Obuasi Mine AngloGold Ashanti cedes 60 percent stake in Obuasi Mine to government

The land in question covers about 273 square kilometers and excludes the Obuasi Mine, which lies on land retained by AGA.

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Underground mining of AGA play

Underground mining of AGA

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AngloGold Ashanti has surrendered 60 percent of its mine concession to the government of Ghana under a voluntary process agreed upon in November 2013.

In a press statement issued Wednesday, AGA said the released land will provide an "opportunity for the Government/ Ministry of Lands and Natural Resources to use the land as it sees fit, including to encourage a range of socio-economic development activities in the Obuasi region."

The land in question covers about 273 square kilometers and excludes the Obuasi Mine, which lies on land retained by AGA.

The Chief Executive of the Minerals Commission,  Dr. Tonyn Aubyn confirmed that other mining companies are interested in getting some of AGA's mining concession.

He said  part of the concession would be given out to small scale miners.

This comes a few weeks after a member of AngloGold management died following a confrontation between the company and illegal miners.

AngloGold Ashanti has laid-off close to 5000 workers in the last two years following the fall in the price of gold on the world market making their operations less profitable.

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But the company slashed its net debt by 30 percent as a result of "self-help measures" despite falling gold prices, said Srinivasan Venkatakrishnan, the company's chief executive.

Venkatakrishnan said suitors have expressed interest in buying or partnering in its idled Obuasi mine in Ghana.

"There is quite a lot of interest, even now, in terms of the Obuasi assets, even in the form of a joint venture," Venkat, told journalists after the company released its 2015 results, according to Reuters.

Asked if anyone had approached AngloGold about buying Obuasi outright, Venkat said: "At various points in time, but it has not progressed to a point of concluding a sale."

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