Azumah Resources starts Black Volta gold mine dev’t -signs US$37m processing plant deal

By Kizito CUDJOE

Azumah Resources Ghana Limited has commenced construction and development of its Black Volta gold project following the completion of a 100 percent acquisition by indigenous mining firm Engineers & Planners Company Limited (E&P).

As part of the project rollout, the company has signed a contract valued at about US$37 million with Danish engineering and mining technology company FLSmidth for the supply of long-lead equipment and critical spares for the processing plant.

The equipment, expected to be delivered in 2026, will support the planned start-up of the mine in 2027, the company said.

Under the agreement, FLSmidth will supply major processing equipment, including gyratory and cone crushers, SAG and ball mills, a pre-leach thickener, screens, apron feeders, cyclones and pumps, as well as systems for absorption, desorption, refining and detoxification.

In addition, FLSmidth will provide technical support during the detailed engineering phase, as well as on-site assistance for installation, commissioning and training. The contract also includes spare parts and performance guarantees for the process equipment.

The Black Volta gold project is located in the northwest of the country, an area that hosts several producing and development-stage gold mines.

The Director of Azumah Resources, Noel Nii Addo, said the company selected FLSmidth as its strategic technology partner and supplier of major equipment and core process technologies, citing the firm’s more than 140 years of experience in the global mining industry.

“The signing ceremony marks the beginning of the journey towards large-scale commercial gold production,” Mr. Addo said at the event in Accra.

He noted that the initial order for long-lead equipment and associated technical support services is valued at about US$37 million, with delivery scheduled for 2026, ahead of the planned mine start-up in 2027.

Mr. Addo said the equipment would take close to 46 weeks to manufacture, making early payment critical as the company continues to procure other components required for the project.

“FLS is well known in the mining industry, and their involvement alone gives us significant leverage,” he said.

According to Mr. Addo, commercial gold production is expected to commence about 21 months after the delivery of the equipment and is projected to create approximately 1,700 sustainable jobs, particularly for residents of communities within the project area. He added that only about 20 percent of the total concession has been explored so far.

“This is a mine with an 11-year life, and we have only explored 20 percent of the concession,” he said. “As mining progresses, further exploration will be undertaken to uplift the entire Wa area.”

The signing ceremony followed the completion of a US$100 million payment by E&P to the project’s former foreign shareholders, making the Ghanaian firm the sole owner of the Black Volta gold project.

The event brought together executives from both companies, including E&P Chief Executive Officer, Ibrahim Mahama, FLSmidth Vice President for Capital Sales for Europe, Arabia and Africa, Alistair Mackay, and senior management of Azumah Resources.

Mr. Mackay said FLSmidth was committed to delivering advanced technology to enhance efficiency and production at the mine.

“The signing today focuses on long-lead items, which involve a substantial amount of equipment,” he said, adding that installation is expected to begin early next year, with construction anticipated within six months.

The post Azumah Resources starts Black Volta gold mine dev’t -signs US$37m processing plant deal appeared first on The Business & Financial Times.

Read Full Story