AngloGold Ashanti concerned by threats to Obuasi Mine

AngloGold AshantiAngloGold Ashanti (AGA), has called on government to collaborate with it to resolve threats posed by illegal miners to the viability of the Obuasi Gold Mine.

Mr Eric Asubonteng, the General Manager and Managing Director of the AGA Obuasi Mine expressed concern over the situation at the Obuasi Gold Mine, where illegal miners are looting large quantities of high-grade gold bearing material for more than two months.

He said in the process, the illegal miners are causing significant damage to critical infrastructure, which serves both the mine and the surrounding communities.

He said since the withdrawal of the security forces at the beginning of February, incursions by a number of illegal miners onto the site have continued unabated.

“At each step in this unfortunate process, we have kept all authorities informed of developments, including the damage being caused to the mine, the Obuasi Community, and the long-term prospects for this important resource,” Mr Asubonteng said at a media briefing on the current state of the Obuasi Mine on Wednesday in Accra.

He said the confidence of AGA had been shaken by the failure to protect its rights as significant long-term investor in Ghana.

“Our hopes were temporarily raised when we learnt that the President had directed the return of the highly-regarded Ghana Army to the Obuasi mine. However, law and order is yet to be restored at Obuasi,” he added.

The Managing Director said: “In fact, on March 26, we understand the military received an instruction to pull back to guard only certain limited parts of the infrastructure, and not to restore law and order by clearing the site of illegal mining activities.

“To this day, the illegal miners continue to operate with impunity on the richest parts of the ore body. We are at a loss to understand how a clear directive has been ignored.”

He explained that the situation had the effect of compromising the safety and security of the mine’s resources and workforce, as well as the viability of the Obuasi mine, the rights of foreign investors in Ghana, and the benefits flowing to the community from it.

“We fear serious and lasting consequences if the situation is allowed to continue. For example, electrical installations that support water treatment plants have been vandalised by the illegal miners,” he stated.

Mr Asubonteng said this has affected AGA Ghana’s ability to treat water, and with the onset of the rains there is a real possibility that this essential work would be compromised.

He said the presence of illegal miners is making it impossible for them to manage the situation accordingly.

“AngloGold Ashanti’s primary aim, subject to amongst other things, the outcome of the ongoing feasibility study, remains to turn the Obuasi Mine into a long-life, modern, mining operation that will attract foreign investment, and provide high-quality direct and indirect employment, taxes and foreign exchange revenue to the people of Ghana,” he said.

“However, the continued presence of illegal miners on the Obuasi Mine continues to jeopardise this potential,” Mr Asubonteng said.

“Our concerns are increasingly being shared by civil society groups in the region, who, despite explicit threats to their own safety, have begun actively protesting against the illegal miners’ destruction of the opportunity that the mine presents for the people of Ghana.”

Source: GNA

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