AngloGold Ashanti to Redevelop Obuasi Mine

AngloGold Ashanti has signed an agreement with government to re-develop its Obuasi goldmine.

Under the agreement, the government of Ghana is expected to provide a tax concession arrangement, security, and a reclamation plan.

In 2016, AngloGold Ashanti shut down the Obuasi Mine, following an impasse with illegal miners that resulted in the tragic death of the Communication’s Manager, John Owusu.

But speaking to journalists after a press conference, the Managing Director of AngloGold Ashanti, Eric Asubonteng explained that the agreement for the redevelopment will be soon laid before parliament for approval.

“Two documents –the Tax Concession Agreement (TCA) and Development Agreement(DA) must now be ratified by Ghana’s Parliament to be made effective,” he said.

Mr. Asubonteng was optimistic the redevelopment of the mine will establish Obuasi as a world class operation, rejuvenating the proud gold mining history of the Ashanti.

“Obuasi now has the mine and labour plan, geological understanding and social model to match its world class high grade ore body. The project metrics show a high return , long life project that not only brings ounces to account quickly and profitably but also offers attractive returns on our investment,” he remarked.

He announced that AngloGold Ashanti has already conducted a feasibility study into the redevelopment of the Mine.

“The study tested the viability of redeveloping the high grade Obuasi ore body, which has 5.8Moz of ore reserves and 34Moz in mineral resource to create a safe long life mining operation that is productive and profitable,” he said.

He explained that the project implementation will be undertaken in two distinct phases with stage one comprising project establishment.

He added that the exercise will include mine rehabilitation and development, plant and infrastructure refurbishment to enable production at a rate of 2,000t per day for the first operating year.

He stated that the second phase will include refurbishment of the underground material materials handling system, shaft and ventilation; and construction of the primary crusher.

Initial project capital expenditure anticipated over the first two and half years is expected to be between $450 million to 500 million.

Source: Citibusinessnews