AngloGold Ashanti (AGA) is to spend approximately US$200 million as investment capital next year to revamp the Obuasi mine, which has more than 20 years mine-life with 9 million ounces of gold reserves, Mr. Peter Anderton, Senior Vice President, AGA (Ghana), has revealed.
�Obuasi�s production declined marginally due to obsolete underground equipment. Once the leading gold mine in the country, it is a high-cost producer and has never produced beyond 400,000 ounces since the merger between the former AngloGold of South Africa and Ashanti Goldfields Company of Ghana. �At Obuasi, costs remain the key outstanding issue from 2011.�
This was made known during the company�s Stakeholder Town Hall meeting held in Accra. It was attended by its social and business partners, members of the diplomatic community, banks and financial institutions, chiefs and people in the host communities, and government representatives.
Mr. Anderton revealed that a high-level special taskforce �The Obuasi Taskforce� -- has been formed for a 12-month period to fast-track additional corporate funding and external resources to support and define the long-term turnaround strategy for the Obuasi underground operation which has been struggling in the past years.
The objective is to accelerate the refurbishment and improve operational stability at Obuasi. The taskforce is also looking to ensure that the work done today links to the long-term strategy for Obuasi, and that it yields sustainable outcomes for AGA�s Ghanaian stakeholders.
The work of the taskforce has now largely been handed over to AGA Ghana, which has been expanded to ensure product-delivery today but will also invest to create world-class operations at Obuasi, said Anderton. AGA Obuasi will be supported with corporate funding as put in place by the taskforce, and additional expertise, where required, from AGA Corporate.
He said AngloGold Ashanti�s gold production was 4.52 million ounces last year, of which about 11% came from the Obuasi and Iduapriem mines -- though Obuasi was challenged by restricted ore passes and unplanned plant shutdowns for maintenance of the tailings-dam facility.
The Ghana mines produced just over 502,000 ounces, of which Obuasi churned out 317, 000 ounces with Iduapriem producing 185,000 ounces.
Ghana accounts for 33% of continental Africa gold production, but only contributes 13% of the region�s cash flow.
Kwesi Enyan, Managing Director of Obuasi Mines, explained that efforts have been made to tackle the company�s social and environmental problems head-on.
He indicated that the project to resettle the Dokyiwa community is at an advanced stage, and efforts are also being made to tackle poor roads at Sansu and Anyinam villages this year, in partnership with the municipal assembly.
�AGA is consistently demonstrating itself to be a responsible corporate citizen in Ghana and around the world. AGA will engage to an even greater extent to ensure that all its stakeholders are fully aware of the real positive contributions to the communities and the country,� Enyan said.
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