ANGLOGOLD Ashanti said it had signed a five-year underground mining contract with a joint venture consisting of Australia’s African Underground Mining Services (AUMS) and a Ghanaian firm, Rocksure International (30%), worth $375m over the contract period.
The joint venture will work on the Obuasi Re-Development Project which is expected to produce on average 350,000 ounces of gold to 450,000 oz a year for the first 10 years at an average head grade of 8.1 grams per tonne (g/t).
In the second 10 years, production averages 400,000 oz to 450,000 oz. Total cash costs are expected to average between $590/oz to $680/oz, while all-in sustaining costs are expected to be between $750/oz to $850/oz. The project was on track to produce its first gold by the end of 2019.
AngloGold said the signing of the contract with Rocksure International, which has a background in open-pit mining, represented a commitment to local procurement in Ghana. Works are expected to start in the first quarter of 2019.
The Obuasi orebody in terms of the redevelopment project has some 5.8 million oz in ore reserves and 34 million oz in mineral resource. “Around 550 people, predominantly Ghanaians, will be employed and trained by the contractors for the duration of the contract term, allowing for knowledge and skills transfer,” said AngloGold in a statement.
Obuasi, which has been primarily an underground operation, was placed on care and maintenance in 2016 pending the commencement of the redevelopment project. In June 2018, the Parliament of Ghana ratified the regulatory and fiscal agreements that cover the redevelopment of the Obuasi Gold Mine and the Environmental Protection Agency issued environmental permits for the mine.
