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 mine 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.”