GRi BEF 20 - 12 - 2001

Ghana Consolidated Diamonds still viable - Adjei-Darko

Accra (Greater Accra) 20 December 2001 - Mr Kwadwo Adjei-Darko, Minister of Lands and Mines on Wednesday said that the Ghana Consolidated Diamonds Limited (GCD) still had the potential for existence and profitability and urged investors not to write the company off.

Inaugurating a five-member board of the GCD chaired by Mr George J. Amamoo, Mr Adjei-Darko noted that even though the mine had been in operation for over 77 years and virtually at the end of its life span, " there is vast amount of reserves located downstream of the Birim River towards Akim Oda, adding that, " the exploitation of the Birim reserves holds the key to the future of the company."

The Birim concession has proven and indicated values of 10 million carats and five million carats respectively. It had been under operation since 1985.

He said the government believed that the only way to inject fresh capital into the operations of the company should be through private capital mobilisation. "The company has therefore been put on divestiture and it is expected that very soon, a new private investor would be found to take over the operations of the company."

Mr Adjei-Darko charged the board to ensure that a competent management team was put in place to solve problems facing the company and " make it attractive to prospective investors."

He asked the company to operate as a viable entity, even before the divestiture programme was completed, describing the company's inability to produce enough to meet its production cost was unacceptable.

Mr Adjei-Darko said workers' attempt to dictate to the ministry would not be tolerated, likewise moves to determine which particular company should win the divestiture bid.

He appealed to the board to ensure that the rampant theft of diamonds from the mine should be halted. "The board should in the shortest possible time come up with measures to nip this nefarious activity in the bud."

Mr James Lemaire, General Manager of the company later in interview with the Ghana News Agency asked government to resolve to reclaim land for farming in the area to give farmers a new lease of life.

He said two companies, INCO of Canada and De Boers of South Africa showed interest in the company some years back, but later left for various reasons.

The INCO left due to technical reasons, while De Boers quit because the company's criteria did not meet their (De Boers') corporate standards. De Boers controls 80 per cent of the world's gold production.

Mr Lemiare urged the government to take a quick decision on the divestiture programme to make any investment in the company viable.

GRi../

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