Randgold keen on DRC mining code review, partnerships to develop young industry

JOHANNESBURG () – LSE-listed Randgold Resources on Friday said the mining industry would welcome a review of the Democratic Republic of the Congo's (DRC’s) existing mining code in a “young” industry still open to development.

However, this review needs to be subject to an inclusive debate, with government and the mining companies agreeing on their needs and objectives and committing to a long-term growth strategy where the main criterion is the “profitability of the mines and not their size”.

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“The DRC has all the ingredients of a sustainable mining industry but the development of that potential will require a mutually beneficial partnership between the country's government and the mining sector,” said Randgold CEO Mark Bristow in a statement.

“We trust government will not take the path of two years ago, when it first devised a new code without reference to the industry and then withdrew it when the implications of offering investors a zero return sank in," he added.

Government and industry must each accept and deliver on their specific responsibilities, Bristow said.

Government is expected to provide and honour enabling legislation, establish a stable environment, stimulate infrastructural development through tax incentives, manage its resource inventory optimally and build the required administrative capacity.

The private sector is responsible for exploration, proving the profitability and life of its projects and continuing to replace its reserves as they are depleted by mining to ensure all stakeholders benefit from the projects on a sustained basis.

“Equally important is the industry's responsibility to invest in the upskilling and empowerment of its host country's people, so that its mines can be operated and managed by local nationals,” he noted.