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09.06.2008 Business & Finance

AngloGold Ashanti to spend US$174.5m in Obuasi operation

By Albert Nana Asante, Obuasi - Ghanaian Chronicle
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ANGLOGOLD Ashanti (AGA) is spending over US$231 million this year, in its two operations in Ghana, to sustain and expand its initial investments.

Out of the amount, US$174.5, representing 75.5 per cent, is being spent on its Obuasi mine.

Mr. Christian Rampa Luhembwe, Vice President of AngloGold Ashanti, West Africa Division, disclosed this when interacting with members of the Parliamentary Select Committee on Mines and Energy.

The committee was led by its Chairperson, Mrs. Gifty Kusi, Member of Parliament (MP) for Nsuaem.

He told the members that the huge investment being made, was a clear indication of the company's interest in Ghana, and its commitment to the Ghanaian economy, adding, “this further confirms that Obuasi is an important mine in AngloGold Ashanti's 21 worldwide operations.”

The Vice President added that the company had paid a total dividend of US$15.5 million, to the Government over the past four years, and gave US$38.5 million, as the amount paid as royalties during the same period.

He again disclosed that the company was putting up US$2 million, from 2007 to 2010, for the construction of multi-purpose sports centres in each region of the country, and hinted that the first two would be constructed at Iduapriem in the Tarkwa Nsuaem municipality and Obuasi.

“AngloGold Ashanti has undertaken to support the establishment of the Kwame Nkrumah Chair within the Institute of Africa Studies at University of Ghana, as the company's contribution towards the [email protected] programmes. We are funding the programme with $400,000.”

Mr. Luhembwe said the company had also donated US$100,000, for the construction of a Neuroscience Clinic at the Korle Bu Teaching Hospital, which amongst others, would be used to support the training of experts, who would manage the proposed clinic.

Touching on the Stability Agreement, the Vice President noted that the company had fulfilled most of the agreements and covenants, including the appointment of two eminent Ghanaians, Messrs Reginald Bannerman and J. H. Mensah, on the Board of the company.

He reminded the members that they had a role to play, to ensure that that Obuasi lease sailed through Parliament successfully.

It would be recalled that in 2004, the former AngloGold Limited, before the merger with Ashanti Goldfields Limited, entered into a Stability Agreement with the Government of Ghana.

The agreement, amongst others, covered Regulatory Concessions on Corporate Tax, Golden Share, Foreign Exchange Availability, Royalties, and more significantly, the extension of the Obuasi Mining Lease.

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