AngloGold Ashanti has entered into a joint venture with Randgold Resources Limited to revamp the Obuasi mine to a world-class high-grade mine.
[contextly_sidebar id=”2szMslBg99lzExlBIfV7yeAFEhuKRpWK”]Chief Executive Officer of AngloGold Ashanti Srinivasan Venkatakrishnan who confirmed the move to Business News said “Obuasi given the range of issues had to have a tough decision taken because you cannot fix the tyre of a car in motion you have to stop and relook at it and you got to say, how do I actually modernise the mine. What this does is effectively it opens up a path way for Obuasi to be sustainable in the long term like 10 to 20 years’.
AngloGold Ashanti at the end of 2014, converted the Obuasi mine to limited operations ceasing underground production.
The move led to the dismissal of thousands of its workforce.
Despite the partial shutdown the mining giant continued to process tailings and embarked on a feasibility study on the redevelopment of the mine.
According to the Chief Executive Officer of AngloGold Ashanti Srinivasan Venkatakrishnan both mining firms will ensure the mine is revive.
‘What it does mean is we will open up the mine and solve historical issues which we have addressed, some of them when addressed will generate a promising return not just for Anglogold Ashanti, even for all of the stakeholders. Currently gold and cocoa are the two big foreign exchange earners which effectively create the backbone of the Ghanaian economy and unfortunately gold price and cocoa have gone down and with this we need to revive the mine and get it to become profitable.’ Srinivasan Venkatakrishnan said.
Meanwhile a development plan will be built within four months following a feasibility study with the intention of establishing a more focused, efficient, mechanised high-grade operation.
Randgold’s Chief Executive Officer Mark Bristow said “Obuasi is a world-class resource. We now have to see if we can convert it into a world-class mine. We have a long history of cooperation with AngloGold Ashanti and we look forward to working with them again on charting a new course towards a viable future for Obuasi.”
Randgold is expected to deliver the new development plan to both parties’ boards by 31 January 2016.
Formation of the joint venture is conditional on the satisfaction of a number of conditions, which include the approval by the boards of Randgold and AngloGold Ashanti of the final development plan prepared by Randgold.
In addition, formation of the joint venture is conditional on the receipt of the approvals necessary for the implementation of the development plan and formation of the joint venture from the Government of Ghana on terms acceptable to the parties, including agreement of a revised stability agreement and a development agreement reflecting the agreed development plan.
By: Norvan Acquah – Hayford/citifmonline.com/Ghana