Mining giant Anglogold Ashanti (AG-Ashanti) says discussions are still ongoing between government, the unions, regulators and other interest groups over the future of the Obuasi mine.

It says contrary to rumours that the AG-Ashanti Obuasi Mine has been shut down, “as of today the mine is in operation and workers are going about their normal duty.”

The Obuasi mine which is 115 years old has been facing some operational challenges which have been worsened by the low prices for gold.

According to a source at AG-Ashanti “ageing infrastructure, challenges with development, and back sales targets and other operational issues have resulted in a sharp decline in production, exacerbated by increasing cost”.

It is for this reason that the company has been in discussions with government, the workers union, and regulators to ensure the future viability of the operations of the Obuasi mine and position it in the right place to guarantee its future.

There has been concern that some 400 workers will lose their jobs because of the uncertainty over the future of the Obuasi mine but AG-Ashanti officials assure that “As a responsible world class employer the company will comply with all its employment obligations and ensure that the workers are well taken care of and this includes counselling services and advice on how any pay offs should be used.”

AG-Ashanti is optimistic that in the months ahead, a final decision will be reached on the future of Obuasi mine.

According to the management “a number of options are on the table and these include a SHUT FIX and REOPEN option.”

Options which the board, in conjunction with government and the unions and regulators are considering among which is the SHUT FIX AND REOPEN option which are being seriously considered but no agreement has been reached yet on which option will be selected, a source concluded.