Ghana joins protests over gold sales; Ashanti lays off 2000 (fwd)

[Robert Weissman <rob@essential.org>]

Ghana joins protest against sales of gold reserves
Date: Fri Jul 16 15:30:12 CDT 1999

   ACCRA, July 16 (AFP) - Ghana joined a South-African led protest Friday
against moves by the International Monetary Fund (IMF) and England to sell
gold reserves, which have pushed the metal's price to a 20-year low.
   "We condemn this move in no uncertain terms. We need to be very
vociferous in letting the international community know about what this means
to our economies," said Fred Ohene-Kena, Ghana's mining and energy minister
during a press briefing after talks with a
six-member South African delegation of government and mining officials.
   Ohene-Kena said the impending sale of reserves by the IMF and European
central banks on the heels of an initial sell-off by the Bank of England
would trigger "mass lay-offs" and have devastating effects on highly
indebted countries.
   Ghana's mining ministry estimates that some 10,000 people will lose jobs
if low gold prices persist, an official told AFP.
   The South African delegation, which came here to drum up support and
mount pressure against further sell-offs of gold, was led by Susan Shabungu,
deputy minister of mineral and energy affairs.
   The delegation is also expected to travel on to Mali.
   "We have been able to get the support of the entire South African
Development Community and we thought it wise to consult some other major
gold mining nations," Shabungu said.
   Shabungu condemned gold market speculators and questioned their role in
the industry, which she described as "negative."
   South Africa contends that 80,000 jobs in its country are threatened by
the gold price downswing.
   Ghana's second biggest export after cocoa is gold, the bulk of which
comes from the central west Ashanti region.
   In 1998, gold sales raked in some 532 million dollars, accounting for 38
percent of the country's total export earnings.
   According to the Financial Times annual survey of global companies,
Ashanti Goldfields was rated sub-Saharan Africa's largest company in terms
of capitalisation, registering market capitalisation levels of 733 million
dollars for 1998.



More than 2,000 workers to lose jobs at Ghana's Ashanti Goldfields
Date: Mon Jul 19 09:30:17 CDT 1999

   ACCRA, July 19 (AFP) - More than 2,000 workers at Ashanti Goldfields,
Ghana's leading gold producer, will lose their jobs in the next three weeks
as a result of a drop in world prices of the metal, a company official said
Monday.
   "A firm decision has been taken and in actual fact, some of the casual
workers have already gone home. These are permanent layoffs," said the
offiical, who asked not be be identified.
   The lay-offs represent one fifth of the company's workforce, which is
some 10,000 strong, the official said.
   Robert Cole, General Secretary of the Ghana Mine Workers Union, confirmed
the planned retrenchments.
   Cole said management officials had already informed the union of their
intention to cut jobs, citing rising production costs as the reason.
   On Friday, Ghana joined a South-African led protest against moves by the
International Monetary Fund (IMF) and England to sell gold reserves, which
have pushed the price of gold to a 20-year low.
   "We condemn this move in no uncertain terms. We need to be very
vociferous in letting the international community know about what this means
to our economies," Ghana's Mining and Energy Minister Fred Ohene-Kena said
after talks with a six-member South African delegation of government and
industry officials.
   Ohene-Kena said the impending sale of reserves by the IMF and European
central banks on the heels of an initial sell-off by the Bank of England
would trigger "mass lay-offs" and have devastating effects on highly
indebted countries.
   Ghana's second biggest export after cocoa is gold, the bulk of which
comes from the central west Ashanti region.
   In 1998, gold sales raked in some 532 million dollars, accounting for 38
percent of the country's total export earnings.
   According to the Financial Times annual survey of global companies,
Ashanti Goldfields was rated sub-Saharan Africa's largest company in terms
of capitalisation, registering market
capitalisation levels of 733 million dollars for 1998.