Randgold Resources has decided not to proceed with a proposed investment in a joint venture with AngloGold Ashanti to redevelop and operate AngloGold’s Obuasi gold mine, in Ghana. In terms of an agreement announced on 16 September, Randgold planned to undertake due diligence on the mine and the redevelopment plan that is the subject of an ongoing feasibility study. having completed its due diligence, Randgold has decided that, “ the development plan will not satisfy Randgold’s internal investment requirements”.
At the end of 2014, AngloGold Ashanti converted Obuasi to limited operations, ceasing underground production, retrenching the workforce but continuing to process tailings, and starting a feasibility study on the redevelopment of the mine. The development was intended to establish a more focused, efficient, mechanised high grade operation.
As a result of its decision, Randgold has terminated the investment agreement entered into with AngloGold Ashanti with immediate effect.
Randgold decides not to invest in Obuasi: RRS