Obuasi Gold Mine


The Obuasi Gold Mine is an open-pit and underground gold mine situated near Obuasi, in the Ashanti Region of Ghana. It is one of the top-9 largest gold mines on Earth. The 'land' is customarily owned by the Asantehene King Osei Tutu II. The mine is in Obuasi Municipal District, 39 miles south-west of regional capital Kumasi.
Gold mining began at Obuasi Gold Mine more than 112 years ago, in 1897 when it was originally known as the Ashanti Mine.
In 2008, AngloGold Ashanti's Ashantiland operations, consisting of Obuasi and the Iduapriem Gold Mine, contributed 11% to the company's annual production. Both mines became part of AngloGold Ashanti when Ashanti Goldfields Corporation with Sam E. Jonah as chairman merged with AngloGold Corporation of South Africa in the 1990s.
In 2009, the mine employed over 5,700 people. The mine experienced two fatalities in 2008 and one in 2009.
As of 2016 the mine was closed due to profitability issues with only a security force on duty.

History

Mining at Obuasi begun in 1897, then referred to as the Ashanti Mine.
In an interview Ashanti Kwesi Enyan, the Managing Director of the Obuasi Gold mine, announced that the mine, while potentially rich, faces challenges like returning the mine to profitability, addressing social and environmental issues, improving community engagement and illegal mining. The mine was criticised as early as 1975 for environmental pollution, and continues to do so.
Following heavy losses mining was suspended in late 2014 when about 5,000 local miners were laid off. A large security force remained at the site, but, as of 2016, has been under heavy pressure from local illegal miners. An Obuasi employee was killed in early 2016 by a mob of illegal miners. The owner hopes to redevelop the mine and reopen it as a profitable operation at some point. Plans include reduction of the size of the mine, with a substantial portion returned to the government of Ghana; development of a ramp to access deep high grade ore bodies; and negotiation of mutually agreeable security and environmental agreements with the government of Ghana.

Production

Production figures of the recent past were:
YearProductionGradeCost per ounce
2002537,219 ounces4.84 g/tUS$ 198
2003513,163 ounces4.28 g/tUS$217
2004255,000 ounces5.27 g/tUS$305
2005391,000 ounces4.77 g/tUS$345
2006387,000 ounces4.39 g/tUS$395
2007360,000 ounces4.43 g/tUS$459
2008357,000 ounces4.37 g/tUS$633
2009381,000 ounces5.18 g/tUS$630
2010
2011
2012
2013US$1,820
2014
2015