AngloGold Ashanti Reveals Turnaround Plans for Beleaguered Ghana Mine

Substantial efforts are being made to turnaround the fortunes of AngloGold Ashanti’s Obuasi mine in Ghana which has lost more than $1bn since the leading gold producer took it over in 2003.

A string of measures are to be implemented in a bid to save the mine including temporarily shutting down the underground operations and the retrenchment of significant number of the 6,500 employees.

It was reported yesterday that the mine’s new Managing Director, Fred Attakumah had met with community leaders where he gave assurances that despite the many challenges faced, his company still intended on pursuing its commitments to the people and the communities.

One of AngloGold Ashanti’s core values is working hand in hand with local stakeholders and communities within which it operates for the overall good of all.

Attakumah pledged to continue working closely with the community and its leaders and urged for their support in the company’s efforts to rebuild and transform the mine.

He was quoted as saying: “It will take some time to fully put the mine on good stead; but take it from us that AngloGold Ashanti’s short and long term plan is to ensure that Obuasi regains its lost position as investors’ brand of choice.”

Meanwhile, AngloGold Ashanti’s Chief Executive Officer Srinivasan Venkatakrishnan, discussed the turnaround plans at the group’s quarterly briefing earlier this week.

He said the company had been able to plough cash into the mine while gold prices were up but the current slump had changed everything and labour issues now need to be addressed, but ultimately the business proposition was still very attractive.

He was reported as saying: “We have fundamentally come to the conclusion that the employment model and social model have to change. Obuasi is a challenging asset but technically it can be fixed. I think the softer, social issues were underestimated.”

The company is working closely with the government and will look to retrench workers and then re-employ on a sustainable business model. He said it was hoped that if correctly done the turnaround in the mines fortunes would happen.

It is also hoped that the company may find an investment partner  for the mine and a number of opportunities are currently being examined.

AngloGold Ashanti’s March quarter results showed gold production had risen by 17 percent year on year at 1.06 million ounces.