Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Sanctions against Mali’s military junta were lifted on Sunday after the country’s coup leaders agreed to step aside, allowing a provisional authority to organize elections within 40 days.
The Economic Community of West African States (ECOWAS) announcement came as seven Algerian diplomats kidnapped last week were reportedly released unharmed.
Last Monday, the group imposed a total embargo on Mali, no.3 in Africa for gold production after South Africa and Ghana, closing all borders except for humanitarian aid, denying access to ports, and freezing Malian bank accounts.
The group of soldiers who took power 17 days ago (photo) claimed they did so because President Amadou Toumani Toure mishandled a rebellion in the north, which began in January. Toumani resigned over the weekend.
Randgold Resources (LON:RRS), the biggest gold miner in Mali, was quick to let shareholders know that a settlement had been reached. The company’s CEO, Mark Bristow, said today that the announced resolution of the political crisis had strengthened the company’s confidence in the political maturity of the West African region and its ability to settle conflict situations without external involvement.
Randgold owns and operates the Loulo/Gounkoto mine complex in Mali and also operates Morila, a joint venture with AngloGold Ashanti.
The company said its operations weren’t disrupted much as its fuel supplies were rapidly restored after the coup.
However, top 10 global gold producer Gold Field’s said its drilling operations in Mali were temporarily suspended.
Other miners active in the country include Iamgold, Avion Gold and Cluff Gold.
