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Business News of Saturday, 26 January 2019

Source: thebftonline.com

AngloGold Ashanti’s redevelopment lifts spirits of Obuasi residents

The launch of a 2-year redevelopment project that is expected to fully revive the Obuasi Gold Mine, operated by AngloGold Ashanti, four years after its shutdown, brought renewed optimism for residents in the otherwise ghost mining town.

At the launch of the project on Tuesday, to be implemented in two phases, former employees, local business operators, and residents were hopeful that the untold hardship that resulted from the closure of the mine in 2014 will come to an end.

The President, Nana Addo Dankwa Akufo-Addo, said the reopening of the mine would bring life to the Obuasi Municipality.

He said the government had to provide a number of fiscal incentives and guarantee the stability of the project, in order to help AngloGold Ashanti to secure the needed investment for the project.

He said it is expected that all the agreements reached including the vigorous implementation of the domestic content policy would be honored.

The initial investment in the redevelopment project is US$881 million with a total investment of US$1.6 billion projected for the entire 22-year life of the mine.

With the estimated 2,500 jobs to be created this once vibrant town is expected to be brought back to life again.

The government is expected to rake in about US$2.16 billion revenue; from royalties and withholding taxes.