BOLGATANGA POLYTECHNIC

SCHOOL OF BUSINESS

DEPARTMENT OF ACCOUNTANCY

Report on Industrial Attachment from 1st July 2012 to 30th August 2012.

Anglogold Ashanti Obuasi Mine

Ruth Alale 0911020019

Table of Content Context Chapter One 1.0 1.1 1.2 1.3 Brief History of Ashanti Gold Field Ltd........................................................1 Organogram of Anglogold Ashanti................................................................5 Mission Statement of Aglogold Ashanti........................................................6 Main Activities of Anglogold Ashanti Obuasi Mine...................................6 page

Chapter Two 2.0 2.1 2.1.1 2.1.2 2.1.3 2.1.4 2.2 2.2.1 2.2.2 2.2.3 Work Schedule................................................................................................7 Detailed Description of the Training / Work Performed................................7 Stage One........................................................................................................7 Stage Two.......................................................................................................7 Stage Three.....................................................................................................7 Stage Four.......................................................................................................8 Claims Department.........................................................................................8 Process.8 Edit..8 Report..9

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2.2.4 2.2.5 2.3

Print.9 Submission of Claims..9 Safety Day Brief.9

Chapter Three 3.0 3.1 Benefits12 Challenges12

Chapter Four 4.0 4.1 Conclusion..13 Recommendations...13

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CHAPTER ONE 1.0 BRIEF HISTORY OF ASHANTI GOLDFIELD LTD

Over a century after its incorporation, Ashanti Goldfields Company Limited of Accra, Ghana, remain one of the largest producer s of gold in the world, achieving an annual gold production of 1.74 Operation on the New York and London stock exchange is run by black Africans. Originally operating with a single mine the Obuasi mine in Ghana s Ashanti region that gives the company its name Ashanti has in recent year expanded aggressively throughout Africa and now operates seven mine in Ghana, Zimbabwe, Guinea, and Tanzania. The company also maintains 25 active exploration project s in six African countries and about 20 outside the continuous operation, is still one of the top-producing mines in the world and the largest mine in Africa outside South Africa. Ashanti prides itself in its relationships with local authorities and traditional political and social institutions in the African countries where it operates. The company has assisted local communities with infrastructure projects such as roadways, water and electricity access, and education. The rich goldfields in the Ashanti region of what is now Ghana where were controlled by the powerful Ashanti (Ashanti) state as far back as the 17 th century. The British colonization of Ghana in 1874 and the ensuring Ashanti wars brought a large number of Europeans to the area. As time went on, soldiers and travelers spread the word about the regions legendary gold reserves--you could pick up gold as you would potatoes, reports one traveler. Widespread interest opened the region for large-scale commercial gold production. With the overthrow of the Ashanti king in 1896, the Ashanti protectorate was brought directly under British control, and Edwin Cade was give approval to mine the region. On June 11, 1897, Cade listed the Ashanti Goldfields Corporation Ltd on the London stock Exchange and set up operations at Obuasi on December 24 of that same year. The Obuasi mine yielded 2,544 ounces of gold in its first year of operation and 4,673 ounces the second 1

