Randgold Resources CEO Says Governments of Mineral-Rich Countries Need to Cooperate with Mining Companies

The recent drop in the gold price hashighlighted the need for governments of mineral-rich countries to cooperate with mining companies in the optimal development of theirresources, says Randgold Resources

chief executive Mark Bristow.Speaking at a media briefing here, Bristow said the two parties shouldbe united in a common…The recent drop in the gold price hashighlighted the need for governments of mineral-rich countries to cooperate with mining companies in the optimal development of theirresources, says Randgold Resources (NASDAQ: GOLD chief executive Mark Bristow.Speaking at a media briefing here, Bristow said the two parties shouldbe united in a common purpose but sometimes seemed like ships passingeach other in the night. "Governments are tempted to harvest the greenshoots before the enterprise comes to fruition; the gold miningindustry tends to exaggerate the risk without fully addressing its owninternal problems," he said.This disconnect arose from the mistaken perception that gold miningcompanies must have made extraordinary profits during the long bull runin the gold price, Bristow said. In fact, with escalating costscramping margins, most gold companies had not managed to create realvalue and at the height of the boom the industry had actually been exgrowth. The declining gold price meant that many gold mining companieswere now again having to fight for survival, as