Obuasi Mine targets 500,000 ounces of gold production by 2013

Obuasi (Ash), Aug. 4, GNA - AngloGold Ashanti, Obuasi, is to increase its annual gold production from 383,000 ounces to 500,000 within the next three years, Mr Kwesi Enyan, the Managing Director, has announced.

In a presentation on their activities during a visit to the mine by the Ashanti Regional Minister, Mr Kofi Opoku-Manu said, Obuasi mine contributed 8.3 per cent of the company's global production of 4.6 million ounces last year.

He said the mine is still potentially rich as they as currently mining "at 50 level (5,000 feet deep) and had another 50 level to go down."

Since 2004, the company had paid almost US$77 million in mineral royalties to the state and property rates to the Obuasi Municipal Assembly and Amansie District Assembly.

In addition, over US$9,000,000.00 had been committed into social investment spending.

The Managing Director said the company would ensure that its operations did not impact negatively on the communities and that over the last two years US$8,000,000.00 had been spent to meet its environmental obligations.

He outlined some challenges facing the company and said these include returning the mine to profitability, addressing social and environmental issues, improving community engagement, participation and illegal mining.

Mr Enyan said their strategy was to use stakeholders to address the challenges, adding that, "now at least we have been able to move the illegal miners (galamsey) away from underground areas, which are critical to our operations."

The Regional Minister, who was on a day's working visit to the Obuasi Municipality, said he appreciated the manner in which illegal mining in the area was being tackled.