AngloGold Ashanti’s Obuasi mine which used to give Ghana bulk of its gold exports is expected to resume full scale operations by 2017 or 2018, Business Finder has learnt.
“I hear is so exiting that joint venture is not an option for AngloGold. I hear the managers are so happy with Obuasi’s feasibility studies. That means the decision to scale down production to make sure they do better systems and look at the mining system regarding its viability and be able to produce predictable trend is evident now”, General Secretary of the Ghana Mine Workers Union, Prince WilliamAnkrah told Business Finder in an exclusive interview.
He explained further that “primarily from where I sit now or am hearing there is light at the end of the tunnel except that they are still putting the numbers together seriously. I think in the next year or two we should see a clear signal.”
He added that the future of the Obuasi mine coming back to life is very bright after high satisfaction by the managers of the mine.
The scaling down of AngloGold Ashanti production in 2014 led to massive retrenchment, leading to over 5,000 workers including contractors going home whilst the nation lost millions of dollars through both exports and taxes.
However, the expected comeback will come as good news for miners, businessmen, the government and the indigenes.
AngloGold, the world’s fourth-biggest gold producer, swung to profit in the first quarter of 2015.
Adjusted headline earnings were $35million, compared with a loss of $117 million in the previous quarter.
Production was 969, 000 ounces, beating the company’s estimate of between 900 000 ounces and 940 000 ounces.
Mr. William Ankrah said the company is seeing some positives from its restructuring and hopefully the Obuasi mine will increase its profit level significantly when it starts full scale production.
The life span of the Obuasi mine stands at about 50 years. The General Secretary of the mine workers union said AngloGold can mine Obuasi for a very long time.
“Primarily Obuasi can go into the next 50 years if all numbers are put right. The future is bright, the reserves are exciting and there are huge deposits.
AngloGold presently has mines such as Tropicana in Australia, Kibali in the Democratic Republic of Congo as well as others in South Africa.
AngloGold Ashanti took over the Obuasi Mine on April 24, 2004. The mine’s total output in 2005 was about 400,000 ounces with a total expenditure of 200 million dollars.
Total output dropped to 200,000 ounces in 2013, with a total expenditure of $550 million.
Since 2004, AngloGold recorded losses in Obuasi every year except 2009, 2010 and 2011. In 2013, the mine made a total loss of $220 million.
<<Print>>