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Randgold Resources not to proceed with Obuasi Joint Venture: Obuasi to continue with its Limited Operating Phase
AngloGold Ashanti Limited
(Incorporated in the Republic of South Africa)
Reg. No. 1944/017354/06)
ISIN ZAE000043485 – JSE share code: ANG
CUSIP: 035128206 – NYSE share code: AU
(“AngloGold Ashanti” or the “Company”)
21 December 2015
NEWS RELEASE
Randgold Resources not to proceed with Obuasi Joint Venture: Obuasi to
continue with its Limited Operating Phase at Lower Cost
(JOHANNESBURG – NEWS RELEASE) -- Randgold Resources Limited (“Randgold”) has
informed AngloGold Ashanti that it wishes to terminate the conditional Investment
Agreement concluded in September 2015, for a joint venture to redevelop the Obuasi Mine,
as the proposed investment does not meet Randgold’s investment criteria.
This decision follows concerted efforts by both companies to improve the project’s returns
and also to secure an appropriate set of consents from the Government of Ghana, within an
ambitious timeframe that would have allowed for a feasibility decision on the redevelopment
of the mine in early 2016. Although improvements have been identified, these have not
been sufficient to commit to a substantial investment under the prevailing conditions.
The Minister of Lands and Natural Resources of Ghana has approved continuation of
Obuasi’s limited operating phase during Q1 2016. Limited operations will be undertaken at
reduced cost, compared to 2015, including maintaining the operations, security,
environmental management, optimising the feasibility study, as well as ongoing
sustainability work.
“We have made a concerted effort to unlock a new opportunity for Obuasi, and the work we
have done lays a good foundation for the operation in the long term,” AngloGold Ashanti
Chief Executive Officer Srinivasan Venkatakrishnan said. “But in the current environment,
we believe it is prudent to conserve our resources and to revisit this opportunity when market
conditions improve.”
Obuasi, located in the Ashanti region of Ghana 320 kilometres northwest of the capital
Accra, is a large, high-grade deposit with proven and probable ore reserves (as reported by
AngloGold Ashanti in its 2014 Annual Report) of 24.53Mt at 6.70g/t for 5.29Moz, part of a
substantial mineral resource base.
Johannesburg
JSE Sponsor: Deutsche Securities (SA) Proprietary Limited
Contacts
Media
Stewart Bailey +27 81 032 2563 / +27 11 637 6031 sbailey@anglogoldashanti.com
Investors
Stewart Bailey +27 81 032 2563 / +27 11 637 6031 sbailey@anglogoldashanti.com
Sabrina Brockman +1 212 858 7702 / +1 646 379 2555 sbrockman@anglogoldashanti.com
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fluctuations in gold prices and exchange rates, the outcome of pending or future litigation proceedings, and business and operational risk management.
For a discussion of such risk factors, refer to AngloGold Ashanti’s annual report on Form 20-F for the year ended 31 December 2014, which was filed with the United States Securities
and Exchange Commission (“SEC”) on 2 April 2015. These factors are not necessarily all of the important factors that could cause AngloGold Ashanti’s actual results to differ materially
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Incorporated in the Republic of South Africa Reg No: 1944/017354/06
ISIN. ZAE000043485 – JSE share code: ANG CUSIP: 035128206 – NYSE share code: AU
Website: www.anglogoldashanti.com
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