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 allow for the operation to be increased 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
About 3 500 people have been employed directly by the company and through contractors during the construction period. About 96% of employees are from Ghana, with three-quarters of them from the local Obuasi region.

All-in Sustaining Costs/All-in costs
Not stated.

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 CEO Kelvin Dushnisky is upbeat about its Obuasi redevelopment project, with plans on track to ramp up production over the next year.

AngloGold Ashanti (Ghana) poured its first gold in December.

The company has redeveloped the mine into a modern, mechanised mining operation after a hiatus of about five years.

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

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