AngloGold’s Obuasi mine produces its first gold after 5-year suspension

In a news release, AngloGold said the first gold is a sign of successful redevelopment of the mine into a modern, mechanised mining operation.

“The Obuasi Redevelopment Project, which seeks to access Obuasi’s 30-million-ounce ore body over the next two decades and beyond, has completed the first phase of construction on time and on budget.”

The Chief Executive Officer (CEO) of AngloGold Ashanti, Kelvin Dushnisky, said this milestone is a significant achievement for the Company, for the community at Obuasi and Ghana as a whole.

He said that they produced the first gold on budget and a tight schedule

“Restarting this important mine is a testament to the focused execution by our team on the ground, as well as the clear investment framework and supportive environment created by the President of Ghana and his government, and the King of Ashanti,” Mr. Dushnisky said.

He said that they have refurbished the existing plant in line with a new mine plan, have taken place over the past 18 months.

It is estimated that AngloGold Ashanti will mine at a rate of 2,000 tons per day from Obuasi during 2020, increasing to 4,000 tons per day by year-end.

The mine will be producing gold at an average run-rate of about 350,000oz – 400,000oz per year for the first 10 years, and above 400,000oz over the life of mine at all-in sustaining costs of around $800/oz.

Graham Ehm, AngloGold Ashanti’s Executive Vice President of Group Planning and Technical, who is overseeing the project said: “the team has done an excellent job completing the first phase of this project and will be focused on ramping up production through next year.”

“The difficult decision was made to suspend production in 2014 to rebuild the mine’s foundation for a sustainable long-term future that will bring benefit to the region over the coming decades. We are tremendously proud of what has been achieved since then.”