The gold mine has been closed since 2014 during the erstwhile Mahama administration.
Speaking at the official launch of the Obuasi Mine Redevelopment Project, Nana Akufo-Addo said he will ensure that the circumstances that led to the shutdown of the mine will not reoccur during his tenure as President.
He added 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.”
President Akufo-Addo also encouraged AngloGold Ashanti to 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 redevelopment project is expected to take approximately 30 months. When completed, it will deliver 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.
The total investment for the redevelopment is 1.6 billion dollars for the 22-year period.
Meanwhile, the government is expected to receive 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.
On his part, the Managing Director of AngloGold Ashanti, Eric Asubonteng, said they will work tirelessly to enhance the operations of the mine.
