Accra, Ghana
36°C

GSE Feed

Forex Rate

$259m tax waiver: AngloGold moves to revamp Obuasi mine

file photo
file photo

AngloGold Ashanti has welcomed the tax waiver granted by Parliament paving the way for it to redevelop its Obuasi mine.

The mining company believes the move will lead to increased production from the mine site for at least the next twenty years.

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

The Minority has criticized the amount granted in tax waivers, seeking a downward review.

But according to AngloGold, it is still committed to the 31 million dollars investment, approved in February this year.

CEO of AngloGold, Srinivasan Venkatakrishnan 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.

The operation is expected to create between 2000 to 2,500 jobs.

Additional roles will be required during the construction phase of the project.

By: Pius Amihere Eduku/citibusinessnews.com/Ghana

Citi Business News