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Business News of Friday, 15 February 2008

Source: GNA

Anglogold Ashanti (Iduapriem) embarks on expansion programme

Tarkwa(W/R), Feb. 15, GNA - The management of Anglogold Ashanti (Iduapriem) Limited (AAIL) has embarked on an expansion programme estimated at about 56 million dollars.

It includes construction of a new crushing station, an additional ball mill and expansion to the leaching, gravity, thickening and residue sections of the treatment plant.

The programme that began last year with earthworks and structural concrete works are in progress while the raft slabs for the ball mill and gyratory crusher tower are well advanced and excavation for the rest of the crusher station are in progress.

It is expected to be completed during the third quarter of 2008. Mr Peter Sampson, Acting Managing Director of AAIL announced this at an annual thanksgiving service of the Mine at Tarkwa.

He said the programme would increase production by about 15 per cent and significant reduction in operation cost and maintenance. Mr Sampson said AAIL produced 190,000 ounces of gold last year, six per cent lower than its production in 2006.

He noted that their operations were hampered by frequent mechanical problems with the aged crushing plant and gearbox failure on a mill during the first quarter of 2007.

Mr Sampson said the mine would continue to have challenges with the mills and crushers, as well as decreasing equipment availabilities of the mining contractor which has reduced mined volumes and subsequently its ability to mine more ore to feed higher grade ore to the mills. He appealed to the workers to work harder to reduce cost of production and take advantage of the high price of gold on the world bullion market to make more money.