AGC to explore gold in DR Congo by December

Ashanti Goldfields Company (AGC) will want to start exploring for gold in the Democratic Republic of Congo by the end of this year.

The company’s Chief Executive (CEO), Dr Sam Jonah, however, said much would depend on whether civil calm could be extended and entrenched in that country. He explained that AGC would begin exploration for gold in the Congo once it was sure its workers would be safe.

A war in the Congo that involved troops from at least seven nations ended last year. Some rebel factions are still fighting. “Every day we are praying for the Congo. We believe that we have the best ground in the Congo,” he said.

In anticipation of peace, AGC has had its title over gold-bearing prospects expanded in that country. The Kilomoto prospect, which has produced five million ounces of gold in the past, is now 8,000 kilometres square and has some one million ounces of gold resources identified.

The Congo has some of the world’s biggest deposits of copper, cobalt and diamonds. It is also rich in gold, tantalum, and other metals. AGC has a number of growth plans at existing operations. Expansion for gold miners in some parts of Africa, including Ghana and South Africa, is difficult as mining began more than a century ago and there are few opportunities left. Ghana and South Africa are Africa’s top two gold producers.

AGC is already expanding its gold output at its Obuasi, Siguiri, Iduapriem, and Geita mines. Geita has lifted capacity of its plant to six million tonnes of ore a year, a development which will lift gold production to about 600,000 ounces a year.

Iduapriem and Teberebie have increased the CIL capacity such that gold output will be about 250,000 ounces a year: and an expansion at Siguiri, Ashanti’s Guinea operation. A major challenge for AGC in its new financial year is cost containment.

Dr Jonah said fuel, power and labour costs were threatening to place pressure on the company such that management would be doing well to contain total cash costs to below $210 per ounce compared to last year’s average $199 per ounce.