(JOHANNESBURG – NEWS RELEASE)
Despite AngloGold Ashanti Ghana’s repeated attempts to have Ghanaian authorities restore law and order at the Obuasi mine, the security situation on site continues to deteriorate. To protect and enforce its contractual rights in the face of increasing lawlessness, trespass, damage to property and threats to the safety of its employees, AngloGold Ashanti Ghana has been forced to invoke the dispute resolution provisions in its Mining Lease.
Accordingly, AngloGold Ashanti Ghana filed a Request for Arbitration with the International Centre for Settlement of Investment Disputes (ICSID) on Friday, 8 April 2016. The case was registered on Monday, 2 May 2016. ICSID is an international arbitration institution, headquartered in Washington, D.C., which facilitates dispute resolution between international investors and host states. The relevant authorities in Ghana, including the Attorney General, have been duly notified of the commencement of proceedings.
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In early February 2016, following the incursion of hundreds of illegal miners inside the fenced area of the site, AngloGold Ashanti Ghana was forced to declare force majeure and, in the interests of safety, withdrew all employees performing non-essential functions from the Obuasi mine (the mine). Remaining employees have been performing critical services related to the operation of underground water pumping, environmental and potable water treatment, provision of medical services, and maintenance of facilities that provide power and water to employees’ homes and surrounding communities.
There has been no impact on AngloGold Ashanti’s production and All-In Sustaining Costs as the site was not forecast to be in production for at least this year.
The incursion by illegal miners followed the withdrawal of military protection from the mine on Tuesday, 2 February 2016, after initial incursions on 30 and 31 January 2016. The military had been stationed at the mine since 2013 on directions from the Ghanaian government in order to maintain law and order at the site.
To this effect, a services agreement is in place between AngloGold Ashanti Ghana and the Ghana Army.
Additionally, the Chamber of Mines, on behalf of its members, has entered into a Memorandum of Understanding with the Ghana Army, to support mine security and police through the deployment of military personnel at mining operations in the country.
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Since February 2016, AngloGold Ashanti Ghana has engaged on numerous occasions with Ghana Cabinet ministers including the Minister of Lands and Natural Resources, the Minister of Defence, and other senior government officials. Despite these engagements, and the fact that His Excellency the President of Ghana directed the return of security agencies in March, law and order is yet to be restored.
In its declaration of force majeure, AngloGold Ashanti Ghana explained that the current situation is precluding it from fulfilling certain conditions of its Amended Programme of Mining Operations, which was agreed with the government in November 2014. In particular, the presence of illegal miners on the mine’s operational footprint, in its underground tunnels and in areas which host key infrastructure at the mine is impacting directly on AngloGold Ashanti Ghana’s ability to continue to perform even the most essential services referred to above, including the treatment of water for pollutants. If allowed to continue unchecked, this occupation of the lease area by illegal miners significantly undermines investor confidence and gravely threatens the long-term viability of the mine, as AngloGold Ashanti Ghana may be forced to withdraw all essential personnel currently on site, including personnel operating the mine’s underground water pumps, and suspend critical services to the mine and community.
AngloGold Ashanti Ghana hopes that the commencement of ICSID proceedings will expedite the reinstatement of law and order at the mine.
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7 comments
Why does the Ghana government have to sit and watch this to happen??? It’s such a shame!
because they want power at all cost and so withdrew the security so that they will get the votes of the illegal miners (galamseyers) so that’s it if you asked.
They have done it before right after the 2012 elections they sent the army so after the elections they will send them again unless the AGA hold on to this seriously that’s what they want to do.
The government of Ghana needs one million vote from Ashanti Region with the help from his newly appointed Regional minister forgetting that AGA is older then NDC and president Manama.
But whether illegal miners or not NDC would leave the seat of presidency, come to obuasi and see what is going on the military are there but can not make any arrest
AGA as a multi national mining giant must be transparent in it’s engagement engagement with stakeholders. Why did they laid off all all its workers including experienced and trained security men. . They also also has one of the poorest environmental management systems.
Because Kwanzaa those trained security workers were thieving everything
I think this is in the right direction. The government of Ghana must be put on their toes. You don’t bite the figure that feeds you. Anglogold Ashanti has contributed so much into the coffers of this country; why do you want to collapse it for your own personal gains. Ghana is bigger than everybody and she does not belong to one person so please let us do the right thing to restore law and order to this all important asset of Ghana. Thank you.
The President of Republic of Ghana is under pressure, He does not know, what he is doing as a president, I think he need some counselling.
Because how can he allow illegal Miners to enter the territory of Anglogold Ashanti,obuasi Mine and treat some of the workers,steal gold bars, and even kill some of the workers at underground.
I think president in Ghana and his Attoney general must be arrested.