AngloGold Monitors Ghana Order for Illegal Miners to Exit Obuasi

  • Miners causing ‘irreparable’ damage to ore body, company says
  • Site was invaded in February as AngloGold restructured mine

AngloGold Ashanti Ltd. is waiting to see if Ghana will enforce a government order for thousands of illegal miners to leave its Obuasi operation as the third-largest bullion producer said earlier decrees were ineffective.

“Ghana has made similar claims before, but there has yet to be tangible, sustained action,” Johannesburg-based AngloGold said in an e-mailed statement Monday. “We’ll await to see if this latest announcement will yield a lasting solution.”

The state order follows the overrunning of the site by illegal miners in February after AngloGold attempted to restructure the operation and fired more than 4,000 workers. The miners have accessed high-grade underground ore. The company has repeatedly asked the government to intervene and in May registered a case against the country with the International Center for Settlement of Investment Disputes in Washington.

At least 130 illegal miners are estimated to have died in accidents since the incursion, AngloGold said in the statement. Damage to the mine is “irreparable,” it said.

Before it's here, it's on the Bloomberg Terminal.