Skip to main content

AngloGold Ashanti to value Obuasi Mine

By: Fred Yaw Sarpong, Daily Express

AngloGold Ashanti Ghana has started a feasibility study at the Obuasi Gold Mine at Obuasi in the Ashanti Region in order to know the current state and value of the mining site.

The feasibility is to establish business case for the mine given resource they have, given the current market situation, and the modernization they want to do and as well as the capital requirement for future operation.

AngloGold Ashanti has previously announced its intention to place the Obuasi mine on limited operations while comprehensive feasibility study is completed next year.

The study is to convert Obuasi mine into a new highly productive mechanised operation that can properly develop the high-grade reserve of about 7 million ounce of gold and resource of about 20 million ounce of gold.

The feasibility study which is expected to be completed by the end of March next year is to identify the true value of the Obuasi mine and come out with a recommendations as to whether the mine site is viable for continues operation or not.

Mr David Noko, Executive Vice President in charge of sustainability at AngloGold Ashanti Limited said at a stakeholders meeting held in Accra that the reason why they are restructuring Obuasi mine is that the infrastructures at the mine site are overage and there is need to replace them.

‘The Obuasi mine is unproductive area for now and some of the equipment’s at the site are making production ineffective,’ said Mr Noko adding that any mining operation which is over 100 years requires a redesign.

Daily Express gathered that currently Obuasi mine covers an area of about 400 square meters and the feasibility study is expected to reduce the area. ‘The area needs to be reducing so that we can manage it properly,’ said Mr Noko.

According to him they were spending a lot of resources to manage the Obuasi mine and they were not generating much from the site. The current gold price is around US$1,200 per ounce on the international market. However, Mr Noko said it currently costing them US$1,300 to produce an ounce of gold.

‘These are some of the reason why we have taken the decision to do retrenchment on the site. Because we are not making profit from the site,’ he added.

He believes that the 117-year old Obuasi mine had to properly address high costs, poor mining feasibility, low tonnages and deteriorating infrastructure in order to ensure its long-term sustainable contribution to the local, regional and national economy.

He stated that although AngloGold Ashanti Ghana has over the past decade contributed over US$577 million in corporate taxes, royalties, dividend, customs duties and employees taxes to the economy; out of this US$324 million is from Obuasi mine and the remainder coming from Iduapriem operation.

‘But the sharply lower gold price and worsening operational challenges required the current holistic intervention to improve the prospects of the Obuasi mine’s long-term sustainability,’ said Mr Noko.

Since 2012 a total number of 3,100 workers at the Obuasi mine have been relieved from their posts as part of the on-going restructuring in the company. These 3,100 employees have received their severance packages in line with an agreement reached with the Ghana Mine Workers Union (GMWU).

Currently, there are about 1.300 full time employees and 1,100 third-party contractors at Obuasi mine.

Mr Fred Atta Kumah, the Managing Director for Obuasi mine a total of US$250 million is been spent as severance package for the workers who will be affected.

He told Daily Express that on average a worker expected to get US$50,000 package per person depending on the number of years the person has spent at the Obuasi mine.

‘But majority of the people are earning higher amount because the average spent on the mine site per a worker is 20 years,’ said Mr Kumah.


Popular posts from this blog

Deputy AG sues Facebooker over 'malicious' Ameri deal

The Deputy Attorney-General and Member of Parliament for Bolgatanga East, Mr Dominic Ayine has filed a defamation suit at an Accra High Court against a Facebook commentator, Evron Hughes.
In Mr Ayine’s statement of claim, sighted by Graphic Online, he accused Mr Hughes of defaming him in a post he authored and published on Facebook on December 21, 2015, titled “RE: AMERI TRANSACTION”.
According to the Deputy A-G, the “false and malicious” post has provoked “public disaffection” against him and exposed him to public ridicule and contempt.
Describing Mr Hughes as a “self-styled social media blogger and a social commentator”, Mr Ayine said the Facebook post had brought his hard-won reputation “as a respected politician, teacher and lawyer” into “hatred, ridicule, odium, discredit, contempt, opprobrium and reproach”.
The Deputy A-G said the “defamatory words” were authored with the sole intent to reduce him in the estimation of all right thinking Ghanaians, adding that he had received numerou…

Meet Ghanaian female shoemaker

The Saint Ozwald shoe brand

By: Fred Yaw SARPONG
The Daily Express

From her humble beginning in Sunyani in the Brong Ahafo region, a senior high female graduate from the Twene Amanfo Senior high in the Brong Ahafo Sunyani and a Ghanaian now boasts of being one of the most popular Made-in-Ghana shoe brands and has the most number of celebrity endorsements.
Sandra Ozwald, CEO of Saint Ozwald

After Sandrah Ozwald completed school in 2013, her parent couldn't have enough money to help her continue school so she planned to do something for herself by selling ice cream, groundnut cakes or food. Back at the senior high, Sandra used to make groundnut cakes, condensed toffees and ice cream to support herself since her mother couldn't provide all for her.

With 12 siblings and the only girl child (2nd born) among them, and whiles planning which of these to sell, Sandra attended a friend’s wedding and the grooms shoe looked so attractive to her.

According to her, the groom’s shoes were Ma…