The direct economic benefits expected to accrue to the nation is estimated at $ 5.3 billion over the life of the Obuasi gold mine as it reopens operations.
These benefits include payment of royalties, corporate tax, contribution by way of employment and transfers to the Community Trust Fund and the participation of local businesses in its supply chain. This is according to the Ghana Chamber of Mines.
In an exclusive interview with JoyBusiness, Chief Executive of the Chamber, Sulemanu Koney describes the reopening of the mine as an opportunity to boost the country’s economy as well as investor confidence.
“Investors will be happy to come back into the industry because Obuasi is a big brand when it comes to mining in Ghana. The economic benefits and financial contribution of the Obuasi Mines is so enormous and holds good potential for the country,” he noted
The AngloGold Ashanti (AGA) Obuasi Mine was placed on limited operations towards the end of 2014 and has been on care and maintenance since 2016, pending commencement of the mine’s redevelopment project.
AGA Obuasi has projected that the redevelopment will deliver a modern, mechanised underground mining operation.
In June 2018, the Parliament of Ghana ratified AGA’s agreement with the government to redevelop the Obuasi Mine into a profitable business once again.
“We are pleased because it signifies a new beginning for a mine that has been a significant and integral part of the development of Ghana; A mine that has given so much in terms of socio-economic development to the people of this nation and its investors. It shows that sometimes it is important to step back and put measures in place in order to improve your efficiency as a business and return even stronger,” Mr Koney added.
The 1st Vice Chairman of the Chamber, Alfred Baku, congratulated the Board of AGA Obuasi Mine for not relenting in obtaining the needed funding to bring the mine back to life. “There is no gainsaying the fact that AGA’s determination epitomises Ghana’s robust mining industry, which has remained resilient even amidst global cost headwinds. We need to take advantage of the various opportunities mining offers to develop our communities, grow our economy, and provide the needed returns to all stakeholders,” he emphasised.
AGA Obuasi is expected to pour its first gold by the end of the year.
Managing Director of AGA Obuasi Mine and President of the Ghana Chamber of Mines, Eric Asubonteng indicated that the mine’s reopening is the result of teamwork and a sense of diligence to resuscitate the fortunes of the mine, adding, “we are glad that this has been achieved and we are looking forward to a very successful life of mine. We thank the government and the good people of Ghana for supporting the mine to achieve this significant milestone.”
AGA Obuasi Mine’s redevelopment comes at a time when key gold producing companies in Ghana are reinvesting in their respective mines to raise production and sustain operations using sustainable practices.
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