AngloGold secures Ghana’s approval for Obuasi Gold Mine redevelopment

Ghana’s AngloGold Ashanti unit received approval from the country’s parliament to redevelop its Obuasi Gold Mine, which will see to the generation of about 2,500 jobs. The parliament ratified the regulatory and fiscal agreements that binds the redevelopment of the gold mine into a modern, productive mining operation.

Located in Kumasi, the mine has been in limited operating phase since 2014. And with the government’s formal consent, the redevelopment of Ashanti’s gold mine is to cost between $450-500 million excluding a pre-production capital and is expected to pour its first fold in the third quarter of 2019.

Although the environmental permitting process is at an advanced stage, AngloGold Ashanti has said that the ratification of the development agreement and the tax concession agreement is a major step in taking the Obuasi redevelopment project forward.

According to CEO Srinivasan Venkatakrishnan, “Obuasi is a high-grade, long- life ore body that will provide production for at least two decades at a very competitive cost, which will benefit a truly diverse set of stakeholders.”

The redevelopment project will be carried out in two phases. The first stage, which will last for 1 year and 6 months, includes project establishment, mine rehabilitation and development to go along with refurbishment of plant and infrastructure. This stage aims at yielding 2,000 tonnes of daily production in the first operating year.

In the second phase, 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 will be carried out.  This second stage is anticipated to take an additional 12 months and will enable the operation to ramp up to 4,000 tonnes per day. Production at the Ghana gold mine is anticipated to increase to 5,000 tonnes per day in the next 3 years.