Nii Osah Mills optimistic about mining industry’s prospect

The Minister for Lands and Natural Resource, Nii Osah Mills, has expressed optimism about prospects of the country’s mining industry as two new firms are expected on stream within the next two years, regardless of increased production cost and low gold price in the world market.

The two new firms, Asanko Gold Mine and Azumah Resources Limited, located in the Amansie West and Wa respectively, have secured their operating permits to commence exploration.

The two firms are presently designing and building their mining plant and are expected to pour their first gold within the next two years.

Nii Osah in an interview with B&FT expressed confidence about the prospects for future gold mining in Ghana, confirming that “Asanko’s new mining plant, which is under construction, has been designed to produce at high capacity even when gold price falls to below US$1,200-1,100 per ounce. They have forecast that they can operate, and this confirms a bright future.

 “If Asanko is coming in now at this time of low gold prices tells you that people should not be pessimistic.”

He noted that Azumah Mining positioning itself in the Northern Region to explore for gold clearly confirms that the country has a future. There are others who have applied and not gone as far as Asanko, he said.

Minister Osah Mills commended the management of AGA for strictly following the roadmap to revive the mine, as it is giving hope to the country’s mining industry.

As part of the AGA’s revival strategy, which is currently undergoing a 24-month care and maintenance period, it contracted 650 mine workers on temporary basis and is expected to drill at least 1,500m deep within the period -- also including a complete feasibility study for the big takeoff.

The new recruits, who are said to be specialised staff, have been engaged in a one-year renewable contract and thus begun the layout and construction of basic amenities at the company’s new sites, south of its Obuasi Mine concession.

This comes shortly after the company retrenched its entire workforce last year in a move to begin a transformational process in line with a new road map to resuscitate the mines.

AngloGold’s Obuasi Mine turnaround strategy is to allow a systemic change to its design and operation to counter the trend of declining productivity, lack of mining flexibility, falling tonnages and soaring costs. 

 As the operator of a range of different mines, from large open-pits to the world’s most successful ultra-deep gold mines, AngloGold Ashanti is well-placed to evaluate options to modernise the Obuasi Mine and help it provide good jobs for the long-term while contributing meaningfully to the local, regional and national economy.

 B&FT has gathered that a large portion of Obuasi Mine will be on care and maintenance in 2015.  

 AngloGold Ashanti has still budgeted expenditure there of some US$100million for the year, which includes development of the ramp decline to high-grade underground areas, and also the necessary cost of ensuring infrastructure remains secure and in good condition.