MANDELA URGES OIL INVESTMENT TO OFFSET GOLD

MANDELA URGES OIL INVESTMENT TO OFFSET GOLD

African National Congress President Nelson Mandela Monday appealed to sub- Saharan countries to invest in oil and mineral operations in South Africa to replace declining gold production and losses in foreign exchange earnings.

Mr. Mandela, in a keynote address to more than 500 delegates at the 2-day sub-Saharan Oil and Minerals Conference here, said South Africa's gold production was expected to decline to 440 metric tons by the year 2007 from 614 metric tons last year at a gold price of $350 per ounce.He said that 66 percent of South Africa's gold reserves had been depleted.

Mr. Mandela said South Africa's west coast had extensive hydrocarbon potential, which he said would probably be explored in the second half of 1994 - the revenue from which is expected to offset lost gold income.

Mr. Mandela also said that a post-apartheid South Africa, over which he is widely expected to be president, would enforce the security of investment.