AngloGold To Redevelop Obuasi Gold Mine

A largest mining company in Ghana, AngloGold Ashanti, has reached an agreement with government over the redevelopment of the Obuasi Gold Mine.

Under the agreement, which includes a development agreement, a tax concession agreement, a security agreement and a reclamation security agreement, the Company would invest $500million in bringing Obuasi back to producing and profitable mine operation.

Addressing the media yesterday in Accra, the Managing Director of AngloGold Ashanti, Mr. Eric Asubonteng, said the redevelopment of the Obuasi mine will establish Obuasi as a world class operation rejuvenating the proud gold mining history of the Ashanti region.

“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 stressed.

Explaining how the project would be executed, he said the project implementation would be undertaken in two distinct phases.

According to him, stage one of the project comprises project establishment, mine rehabilitation and development, plant and infrastructure refurbishment to enable production at a rate of 2,000 tonnes per day for the first operating year.

This, he said, is expected to take roughly 18 months, with the first gold pour expected in the third quarter of 2019.

“The second phase includes refurbishment of the underground materials handling system, shafts and ventilation; and construction of the primary crusher, the SAG/Ball circuit, carbon regeneration, a new gold room and tailings storage facility,” he mentioned.

He disclosed that the second phase is expected to take further 12 months to enable the operation to climb to 4,000t per day.

Job Creation

The Obuasi Mine has embarked on fundamental restructuring programme since 2014, due to the significant losses it had been operating on for a prolonged period.

This caused the Company to suspend underground production, retrenching the entire workforce.

However, the Mr. Asubonteng has disclosed that the operation when completed would create between 2000 to 2,500 jobs.

According to him, additional roles would be required during the construction phase of the project.

By: Emmanuel Yeboah Britwum/ [email protected]