JERSEY, CHANNEL ISLANDS--(Marketwired - Jul 10, 2013) - Randgold Resources (
TSX- GOLD RANDGOLD RESOURCES LIMITED Incorporated in Jersey, Channel Islands Reg. No. 62686 LSE Trading Symbol: RRS NASDAQ Trading Symbol: GOLD ("Randgold Resources" or "Randgold") GOLD PRICE DOWNTURN INTENSIFIES NEED FOR STAKEHOLDER PARTNERSHIP Johannesburg, 10 July 2013 - The recent drop in the gold price has highlighted the need for governments of mineral-rich countries to cooperate with mining companies in the optimal development of their resources, says Randgold Resources chief executive Mark Bristow. Speaking at a media briefing here, Bristow said the two parties should be united in a common purpose but sometimes seemed like ships passing each other in the night. "Governments are tempted to harvest the green shoots before the enterprise comes to fruition; the gold mining industry tends to exaggerate the risk without fully addressing its own internal problems," he said. This disconnect arose from the mistaken perception that gold mining companies must have made extraordinary profits during the long bull run in the gold price, Bristow said. In fact, with escalating costs cramping margins, most gold companies had not managed to create real value and at the height of the boom the industry had actually been ex growth. The declining gold price meant that many gold mining companies were now again having to fight for survival, as evidenced by a spate of write-downs and abandoned projects."The pursuit of quality assets has led gold companies away from their traditional hunting grounds and towards regions which are more prospective but present a greater risk. All these regions are now competing with each other for mining investment, and while Africa has the advantage of great mineral wealth, its competitors generally have better infrastructures, greater skills pools and more sophisticated economies," he said. In order for African countries to attract mining investment and benefit fully from their mining industries, they should participate fully in the value creation process. Please click on the following link to view the full announcement. http://www.rns-pdf.londonstockexchange.com/rns/0018J_1-2013-7-10.pdf This information is provided by RNS The company news service from the London Stock Exchange END
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