AUMS award of contract at AngloGold Ashanti's Obuasi project
African Underground Mining Services (AUMS), a 50:50 joint venture between Ausdrill Limited (ASX: ASL) and Barminco Holdings Pty Limited ("Barminco”), is pleased to announce the award of a US$375 million underground mining services contract at AngloGold Ashanti’s Obuasi project in Ghana.
The five-year contract was awarded to Underground Mining Alliance Limited (“UMA”), a 70/30 joint venture between AUMS and Rocksure International, a Ghanaian mining contractor.
Under the contract, UMA will provide a full suite of underground mining services at Obuasi, with major capital equipment supplied by AngloGold Ashanti. Works are expected to commence in the first quarter of CY2019. Approximately 550 people will be employed during the project term. The workforce will be dominantly Ghanaian with some expatriates providing training and development and specialist skills.
Blair Sessions, AUMS Chief Operating Officer, said: “The Obuasi mine is very important to Ghana and we are delighted to have secured this contract with our joint venture partner, Rocksure International. We are pleased to be further extending our relationship with AngloGold Ashanti and look forward to working closely with the client, Rocksure, and the local community as we deliver on this project using modern and efficient mining methods, supporting local suppliers and providing employment and training opportunities to Ghanaians.”
Kwasi Osei Ofori, Rocksure Chief Executive Officer, said: “We are pleased to be teaming with AUMS at this major project, which adds to the suite of contract mining work we have been performing in Ghana and Mali over the past decade. This joint venture will allow Rocksure and its employees to gain new skills and knowledge in underground mining from world leading mining services companies Barminco and Ausdrill.”
Graham Ehm, AngloGold Ashanti Executive Vice President – Group Planning and Technical, said: “Obuasi is an important investment in Ghana and we have worked hard with the Government of Ghana to progress the redevelopment of the mine as a modern operation. Obuasi is a key asset in AGA’s portfolio and to the Ghanaian mining industry. The mine will benefit many stakeholders for at least two decades. This contract award is a major milestone towards recommencing production at Obuasi and delivering on outcomes that will benefit the national, regional, and local economies.”
Since commencing operations in Ghana eight years ago, AUMS has trained over 1,200 Ghanaians through a range of mining, engineering, and apprenticeship programs. In addition, AUMS’s joint venture owner Ausdrill has a 27-year history in Ghana through its subsidiary African Mining Services (AMS), training approximately 20,000 Ghanaians over this period.
Combined, AUMS and AMS currently employ more than 1,800 people in Ghana across five projects (one AUMS, four AMS), of which 95 per cent are Ghanaians. The two businesses have generated approximately A$2.8 billion of revenue in Ghana, with more than 78 per cent of profits reinvested into the country.