Ghana’s President, Nana Akufo-Addo, has said miner Randgold Resources has renewed its interest in partnering AngloGold Ashanti to start operations in the West African country’s Obuasi mines.
In September 2016, Randgold Resources CEO Mark Bristow, speaking at a media briefing in Johannesburg, said his firm walked from a proposed joint venture with AngloGold Ashanti on the Obuasi mine because of a combination of technical mining issues and management’s deep concern about the social situation around the mine and the probability of illegal mining activities, which he said made “the social risks” “enormous”.
At the time, Bristow also cited Randgold management’s concern over the “complete lack of support” from the Government of Ghana for plans to redevelop Obuasi as well as the level of corruption in the country which Randgold said it first encountered when it bid for control of the former Ashanti Goldfields in 2003.
“Corruption is a big issue in Ghana,” Bristow commented.
Randgold pulled out of the proposed JV in December 2015 and Obuasi was subsequently invaded by illegal miners in January 2016.
AngloGold Ashanti subsequently brought arbitration proceedings against the Ghanaian government through the International Centre for Settlement of Investment Disputes (ICSID) requesting that ICSID make an urgent order forcing the government to “amongst other things, re-instate military security and restore law and order to the Obuasi mine.”
In August 2016, AngloGold CEO Srinivasan Venkatakrishnan denied the illegal mining issue was the reason that Randgold had walked away from Obuasi saying the invasion took place some six weeks after Randgold had decided to opt out, miningmx.com reported.
However, speaking to the Chief of Adanse, Opagyakotwere Bonsra Afriyie II, President Akufo-Addo said he has received a call from Randgold expressing interest in reviving operations in Obuasi.
“I stated at Obuasi and Fomena earlier when I was campaigning that when I am granted power by the will of God, AngloGold will be revived once again under my administration. When on Friday Charlotte Osei [Chair of the Electoral Commission] announced my victory as the new president of Ghana, on the Sunday, Mark Bristow of Randgold called to tell me he is coming to partner with government to boost AngloGold once more. And I am hopeful it will work,” he said.
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