Ghana hopes to earn $2.2bn in taxes from reopened AngloGold Obuasi Mines

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Ghana is expected receive direct taxes of about $2.2 billion from the reopened AngloGold Ashanti Obuasi Mines, should the miner meet the target of producing an estimated 500,000 ounces of gold each year.

This follows plans by the company to also invest about Ghc881 million into its initial redevelopment stage which will span over two decades.

The total investment for the redevelopment of the Obuasi Gold mine is $1.6 billion for the 22-year period.

Chief Executive Officer (CEO) of AngloGold Ashanti Ghana, Eric Asubonteng, maintained that the firm has restrategized to revamp its operation; hence these targets are likely to be attained to develop the country.

“So we are going to invest about 881 million over the initial period which we define as the first six years. By then we would have put in place all the necessary infrastructure and investment that we require for the remaining years of mine. We are currently looking at a life of mine for over 20 years,’ he said.

He added that, “On an average in the land mine, we are looking at between 400,000 to 500,000 ounces per annum. With this, we are estimating that US$5.3 billion will be retained in the country. This amount includes direct taxes to government, support to local businesses, corporate social responsibilities expenses and others. The direct taxes to government will be about US$2.2 billion over this period.

“If you look at the total revenue that the mine is going to generate over the life of mine, this US$5.3 represents just over 51 percent of the revenue pie that is going to be retained in the country. The rest goes into paying off the initial capital investment and then shareholder returns.”

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