Obuasi (Ashanti), 28th April ?99 ?

The Ashanti Goldfields Company, (AGC) which is currently operating six mines in Africa achieved a record gold production of 1,547,610 ounces last year.

In addition, the company operated at a cash cost of US$218 per ounce as against US$234 per ounce in the previous year.

This was announced by Mr Kwame Peprah, Minister of Finance,and chairman of the board of directors of the company at the 26th annual general meeting of shareholders at Obuasi on Tuesday.

Mr Peprah said the company commenced a major expansion programme of the Siguiri mine in the Republic of Guinea last year "and that made significant contributions to our total gold production".

"When Siguiri II mine is commissioned by the end of this year, production capacity will be increased from some 160,000 ounces to nearly 250,000 ounces per annum, he added.

Mr Peprah said apart from the Ayanfuri mine, all other AGC mines exceeded their production targets.

The company's acquisition of Samax Gold last year provided the basis for an enlarged Geita mine in Northern Tanzania which is expected to yield 400,000 ounces of gold per year.

The Board chairman announced that the company maintained its gold reserves at 23 million ounces but resources over the period increased the reserves by five per cent to 37 million ounces.

He said AGC continues to invest in the Obuasi mine so that it could maintain its flagship status "but at lower cash operating costs".

Mr Peprah said the company spent nearly 30 million dollars to further its exploration efforts on the mine sites, and elsewhere in Africa, to ensure the company's positive growth into the next millennium.

On safety, the Minister said the company marked new international milestones, as Freda-Rebecca mine in Zimbabwe and Bibiani mine in Ghana became recipients of the South Africa-based national occupational safety association's three Star Rating awards.

GRi?/