AngloGold Ashanti to invest $900m to expand Obuasi and global mines

AngloGold Ashanti has announced a major capital investment of approximately $900 million aimed at expanding its global operations, including the Obuasi mine in Ghana. The multi-million dollar initiative is designed to increase the company's annual gold production by more than 400,000 ounces by the end of the decade. This move comes as the mining giant seeks to capitalize on favorable market conditions and optimize its existing asset portfolio to ensure sustainable long-term growth.

The expansion program covers several key sites across the company's international footprint. In addition to the Obuasi mine in Ghana, investments will be directed toward the Geita mine in Tanzania, Siguiri in Guinea, and the Cuiab mine in Brazil. AngloGold Ashanti expects these strategic upgrades to drive total annual gold output to between 2.8 million and 3.17 million ounces by 2026. This growth strategy is underpinned by a robust financial outlook, with the company projecting a real internal rate of return exceeding 35%, calculated against a long-term gold price of $3,000 per ounce.

The announcement follows a strong financial performance in the third quarter, where the company reported a 12% increase in earnings before interest, taxes, depreciation, and amortization (EBITDA), reaching $1.57 billion. This growth was largely propelled by the sustained rise in global bullion prices. By reinvesting these gains into core assets like Obuasi, AngloGold Ashanti aims to strengthen its competitive position in the global mining sector while ensuring production stability and continued profitability for its shareholders.