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AngloGold Ashanti Signs Obuasi Mining Contract with AUMS, Ghana’s Rocksure
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
JSE Bond Company Code - BIANG
(“AngloGold Ashanti” or the “Company”)
29 October 2018
NEWS RELEASE
AngloGold Ashanti Signs Obuasi Mining Contract with AUMS, Ghana’s Rocksure
(ACCRA – PRESS RELEASE) – AngloGold Ashanti is pleased to announce finalisation of a
five-year underground mining contract at the Obuasi Re-Development Project with
Underground Mining Alliance Limited (UMA), a joint venture between African Underground
Mining Services (AUMS) and Accra-based Rocksure International, a wholly-owned
Ghanaian mining contractor (“Rocksure”).
The agreement, valued at $375m over 5 years, will help develop mechanised, underground
mining expertise within Ghana’s local mining and engineering sector, given that Rocksure,
which has a strong track record in open-pit mining, will work closely with Australia’s AUMS,
which has significant experience in underground mining. Rocksure will have a 30% stake in
the joint venture and AUMS the balance.
UMA will provide the full suite of underground mining services at Obuasi, with major capital
equipment supplied by AngloGold Ashanti. Works are expected to start in the first quarter of
2019.
In encouraging the creation of the joint venture, AngloGold Ashanti is demonstrating its
commitment to increasing meaningful local participation in the redevelopment of the Obuasi
orebody, which has 5.8Moz of Ore Reserves and 34Moz in Mineral Resource, and will have
an initial mine life of roughly 20 years. Around 550 people, predominantly Ghanaians, will be
employed and trained by the contractors for the duration of the contract term, allowing for
knowledge and skills transfer.
“We’ve worked closely with the Government of Ghana to progress the redevelopment of
Obuasi Gold Mine into a modern, productive operation, making it a key asset in our portfolio
for the long term,” said AngloGold Ashanti Executive Vice President: Group Planning and
Technical, Graham Ehm. “This is also an investment in Ghana’s future, particularly in terms
of local procurement, employment, training and development and overall mining capacity
building, which will benefit the region and the economy for decades to come.”
Obuasi, which has been primarily an underground operation, was placed on care and
maintenance in 2016 pending the commencement of the redevelopment project. In June
2018, the Parliament of Ghana ratified the regulatory and fiscal agreements that cover the
redevelopment of the Obuasi Gold Mine and the Environmental Protection Agency issued
environmental permits for the mine.
“Rocksure International is proud to be active participants in the redevelopment of Ghana’s
iconic gold mine, and enable it to benefit Ghana’s economy” said Rocksure International
CEO, Kwesi Osei Ofori.
With the key permitting and regulatory processes finalised, the finalisation of the mining
services contract is a further key milestone in delivering a modern, mechanised underground
mining operation with a life of more than 20 years.
The Obuasi Re-Development Project remains on track to produce its first gold by the end of
2019.
Obuasi Redevelopment Project – Details
The project implementation will be undertaken in two distinct phases, with stage one
comprising project establishment, mine rehabilitation and development, plant and
infrastructure refurbishment to enable production at a rate of 2,000t per day for the first
operating year. This is expected to take roughly 18 months, with the first gold pour expected
at the end of 2019.
The second phase includes refurbishment of the underground materials handling system,
shafts and ventilation; and construction of the primary crusher, the SAG/Ball circuit, carbon
regeneration, a new gold room and tailings storage facility. This is expected to take a further
12 months and enable the operation to climb to 4,000t per day. The operation is then
expected to ramp up to 5,000t per day, over the following three years.
Mine production for the first 10 years will be focussed on the upper ore bodies and is
expected to average 350,000oz to 450,000oz at an average head grade of 8.1g/t. In the
second 10 years, production averages 400,000oz to 450,000oz. Total cash costs are
expected to average between $590/oz to $680/oz, while All-in Sustaining Costs are
expected to be between $750/oz to $850/oz.
Ends
Johannesburg
JSE Sponsor: Deutsche Securities (SA) Proprietary Limited
CONTACTS
Media
Chris Nthite +27 11 637 6388/+27 83 301 2481 cnthite@anglogoldashanti.com
Stewart Bailey +27 81 032 2563 / +27 11 637 6031 sbailey@anglogoldashanti.com
General inquiries media@anglogoldashanti.com
Investors
Stewart Bailey +27 81 032 2563 / +27 11 637 6031 sbailey@anglogoldashanti.com
Sabrina Brockman +1 646 880 4526/ +1 646 379 2555 sbrockman@anglogoldashanti.com
Fundisa Mgidi +27 11 6376763 / +27 82 821 5322 fmgidi@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, total cash costs, all-in sustaining costs, all-in costs, cost savings and other operating results, 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 2017, 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 actual 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.
The financial information contained in this news release has not been reviewed or reported on by the Company’s external auditors.
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.
Website: www.anglogoldashanti.com
ENDS
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