Government, AngloGold Ashanti strike local content pact

Government, AngloGold Ashanti strike local content pact

Discussions have commenced between Government through the Ministry of Lands and Natural resources and the newly revitalized AngloGold Ashanti’s Obuasi Mine to ensure that the Obuasi Redevelopment Project places premium on local content.

The move forms part of measures to comply with Government’s agenda to enhance local content in the mining industry.

“Preference should be given to Ghanaian companies in the procurement of goods and services in the supply value-chain, from the large-value underground mining contracts, through petroleum supply, to catering and security contracts”, President Nana Akufo-Addo has said.

The Obuasi redevelopment project is being implemented in two distinctly separate phases. The first phase which started last year comprises of project establishment, mine rehabilitation and development, as well as plant and infrastructure refurbishment to enable production at a rate of 2,000 tonnes per day for the first operating year.

The second phase includes refurbishment of the underground materials handling system, shafts and ventilation, as well as construction of the primary crusher, among others. This is expected to take a further 12 months and will enable production to climb to 4,000 tonnes per day by the end of 2020.

To build capacity of indigenous mining companies in the local content space of the industry, the Chamber of Mines has also put in place some specific and well thought through interventions to deepen participation of local companies in the mining value chain.

In Anglogold Ashanti Obuasi for instance, the Chamber has initiated steps by encouraging a joint venture partnership between an experienced foreign mining company and a local company to undertake mechanized underground mining.

What the Chamber seeks to achieve through this partnership is that going into the future that indigenous mining firm will have built capability and be able to stand on its own and look for opportunities in the entire mining sector.

Other initiatives

As part of its corporate social responsibilities, the company has made a commitment, after discussions with government, to contribute US$2 for every ounce of gold produced into a Community Trust Fund, over the life of the mine which is expected to facilitate development projects in the local communities. Already, a one-off contribution of US$250,000 has been paid into the Trust.

Government has also indicated that it is in talks with AngloGold Ashanti Limited to ensure that all concerns regarding reclamation and restoration of the mine sites are addressed.





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