Mark Bristow
CAPE TOWN – The growing tendency among governments and investors to demand almost immediate benefits is destroying the mining industry’s ability to deliver on its full potential, says Barrick Corporation CEO Mark Bristow.
Speaking at African Mining Indaba 2022 on Monday, Bristow noted that a mine was like a human body, and that its longevity depended on how well it was treated.
“Successful, large-scale mines like Barrick’s need constant reinvestment to remain profitable, which is often at odds with governments’ urge to take all they can get as soon as they can get it."
Bristow noted that Barrick had witnessed it more than once in Zambia in the past, as well as in the Democratic Republic of Congo, and in Mali.
Bristow said mining required mutual trust, transparency and long-term commitment to work.
“It goes without saying that corruption destroys a country; its ability to build trust and to attract long-term investment.”
Bristow noted that some jurisdictions were now looking at returning to a “fairer dispensation”, but he believed that there was some way to go “to repair the damage”.
He added that mining required the long-term investment of substantial capital, but that doing so depended on investors’ assessment of the fairness of a country’s mining codes and conventions, and the level of confidence mining companies have in the stability of these conditions.
“If these conditions are not honored, it will have a serious impact on new investment.
“Similarly, increasing the tax burden on mines year on year will drive the cost of the mining to a point where the ore bodies are left in the ground because they are not economically viable.”
Bristow said he was renewing his plea for government and miners to work together in a long-term partnership that will benefit them and their stakeholders equally, which should pave the way for “even greater and more rewarding ventures”.
“I call it a partnership for prosperity. Together we can go a long way towards building Africa into the powerhouse it can become.”