Friday, 29th September 2006 (2640 views)

According to industry analyst Alex Gorbansky, 2007 will be a "critical year" for gold mining in Africa.

Speaking at the Denver Gold Forum, Mr Gorbansky discussed the implications of resource nationalism and the above-ground threats posed to miners with interests in the developing world.

"Accessing new reserves is the number one imperative for the gold mining industry, and within this context how companies respond to resource nationalism will be a critical determinant of growth," he said.

Mr Gorbansky, the managing director of Frontier Strategy Group, said that it was important for miners to choose their projects carefully, to avoid countries that posed too much of a risk but still expand mining opportunities as much as possible.

The analyst urged gold corporations to decide for themselves where the best opportunities lay for development, rather than focusing on media speculation or analysis.

"By separating the daily noise from underlying reality, companies can identify undervalued assets in countries that are incorrectly perceived as too risky – the key is finding countries in transition and creating an investment model that mitigates risk."

Mr Gorbansky's company specialises in advising mining companies on the above ground risks of operating in various developing countries and societies.

 

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