Mining companies and host governments have been urged to take a long-term view when investing in the natural resources sector in Africa.
During a panel discussion at the 2020 Investing in African Mining Indaba on why investors should consider investing in Africa, Vedanta Resources CEO Srinivasan Venkatakrishnan (Venkat) highlighted the continent's "phenomenal potential" given its natural resources endowment.
He stated, however, that one could not take a short-term view on investing in the African mining industry and stressed that mining companies had to do more to "earn the hearts and minds" of their employees and host communities to ensure the success of their operations.
Barrick Gold CEO Mark Bristow agreed that it was essential for both mining companies and governments to take a long-term view on developing not only mines, but also infrastructure that would benefit the generations of the future.
Rio Tinto Energy and Minerals CEO Bold Bataar, meanwhile, highlighted that the growth capital available to invest in mining, globally, was shrinking. He urged governments of mining jurisdictions to avoid creating political uncertainty and rent-seeking that would push investors into investing in less risky jurisdictions.