Man with the golden vision invests US$20m in Sierra Leone
An understanding of African history has given Algy Cluff, CEO of Cluff Gold, a unique Perspective. In 1985, legendary New York diamond dealer Harry Winston Inc decided to find its own source of diamonds and acquired a property, Baomahun, in Sierra Leone. (Photo: Evangelist – Algy Cluff’s company has invested heavily in Sierra Leone)
Exploration commenced and, although difficulties ensued, samples were eventually analysed and, much to their surprise, they discovered not diamonds but gold. Harry Winston, the patriarch, died soon after and then the Sierra Leone Civil War began and nothing more was heard of the gold discovery until 2004 when Harry’s son, Ronald, decided to resurrect the project.
Step forward Algy Cluff, who had just established Cluff Gold, his fourth mining company which at the time had mining properties in a number of West African countries. Ronald Winston negotiated a buy-in with Cluff Gold, which saw Cluff acquire a 60 per cent shareholding in Baomahun for an initial investment of US$5million.
Cluff Gold has since acquired the residual 40 per cent interest, thereby providing Cluff with 100 per cent of the Baomahun licence and Ronald Winston 10 per cent of Cluff Gold.
Today, the Baomahun property has measured and indicated resources estimated at 1,420,000 ounces of gold and inferred resources of 1,030,000 ounces. To date, only three kilometres of the 12-kilometre site has been explored and Baomahun, therefore, has the potential for becoming one of the biggest gold discoveries in Africa.
For those who know Algy Cluff, this is not surprising. After a successful career in the British Army, where he spent time in the Cameroon and the jungles of Borneo, he decided to go into the oil industry. This happened quite by chance while he was living in New York, writing speeches for an American politician.
One day he came across an article heralding the next round of North Sea oil licensing. Having long been fascinated by the oil and mining industries, he decided to apply for 20 licenses and sent a letter to the Ministry of Fuel and Power in London.
A few weeks later, and after much negotiation, he received a letter informing him that he had been awarded the full quota. He returned to England as an oil man. After raising money to develop these licenses what had become Cluff Oil was sold to the British oil company, Tricentrol, which was then acquired by BP. One of the licenses Cluff acquired turned out to be the successful Buchan Field, the 14th commercial license in the North Sea.
After Cluff Oil was sold, he turned his attention to Africa. This was the early Eighties and most people thought Cluff was mad. But over the next 20 years he built up two mining companies, which were both sold before he started Cluff Gold in 2004.
When asked as to why he has achieved such success, he becomes evangelical about Africa, but those that know him put it down to three things. Firstly, Cluff has the ability to spot opportunities in places where others choose not to go. He also has a knack of identifying talented people who can help him deliver his vision.
Most importantly, he has a deep understanding of history. Indeed, Cluff firmly believes you should be fully conversant with the history of a country in which you are doing business. He also believes that any business arrangement is based on trust, honesty and understanding and that if you undertake a project in a country, the best way to build a successful relationship is to understand how that country wants to benefit from the arrangement.
It continues to invest in local community projects and, when Baomahun moves towards its production stage, tens of millions more dollars will be invested in the country. This will bring employment for many hundreds of local people, all of whom will be trained. Roads will also need to be built, which will benefit local villages.
Cluff’s Baomahun project is in the next phase of its development and some believe he is on the verge of making one of the most exciting gold discoveries seen in Africa for the past 30 years. Cluff Gold does see itself as a partner with the government of Sierra Leone.
By Saidu Bah
Stay with Sierra Express Media, for your trusted place in news!
© 2010, https:. All rights reserved.
