Eric Asubonteng
AngloGold Ashanti has announced that it will invest an initial project capital of between $450 million and $500 million over the next two and half years to transform its Obuasi Mine.
Eric Asubonteng, Managing Director of AngloGold Ashanti’s Obuasi Mine, who disclosed this to journalists yesterday in Accra, said his outfit and government had put in place several agreements, including a development agreement, tax concession agreement, security agreement and a reclamation security agreement, adding that the environment impact assessment process had been completed with permits expected shortly.
Noting that the lease area had now been reduced from 475 square kilometres to 201 square kilometres, he said the operation is expected to create between 2,000 and 2,500 jobs, adding that additional roles would be required during the construction phase of the project.
The MD stated that there was no liability to retrenched workers from the new project life, which has been planned to span 21 years.
A feasibility study conducted into the redevelopment of the mine also tested the viability of redeveloping the high grade ore body, and found out that it had 5.8 million ounces of ore reserves and 34 million ounces in mineral resource, capable of creating a safe, long-life mining operation that was productive and profitable.
“The redevelopment will establish Obuasi as a mechanized underground mining operation. The approach to redeveloping the Obuasi Mine is a fundamental departure from how the mine was operated in the past. The redevelopment makes use of automation and controls for improved operational efficiencies and consistency in performance.
“The project implementation will be undertaken in two distinct phases, with stage one comprising project establishment, mine rehabilitation and development, plant and infrastructure refurbishment to enable production at a rate of 2,000 tons per day for the first operating year. This is expected to take roughly 18 months, with the first gold pour expected in the third quarter of 2019.”
He said the second phase will include the refurbishment of the underground materials handling system, shafts and ventilation, and construction of the primary crusher, the SAG/Ball circuit, carbon regeneration, a new gold room and tailings storage facility.
“This is expected to take a further 12 months and enable the operation to climb to 4,000 tons per day. The operation is then expected to ramp up to 5,000 tons per day over the following three years.
“Mine production for the first 10 years will be focused on the upper ore bodies and is expected to average 350,000 ounces to 450,000 ounces at an average head grade of 8.1 gram per ton. In the second 10 years, production averages 400,000 ounces to 450,000 ounces. Total cash costs are expected to range between $590 per ounce to $680 per ounce, while all-in sustaining costs are expected to be between $750 per ounce to $850 per ounce.”
By Samuel Boadi