'Mining investment key to unlocking Africa's economic potential'

Investing in Africa’s gold mining industry is key to unlocking the economic opportunities on the continent. According to Mark Bristow, CEO of Randgold Resources, the mining sector is currently in a sorry state thanks to a commodities crash for which most mining houses did not prepare. “This sector experienced a virtually unprecedented boom that peaked in 2011 when the market value of the sector was around $2.3 trillion. Golden opportunities were missed to prepare for the bleak times and no one expected to see the turns resulting in the industry now having a market value half that of 2011,” said Bristow. “Over the past twenty years the industry has been affected by a very real change in the geographic and risk profile of mining. We have made major progress and the development of the African mining sector has achieved much.” But, said Bristow, it is important to not lose the gains made in the past 20 years, and despite the current slump in the market it is essential to continue to invest in mining on the continent as it remains the key to unlocking the economic potential of Africa. “To do that we as an industry need to look at developing longterm visions and strategies. Africa’s future needs the mining sector,” he said. “It is important to note that the commodity prices will remain volatile and we will continue to operate in difficult circumstances, facing challenges such as political instability, the lack of power and infrastructure. Yet the emergence of Africa as a very real global economic player is tangible and can be achieved.” Bristow said it was important for governments and private companies to work together. “Governments need to ensure there are safe and stable political environments while mining houses have to guard against exploiting equity markets at the expense of host countries and act in a transparent and open manner.” He warned that the next few years would not be easy for the mining sector – especially with most mining countries in Africa reforming mining codes and legislation in an effort to get more of the pie.