Randgold and AngloGold Ashanti join forces to revive Ghana Obuasi mine

Image credit: www.randgoldresources.com

World leading gold miners Randgold Resources Limited and AngloGold Ashanti have formed a joint venture that will focus on redeveloping AngloGold Ashanti’s Obuasi gold mine in Ghana.

Image credit: www.randgoldresources.com
Image credit: www.randgoldresources.com

Under the terms of the joint venture agreement, Randgold will lead and fund the development plan to rebuild the mine located in the Ashanti region of Ghana 320 kilometres northwest of the capital Accra.

“Obuasi is a world-class resource. We now have to see if we can convert it into a world-class mine. We have a long history of cooperation with AngloGold Ashanti and we look forward to working with them again on charting a new course towards a viable future for Obuasi,” said Randgold Chief Executive Mark Bristow.

“AngloGold Ashanti has since 2012 effected a range of improvements to modernise Obuasi and – in line with its strategy – has progressed a feasibility study as the critical next step toward breathing new life into this important mine. Our partnership with Randgold has proved successful for well over a decade in bringing value from sustainable gold mining to all stakeholders and we believe that pooling the extensive expertise and the capital of these two companies will improve our ability to bring Obuasi’s world-class high-grade gold deposit to account,” said AngloGold Ashanti CEO Srinivasan Venkatakrishnan.

In 2012 AngloGold Ashanti initiated a programme to modernise the mine, principally by starting to develop a ramp access that would ultimately run from surface to high-grade blocks of ore underground.

At the end of 2014, AngloGold Ashanti converted Obuasi to limited operations, ceasing underground production, retrenching the workforce, but continuing to process tailings and starting a feasibility study on the redevelopment of the mine.