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Posts Tagged ‘Ashanti Goldfields’

Anglogold Bites Bullet At Troubled Obuasi

Posted by Business in Ghana on May 20, 2014

By Brendan Ryan, Business Day Live

AngloGold Ashanti intends shutting down underground operations temporarily as part of a drastic final attempt to turn troubled mine around

HAVING lost more than $1bn on the Obuasi mine in Ghana since it took it over in 2003, AngloGold Ashanti now intends shutting down the underground operations temporarily as part of a drastic final attempt to turn the troubled mine around.

Announcing the decision at the group’s March quarterly briefing on Monday, CEO Srinivasan Venkatakrishnan outlined sweeping measures, including the retrenchment of most of the 6,500-strong workforce, to ensure Obuasi’s long-term future.

Mr Venkatakrishnan also said AngloGold Ashanti “was considering other strategic alternatives for its Ghana business”.

SBG Securities mining analyst David Davis said: “At long last they have bitten the bullet at Obuasi, but in a constructive manner.”

Mr Venkatakrishnan said $600m had been pumped into Obuasi from AngloGold Ashanti’s corporate funds, a nd $500m more had been invested through funds generated by Obuasi itself.

Asked to elaborate, Mr Venkatakrishnan said it was possible that a partner could be found to invest in Obuasi once the problems had been sorted out. Read the rest of this entry »

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