Name of the Project
Obuasi gold mine redevelopment.

Location
The project is located in the Ashanti region of Ghana.

Project Owner/s
AngloGold Ashanti.

Project Description
Obuasi has been in a limited operating phase since 2014. The project aims to redevelop the mine into a modern, productive, long-life and high-margin mining operation. The mine has mineral reserves of 5.8-million ounces and mineral resources of 34-million ounces. The redevelopment will establish Obuasi as a mechanised underground mining operation.

The approach to redevelopment will be fundamentally different from how the mine was operated in the past. The mine will use automation and controls for improved operational efficiencies and consistent performance.

The project will be undertaken in two phases, with Stage 1 comprising project establishment, mine rehabilitation and development, as well as plant and infrastructure refurbishment to allow for production at 2 000 t/d for the first operating year. This is expected to take about 18 months. The second phase includes the refurbishment of the underground materials handling system, shafts and ventilation; and construction of the primary crusher, the semiautogenous/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 increase capacity to 4 000 t/d. The operation is then expected to ramp up to 5 000 t/d over the following three years.

Production for the first ten years will be focused on the upper orebodies and is expected to be 350 000 oz to 400 000 oz at an average head grade of 8.1 g/t.

In the following ten years, production will average 400 000 oz to 450 000 oz.

Potential Job Creation
The project envisages a smaller, but skilled, workforce that can operate in a mechanised/automated operation. The operation is expected to create between 2 000 to 2 500 jobs. Additional roles will be required during the construction phase of the project.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Initial project capital expenditure (capex) of between $450-million and $500-million, excluding preproduction capital of $64-million, is expected in the first two-and-half years.

After the completion of Phase 2, extended project capex of $94-million is expected to continue until Year 6, covering the development of the Obuasi Deeps decline to the lower level of the mine, the refurbishment of the Kwesi Mensah shaft, the installation of new underground pumpstations and the construction of the flotation tailings storage facility.

Planned Start/End Date
First gold was poured at the end of 2019.

Latest Developments
AngloGold Ashanti achieved its first gold pour at the Obuasi mine in December 2019 – five years after mining activities were suspended in 2014.

A mining rate of 2 000 t/d at Obuasi is being targeted during 2020, increasing to 4 000 t/d by year-end.

The underground mine development is ongoing, with the deepening of the Obuasi deeps decline and access to the KRS shaft on schedule for mid-2020. The construction of a new plant and infrastructure will continue in 2020.

AngloGold Ashanti has said it is working closely with government and community stakeholders to ensure that the Obuasi mine is developed sustainably, fuelling growth for Ghana and benefiting the communities around the mine.

A committee, including local stakeholders and regulators, has been created to track execution of the reclamation of the mine site. The mine will, during its life, also contribute $2/oz of gold produced to a Community Trust Fund to facilitate development projects in the local area.

The project has placed a premium on local content, with 80% of the capital thus far spent in-country.

Key Contracts and Suppliers
Underground Mining Alliance, a joint venture between African Underground Mining Services and Rocksure International (mining services contract).

On Budget and on Time?
The first phase of construction was completed in December 2019, on time and on budget.

Contact Details for Project Information
AngloGold Ashanti media and investors, Stewart Bailey, tel +27 11 637 6031 or email sbailey@anglogoldashanti.com.