To view the PDF file, sign up for a MySharenet subscription.

ANGLOGOLD ASHANTI LIMITED - Information Update on Situation at Idled Obuasi Gold Mine

Release Date: 16/02/2016 09:23
Code(s): ANG     PDF:  
Wrap Text
Information Update on Situation at Idled Obuasi Gold Mine

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”)


16 February 2016

NEWS RELEASE

AngloGold Ashanti Information Update on Situation at Idled Obuasi Gold Mine


Johannesburg and New York, 16 February 2016 - Last week, in the interests of safety,
AngloGold Ashanti Ghana withdrew employees performing non-essential functions from its idled
Obuasi Gold Mine, following the incursion of illegal miners inside the fenced areas of the site. There
is no impact on AngloGold Ashanti’s production and All-In Sustaining Costs as the site is not
forecast to be in production for at least this year. Remaining employees are performing critical
tasks related to maintenance of the site, and also water treatment, provision of medical services
and maintenance of electrical facilities that provide power and water to employees’ homes and
surrounding communities.


This latest development at the site followed the withdrawal of government military protection from
the mine on Tuesday, 2 February 2016, after initial incursions on 30 and 31 January 2016. It is
important to note that the Ghana Army has a Memorandum of Understanding with the Chamber of
Mines, on behalf of its members, to deploy military personnel at mining operations. To AngloGold
Ashanti’s knowledge, no other mines with a military presence have been affected.


The situation at the mine is currently calm, though AngloGold Ashanti Ghana remains deeply
concerned about the prevailing conditions, with illegal miners continuing to enter the site. If allowed
to continue unchecked, illegal mining taking place on parts of the concession, and vandalism of




AngloGold Ashanti Limited
Reg No: 1944/017354/06


Directors: SM Pityana (Chairman) S Venkatakrishnan (British/Indian) (Chief Executive Officer) KC Ramon (Chief Financial Officer) R Gasant A Garner (American) DL
Hodgson NP January-Bardill MJ Kirkwood (British) M Richter (American/Panamanian) Prof LW Nkuhlu RJ Ruston (Australian)
Group General Counsel and Company Secretary: ME Sanz Perez
property, could threaten the long-term viability of the mine and AngloGold Ashanti Ghana’s ability
to continue its feasibility study and maintain critical services.


AngloGold Ashanti Ghana has informed local authorities, through a declaration of Force Majeure,
that under the current situation it may be constrained from fulfilling certain conditions of its
Amended Programme of Mining Operations, the permit that covers current activities at Obuasi.


Following engagement on 12 February 2016 between AngloGold Ashanti and the Ghanaian
Minister of Lands and Natural Resources and other government officials, the Minister has
committed to sending a delegation of high-ranking government officials to examine the situation at
the mine. AngloGold Ashanti awaits the outcome of the delegation’s visit, and will continue to urge
authorities at a national and local level to assist in upholding the law and returning safety and
security to the site before further injuries or further loss of life occur.


    -   ENDS –


Background/ Notes to Editors
AngloGold Ashanti suspended underground mining operations at the Obuasi Mine at the end of
2014 after incurring heavy (and ultimately unaffordable) financial losses over several years.
Employees were paid a severance as mandated by law and in accordance with relevant Collective
Agreements and Employment Contracts. Despite a very difficult market for the global mining
industry, AngloGold Ashanti continues to invest significant time, skill and financial resources in
building the case for the Obuasi Mine’s redevelopment into a much needed, long-term contributor
to the local, regional and national economies.


Since the suspension of operations, Obuasi has been in a government-approved limited operations
phase, whilst AngloGold Ashanti conducts the feasibility study needed to determine whether the
mine can be redeveloped into a profitable, productive operation that can once again be a significant
employer and contributor to the local, regional and national economies in Ghana.


Johannesburg

JSE Sponsor: Deutsche Securities (SA) Proprietary Limited
Contacts

Media

Stewart Bailey +27 81 032 2563 / +27 11 637 6031                                                            sbailey@anglogoldashanti.com
Chris Nthite +27-83-301-2481                                                                                cnthite@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



Certain statements contained in this document, other than statements of historical fact, including, without limitation, those concerning the economic outlook for the gold mining industry, expectations
regarding gold prices, production, cash costs, all-in sustaining costs, all-in costs, cost savings and other operating results, return on equity, productivity improvements, growth prospects and outlook
of AngloGold Ashanti’s operations, individually or in the aggregate, including the achievement of project milestones, commencement and completion of commercial operations of certain of AngloGold
Ashanti’s exploration and production projects and the completion of acquisitions, dispositions or joint venture transactions, AngloGold Ashanti’s liquidity and capital resources and capital expenditures
and the outcome and consequence of any potential or pending litigation or regulatory proceedings or environmental health and safety issues, are forward-looking statements regarding AngloGold
Ashanti’s operations, economic performance and financial condition.

These forward-looking statements or forecasts involve known and unknown risks, uncertainties and other factors that may cause AngloGold Ashanti’s actual results, performance or achievements
to differ materially from the anticipated results, performance or achievements expressed or implied in these forward-looking statements. Although AngloGold Ashanti believes that the expectations
reflected in such forward-looking statements and forecasts are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ
materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic, social and political and market conditions, the success of business and
operating initiatives, changes in the regulatory environment and other government actions, including environmental approvals, 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”). These factors are not necessarily all of the important factors that could cause AngloGold Ashanti’s actua l results to differ materially from those expressed in any forward-
looking statements. Other unknown or unpredictable factors could also have material adverse effects on future results. Consequently, readers are cautioned not to place undue reliance on forward-
looking statements. AngloGold Ashanti undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events, except to the extent required by applicable law. All subsequent written or oral forward-looking statements attributable to AngloGold
Ashanti or any person acting on its behalf are qualified by the cautionary statements herein.

This communication may contain certain “Non-GAAP” financial measures. AngloGold Ashanti utilises certain Non-GAAP performance measures and ratios in managing its business. Non-GAAP
financial measures should be viewed in addition to, and not as an alternative for, the reported operating results or cash flow from operations or any other measures of performance prepared in
accordance with IFRS. In addition, the presentation of these measures may not be comparable to similarly titled measures other companies may use. AngloGold Ashanti posts information that is
important to investors on the main page of its website at www.anglogoldashanti.com and under the “Investors” tab on the main page. This information is updated regularly. Investors should visit
this website to obtain important information about AngloGold Ashanti.



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

Date: 16/02/2016 09:23:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story