Randgold Rejects Deal to Redevelop AngloGold's Ghanaian Mineby
Plan for Obuasi doesn't meet Randgold's investment criteria
Randgold, AngloGold considered joint venture in west Africa
The two producers agreed in September to explore a joint venture to rebuild AngloGold’s aging Obuasi mine, which needs investment to turn it into a fully mechanized operation.
“Following the work undertaken on the revised development plan, Randgold has determined that the development plan will not satisfy Randgold’s internal investment requirements,” the Jersey, Channel Islands-based company said in a statement.
AngloGold cut workers and placed Obuasi on limited operations last year as costs spiraled to more than $1,500 an ounce. The mine needs investment to access its 5.29 million ounces of gold situated in high-grade ore yielding 6.7 grams a ton.
Randgold would only go ahead with the redevelopment if it would cost less than $1 billion, Chief Executive Officer Mark Bristow told reporters Sept. 16.