Tag Archives: Obuasi

Perenti banks ~A$420M of contract works with Gold Fields, AngloGold and Roxgold

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Perenti Limited’s underground mining businesses have been awarded contract extensions valued at circa-A$420 million ($276 million), in three separate projects across Australia and Africa, the company says.

The contract extensions include:

  • A 12-month, circa A$125 million contract extension to continue underground development and production works at the Gold Fields Agnew underground gold mine in Autsralia;
  • A 12-month, circa-A$180 million contract extension at AngloGold Ashanti plc’s Obuasi underground gold mine in Ghana; and
  • A two-year, circa-A$115 million contract extension of existing underground development and production works at the Roxgold Inc Yaramoko underground gold mine in Burkina Faso.

Mark Norwell, Managing Director & Chief Executive Officer of Perenti said: “We pride ourselves on our enduring relationships, so we are especially pleased to be continuing our relationship with these long-term clients. Our Contract Mining division is now led by Gabrielle Iwanow and will continue to focus on safely delivering for our clients and on our strategic objectives. I look forward to providing an update on the business, including the excellent progress we have made on the integration of DDH1, as part of our 1H23 results which will be released to the market in February.”

Gabrielle Iwanow, President Contract Mining, said: “In my first few weeks at Perenti, I have been very impressed with the team’s technical capability and the operational performance that they deliver to our clients. I believe that it is these factors that underpin the strength and depth of our relationships.

“With these contract awards combined with those previously announced, namely circa-A$360 million related to the Sandfire Resources A4 project in Botswana and a further A$111 million related to three Australian surface and underground contract awards, the team has secured nearly A$900 million of revenue for the business. I am very proud to be leading and supporting the Contract Mining team as we collectively work towards delivering our 2025 strategic objectives.”

Veolia wins two-year water management contract renewal at AngloGold Obuasi

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Veolia says it has renewed its contract with AngloGold Ashanti Ghana Limited, part of the South Africa headquartered gold mining company, AngloGold Ashanti, with Veolia Ghana Limited continuing to be responsible for operating and maintaining all the water treatment plants for the Obuasi open-pit and underground operations in Ghana.

These two-year extension confirms Veolia’s operational know-how in the preservation, depollution and renewal of water resources for the mining industry, it says.

Six facilities are required to guarantee the treated water and discharge quality for AngloGold Ashanti’s Obuasi mine: four wastewater treatment plants and two drinking water treatment plants.

This water is used in various activities associated with the exploration, extraction and transformation processes associated with mining, whether that is to process ore, remove dust, transport sludge, or supply employees needs. In a tropical climate subject to highly seasonal heavy rainfall, it is the Ghanaian gold mine’s responsibility to manage its wastewater and its process residue in order to comply with the local Environmental Protection Agency’s requirements in terms of discharges into the ecosystem.

Veolia, in 2019, was originally awarded a four-year contract to carry out these services at Obuasi. During these four years, it was awarded “Best Contractor Company in Quarter 3 2022” by AngloGold Ashanti Ghana, having worked more than 1 million hours without a single accident-related stoppage. Veolia also managed to comply with the environmental requirements in force by producing nearly 33.5 million cu.m of water, including about 7 million cu.m of drinking water for the needs of the site and surrounding communities.

Philippe Bourdeaux, Veolia’s Executive Vice President, Africa and Middle East, said: “Our group works side by side with industrial companies to respond to the major challenges they face, both in Africa and around the world. Veolia will continue to make its know-how
available to AngloGold Ashanti and to the mining industry to manage water as a finite and endangered resource.”

AngloGold investigating use of battery-electric vehicles at Cuiaba mine in Brazil

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AngloGold Ashanti says it is weighing up the potential introduction of battery-electric vehicles at its Cuiaba mine in Brazil as a small part of a wider initiative to achieve a 30% absolute reduction in its Scope 1 and 2 Greenhouse Gas (GHG) emissions by 2030.

The company says this carbon emission reduction target could be met through a combination of renewable energy projects, fleet electrification and lower-emission power sources. The company has already reduced its absolute GHG emissions by more than two thirds since 2007, and remains committed to achieving net zero emissions by 2050.

The targeted reduction announced today, from a 2021 baseline of 1.4 Mt of carbon dioxide equivalent (CO2e), aims to see emissions from the company’s activities diminish to about 1 Mt by the end of the decade. When growth projects are factored in, including those in Nevada and Colombia, AngloGold Ashanti is targeting a 46% reduction in emissions by the end of the decade.