year. This early success, coupled with the devastation of the South African gold trade during the Boer War (1899-1902), fed Ashantis rapid growth that continued until the uprising of the Ashanti people against British rule in 1900. The impact of the anti-colonial conflict on Ashanti was devastation. Output did return to previous level and in 1905, an independent assessment of Ashanti operations was carried out by chemist W.R. Feldmann and mining engineer J.A MacTear. Under Feldmann, Ashanti underwent a period where output was slowed to allow for a change in mining techniques. Shallow edit mining was discontinued in favor of a shaft mining in which a vertical tunnel is dug deep into the ground. Feldmann also developed more efficient methods of treating gold ore once it was mined. The discovery of an exceptionally rich ore deposit in 1908 brought fruit to Feldmanns efforts and Ashantis success increased until the advent of World War 1 which resulted to forced cutbacks in operations. After the war, significant discoveries in 1937 of gold along the Obuasi fissure and other locations gave rise to a time of great optimism at Ashanti. The company made plans for major expansions and budgeted for increased output. However, these plans were cut short by World War 11, which had a disastrous effect on the entire African gold mining industry. Most mine in the Gold Coast region were shut down for the duration of the War, but a few profitable operations. Subsequently, the industry had been cut off from foreign investment since 1942, and many mines were closed down because they could not sustain themselves. Ashanti was one of only four operations on the Gold Coast that remained open during this time and was the largest and most profitable. At this time, Ashanti was led by its autocratic chairman General Sir Edward Spears, who lived abroad and visited the companys operations on irregular basis. In 1957, the British Parliament granted Ghana its independence, and Kwame Nkrumah

became countrys first prime minister. In 1960, a new constitution was drafted, and the county became the Republic of Ghana, with Nkrumah as its president. He nationalized five of Ghanas six producing gold mines (all but Ashanti), but was deposed by the National Libration Council (NLC) in 1966. In 1983, the Provisional National Defense Council, led by Jerry Rawlings, took control and in 1983, the government realized the outside capital would be needed to achieve its goal of rebuilding Ghanas economy, so that political stance shifted to welcome a more free-market philosophy. In 1986, the countrys first Ghanaian CEO, Sam Jonah, was appointed. He embarked on a major overhaul of company operations. While the companys headquarters had been in Accra for twelve years, much of the planning and budgeting was still carried out by consultants in the London office. Jonah transferred these duties to Ghana, keeping the staff geographically close to the mine site. Communications between management and line workers was improve, wages for mine workers were raised, and the company began the community renewed plan that is now a hallmark of all its operations throughout Africa. In 1996 Ashanti became the first African-operated company to be listed on the New York Stock Exchange .By the end of the 1990s, the addition to the original mine in Obusi, Ashanti operated the Ayanfuri, Bibiani, and Iduapriem mine in Ghana, the Siguiri mine in Ghana, and the Freda-Rebecca Mine in Zimbabwe. By 1990-91, the company supplied water resources such as hand pumps, boreholes and hand-dug wells for Obuasi Township and 137 smaller villages and townships. Ashanti also undertook projects to bring electricity to villages without it and to build schools for the families of its staff. The company later entered a hedge contracts, and the rise in gold price exposed the company to possible margin calls on these contracts. Ashantis credit lines were frozen and this affected Geita mine in Tanzania which was slated operation in 2000.

Later, Geita mine was opened in August of 2000, and was the largest gold mine in Tanzania. As a result, Ashanti reported a gold production of 1.74 million ounce for the year 2000a record for the company, despite its recent difficulties and the cessation of surface mining operations at Obuasi. In 2001, the companys future plans included further expansion in Africa, including operation in the Ivory Coast and the Congo. In his remarks at the Indaba Conference in Cape Town, South Africa, in February 2001, Sam Jonah acknowledged the difficulties of the past and expressed pride in the companys recovery. We were able to keep focus, despite some particularly choppy waters, He said. And I am confident we can continue to do so as we train our eyes further out into the future. In 2004 AGC merged with Anglo America, a South African gold mining company which has its Corporate Head Quarters in South Africa. After mergence, the new company adopted the name AngloGold Ashanti. From the organogram below, it can be seen that AGA has eight (8) divisions and about fortyeight (48) departments.

1.1
Managing Director Personal Assistant
Exec Manager Sustainable Development Exec. Manager & Human Financia l Controll Exec Manager Mine Technical Service

Exec. Manager Mining

Exec. Manager Processing Special Projects

Exec Manager Processin g

Exec Manager Engineerin

Undergroun d Manager

Technical Manager Project Manager Geotech Manager Engineering Manager Plant Manager Capital Expenditure Eng. Manager Eng. Manager ` Eng. