09:52 p.m Oct 28, 1999 Eastern
LONDON, Oct 29 (Reuters) – The President of Ghana, Jerry Rawlings, wants to play a leading role in determining the future of Ghanaian mining company Ashanti Goldfields Co Ltd, the Financial Times reported on Friday.
In written answers to questions from the paper, Rawlings said: “As a government we are concerned that in resolving its current problems we should protect the national interest against those who would want to collaborate to manipulate such situations to their advantage.”
The government of Ghana owns 20 percent of Ashanti, which has been facing financial instability following recent rises in gold prices. Its troubles stem from margin call obligations or sums to be paid to counterparties when gold prices fluctuate.
Ashanti, the object of an $800 million bid from British metals group Lonmin Plc, is engaged in talks with its counterparties in a bid to unwind hedged gold positions.
“The gold of Ashanti is a symbol of our national sovereignty and we will not do anything that is tantamount to a betrayal of posterity,” Rawlings added.
Three other gold mining companies — Placer Dome Inc of Canada, and AngloGold Ltd and Gold Fields of South Africa — are also believed to be interested in Ashanti.
