AngloGold takes measures to revive mine
AngloGold Ashanti has said that it will continue to dialogue with a range of stakeholders in Ghana as it implements measures aimed at addressing the long-running underperformance of the Obuasi Mine in Ghana.
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A statement issued by the company said, ‘As part of the consultative efforts, AngloGold Ashanti on July 18, this year, submitted its Amended Programme for Mining Operations (APMO) to the Government of Ghana and key regulators for a review, to be followed by a two-month consultation period’.
The APMO provides details of the technical, environmental, financial and social aspects of the envisaged transformation of the mine.
It also said the APMO, required under Section 45 of the Minerals and Mining Act 2006, Act 703, will include a detailed feasibility study to determine the future scope, cost and economies of the Obuasi Mine. The statement said these would form the basis for future investment decisions.
“Addressing the underperformance at Obuasi remains a key objective for us,” Mr Fred Attakumah, Managing Director of AngloGold Ashanti, Ghana, said in the statement.
“We’re obligated to engage with the Government of Ghana, our employees and the other important local and regional stakeholders throughout this process as we work to return this key asset to sustainable, long-term profitability for the benefit of all constituencies,” he added.
Production levels at the Obuasi Mine have been declining since 1995 and it reached a 30-year low of 239,000oz in 2013. This has made it necessary for a major intervention to address the significant operational and cash flow challenges that the mine faces in order to secure its long-term future.
The restructuring and repositioning of the Obuasi Mine, which remains dependent on key concepts, is likely to result in a substantial reduction in the mine’s existing operations and its workforce; a process which has been ongoing throughout the year.
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AngloGold Ashanti is in close dialogue with its workforce and their representatives from the labour union in a move to put in place a financial plan ahead of payments to be made to workers who would be laid off, as well as find new employment opportunities for the affected workers, where possible.
The Obuasi Mines has initiated changes in the assets that it inherited. These include infrastructure difficulties, development constraints and cash outflows, which it is addressing systematically. Other challenging areas such as surface production, exploration, drilling and decline in development would be resolved soon.
The mine also has plans to reduce the footprint of its operations and consolidate infrastructure and lower operating costs by introducing a mechanised mining approach in future, together with the refurbishment and automation of the processing plant.
The Obuasi Deeps Decline Project, which began in July last year, reached an important milestone this month. The decline from the surface has now gone below Level 17, which is more than a third of the total decline project.
“This is an indication of what is possible at the Obuasi Mine. It is also a good precursor to the new mine that we’d like to develop,” Mark Morcombe, Senior Vice-president, AngloGold Ghana, said.
“While this is a good result, there is still a long way to go for us and as such we need the support of our employees, our host communities and the local and national governments,” he added.