Randgold, Anglogold Ashanti team up to revive Obuasi gold mine

Randgold Resources and AngloGold Ashanti recently made an investment agreement to reform and redevelop AngloGold Ashanti’s Obuasi gold mine in Ghana.

The large, high-grade gold deposit at Obuasi has proven ore reserves. It is in the Ashanti region of Ghana, approximately 199 miles northwest of the capital city of Accra.

As part of the agreement, Randgold will lead and fund a development plan designed to rebuild Obuasi as a viable long-life mining business with an attractive cost structure and returns. 

AngloGold Ashanti began updating the mine in 2013 by building ramp access from the surface to the high-grade ore blocks underground in order to provide infrastructure for workers and materials to more easily access the underground operations.

The mind was converted to limited operations at the end of 2014, with AngloGold Ashanti ceasing underground production and retrenching the workforce. The company has continued to process tailings at Obuasi and work on the ramp, while also starting a feasibility study on the redevelopment of the mine. 

“Obuasi is a world-class resource," Randgold CEO Mark Bristow said. "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 toward a viable future for Obuasi.”

Randgold is expected to deliver a new development plan by Jan. 31. If the plan passes muster with both companies' boards of director, and additional requirements are met, a joint venture may be formed to operate the mine.