Ghana joins protests over gold sales

Chris Burford cburford at gn.apc.org
Mon Jul 19 23:50:16 PDT 1999


Sympathetic though I normally feel to political and economic demands of Africa I do not think we should support this demand, in material forwarded from the list STOP-IMF

<stop-imf at essential.org>

Hanging on to a declining metal for the sake of some jobs is a reform that is quite reformist. Economist in fact.

The political gain of demonetising gold world wide moves the agenda forward for the control of the world economy and is far more progressive.

Better to intensify demands for a development fund for the whole of Africa, funded by measures such as a currency exchange transfer tax.

Chris Burford

London

_____________________________________________________________


>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.
>
>
>
>



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