AngloGold Ashanti has finalized agreements with government to begin the redevelopment of its Obuasi Mines as a modern, productive mining operation after being in a limited operation since 2014.
The redevelopment is set to establish Obuasi as a mechanized underground mining operation, which is quite different from how the mine was operating in the past.
The project, with a life span of 21 years, is expected to create some 2,500 jobs for a skilled workforce.
Before limiting its operations, which saw a cut down of its workforce from 6000 to 700, AngloGold Ashanti’s Obuasi Mines was faced with severe challenges including inadequate power supply, the use of obsolete equipment, poor security, and activities of illegal miners who they claimed were undermining production.
The company was also operating behind development as there were no new stopes to mine when workers go underground.
However, at a press briefing in Accra, the company says a feasibility study has revealed the viability of redeveloping the high-grade Obuasi ore body which has 5.8Moz of Ore reserves and 34Moz in Mineral Resource.
Managing Director of AngloGold Ashanti, Eric Asubonteng believes this will create a safe, long-life mining operations that is productive and profitable.
He noted that the “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.”
The company has signed several agreements with government to pave way for the commencement of the project. These include a development agreement, tax concession agreement, security agreement and a reclamation security agreement.
The environmental impact assessment (EIA) process has also been completed and the company is hopeful of receiving the permit soon.
“Government’s support will go a long way in enabling us 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,” Asubonteng opined.
The project implementation will be undertaken in two distinct phases, with stage one comprising project establishment, mine rehabilitation and development and plant and infrastructure refurbishment to enable production at a rate of 2,000t per day for the first operating year.
The second phase includes refurbishment of the underground material system, shafts and ventilation, and construction of the primary crusher.
By Nana Oye Ankrah