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28.04.2004 Business & Finance

Goldfields Ghana undertakes expansion

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Tarkwa (W/R), April 28, GNA- Goldfields Ghana Limited (GGL) has so far invested 162 million dollars in the expansion of its Tarkwa Mine as part of a programme to extend its life by ten more years and also increase production, Company officials have said.

Mr Brendan Walker, Managing Director of GGL, said the expansion works would enable the company to take over the entire process of mining at the Tarkwa mine which, hitherto, was done by African Mining Services (AMS), mining consultants.

He was briefing Dr Abdul Majeed Haroun, Deputy Minister of Mines at Tarkwa on Tuesday.

Mr Walker said the expansion works at Tarkwa, which began last year, would cost 190 million dollars by its completion in 2005. It would enable the mine to employ additional 400 people. Currently GGL has a total of 4,000 employees including more than 3,000 at Tarkwa. The company operates a second mine at Damang also in the Western Region. GGL would by 2005 have spent 700 million dollars on its operations.

Dr Anthony Aubynn, Community Relations Manager, told the Ghana News Agency (GNA) that the Tarkwa mine had up to 2010 to live, "but with the extension, it will now close in 2020."

He said Damang was also receiving vigorous exploratory attention with the view to extending its lifespan. Presently, it has a lifespan up to 2007.

GGL's production from the two mines is to increase from 800,000 ounces annually to a million ounces, making it the largest single mine in Ghana, Dr Aubynn said.

The company had already taken delivery of a machinery and equipment and is constructing a carbon-in-leach plant and tailings dam. Goldfields Ghana, last year accounted for 25 percent of total group production of the Johannesburg-based Goldfields Limited, contributing 40 percent of its profit.

Goldfields Limited, which also operates mines in South Africa, Australia, Finland and South America, produces four million ounces of gold annually. It is the fourth largest world gold producer and listed on the New York Stock Exchange, Johannesburg Stock Exchange and the London Stock Exchange.