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Johannesburg - Randgold Resources (Randgold) [JSE:RNG] has informed AngloGold Ashanti [JSE:ANG] that it wishes to terminate an agreement concluded in September 2015 for a joint venture to redevelop the Obuasi mine in Ghana.
This is because the proposed investment does not meet Randgold’s investment criteria, the company said in a statement on Monday.
Obuasi, located in the Ashanti region of Ghana, is a large, high-grade deposit with proven and probable ore reserves.
This comes after efforts by both companies to improve the project’s returns and secure the required consent from the government of Ghana within a timeframe that would have allowed for a feasibility decision on the redevelopment of the mine in early 2016.
The Minister of Lands and Natural Resources of Ghana has
approved continuation of Obuasi’s limited operating phase during the first quarter of
2016. Limited operations will be undertaken at reduced cost, compared
to 2015. This will include maintaining the operations, security, environmental
management, optimising the feasibility study and ongoing
sustainability work.
“We have made a concerted effort to unlock a new opportunity for Obuasi, and the work we have done lays a good foundation for the operation in the long term,” AngloGold Ashanti CEO Srinivasan Venkatakrishnan said.
“But in the current environment, we believe it is prudent to conserve our resources and to revisit this opportunity when market conditions improve.”
