Business and Economics

AngloGold Ashanti stays on course for first gold end 2019

Accra, June 17, GNA – Anglogold Ashanti says operations at its Obuasi
mine is on schedule and first gold remains on track for end of 2019.

The two-phase development will see production of 2,000 tonnes per day
by end 2019 and 4,000 tonnes per day in 2020.

Mr Jasper Musadaidzwa, the Senior Vice-President, AngloGold Ashanti
for the Continental Africa Region, who announced this, said design and
procurement were in progress while the demolition of redundant plant
was close to completion.

Mr Musadaidzwa, who was speaking to the media at the 2019 Ghana Mining
and Energy Summit in Accra, said refurbishment for Phase one of the
project had commenced and the Mining contractor was mobilised while
ongoing portfolio improvements through investment and rationalization
were on course.

He said the company’s focus and drive was to deliver value-adding growth
over the long term for stakeholders.

Obuasi is said to have reserves of 5.8 million ounces and will operate
at costs lower than AngloGold’s current average.

Annual gold output will average between 350,000 ounces and 450,000
ounces during the first ten years.

Mr Musadaidzwa, who is also the outgoing Managing Director of
AngloGold Ashanti Iduapriem Limited, said the Iduapriem mine had made
very strong contributions to the Ghanaian economy, contributing to job
creation in Ghana’s gold industry, generating income for households,
both directly and indirectly.

The company is also ready to ramp up production over the record
253,000 ounces achieved at the mine in 2018 on the back of continuous
improvement and operational excellence.

The mine, he said, had plans to increase production to above 273,000
ounces for the 2019 financial year.

On local content Mr Musadaidzwa said AngloGold Ashanti was going
beyond compliance with legislation with more of 67 per cent of
procurement contracts going to Ghanaian local contractors.

In the same vein 13 per cent and 20 per cent of the contracts were to
local multinationals and foreign contractors respectively.

“For instance, the mining contract awarded to Joint Venture between
Ghana’s Rocksure International (30 per cent) and Australia’s African
Underground Mining Services (70 per cent). This will help facilitate
the transfer of underground mining expertise to Accra-based Rocksure,
develop mechanised underground mining capability, while retaining
value in-country,” he said.

Ghanaians are also playing major roles in water treatment, laboratory
services, fuel, drilling contract and explosives, adding that “the
move is to ensure we create and retain value in Ghana over the long

Currently, there are 630 employees and 1,156 contractor employees as
at December 2018. The company has also paid $250 million to direct
employees from 2004 to 2018.

Mr Musadaidwa said the Iduapriem mine had contributed more than GHS272million in various payments to government, including Corporate Tax
and Value Added Tax between 2004 and 2018.

Government receipts, he said, have grown 170 per cent since 2014.

The company is at the fore-front of various community developments in
areas of health, education and agriculture to ensure good relations
and sustainability over the long-run.

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