Obuasi gold mine in Ghana to resume in October
Obuasi gold mine in Ghana is set to resume in October. AngloGold Ashanti Ltd. made the announcement and said 2021 guidance remains unchanged.
The Obuasi Gold Mine is an underground gold mine situated near Obuasi, in the Ashanti Region of Ghana. It was one of the top-10 largest gold mines on Earth. The mine is in Obuasi Municipal District, 39 miles (59.4 kilometers) south-west of regional capital. The mining company had suspended underground activities at Obuasi in May following an accident.
Upon resumption, production of 240,000-260,000 ounces for 2022 is expected as the mine ramps up. This will increase to 320,000-350,000 ounces a year from the fourth quarter of 2022 until the completion of the third phase of the project to re-develop Obuasi in the fourth quarter of 2023. Afterwards, between 2024 and 2028, production is anticipated to average between 400,000 and 450,000 ounces.
Obuasi history
AGC started underground mining in 1907. Lonrho purchased AGC in 1969 and the Ghanaian Government reduced its holding in 1994, leaving Lonrho (now Lonmin) with a 33% stake and corporate plus private investors holding the remainder.
In the mid-1980s, the company launched a capital-intensive mechanisation programme that was completed during 1998-1999. However, these efforts did not achieve the targeted gold output of 550,000oz/y to 650,000oz/y at a cash cost below $200/oz.
AGC reduced staffing at Obuasi from approximately 10,000 in 1996 to less than 6,600 in 2003 and invested in underground development and plant. The mine is 100% owned by AngloGold Ashanti, which was formed after AGC merged with AngloGold in April 2004.
The Obuasi gold mine restarted production in December 2019 after a five-year suspension to undertake its redevelopment. As a result of the redevelopment, the mine is expected to operate for around 21 years with average gold production of 400,000oz a year.
