AngloGold Ashanti Updated on Obuasi Mine Operations

SEATTLE (Scrap Monster): AngloGold Ashanti provided update on resumption of underground mining activities at Obuasi, Ghana mine. The mining is expected to resume by mid-October.

It must be noted that underground mining activities at the mine were suspended following a sill pillar failure in May this year, which had resulted in the tragic death of a mine worker. Following the accident, the company had announced a comprehensive series of protocols to uphold safe operations. The protocols, which have already been integrated into the Mine Operating System, will be further boosted by scheduled audits.

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According to company press release, gold production from underground ore sources is expected to commence only in January next year. It expects to ramp up the operations to achieve full mining rate of 4,000 tons per day by the end of H1-2022.

The company expects Obuasi mine to not contribute to gold production for the remainder of the year. The annual revised gold production guidance for the year remains unchanged, it noted. The production for 2022 is estimated to be around 240,000 oz- 260,000 oz at an all-in sustaining cost (AISC) of around $1,250-$1,350 per oz.

The completion of the Obuasi project will boost the production to 400,000-450,000 oz at an AISC of $900-$950 per oz from 2024 to 2028.