AngloGold Ashanti In Dicey Financial Situation

Anglogold Ashanti, Ghana, is in a dicey financial situation.

According to the Managing  Director of the company, Keith Faulkner, “though 300 million dollars have been pumped into the company for the past five years, it continues to run at a loss”.

He said the situation was very disturbing, considering the fact that gold prices in the world market had been rising.

Mr. Faulkner said this at the inauguration of an 11-member board of directors of the Mining and Building Company (MBC) at Obuasi.

He said currently, the production level of the mining company was between 370,000 and 400,000 ounces of gold and there was the need to increase production by reducing cost.

Mr. Faulkner stressed the need for capital to rebuild infrastructure, the need for equipments and believed that with such in place the company could turn its fortunes round within two years.

In an address read for him, Alhaji Collins Dauda, Minister for Lands and Natural Resources, noted that mining had contributed to the fight against unemployment in the country through direct and indirect employment and said it was the policy of government to ensure the sustainable exploitation of the natural resources to the benefit of the people of the country and all stakeholders in general.

The minister lamented that the mining communities were no better than any of the derived communities in the country, despite the several years of minerals activities that had taken place in those communities.

He, therefore, urged the mining companies and mine services companies to go an extra mile in the area of corporate responsibility and endeavour to leave behind an everlasting legacy.

Realising that the mining industries were dominated by national corporations, Alhaji Dauda said while government encouraged foreign  investment it was its desire to also encourage and promote local private initiations.

“It is the desire of government that Ghanaian private companies also play a significant role in the mining industry in Ghana. 

It is also the policy of government that the participation of foreign corporations in the Ghanaian mining industry will lead to skills development of the Ghanaian counterparts and the gradual transfer of knowledge and technology to Ghanaians,” he emphasised.

The chairman of the Board of Directors of the MBC, Mr. Paul Victor Obeng, in an address, promised to work hard to turn round the company's fortunes.

Ms. Joyce Aryee, Chief Executive Officer of the Ghana Chamber of Mines, who swore-in the board members, praised the MBC for its outstanding contribution to the country.

She said the inauguration of the board of directors of MBC was a step in the right direction because it would project the image of the company as a professional body.

Mr. Luigi Balduzzi, Managing Director, MBC, said the company had a total workforce of 1,300 Ghanaians and seven expatriates and expressed optimism that the inauguration of the board would serve as a turning point to bring about the changes the employees were waiting for.