Currently viewing Global edition

AngloGold Ashanti hails Obuasi re-start

AngloGold has poured first gold at its Obuasi mine in Ghana, five years after mining activities were suspended.
AngloGold Ashanti hails Obuasi re-start AngloGold Ashanti hails Obuasi re-start AngloGold Ashanti hails Obuasi re-start AngloGold Ashanti hails Obuasi re-start AngloGold Ashanti hails Obuasi re-start

AngloGold's Obuasi mine in Ghana was put on care and maintenance in 2016

Staff reporter

Following ramp-up, the company estimates mining rates will hit 2,000 tonnes per day in 2020, rising to 4,000 tonnes per day by the end of the year.

"The mine will be producing gold at an average run-rate of 350,000oz - 400,000oz per year for the first ten years, and above 400,000oz over the life of mine at all-in sustaining costs of around $800/oz," the company said.

"The underground mine development is ongoing, with deepening of the Obuasi Deeps Decline and access to the KRS shaft on schedule for mid-2020. The construction of new plant and infrastructure will continue in 2020".

AngloGold said initial project capital for Obuasi remained between US$495-545 million, spent between 2018 to the end of 2020.

The mine's redevelopment could see production continue into the 2040s.

Obuasi was previously described by the company's VP corporate affairs Andrea Maxey as an "engine room" of the company's future growth.

Company chief executive officer Kelvin Dushnisky said producing first gold on time and on budget was "a significant achievement for the company, for the community at Obuasi and for Ghana as a whole".

Attention will now turn to AngloGold's South Africa business, which it is looking to divest. The company said at the end of October it was expecting bids "in the coming weeks" for the assets, so an announcement on the sale is expected soon.