On The Sale Of Ghana’s Share In Anglogold Ashanti

PRESS STATEMENT

On The Sale Of Ghana’s Share In Anglogold Ashanti

Over the last few days, the attention of the Nkrumaist Youth League of Ghana has been drawn to the fact that the Government of Ghana has sold 4,883,426 of its shares in AngloGold Ashanti Limited; a matter within public domain. The transaction which raised US$ 215million has been mentioned by some Members of Parliament that it did not go through Parliamentary approval. A matter which if it is true remains an affront to the people of Ghana. This, we are told that the Attorney General provided a waiver for the deal. The transaction which was done at a sales price of 2.5% was below the $45.10 level at which the company’s depositary (American Depository Shares) closed in New York. This means that the Government of Ghana sold the shares at 302 rand about $43.10.

The elitist-ruling class arguments in support of the deal, especially for ignoring parliamentary approval has been that whereas the Constitution of Ghana and the Minerals and Mining Act, 2006 (Act 703) provide that all minerals in Ghana in their natural state remains the property of the State and title to them is vested in the President on behalf of and in trust for the people of Ghana, with rights of prospecting, recovery and associated land usage being granted under license or lease and the grant of a mining lease by the Minister of Lands and Natural Resources is normally subject to parliamentary ratification unless the mining lease falls into a class of transactions exempted by Parliament. We want to ascertain from Government what is the nature of the deal that made Parliamentary approval to be ignored? What was the reason for the waiver by the Attorney General?

Ghana’s share, in objective terms, belongs to the people of Ghana and not the representative authority that hold in trust such authority, so it will be prudent in accordance with best practices and the Laws of Ghana to have sought the consent, approval and approbation of the freeholders of the land. We are extremely ashamed with this Government, especially by the fact that the Mining of Gold in Obuasi and Iduapriem has not brought any significant economic improvement of the people who live around such natural resource and yet our Government will be in haste to relinquish the countries resources to imperialist private-capital whose driven motif has not brought any significant economic transformation among the people living close to those resources.

Over the last decade (since March, 1998) AngloGold Ashanti has manifested itself as a powerful ‘imperialist exploitative beast’ acquiring ownership in many countries harnessing the resources of the majority of the people to the interest of a few capitalist interests. The ‘beast’ emerged as result of the consolidation of East Rand Gold and Uranium Company Limited; Eastvaal Gold Holdings Limited; Southvaal Holdings Limited; Free State Consolidated Gold Mines Limited; Elandsrand Gold Mining Company Limited; H.J. Joel Gold Mining Company Limited and Western Deep Levels Limited into a single monopolistic gold mining company. Vaal Reefs Exploration and Mining Company Limited (Vaal Reefs), the vehicle for the consolidation, changed its name to AngloGold Limited and increased its authorised share capital. In 1999, it acquired 100% of Anmercosa Mining (West Africa) Limited.

The Company, in 2000, acquired a 40% interest in the Morila mine in Mali from Randgold Resources Limited; a 50% interest in the Geita mine in Tanzania from Ashanti Goldfields Company Limited (Ghana); and a 25% interest in OroAfrica, South Africa's largest manufacturer of gold jewellery. It will be interesting to know the reasons why the company disposed of its shares in mines such as the Free State asset to ARM and Harmony? In 2004, it further acquired the remaining 50% interest in Geita in Tanzania;

AngloGold Ashanti, in 2007, acquired the non-controlling interests previously held by the Government of Ghana (5%) and the International Finance Corporation (10%) in the Iduapriem and Teberebie mines.

Scientific analyses of the phenomenon of the development of this profiteering entity and its impact on people living in communities where they operate in Africa have raised serious concerns among the people. We are therefore in support of the people in those communities such as Obuasi who continuesly complain about the poor contribution of mining to their lives. The Company in its operation has been alleged for gross human rights violation. In fact, Wacam’s (a civil society organisation) investigations into allegations of human rights abuses, loss of livelihood in host communities, pollution of rivers and environmental degradation in 2002,confirmed gross human rights violations and environmental problems that resulted from the operations of the then Ashanti Goldfields Company(AGC) in Obuasi. Some of the violations included the use of Guard Dogs to chew suspects who trespass on the company’s concession especially illegal miners popularly described as “Galamsey” operators.

The Nkrumaist Youth League of Ghana is stridently opposed to any sale of the people’s share in any public-private venture in all sectors of the economy. What has been the value created from the end of this transactions to the ordinary Ghanaian? Does Government at all have a dream for the future generations in the mining sector? In what way is the government assuring the ordinary Ghanaian or the protection of his/her rightful shares in the country’s mining productivity? Does the Government of Ghana intend to only limit the people’s ownership, control and management of their mining or explorative resources to only the role of regulation?

Despite the claim in some quarters that the sale did not take into account the development of the communities where the transaction relates most like Obuasi and Iduapriem, we are further, fundamentally, opposed to efforts to retrogress national agenda at building indigenous ownership of mines in the country.

The Nkrumaist Youth League of Ghana would take all steps even at the peril of our lives to resist imperialist private-profiteers who tap our natural resources at the expense of developing the indigenous human resource for full economic independence, particularly for the local ownership, control and management of the resources. However, our Government has a responsibility to ensure the economic advancement towards full people’s ownership of mining resources and it related business activities. Any contrary economic direction will serve as strong reason for losing political power.

Issued by;

KWAKU DADZIE KADIRI ABDUL RAUF

(Ag. Coordinator) (Leading Member)

(+233-242645775) (+233-244691415)