AngloGold Reaches Accord for Obuasi gold mine
AngloGold Ashanti has signed the regulatory and fiscal agreements with the Government of Ghana that will provide the framework for the redevelopment of the Obuasi Gold Mine into a modern, productive mining operation.
The Government of Ghana and AngloGold Ashanti have put in place several agreements including a Development Agreement, Tax Concession Agreement, Security Agreement and a Reclamation Security Agreement. The Environment Impact Assessment process has been completed and the permits are expected shortly.
Obuasi Gold Mine has been in limited operating phase since 2014, and the Government’s support will go a long way to enabling it to restart as a modern, productive, long-life high margin operation. This will benefit the local, regional and national economies of Ghana through taxes, job creation, communal development expenditure and local procurement opportunities.
“Redevelopment of the Obuasi mine will establish Obuasi as a world class operation rejuvenating the proud gold mining history of the Ashanti region in Ghana,” AngloGold Ashanti Chief Executive Officer, Srinivasan Venkatakrishnan, said. “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.”
Mine production for the first 10 years will be focussed on the upper ore bodies and is expected to average 350K oz to 450K oz. In the second 10 years, production averages 400K oz to 450K oz.