AngloGold to create 2,500 jobs

Chief Executive Officer (CEO) of AngloGold, Mr Srinivasan Venkatakrishnan, has noted that US$ 259 million tax waivers granted to the company by Parliament has positioned it to create between 2000 to 2,500 jobs for Ghanaian youth when it started operations in its AngloGold Ashanti (AGA) Obuasi Mine in the Ashanti Region.

According to him, the company was ready to support Ghana to create more jobs, with additional roles required during the construction phase of the project.

He explained that the recruitment process would be open, with Obuasi indigenes having a better advantage.

He assured that the company would recruit skilled workforce that can operate in a mechanised and automated operation with a strong sense of accountability.

Parliament on Thursday, June 28, 2018 granted 259 million US dollars in tax waivers to Anglogold Ashanti following a request by the mining company.

The minority has since criticised the amount granted in tax waivers, seeking a downward review.

But, according to Mr Venkatakrishnan, AngloGold was still committed to the 31 million-dollar investment, approved in February this year, saying that the mining company believes the move will lead to increased production from the mine site for at least the next twenty years.

He said that the gold to be produced from the Obuasi mining concession would be at competitive costs, which will benefit all stakeholders involved.

“This is an important milestone that follows extensive negotiations and debate…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,” he said.

The appeal for support to revamp the mine site followed about four years of inactivity at the Obuasi mine site since production ceased around 2014.

AngloGold Ashanti is expected to inject an initial investment of between 450 to 500 million dollars for the first two and half years.

An additional 94 million dollars is expected to be invested thereafter till the sixth year.

Meanwhile, Today has gathered that the first gold pour from the redeveloped AngloGold Ashanti (AGA) Obuasi Mine is expected in the third quarter of 2019.

Today understands that the redevelopment of the mine would be done in two distinct phases, with phase one comprising project establishment, mine rehabilitation and development, plant and infrastructure refurbishment to enable production.

In the first phase, the production rate is expected to be 2,000 tonnes per day for the first operating year, with an initial project capital expenditure anticipated over the first two-and-a-half years expected to hover between US$450m and $550m, excluding pre-production cost of $US64m.

Today learnt that the government of Ghana and the company have put in place several agreements, including development agreement, tax concession agreement, security agreement and a reclamation security agreement.

Today also discovered that AGA has conducted a feasibility study into the redevelopment of the Obuasi gold mine, which showed that the Obuasi ore-body has 5.8 million ounces (oz) of ore reserves and 34 million oz in mineral resources with a lifespan of about 21 years.

The phase two of the redevelopment process would include refurbishment of the underground materials handling systems, shafts and ventilation, and construction of the primary crusher.

The paper’s investigations further revealed that 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.

 

Minerals & Mining Matters with Freeman Koryekpor Awlesu

Writer’s Email: freeman.koryekpor@todaygh.com

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