Even New York Times noticed gold today

12:45p EST Sunday, February 13, 2000

Dear Friend of GATA and Gold:

Here are more details about the crisis at Ashanti,
from the Telegraph in Britain and its financial editor,
Bill Jamieson.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

STATE GRAB FEARS GROW AT ASHANTI

By Bill Jamieson
The Telegraph, Britain
www.telegraph.uk.co
Sunday, Febrary 13, 2000

Ashanti Goldfields, the stricken mining group, will
hold crisis meetings with key shareholders tomorrow to
stave off a Ghanaian government assault on its board
and even the threat of the nationalisation of its
Ghanaian assets.

Relations between the board and the government are on a
knife edge after an Accra High Court ruling last week
backed a legal action by Adryx Mining. This has forced
the company to hold an extraordinary meeting to
restructure its board and prevents Ashanti from taking
up a much-needed $100 million loan.

The conflict between the company and the government
forced the resignation from the board on Friday of
Richard Kwame Peprah, Ashanti's chairman for 15 years
and Ghana's finance minister. Yesterday Ashanti was
hopeful of securing support from holders of 42 percent
of the equity to back its new board candidates against
government nominees.

The Ghanaian government has threatened to bring Ashanti
down if it does not get its way, according to some
observers. One said last night: quot;The government has
been treating Ashanti like a political football.quot;

The group is cash-strapped, pending the sale of half
the Geita mine in Tanzania. It has a working capital
shortfall of more than $200 million on top of debt of
$450 million. Last week's gold price rally may also
have put renewed pressure on its hedge book, while the
Geita sale will not bring in as much as hoped.

Ashanti shares fell to a new low of 144.75p on Friday,
down 78 percent from their 1999 high. Last autumn an
offer of 5 pounds a share from 32 percent shareholder
Lonmin was rejected by the government, which holds a
blocking golden share.

Any attempt at a government boardroom takeover would
send shockwaves through the international financial
community and act as a disincentive for investment
across black Africa.