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Business News of Saturday, 5 January 2008

Source: GNA

Cable thefts and illegal mining affect Aglo Gold production

Kumasi, Jan 5, GNA - The incessant activities of illegal miners (Galamsey) and cable thieves on the mining concession of Anglo Gold Ashanti Obuasi Mines is posing a big threat both to the lives of mine workers and production levels at the mines. In 2007 there were 53 cable thefts in which the company lost close to 757,000 dollars whilst it could not also make any profit apart from not meeting its set target.

Dr. John Miller, Managing Director of AGA Obuasi mine, made the disclosure when he was interacting with journalists on Friday, a day after the latest cable stealing attempt that set ablaze the whole underground electricity system leading to the power outage and trapping of 30 miners. He did not mention the amount involved in the set target but said the company would have to part with between 500 to one million dollars to restore power to the affected Northern Sector that had been shut down. Dr Miller said efforts were being made to resume work at the mines, the closure of which is causing a daily production loss of between 500 to one million dollars.

Mr. Yiadom-Boakye Amponsah, Sustainable Development Manager, said the rampant theft and galamsey activities were a bane to the survival of the mine whilst it also posed a potential loss of investment to the nation. He said the company had instituted a lot of measures to stem the menace that could scare off potential mining investors to the country but not much success has been achieved yet.

Apart from engaging perpetrators in a dialogue, the company is now acting as a facilitator in the government's intervention to identify an area of a rich ore body in surface mining to re-settle the intruders and thereby keep them off their concession.

Mr. Amponsah said these were some of the proactive and humane attempts made by the company as a corporate body to give the illegal miners access to the mining resource of the area as community members. "We could have also brought a heavy military presence to crack down on their activities but we do not want to turn a blind eye on human rights issues, meanwhile our workers also need protection.'' Mr. Ahmed Bashiru, Planning Development Officer, appealed to the government to review laws regarding illegal mining and stealing to come out with stiffer punishment since under the current laws penalties for such offences were not deterrent enough.

Meanwhile, the 30 miners who were trapped in last Thursday disaster have all escaped unscathed and have reunited with their families.