Business climate in Ghana is about to improve. If ASL goes into the hands of a stronger foreign miner, deposits in the country will be sought after IMO. Good news for BGI.
New Ghanaian leader to reopen Ashanti bidding
Source: The Independent - London
Publication date: 2001-01-07
THE NEW business-friendly government elected in Ghana last month is expected to re-open a $1bn (pounds 670m) bidding war for Ashanti Goldfields. The move could bring a windfall for Lonmin, which owns 32 per cent of the troubled gold-mining group. Ashanti, purportedly the cheapest deep miner of gold in the world, has long been in the sights of several potential buyers. Although the approaches of Placer Dome, Barrick, AngloGold and Lonmin have all hit the same brick wall. The Ghanaian government retains a golden share in Ashanti, and the previous regime was reluctant to allow its prized asset to fall into foreign hands.
But the democratic ousting of President Jerry Rawlings has put an end to a government particularly criticised for its economic policies. John Kufuor, who will be sworn in as president today, attacked his inheritance, saying there was too little to show for the billions of dollars poured into Ghana during 14 years of donor support.
Mr Kufuor has made it clear that he sees the private sector as the driving force behind Ghana's recovery, and that protection would not be his way of doing things.
Gold analysts around the world are taking the new president's comments as a sign that the old barriers to buying Ashanti may be about to fall.
"I'm sure the new government is going to be rational about this," said one, "but it must realise that the comments will have got a lot of big gold companies very interested. Mr Kufuor knows that he needs to stimulate outside investment ... and Ashanti is the obvious place to start."
Placer Dome and AngloGold are both keen to gain a foothold in Ghana. In mid-2000, AngloGold bought a 50 per cent stake in Ashanti's Geita mine in Tanzania.
Lonmin, the British company which made a $750m friendly approach to Ashanti in 1999, is thought to be ready to sell if a deal can be struck between a buyer and Ashanti's chief executive, Sam Jonah. |
