSEY, CHANNEL ISLANDS -- (Marketwire) -- 10/16/12 --

RANDGOLD RESOURCES LIMITEDIncorporated in Jersey, Channel IslandsReg. No. 62686LSE Trading Symbol: RRSNasdaq Trading Symbol: GOLD


Kinshasa, DRC, 16 October 2012 - Randgold Resources chief executiveMark Bristow today warned African governments that they risked damageto their economies by trying to squeeze quick returns from the miningcompanies in their countries. Randgold has gold mines in Mali and Coted'Ivoire and is currently developing the giant Kibali gold project inthe Democratic Republic of Congo.

Speaking at the DRC's Mining and Energy Indaba, Bristow said currentmoves in a number of African countries to amend mining codes on termsless favourable to the mining companies were dangerously short-sightedas they did not take into account the increased risk this might presentto the long-term sustainability of the resources industry and itsability to contribute to job creation and economic development.

Bristow noted that when the Kibali gold mine pours its first goldscheduled for the end of next year, it would rank as one of the largestgold mines in Africa and would be an economic boom to the whole of theDRC."To achieve that, we need the support of all our stakeholders in theDRC, including the government, as well as of our internationalinvestors," he said."Over a projected lifetime of 16 years, it isanticipated that morethan 50% of the net pre-tax value generated by the project will bedistributed to the State in the form of taxes, royalties anddividends. The DRC state will in fact receive more than the othershareholders who are financing 100% of the project. This figure doesnot reflect the jobs it will create or the money it will spend withlocal businesses. What's important to note is that the estimates fromour feasibility study are based on the DRC's current mining code andfiscal parameters. Any drastic changes to these will have a negativeimpact on costs, profits and even the life of the mine."

He said that increasing the tax burden on those who had taken the riskof investing in the DRC would not only damage the country's fledglingmining industry, it would also discourage future investors fromdeveloping new operations which would make profits, pay taxes andprovide employment. "I need hardly tell you how damaging that would beto the growth of the DRC and its economy," he said.

ENQUIRIES:Mark Bristow Willem JacobsKibali chairman & Randgold Resources Randgold GM operations Central &CEO East Africa+223 6675 0122 / +44 788 071 1386 +243 991 001 222Louis Watum Kathy du PlessisRandgold country manager DRC & GM Randgold investor & mediaKibali Goldmines relations+243 994 035464 / +243 817 153 062 +44 20 7557 7738 / randgoldresources@dpapr.comWebsite:

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Except for thehistorical information contained herein, the matters discussed in thisnews release are forward-looking statements within the meaning ofSection 27A of the US Securities Act of 1933 and Section 21E of the USSecurities Exchange Act of 1934, and applicable Canadian securitieslegislation. Forward-looking statements include, but are not limitedto, statements with respect to the future price of gold, the estimationof mineral reserves and resources, the realisation of mineral reserveestimates, the timing and amount of estimated future production, costsof production, reserve determination and reserve conversion rates.Generally, these forward-looking statements can be identified by theuse of forward-looking terminology such as 'will', 'plans', 'expects'or 'does not expect', 'is expected', 'budget', 'scheduled','estimates','forecasts', 'intends', 'anticipates' or 'does notanticipate', or 'believes', or variations of such words and phrases orstate that certain actions, events or results 'may', 'could','would','might' or 'will be taken', 'occur' or 'be achieved'. Assumptionsuponwhich such forward-looking statements are based are in turn based onfactors and events that are not within the control of Randgold andthere is no assurance they will prove to be correct. Forward-lookingstatements are subject to known and unknown risks, uncertainties andother factors that may cause the actual results, level of activity,performance or achievements of Randgold to be materially different fromthose expressed or implied by such forward-looking statements,including but not limited to: risks related to the integration ofRandgold and Moto, risks related to mining operations, includingpolitical risks and instability and risks related to internationaloperations, actual results of current exploration activities,conclusions of economic evaluations, changes in project parameters asplans continue to be refined, as well as those factors discussed in thesection entitled 'Risk Factors' in Randgold's annual report on Form20-F for the year ended 31 December 2011 which was filed with the USSecurities and Exchange Commission (the 'SEC') on 31 March 2012.Although Randgold has attempted to identify important factors thatcould cause actual results to differ materially from those contained inforward-looking statements, there may be other factors that causeresults not to be as anticipated, estimated or intended. There can beno assurance that such statements will prove to be accurate, as actualresults and future events could differ materially from thoseanticipated in such statements. Accordingly, readers should not placeundue reliance on forward-looking statements. Randgold does notundertake to update any forward-looking statements herein, except inaccordance with applicable securities laws.

CAUTIONARY NOTE TO US INVESTORS: the SEC permits companies, in theirfilings with the SEC, to disclose only proven and probable orereserves. We use certain terms in this release, such as 'resources',that the SEC does not recognise and strictly prohibits us fromincluding in our filings with the SEC. Investors are cautioned not toassume that all or any parts of our resources will ever be convertedinto reserves which qualify as 'proven and probable reserves' for thepurposes of the SEC's Industry Guide number 7.

This information is provided by RNS The company news service from the London Stock ExchangeEND

Email Contact

Source: Marketwire

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters