Jonah says firm and state are both eager for rapid
Jonah says firm and state are both eager for rapid resolution
Anglogold Ashanti seeks to calm mining rights tension
February 9, 2005
By Nicky Smith
Cape Town - The government and AngloGold Ashanti both realised that it was not in their collective interest for the conversion of the company`s mining rights to be delayed, Sam Jonah, the company`s president, said yesterday.
Jonah was doing damage control yesterday after a Business Day article said the department of minerals and energy was unhappy with the company over comments made by chief executive Bobby Godsell.
Godsell had called for `efficient conversion` to allay investor concern about the change in mineral legislation.
Steve Lenahan, a spokesperson for the company, said AngloGold Ashanti had been engaged with the department on the conversion of its mining rights since the middle of 2003.
He said the company had met department officials about 25 times.
The company submitted formal applications to the department in September last year.
Speaking at Indaba 2005, the mining conference held at Cape Town`s International Convention Centre, Jonah spoke about the company`s history of good relations with the governments of the countries in which it owned and operated mines.
`This positive relationship is proving to be a benefit in bringing to closure the complex process of the conversion of our mining rights.
We continue to have positive interactions with the department to deal with uncertainties which the process reveals,` Jonah said.
Lenahan refused to be drawn on what the sticking points were.
He said that the company had expected it would not be a smooth process since the mining legislation was new, and the department and the company were both `grappling` with its implementation.
He did say the calculation of equity participation was one of the areas presenting challenges to the department.
Jonah also spoke about what AngloGold Ashanti was doing to arrest the steady decline in demand for gold for jewellery.
Over the past five years demand from the jewellery sector, which accounts for about 62 percent of gold consumption, has dropped from more than 3 000 tons a year to about 2 500 tons.
He said the company was investigating ways to contribute to the future of the gold market globally and of African gold.
Beneficiation would have to be `market led`. One initiative was to test the viability of creating an `African-inspired range of gold jewellery` for the US market.
AngloGold Ashanti was also working to create gold loan schemes for jewellery makers.
He said this demonstrated the company`s commitment to beneficiation.
He warned that the government should not take commercial decisions on behalf of business; the two parties should work together to find ways to make beneficiation a win-win situation for all involved.
Kelvin Williams, AngloGold Ashanti`s marketing director, said last week at the launch of a jewellery school sponsored by the company that the absence of clarity on beneficiation and how it operated with the charter and other mining legislation was a `disincentive` for companies to get involved in beneficiation projects.
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