[2008-05-20]  USD57m to expand Anglogold Ashanti’s Iduapriem mine
Mining giant, AngloGold Ashanti is spending an amount of $57million to expand and modernise its Iduapriem mining site at Tarkwa in the Western Region. The expansion works when completed at the end of this year will boost the production capacity of the mine by about 15%. The mine produced 185,000 ounces last year.

Vice President of AngloGold Ashanti West Africa Division Christian Rampa-Luhembwe announced the company’s plans when he presented to government its final dividend for 2007 amounting to GH¢589,767.

The dividend which was presented through the Ministry of Lands, Mines and Forestry brings the total dividend payment for 2007 to US$1.6million, representing US$0.20 per share. Mr. Rampa-Luhembwe disclosed that AngloGold Ashanti has since April 2004 paid a total of US$15.5 million to government.

“In the context of flows from the Company to the government, I must emphasis that since 2004, the Company’s Ghanaian operations have also paid to the government, royalties of US$ 38.5 million in the same period.”

He said the company is working to modernise the Obuasi underground operations, which started with the out-dooring of two refrigeration plants, valued at some US$26 million and the provision of additional mining equipment running into millions of dollars to ensure the sustained health of operation and its long-term contribution to the economy.

Mr. Rampa-Luhembwe said they have also launched a multi-dollar ‘Turn Around Strategy’ to sustain and expand the modernisation efforts. The objective, he mentioned, is to put the mine on solid stead to produce more quality ounces at a lower cost. This project is costing the company US$44.4 million.

Planned capital expenditure at Obuasi for this year alone, Mr. Rampa-Luhembwe mentioned, is estimated at US$130.4million and will be spent on exploration, ore reserve development and related expenses, bringing the total expenses on Obuasi for this year alone to US$174.8million.

On their social responsibility towards the communities where they operate, Christian Rampa-Luhembwe said their comprehensive health care programme valued at US$3million in the battle against malaria three years ago, has entered its second phase. He said as a result of the investment, statistics from both government and private hospitals show a 74% reduction in malaria cases in the Obuasi municipality which has a population of about 200,000.

“This year, we are replicating the success achieved at Obuasi at our Tarkwa operation in collaboration with 4 other mining companies and the District Health authorities, to have an effective and sustainable programme in the entire municipality.”

He cited the donation of US$100,000 to the Neuro-Science Hospital to be built at Korle Bu, Accra, which is said to be the biggest in the sub-region.

Mr. Rampa-Luhembwe also expressed worry about the activities of illegal ‘Galamsey’ miners who continue to drill and blast illegally, steal ore, destroy mine infrastructure, steal cables and brutalise their workforce and dependants. He therefore appealed to the ministry to help them deal with the activities of the illegal miners.

Esther Obeng-Dapaah, the Sector Minister, said government is dialoguing with most mining firms in the country to consider carting out a portion of their fields for those ‘Galamsey’ miners as a measure of discouraging them from conducting illegal activities on the fields.

He also said her ministry with the help of the Environmental Protection Agency and the mining companies, come out with a plan as to the way forward regarding the negative effects of mining on the environment.

Source: modernghana.com