[2008-05-22]  AngloGold Injects $44m Into Operations
ANGLOGOLD ASHANTI is in the process of investing $44.4 million into the Obuasi gold mines as part of plans to boost production, efficiency and safety at the site.

The amount, which is part of an initiative to help improve recovery and generate significant benefits, is also aimed at facilitating the introduction and development of community projects while funding environmental and social ventures as well.

The new plan is different from the already existing $130 million fund, set aside by the mining company to generate a new revival in the fortunes of the multi-national firm.

Speaking at the Seventh AngloGold Ashanti Business Roadshow in Accra, Managing Director of the Obuasi mine, John Miller admitted that the mine currently runs at a loss despite the global boom in gold prices and as such further cash injections over a three-year period would allow the mine to prosper again.

The Managing Director cited the importance of this investment for the Obuasi mine which continuously underperforms, producing only 390,000 ounces of gold, missing its target of 500,000 ounces considerably.

He cited the increase in fuel prices, electricity cuts, equipment faults and inflation in mining contracts as reasons for the current state of the mine.

John Miller declared that the investment would also be greatly felt in the Obuasi community with the company anxious to keep local businesses involved rather than selling out to other regions or countries.

Projects such as the Prapo Agricultural Project, Community Piggery and the Mortuary will be expanded and a further establishment of a Trust Fund, to look at a sustainable way of financing projects in the Obuasi area.

The Managing Director stated that the investment is in line with the agreement to put safety, social and environmental values at the forefront of mining in the area, adding that a large chunk of its social funds are spent on the Malaria Control Programmes and that plans are underway to increase spending in the educational sector within its areas of operation.



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