President Nana Akufo-Addo has said the circumstances that led to the shut down of the Anglogold Ashanti Company Limited at Obuasi in the Ashanti Region will not reoccur under the watch of his administration.
He was speaking at the re-opening of the Anglogold Ashanti gold mine in Obuasi, which had been closed since 2014.
The President warned that the government will enforce the laws of the land to stop encroachment on the concessions of the mines.
“I assure management and staff of the mine that the sequence of events that led to the closure of the mine will not recur under the watch of this Government. The days of forceful encroachment on the concession of the company, as witnessed between 2010 and 2016, are over.”
The redevelopment project is scheduled to take approximately 30 months to deliver with an approximately 22-year life of mine to produce four hundred thousand ounces of gold per annum.
The project phase also includes the redesigned underground mine, refurbished and upgraded underground and surface infrastructure to support efficient operations.
Speaking at the official launch of the Obuasi Mine Redevelopment Project , President Akufo-Addo said Anglogold Ashanti must also work to transform the mining town for the better.
“When Government and mining companies collaborate in an intelligent and sustainable manner, more can be done to transform mining communities. I have no doubt that Anglogold, under its current management, will be a constructive partner in this journey.”
The total investment for the redevelopment of the Obuasi Gold mine is 1.6 billion dollars for the 22-year period.
The government is expected to rake in 2.16 billion dollars in revenue over the 22 year period in royalties and withholding tax.
“It is expected that all the agreements reached, including the vigorous implementation of domestic content policy, will be scrupulously honoured and performed. The initial investment in the redevelopment project is $881 million, with a total investment of $1.6 billion projected for the entire 22-year life of the mine. The whole investment package has been approved by Parliament,” the President said.
The Managing Director of Anglogold Ashanti, Eric Asubonteng, assured the management will work to enhance the operations of the mine.
By: Hafiz Tijaani|citinewsroom.com | Ghana