Ashanti's roots help win African gold concessions Wire

Ghana's Ashanti Goldfields Co is banking on its African roots to keep it at the forefront of what shows every sign of turning into an end-of-the-century gold rush across the continent.

Nick Laffoley, general manager of its subsidiary Ashanti Exploration Ltd, says local knowledge coupled with long experience in the mining industry will keep Ashanti ahead of the game.


"We believe that as an African mining company we have something a little bit different to offer compared with mining companies from Europe, North America, Australia, or even South Africa," he told Reuters in an interview.


"We have a special understanding of the issues facing a developing country trying to pull themselves out of the economic quagmire because we've been there and we've seen it and we've done it," he says. Ashanti Exploration was formed last August in the wake of the highly successful privatisation of Ashanti Goldfields in April 1994. The company was previously 55 percent state-owned but British- based conglomerate Lonrho is now the main shareholder with a 43.1 percent stake. The state kept 31.3 percent and private investors and staff hold the rest. "With the privatisation of Ashanti and the flotation on the London and Ghana stock exchanges we were a different company and... developing new operations not only within Ghana could become a reality." Ashanti Exploration has already secured land at Mandiana in Guinea and holds a 50 percent stake in a joint venture at Kalana in Mali with Johannesburg Consolidated Investments and the state.

It also has offices in Eritrea and Ethiopia and is active in other countries.


"We are looking at acquiring ground in Zimbabwe and in Niger and we've got roving geologists out looking at a large number of other areas. We've had people in Tanzania, for example," Laffoley said.


"We certainly don't see ourselves as confined to Africa but we feel we're very special within Africa. Outside if it's a suitable opportunity we're not frightened to compete with everybody else."