[ 2016-09-28 ]

Randgold blames Govt for its pullout from Ghana
Mining giant Randgold Resources Limited has
revealed that it abandoned its deal with AngloGold
Ashanti to take over the Obuasi Mine because
government of Ghana refused to give complete
support to the deal.

Randgold Resources in 2015 abandoned plans to
redevelop the Obuasi mine of Anglogold Ashanti,
just three months after announcing its interest in
the mine through a partnership with Anglogold.

Chief Executive Officer of Randgold, Mark Bristow
who made the announcement on Tuesday stated that

government showed no support which revealed that
the social risk there was enormous.

Speaking at a media briefing in Johannesburg ,
Mark Bristow said “we were very concerned about
the complete lack of support from the Government
for this whole plan. When we go into a country we
see ourselves as partners with Government because
we are developing a national asset.”

Bristow also lamented political interference
stating that many attempts to invest in Ghana,
were always rattled by political intervention.

Moves to revamp the Obuasi gold mine hit a snag in
December 2015 following the pullout of Randgold.

AngloGold Ashanti in September of that same year
announced it had entered a joint venture with
Randgold Resources Limited to revamp the Obuasi
mine to a world-class high-grade mine.

But a few months after the announcement Randgold
Resources Limited pulled out citing no significant
reasons.

AngloGold Ashanti at the end of 2014, converted
the Obuasi mine to limited operations ceasing
underground production.

The move led to the dismissal of thousands of its
workforce.

The Obuasi was subsequently invaded by illegal
miners.

AngloGold Ashanti in 2016 commenced arbitration
proceedings against the Ghanaian government
through the International Centre for Settlement of
Investment Disputes (ICSID) requesting that ICSID
make an urgent order forcing the government to
“amongst other things, to re-instate military
security and restore law and order at the Obuasi
mine.”

Source - citibsinessnews.com

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