Opposition NPP commends government for selling stake in AngloGold Ashanti

The opposition New Patriotic Party (NPP) has commended the National Democratic Congress (NDC) government for selling part of Ghana’s stake in AngloGold Ashanti, one of the leading mining companies in Ghana.

The party’s spokesman on Finance and Member of Parliament, Dr. Osei Akoto told ghanabusinessnews.com that the decision is a right one because the price of gold has appreciated on the international market.

Ghana sold 1.28% of the country’s stake in AngloGold Ashanti for $43.97 a share and raised $215 million, according to a Bloomberg News report.

The report citing the Johannesburg-based unit of manager Macquarie Group Ltd, said the sale of 4.88 million shares leaves Ghana with 1.72% in AngloGold that it agreed not to sell for 180 days.

The Ghana government was the majority shareholder in Ashanti Goldfields Company, until it announced plans to sell 20-25% of its interest in the mine.

Subsequently, the company was listed on the London and Ghana Stock Exchanges.

In 1996 the company was listed on the New York Stock Exchange to raise new capital and it  became the first African company to appear on Wall Street.

In 2004, it merged with AngloGold to create the world’s second-largest gold producer, AngloGold Ashanti company.

AngloGold Ashanti owns two mines in Ghana at Obuasi and Iduapriem.

By Emmanuel K. Dogbevi