The global gold mining industry failed to capitalise on the long bull run in gold and with the recent downturn in gold prices, many companies are again facing a struggle to survive. This paper proposes a counter-trending business model that has proved successful in the challenging environment of West and Central Africa but is equally applicable to the other emerging regions where gold mining has migrated.Central to the author's thesis is the concept of value. This includes the value curve as well as our values relating to the manner in which we enact with our stakeholders. Essentially this posits that true value can only be created by discovering world-class orebodies and driving these up the curve through the optimal development and eventual operation of profitable mines that contribute positively to society. While exploration is the prime mover in this process, its success requires the integration of the full set of geology, mining, metallurgy, finance, human resources and social skills. Equally important are a clear long-term strategy and practical business plans. In contrast, much of the industry has historically lived a boom or bust existence. This caused it to neglect exploration during the last downturn in the early 1990s, which led to a scramble for assets when the price started picking up. In the absence of home-grown projects, companies had to acquire their ounces through mergers and acquisitions at or near the top of the value curve, thus paying a substantial premium for assets that, without additional discoveries, relied on an increasing gold price to deliver value. In addition, shelved prospects of dubious merit were dusted down and marketed vigorously. The current flurry of abandoned projects and write-downs are the chickens coming home to roost.Turning to the application of the value curve model in Africa, the author notes that a mine is a significant force in its countries and community. This should be a force for good, so that the mining companies can generate economic welfare and leave positive legacies. These companies should therefore ensure that, in addition to the statutory licences, they have earned a social licence to operate by showing a genuine commitment to sharing the value created equitably with all stakeholders.Given the inherent hazards of investing in countries with little infrastructure, limited skills and fragile political structures, strict financial and risk filters should be applied to each potential project to ensure that it meets all the company's strategic criteria. Getting the geological model right at the feasibility stage is critically important: the reserve has to be banked before the mine is built, and the nature of the orebody should determine the mine and plant design.The stakeholder philosophy - important everywhere, but essential in Africa - requires the development and maintenance of a strong, mutually beneficial partnership between capital, labour and government. This should extend to a locals-first employment policy, the upskilling of all employees and the establishment of strong management teams led by host country nationals. Building productive relationships with local business partners and suppliers is also indispensable.In conclusion, creating sustainable value through mining can only be achieved through forging real partnerships with host countries and by managing risk and delivering real returns to all stakeholders over the long term._x000D_
*This is an abstract only. No full paper was provided for this abstract.* CITATION:Bristow, M, 2013. Building a successful African gold mining business - managing risk and delivering long-term returns, in Proceedings World Gold 2013, pp 3-4 (The Australasian Institute of Mining and Metallurgy: Melbourne).