CAPE TOWN 0 Mining company Randgold Resources says it is in talks with the Democratic Republic of Congo government to try and prevent the enactment of a new mining code it thinks will severely stunt growth of the sector.
The new code was passed by both houses of parliament last week but still has to be signed by the president before it becomes law.
Randgold chief executive Mark Bristow said at the weekend the mining industry had made detailed and repeated representations to the ministry of mines about what it regarded as very serious flaws in the code since it first surfaced in draft form in 2014.
"It is therefore very disappointing to see that none of our proposals and comments are reflected in the legislation, which is in fact more draconian in its final form than earlier drafts," Bristow said in a statement ahead of the annual mining "indaba" in Cape Town.
He said the new code, among other concerns, attempts to scrap the 10-year stability clause enshrined in a 2002 code which was the basis on which Randgold and other mining companies invested in the DRC.
"It is our express wish that the government grasps the serious consequences this ill-considered code will have on its ability as a country to attract international investment and re-investment to the DRC, and to refer the code back to the ministry of mines for further consultation with the industry," he said.
"If this fails, however, we shall seek to enforce our rights including those which provide for international arbitration."