Ghana, South Africa To co-operate In Opposing Gold Sales
July 16, 1999
ACCRA, Ghana (PANA) - Ghana Friday said it will cooperate with South Africa and other gold producing countries in Africa to mount a firm opposition to the proposed International Monetary Fund gold sale and the current British gold sale which has thrown gold prices down to a 20-year low.
The country's mines and energy minister, Fred Ohene Kena, said Ghana cannot sit unconcerned about the effects of the gold sales on the economies of producing countries.
''We condemn this move in no uncertain terms. We need to be very vociferous in letting the international community know what this means to our economies,'' he told a six-member South African delegation, led by Susam Shabangu, deputy minister of minerals and energy.
The delegation is in Accra to drum up support for a concerted effort aimed at stopping the British gold sales and intended sales by the IMF, World Bank and five other central banks in Europe.
Kena said even though some mines have started cutting costs to stay in line with production targets, ''this is going to throw gold production out of gear, create small operators, in the form of galamsey, which has destructive effects on the environment as well.''
''We cannot let this continue, as before long such mines cannot cope and will have to resort to mass lay-offs, not counting the multiplier effect it will have on highly indebted poor countries,'' he added.
The price of gold, which before the British sale was about 261 US dollars an ounce, is now at about 255 dollars, a figure that is far below the 278 dollars an ounce at the beginning of the year.
Shabangu said the South African delegation is ''excited about the minister's response, especially as he believes in our stand and proposals. He agrees with our strategies and proposals.''
She said the current state of the gold industry is critical and of major concern to gold producing nations as well as investors seeking to invest in Africa.
''Indeed, given the present unstable conditions, investors may not want to come and invest at all,'' she added.
She said if the inevitable happens and Africa's plea is snubbed, African leaders of gold mining countries would have to meet again and fashion out other alternatives to stop it.
Shabangu noted that it was pathetic that the highly indebted poor countries which are expected to benefit from the IMF and World Bank gold sales were never part of the proposals or talks towards the deal.
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