The Ghana Mine Workers Union (GMWU) welcomes the AngloGold Ashanti Limited Obuasi gold mine reopening believing the move will boost the mining sector.
The Obuasi mine was closed in 2014 due to issues with the concession but on Tuesday, January 22, President Akufo-Addo together with the Asantehene, Otumfuo Osei Tutu II and the mine managers reopened the mine in a move many hope will raise the standard of living in the surrounding areas.
The mine is expected to enable 2,500 jobs with AngloGold Ashanti pumping Ghc881 million into its initial redevelopment stage while total investment for the redevelopment of the Obuasi Gold mine is set at US$1.6 billion spanning a 22-year period.
Managing Director of Anglogold Ashanti, Eric Asubonteng, submitted, “On an average in the land mine, we are looking at between 400,000 to 500,000 ounces per annum. With this, we are estimating that US$5.3 billion will be retained in the country. This amount includes direct taxes to government, support to local businesses, corporate social responsibilities expenses and others. The direct taxes to government will be about US$2.2 billion over this period. If you look at the total revenue that the mine is going to generate over the life of mine, this US$5.3 represents just over 51 percent of the revenue pie that is going to be retained in the country. The rest goes into paying off the initial capital investment and then shareholder returns.”
Mr. Asubonteng also assured that there is emphasis on reserving segments of the operation to the locals to stimulate the local economy.
The mine’s underground operation has been given on contract to a foreign company and would be partnered by a Ghanaian company which is expected to secure 30 percent shares.
Otumfuo Osei Tutu II charged the mine managers to ensure this time around, the riches from the mine benefit the inhabitants of Obuasi and its environs while adopting the sound environmental and ethical practices in its quest for gold.
President Akufo-Addo speaking at the official launch of the Obuasi Mine Redevelopment Project submitted: “When Government and mining companies collaborate in an intelligent and sustainable manner, more can be done to transform mining communities. I have no doubt that Anglogold, under its current management; will be a constructive partner in this journey.”
By Michael Eli Dokosi/goldstreetbusiness.com