Chart: Which countries are falling behind in gold mine production
India tops the global ranking with demand nearly 50 times that of its mined supply.
Gold miners should not favour one stakeholder class over another as they should ensure that all stakeholders benefit equitably from their activities, Chief Executive of Randgold Resources (LON:RRS) Mark Bristow said Wednesday.
Speaking at the Mines and Money conference in London, Bristow highlighted the balance between satisfying stakeholders, especially the host countries of mining operations and shareholders of the company, saying that both can be satisfied through sustainable profitability.
“Mining anywhere, but particularly in emerging regions, exploits a country’s national assets and so it’s important that the host country and its people benefit from this,” Bristow said.
“Arguably, a mining company’s primary responsibility is to its host country, although of course shareholders are also critically important because without investment there would be no mining projects. Mining companies and their host governments should be aligned in the drive to attract such investment and to ensure that all shareholders benefit,” he added.
Head above water
Bristow (55) founded Randgold in the 1990s. Under his management, the company has grown to have a market value of $7 billion (4.2 billion pounds) and be the U.K.’s biggest gold producer.
A geologist by training, Bristow led the discoveries of three gold mines in Mali holding 20 million ounces in deposits. The company has also built the Kibali mine in the DRC and Tongon in Ivory Coast.
Thanks to the executive’s conservative policies, Randgold has not needed to write down its reserves and resources as the gold price dropped, unlike most of its gold peers. This is because the firm has calculated its reserves at $1,000 per ounce and its resources at $1,500 per once for the past three years.
Image courtesy of Mines and Money, via Flickr.
