Randgold Resources Limited and AngloGold Ashanti have concluded a multi-million investment deal aimed at the formation of a joint venture to redevelop and operate AngloGold Ashanti’s Obuasi gold mine in Ghana.
Randgold is expected to lead and fund a development plan designed to rebuild Obuasi as a viable long-life mining business with an attractive cost structure.
Speaking at a press conference in Accra, the Chief Executive of Randgold Mark Bristow stated that the Obuasi mines is a world-class resource that has the potential of contributing to Ghana’s economic prospect.
“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”, he said.
On his part, CEO of AngloGold Ashanti, Srinivasan Venkatakrishnan stated that the company has since 2012 effected a range of improvements to modernize Obuasi and in line with its strategy and has progressed a feasibility study as the critical next step toward breathing new life into the mine.
“Our partnership with Randgold has proved successful for well over a decade in bringing value from sustainable gold mining to all stakeholders”, he said.
He maintained that the two giant companies pooling resources will improve the ability to bring the Obuasi mines’ high grade gold deposit to the market.
At the end of 2014, AngloGold Ashanti converted Obuasi to limited operations, ceasing underground production, retrenching the workforce, but continued to process tailings and started a feasibility study to redevelop the mine.
The development of the mine will build on the feasibility study to establish a more focused, efficient and high-grade operations that will last for four months.
Randgold and AngloGold Ashanti will then be jointly responsible for funding of the development of the Obuasi mines in line with the agreed redevelopment plan.
During the time, a Randgold group entity will be appointed as operator of the mine.
Randgold and AngloGold Ashanti will appoint equal number of directors to the board of the joint venture company, with board and shareholder decisions to be approved by both parties.
About the mine
Obuasi is located in the Ashanti region of Ghana 320 kilometers northwest of the capital Accra.
Obuasi is estimated to have ore reserves of 24.53Mt at 6.70g per ton for 5.2Moz , part of a substantial mineral resource base.
In 2012, AngloGold Ashanti initiated a programme to modernize the mine, principally by starting to develop a ramp access that will ultimately run from surface to high grade blocks of ore underground.