Business News of Thu, 21 Jun 20189
AngloGold gets $300m tax concession
Parliament has ratified a development agreement between the government and AngloGold Ashanti (Ghana) Limited that will see the company investing $880 million into the Obuasi mine and creating more than 3,000 jobs over the next seven years.
AngloGold Ashanti is expected to inject an estimated capital of $1,045 million over the projected 22 years lifespan of the mine.
Under the agreement, per every ounce of gold that would be extracted, AngloGold would donate $2 to a trust for the development of the Obuasi community.
Graphic Online’s Parliamentary correspondent, Musah Yahya Jafaru reported that the House also ratified a tax concession agreement between the government and
AngloGold with the estimated value of the taxes and duties involved in the fiscal concession and waiver estimated at $259,000,000.
The ratifications followed the adoption of the reports of the Joint Committee of Mines and Energy and Finance on the agreements on Thursday.
The reports recommended the ratification of the stability and tax concession agreements.
A feasibility study conducted by AGAG conducted in 2014 indicated that the Obuasi mine had an estimated life of 21 years with estimated mineral reserves of 6.3 million ounces.
The study again revealed that there was a potential to convert other minerals to proven and probable reserves to increase profitability and thereby extend the life of beyond the estimated 22 years.