GHANA: AMEGASHIE ANNOUNCES TAKE-OVER OF ASHANTI GOLD-CORPORATION IN ACCRA PRESS CONFERENCE.

Record ID: 590563

  • Title: GHANA: AMEGASHIE ANNOUNCES TAKE-OVER OF ASHANTI GOLD-CORPORATION IN ACCRA PRESS CONFERENCE.
  • Date: 30th October 1968
  • Summary: AMEGASHIE SPEAKS; NEWSMEN. Initials JH/VS/JF/PF Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 14th November 1968 13:00
  • Keywords:
  • Location: ACCRA, GHANA
  • Country: Ghana
  • Reuters ID: LVA3PGUMQZ4YRR0DCWAUM7HIS29B
  • Story Text: AT A PRESS CONFERENCE IN ACCRA LAST FRIDAY (25 OCTOBER), GHANA'S COMMISSIONER FOR LANDS AN MINERAL RESOURCES, MR. R.S. AMEGASHIE, CONFIRMED THAT THE OWNERSHIP OF THE ASHANTI GOLDFIELDS CORPORATION IS TO CHANGE HANDS TO LONRHO LIMITED OF BRITAIN.

    MR. AMEGASHIE TOLD THE NEWSMEN THAT LONRHO LIMITED HAD INFORMED HIS MINISTRY OF ITS INTENTION TO ACQUIRE CONTROL OF THE ENTIRE SHARE CAPITAL OF THE ASHANTI GOLDFIELDS CORPORATION. LONRHO, A LONDON-BASED AFRICAN INVESTMENT COMPANY, BID 15 MILLION POUNDS STERLING FOR ASHANTI ON OCTOBER 21. THE BID VALUES THE ASHANTI SHARES AT 20 SHILLINGS STERLING EACH. HE SAID THAT THE GHANAIAN GOVERNMENT PARTICULARLY WELCOMED THE PROPOSAL BECAUSE OF THE OPPORTUNITY WHICH THE MOVE WOULD OFFER FOR REVISION OF THE AGREEMENT MADE WITH THE A.G.C. IN 1897. THE AGREEMENT WOULD HAVE NORMALLY EXPIRED IN 1987.

    THE ASHANTI CORPORATION IS CURRENTLY HEADED BY 82-YEAR-OLD MAJOR-GENERAL SIR EDWARD SPEARS. WITH HIM ON HIS BOARD ARE A NUMBER OF EX-COLONIAL ADMINISTRATORS, INCLUDING MR. DUNCAN SANDYS, SON-IN-LAW OF THE LATE SIR WINSTON CHURCHILL, LORD RANFURLY, FORMER GOVERNOR OF THE BAHAMAS, AND SIR MILES CLIFFORD, EX-GOVERNOR OF THE FALKLAND ISLANDS.

    MR. AMEGASHIE SAID THAT LONRHO LIMITED APPEAR TO HAVE BOTH THE CAPACITY AND TECHNICAL EXPERTISE TO CONTINUE THE MINING OPERATIONS AT OBUASI. HE WENT ON TO SAY THAT THE TAKEOVER WILL INCREASE THE MINE'S PRODUCTION. MR. AMEGASHIE ADDED THAT THE CHANGE OF OWNERSHIP WOULD NOT AFFECT THE PRESENT EMPLOYEES OF THE ASHANTI GOLDFIELDS CORPORATION.

    WITH THE TAKEOVER, MR. AMEGASHIE SAID, GHANA WILL BE ABLE TO LOOK FORWARD TO MANY YEARS OF PROFITABLE MINING AT OBUASI.

    THE COMMISSIONER ALSO SPOKE OF THE PROBLEMS FACING THE STATE GOLD MINES. THESE INCLUDE POOR LABOUR UTILISATION, A LACK OF EXPERIENCED PERSONNEL ABLE TO DIRECT UNDERGROUND OPERATIONS, AND THE DEPLETION OF ORE RESERVES. LONRHO WILL ALSO LEND EXPERTS TO STATE GOLDFIELDS, BUT MR. AMEGASHIE WOULD NOT INDICATE WHAT BASIS LONRHO'S PARTICIPATION IN THE RUNNING OF THE STATE MINES WOULD BE.

    AMONG THOSE ATTENDING THE PRESS CONFERENCE WERE COMMANDER T.H. FODEN, THE ACCRA REPRESENTATIVE OF THE ASHANTI GOLDFIELDS CORPORATION, AND MR. A.J. PRAH, THE PRINCIPAL SECRETARY OF THE MINISTRY OF LANDS AND MINERAL RESOURCES.
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