Randgold abandons joint venture with Anglogold to redevelop Obuasi mine

Randgold Resources Limited has abandoned the joint venture with Anglogold Ashanti to redevelop the Obuasi mine, currently in limited operations phase – the redevelopment plan did not meet Randgold’s internal investment requirements.

The two announced a joint venture on September 16, in which Randgold was to lead the preparation of a development plan for the Obuasi mine, building on an earlier feasibility study by Anglogold.

The plan was to be ready around January 2016 and a decision was expected to be reached the following month.

Randgold however, announced on December 21: “After undertaking a due diligence exercise into the mine and the redevelopment opportunity the mine affords, and following the work undertaken on the revised development plan, Randgold has determined that the development plan will not satisfy Randgold’s internal investment requirements. Accordingly, Randgold has decided to terminate the investment agreement entered into with AngloGold Ashanti, with immediate effect.”

Anglogold Ashanti said that efforts by both parties to improve the returns on the project, were not sufficient for investment to proceed hence continuation of Obuasi’s limited operations phase for Q1 of 2016, has been approved by the Minister of Lands and Natural Resources.

By Emmanuel Odonkor