AngloGold Ashanti has disclosed that it will resume operations of its underground ore mine at Obuasi by mid-October.

The new date notwithstanding, work in the underground ore mine will constitute the replenishing of the Run-of-Mine stockpile throughout the rest of the year, thus, laying the foundation for actual gold production to commence in January 2022.

Following this schedule, the safe ramp up to the full mining rate of 4,000 tons per day will be achieved by the end of the first half of 2022.

In a press statement released today, September 30, 2022, the company recounted the circumstances leading to the temporal halt in operations at the mine, noting that a comprehensive series of protocols have been introduced to supplement existing operating procedures.

It could be recalled that, on May 18, 2021, a sill pillar at the underground mining site failed resulting in the loss of one of the miners. This unfortunate incident therefore necessitated a detailed review of mining and ground management plans.

Pertaining the new protocols, the company has rolled out an existing systematic probe drilling procedure, extensive use of technology, including Cavity Monitoring Systems, among others.

“These protocols, which have been integrated into the Mine Operating System, will be bolstered by scheduled audits to ensure the accuracy and diligence in probe drilling…”
AngloGold Ashanti

Despite this new development, AngloGold Ashanti still maintains its annual revised guidance for 2021, with the assumption that gold production is not expected for the remainder of the year.

Expectations are that the supplementary operating procedures introduced after the review will add $10 to $20 per tonne to the mine’s operation cost.

Production forecast for 2022 and beyond

Per the company’s 2022 forecast, gold production will come online as the mine ramp, is estimated at about 240,000oz — 260,000oz at an all-in sustaining cost of $1.250/oz to $1,350/oz. This carries a cash cost of $900/oz to 950/oz.

Towards the last quarter of next year, the company estimates that it would realize an annualized production at 320,000oz to 350,000oz a year. And this is expected to remain so for 2022 and 2023 until the completion of phase3 in Q4 2023.

At the completion of all the phases of the project, production from 2024 to 2028 is anticipated to average 400,000oz to 450,000oz at an all-in sustaining cost of $900/oz to $950/oz.

The Obuasi gold mine is one of the world’s largest gold ore bodies, with 29.5Moz of Mineral Resource, at an average grade of 7.64 grams per tonne.

The company started redevelopment of the mine in mid-2018, after it went on care and maintenance in 2016.

Phase 1 of the redevelopment project was completed by end September 2020 and began commercial production on October 1, 2020. Phase 2, construction and mine development was substantially completed at the end of June 2021.

The Company has an active youth apprenticeship programme, with graduated 55 young artisans last year and another 80 enrolled in 2021. Also, the company prioritizes local businesses within its supply chain, as 80 per cent of the total mines redevelopment was spent in Ghana, between wholly owned Ghanaian businesses and multinationals registered in Ghana.

Among other things, the company also supported in the fight against COVID-19 in the Obuasi area, providing healthcare facilities for the community as well as personal protective equipment, etc. to help contain the virus.