Ghana power cut may force Anglo gold mine closure

ANGLO GOLD said that in spite of the collaborative efforts between the mining industry and the Ghana authorities to minimise the impact of the power shortage in the country, it may be forced to shut down one of its mines if there is a reduction in power supplies. The company has reduced its power consumption by 25 per cent, under the terms of a daily power management agreement with the Electricity Company of Ghana (ECG).

In the event that the 25 per cent power reduction continues for the remainder of this month, AngloGold forecasts production at Obuasi for the quarter of approximately 90,000 ounces, some 10,000 ounces lower than expectations. However, the company�s Iduapriem operation is most vulnerable to power reductions as some 60 per cent of the energy consumption is consumed by the mills.

A power cut would reduce Iduapriem�s production from around 52,000 ounces to approximately 48,000 ounces, for the third quarter. The Bibiani mine will remain largely unaffected and budgeted production and costs for the quarter remain on track, the company added.

The Chamber of Mines in Ghana and its members are assisting authorities to repair an electricity unit, and have offered to help with the maintenance of various facilities and with the construction of additional permanent energy capacity in the country.