AngloGold Ashanti surrenders 60% of Obuasi concession

AngloGold Ashanti has confirmed that the voluntary process that AngloGold Ashanti Ghana Limited commenced in November 2013 -- to surrender some 60% of the Obuasi Mine concession to government -- has been implemented by the Ministry of Lands and Natural Resources.

This will provide an opportunity for the Ministry of Lands and Natural Resources to use the land as it sees fit, including to encourage a range of socio-economic development activities in the Obuasi region. 

The area in question covers about 273 square kilometres and excludes the Obuasi Mine, which lies on land retained by AGAG.

AngloGold Ashanti’s primary aim, subject to the outcome of an ongoing feasibility study, remains to turn the Obuasi Mine into a long-life, modern, mining operation that will provide foreign investment, high-quality direct and indirect employment, taxes and foreign exchange revenue to Ghana. 

However, the continued presence of illegal miners on the Obuasi Mine concession continues to jeopardise this potential. It is critical that the authorities act to resolve this threat to the Obuasi Mine’s viability, in a peaceful manner and as quickly as possible. 

Numerous meetings between AngloGold Ashanti executives and representatives at all levels of government – both national and local -- have failed to yield the return of supplementary security to the site. 

The illegal miners, meanwhile, continue to damage parts of the ore body and important infrastructure, raising risks that the site will be irreparably damaged if they are allowed to go on unchecked.

There is also a growing threat to AGA’s ability to continue supplying critical services to the Obuasi Mine and local communities. 

The incursion of illegal miners followed the withdrawal of government military protection from the mine last month, after initial incursions on 30 and 31 January 2016. 

In the interests of safety, AngloGold Ashanti Ghana withdrew employees performing non-essential functions from the mine. Remaining employees have been performing critical tasks related to maintenance of the site; and also water treatment, provision of medical services and maintenance of electrical facilities that provide power and water to employees’ homes and surrounding communities.

It is important to note that the Ghana Army has a Memorandum of Understanding with the Chamber of Mines, on behalf of its members, to deploy military personnel at mining operations. Military personnel have been deployed at the Obuasi Mine since 2013. 

To AngloGold Ashanti’s knowledge, no other mines with a military presence have been affected.

AGA suspended underground mining operations at the Obuasi Mine at the end of 2014 after incurring heavy (and ultimately unaffordable) financial losses over several years.

Employees were paid a severance-fee as mandated by law and in accordance with relevant Collective Agreements and Employment Contracts.

Despite a very difficult market for the global mining industry, AngloGold Ashanti has continued to invest significant time, skill and financial resources in building the case for the Obuasi Mine’s redevelopment into a much-needed long-term contributor to the local, regional and national economies.

Since the suspension of operations, Obuasi has been in a government-approved limited operations phase while AngloGold Ashanti conducts the feasibility study needed to determine whether the mine can be redeveloped into a profitable, productive operation that can once again be a significant employer and contributor to the local, regional and national economies in Ghana.