Gov't wants early divestiture of GCD - Minister

Mr. Kojo Adjei Darko, Minister of Lands Forestry and Mines, has said the government would do its best to ensure the divestiture of the Ghana Consolidated Diamonds Limited (GCD).

He said the delay in selling the company was caused by the failure of prospective companies to patronise the programme.

Mr. Adjei-Darko said this when he met workers of GCD at the company's premises at Akwatia in the Eastern Region and revealed that Mard'Gold, a US company, was expected to start payment for the company by the end of the week.

He appealed to the workers to put in their best to prevent the company from sinking further and asked the management team of GCD to bring proposals on how beat to keep the place running.

The Minister said there was the need to streamline activities of people who had leased portions of GCD's land.

He said such people had to be granted concessions after they had applied. Their applications would go through the GCD board to the Minerals Commission. The ministry would act on the commission's recommendation.

Mr James Lemaire, General Manager of the Company, said the area being mined by the Company had been declared non-economic. He said the lack of appropriate machines and equipment had prevented them from going for economic concessions. "Our financial position is not favourable."

Mr Joseph Godson, Board Chairman of GCD, said the main problem facing the company was illegal mining. He said the Company's land is so vast that it could not be monitored effectively.

In 1988, studies by Sofre Mines, a French firm, led to recommendations that GCD be divested. In 1991, INCO Ltd, a Canadian company, operated under an interim management agreement for 18 months but failed to purchase the company at the end of the period.

In 1994, De Beers of South Africa also managed the company under an interim management agreement for 18 months and pulled out at the end of the period. Between 1997 and 1998, it was offered to the now defunct Teberebi Goldfields in Tarkwa for 800,000 dollars. This was however, called off after the workers petitioned the government against it.

In 1999, another sub-committee was set up over the divestiture of the GCD, leading to Mard'Gold, a US company offering to buy the company at 17 million dollars. The offer was withdrawn for review when the present government came to power but was reintroduced upon an agreement that Mard’Gold make an initial payment of 10 million dollars and pays the remaining seven within six months.