The world’s second-largest gold producer AngloGold Ashanti announced yesterday that the government of the Republic of Guinea has lifted the embargo on the export of gold bullion by the company from the Siguiri mine.

The company said the development provides a conducive environment for the negotiations to resume between the company and the government on the Convention de Base, which regulates the company’s relationship with Guinea.

“We are delighted with this development and look forward to the expeditious and amicable resolution of all outstanding matters,” said AngloGold Ashanti president Sam Jonah.

“To this end, the company has received, from the government, suggested amendments to the existing convention and we expect to recommence and to conclude negotiations shortly. We also look forward to working with the government in realising the Siguiri mine’s exciting potential to the benefit of both Guinea and AngloGold Ashanti.” In April, Guinea placed an embargo on imports and exports to the mine, preventing fuel reaching the operation and gold being exported from Guinea.

While fuel deliveries were later allowed to resume, the embargo on gold exports remained in place, as Guinea – which owns 15% of the Siguiri mine site – complained that it was not receiving dividends and indicated that it wanted to renegotiate the deal.

Last month, AngloGold Ashanti CEO Bobby Godsell explained that the AngloGold–Ashanti Goldfields merger, concluded earlier this year, raised some questions for the Guinean government.

The West African country signed a contract with Australian firm Golden Shamrock for the operation of Siguiri, but did not sign a new deal when that company was taken over by Ashanti Goldfields in 1996. Ashanti, a Ghanaian company, was, in turn, taken over by South Africa's AngloGold.

Intense negotiations between the company and Guinea led to yesterday’s deal, but details of the agreement have not been revealed.

It was earlier reported that Siguiri incurred losses of about $350 000 a day while in shutdown, before fuel imports to the mine resumed.

It is understood that close to 700 kg of gold is currently awaiting export at Guinea’s central bank and exports are expected to resume this week.

Reuters reported earlier this year that Siguiri produced 58 000 oz of gold in the first quarter of 2004 – 49 300 oz of that for AngloGold Ashanti, or 3% of the company's global quarterly production.