AngloGold Ashanti Limited has entered into a joint venture with Rangold Resources Limited to transform the Obuasi Mine into a world-class high grade mine.
Chief Executive Officer (CEO) of AngloGold Ashanti, Srinivasan Venkatakrishnan said, “Our partnership with Randgold will bring sustainable gold mining to all stakeholders and we believe that pooling the extensive expertise and the capital of these two companies will improve our ability to bring Obuasi’s world-class high grade gold deposit to account”.
He said in 2012 AngloGold Ashanti initiated a programme to modernize the mine principally by starting to develop a ramp access that would ultimately run from surface to high-grade blocks of ore underground.
Mr Srinivasan said under the terms of the agreement, the Iduapriem Mine and certain other non-core assets would be retained under the sole ownership.
Chief Executive Officer (CEO) of Rangold Resources Mark Bristow said Obuasi is a world-class resource, we now have to see if we can convert it into a world-class mine.”
Randgold is expected to deliver the new development plan to both parties’ boards by 31 January 2016.
Formation of the joint venture is conditional on the satisfaction of a number of conditions, which include the approval by the boards of Randgold and AngloGold Ashanti of the final development plan prepared by Randgold.
In addition, formation of the joint venture is conditional on the receipt of the approvals necessary for the implementation of the development plan and formation of the joint venture from the Government of Ghana on terms acceptable to the parties, including agreement of a revised stability agreement and a development agreement reflecting the agreed development plan.
Randgold will also assume responsibility for its proportionate share of certain liabilities arising under the guarantee given by Anglogold Ashanti in relation to the liabilities of its Ghanaian subsidiaries.
By Andrews Ampofo