Ghana’s President Nana Addo Dankwa Akufo-Addo says government is expected to generate 2 point 16 billion dollars in revenue over the 22 years life span, in royalties, corporate and withholding taxes with the redevelopment of the Anglogold Ashanti mines.
He said initial investment in the project is 881 million dollars with a total investment of 1 point 6 billion dollars projected for the entire 22-year life of the mine.
The investment package he stated has been approved by Parliament.
Speaking at the reopening of the the Anglogold Ashanti mines in Obuasi President Akufo-Addo said the mines is expected to employ some two thousand five people bringing back to life the once vibrant town. President Akufo Addo events that led to the shutdown of the mines in 2014 will never happen under his watch.
The Anglogold Obuasi mines was shutdown some in 2014 following myriad of problems including decline in production, activities of illegal miners on the concession of the company.
The company has to laid off some of its workers off as a result of the closure. The risk to the safety and security of employees and contractors also led to the closure.
President Akufo-Addo said with the re-opening of the mines and with government support, Anglogold should ensure that Obuasi township matches up with other mining towns in terms of development.
He said the current state of Obuasi is a disgrace looking at the worth of economic contribution Obuasi has made to Ghana’s development.
President Akufo-Addo also announced the commencement of work on the Obuasi Ahwia Nkawanta road.
The Managing Director of Anlogold Ashanti Eric Asubonteng, said the shutdown of the mines was a painful decision which they have no choice.
He said with pragmatic and well thought plans before the reopen it will provide a lot of jobs for the youth in and around Obuasi.
The Asantehene Otumfuo Osei Tutu has called on the state to provide adequate to Anlogold Ashanti so as to realise and work in an atmosphere of peace. He said the events of the past that led to the closure of the mines are still fresh.
Minister of Lands and Natural Resources Kwaku Asumah-Cheremah has cautioned management of Anglogold Ashanti to respect the terms of the agreement established which has led to the reopen of mines.
He said Ghanaian businesses should also be offered opportunity in the mining value chain by way of abiding by the law content law.
Speaking at the reopening of the mines in Obuasi Mr. Asumah-Cheremah said corporate school responsibility in host community should be a major priority of the company.
Story by Felix Cofie
