REGULATORY ENVIRONMENT
Déjà vu as mines boss decries DRC’s unilateral resources code
For a CEO who has spurned SA and its uncertain regulatory environment, changes in the mining code of the Democratic Republic of Congo (DRC) have caught the outspoken Mark Bristow up in the maelstrom of resource nationalism after a $3bn investment in the jointly owned Kibali gold mine in that country. For London-listed Randgold Resources and its partner, SA’s AngloGold Ashanti, which itself is extricating itself from SA, the yet-to-be-promulgated mining codes in the DRC are not debilitating but they have certainly sent the wrong message to foreign investors and have an uncanny resemblance to SA’s lurch into a regulatory crisis, with talks with the mining industry apparently disregarded in favour of damaging rules. Kibali is one of the big gold projects in Africa and it is in arguably one of the riskiest countries, where several mining companies have faltered after hefty investments in projects. Kibali is a big, modern mine, 45% owned by each company. Bristow says it is a showcase of ...
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