The capital cost required to achieve these reductions over the coming eight years is anticipated to be about $1.1 billion, of which $350 million will be funded over that period by AngloGold Ashanti and the remaining $750 million through third-party funding, including from providers of renewable energy infrastructure. The company plans in the coming weeks to initiate a process to secure a green funding facility of $250-300 million to finance its portion of these decarbonisation initiatives across its business.

“We have a clear pathway to achieve our target by 2030, when we expect to have lowered our overall emissions by almost a third,” AngloGold Ashanti Chief Executive Officer, Alberto Calderon, said. “This ensures we continue to do our part in reducing our carbon footprint, while also improving the value of our business.”

The targeted reductions announced today incorporate initiatives at each business unit including the introduction of renewable energy, cleaner grid power and partial fleet electrification.

Approximately 60% of the planned emissions reductions will come from large renewable energy projects including wind and solar projects at the company’s Australian operations and solar-power plants at both Siguiri in Guinea and the Iduapriem and Obuasi operations in Ghana, AngloGold said. In addition, a prefeasibility study has commenced at the Cuiaba mine in Brazil to confirm the benefits of replacing some mobile fleet with battery-electric vehicles. AngloGold will also be working with Sandvik to trial underground mining’s largest-capacity BEV truck, the 65-t payload TH665B at Sunrise Dam.

The Cuiabá complex includes the Cuiabá and Lamego underground mines and the Cuiabá and Queiroz plants. Ore from the Cuiabá and Lamego mines is processed at the Cuiabá gold plant. The concentrate produced is transported by aerial ropeway to the Queiroz plant for processing and refining. Total annual capacity of the complete Cuiabá circuit is 1.75 Mt.

The viability of a wind farm at Cerro Vanguardia in Argentina is also being investigated. The vast majority of these projects are expected to be NPV-positive adding value to the business by reducing energy costs and improving energy security, the company said.

Two “clean grid” initiatives are already close to completion – a switch from diesel generation at the Geita mine site in Tanzania to the country’s national power grid, which has a high proportion of power sourced from gas and renewables, and the transition to full hydro-grid power in Brazil.

Obuasi gold mine becomes ‘modern, mechanised mining operation’

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The renowned Obuasi gold mine, in Ghana, is back in action with AngloGold Ashanti confirming the redeveloped asset has poured first gold, five years since mining activities were suspended.

This achievement signals the successful redevelopment of the mine into a “modern, mechanised mining operation”, the company said.

The Obuasi Redevelopment project, which seeks to access Obuasi’s 30 Moz orebody over the next two decades and beyond, has completed the first phase of construction on time and on budget. Refurbishment of an existing plant and construction of new infrastructure and underground development, in line with a new mine plan, has taken place over the last 18 months.

AngloGold Ashanti Chief Executive Officer, Kelvin Dushnisky, said producing first gold on budget and on a tight schedule was a “significant achievement” for the company, the community of Obuasi and Ghana as a whole.

“Restarting this important mine is testament to the focused execution by our team on the ground, as well as the clear investment framework and supportive environment created by the President of Ghana and his government, and the King of Ashanti,” he said.

Following a ramp-up period, AngloGold Ashanti estimates mining at a rate of 2,000 t/d from Obuasi during 2020, climbing to 4,000 t/d by year-end. The mine will be producing gold at an average run-rate of 350,000-400,000 oz/y for the first 10 years, and above 400,000 oz over the life of mine at all-in sustaining costs of around $800/oz, according to the company.

Graham Ehm, AngloGold Ashanti’s Executive Vice President of Group Planning and Technical, who is overseeing the project, said: “The team has done an excellent job completing the first phase of this project and will be focused on ramping up production through next year.

“The difficult decision was made to suspend production in 2014 to rebuild the mine’s foundation for a sustainable long-term future that will bring benefit to the region over the coming decades. We are tremendously proud of what has been achieved since then.”

The underground mine development is ongoing, with deepening of the Obuasi Deeps Decline and access to the KRS shaft on schedule for mid-2020. The construction of new plant and infrastructure will continue in 2020. The initial project capital for Obuasi remains in the range of $495-$545 million, spent between 2018 to the end of 2020.

