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ConsGold's Sod Africa worries

20th October 1988
Page 12
Page 12, 20th October 1988 — ConsGold's Sod Africa worries
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Which of the following most accurately describes the problem?

• The chief-executive of Co solidated Gold Fields, transpc subsidiary ARC, Keith Orrell. Jones, says ARC's business can only suffer in the event o a South African takeover. "W have already had a tough tas1 explaining to customers, part cularly local authorities, that ConsGold's involvement in South Africa is merely that of an investor and that we are a UK company.

"We have had a great deal success in getting that message across here and in the US," he says, "but there is a vast difference between beim a company with investments i South Africa and being an SA controlled company."

Orrell-Jones believes that ARC will lose customers on both sides of the Atlantic. Many local authority unions ri fuse to deal with South Africa firms and much of ARC's State-side business is with cities or states which have pa sod bans on any SA links. El ARC may be reprieved, a the European Commission is poised to investigate Minorco controversial bid for British mining house ConsGold. A su cessful bid could lead to two South African companies dom nating the world market for gold, titanium and zircon, the latter mineral being used in ti production of nuclear weapon: ConsGold is also taking to th( US courts in an effort to bloc! Minorco and hopes to bring it the Monopolies and Mergers Comrnision.

Minorco is the Luxembourl based company controlled by the South African AngloAmerican financial empire.