AngloGold Ashanti says it is working closely with government and community stakeholders to ensure that the Obuasi mine is developed sustainably, fuelling growth for Ghana and benefitting 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 and the mine will also be contributing $2/oz of gold produced to a Community Trust Fund, over its life, to facilitate development projects in the local area.

Some 80% of the capital thus far has been spent in-country, according to the Managing Director of the Obuasi Mine, Eric Asubonteng. “Ghanaian companies have been given preference in the procurement of goods and services, from the large-value underground mining contract all the way to catering and security contracts,” the company said.

Employment has also prioritised Ghanaians from the immediate area around the mine wherever possible, with Ghanaians from elsewhere in the country next in line for recruitment in available roles.

AngloGold Ashanti blasts off at Obuasi Redevelopment project

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AngloGold Ashanti says the first week of underground development blasting has been completed at its Obuasi Redevelopment project in Ghana, as work to pour first gold by the end of the year gathers momentum.

The first blast, at about 7 pm on February 1, advanced development by around 4.2 m on the 2,700 level, which is accessed through the Obuasi Deeps decline from surface and is just over 700 m vertically below the decline portal, the company said. Benching and a number of additional face blasts have taken place since, with more than 14 m of advance recorded.

AngloGold Ashanti announced early last year it would invest $495-$545 million to recapitalise the iconic mine in Ghana, to develop its 6 Moz of high-grade reserve. The project will see Obuasi transformed into a modern, mechanised mine that will produce, on average, 350,000-400,000 oz/y of gold at all-in sustaining costs of $725-825/oz during the mine’s first decade of operation, according to AngloGold. Higher grades in the second decade of operation will see production improve further, it added.

AngloGold Ashanti, Chief Executive Officer, Kelvin Dushnisky, said: “The first blast was a significant milestone in transforming this important mine into a modern, productive operation. Our investment in Obuasi gold mine’s redevelopment will ultimately make this a key asset for Ghana, and for AngloGold Ashanti’s portfolio, for the long term.”

The project remains on track to produce its first gold by the end of this year, with ramp-up expected during 2020.

AngloGold Ashanti says it has committed to ensuring significant local content in the mine’s development and operation, through employment at all levels and procurement, notably through the creation of a joint venture between Australia’s AUMS and Ghana’s Rocksure, to undertake Ghana’s underground mining contract.

Development of the project is progressing as planned and it is expected that capacity will ramp up to around 1 km/mth of linear advancement in the second half of the year. Stoping operations are expected to start in the December quarter of this year as new production areas are accessed.

AUMS wins contract at AngloGold Ashanti’s Obuasi mine in Ghana

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African Underground Mining Services (AUMS) has been awarded a $375 million underground mining services contract at one of West Africa’s oldest mines, Obuasi, in Ghana.

The five-year contract at the AngloGold Ashanti operation will see AUMS team up with Rocksure International, a Ghana-based mining contractor, under a 70:30 joint venture.

AUMS, owned 50:50 by Ausdrill and Barminco Holdings, will provide a full suite of underground mining services at Obuasi, with major capital equipment supplied by AngloGold. Works are expected to commence in the March quarter, with some 550 people due to be employed during the project term.

Blair Sessions, AUMS Chief Operating Officer, said the company was pleased to extend its relationship with AngloGold, adding AUMS and Rocksure would “deliver on this project using modern and efficient mining methods, supporting local suppliers and providing employment and training opportunities to Ghanaians”.

Graham Ehm, AngloGold Executive Vice President – Group Planning and Technical – said the contract award was a major milestone towards recommencing production at Obuasi and delivering on outcomes that would benefit the national, regional and local economies.

Earlier this year, AngloGold said it would spend $450-500 million to redevelop Obuasi into a modern, productive mining operation. The mine had been in limited operating phase since 2014.

Since commencing operations in Ghana eight years ago, AUMS has trained over 1,200 Ghanaians through a range of mining, engineering and apprenticeship programmes, AUMS said. Ausdrill, meanwhile, has a 27-year history in the country through its African Mining Services (AMS) subsidiary.

AUMS and AMS, combined, employ more than 1,800 people in Ghana across five projects. The two businesses have generated around A$2.8 billion ($1.99 billion) of revenue in the country.

Ausdrill is currently in the middle of taking over AUMS JV partner Barminco in a deal that values the latter’s equity at A$271.5 million. Last week, Ausdrill shareholders approved the acquisition, paving the way for the deal to be completed by the end of the month.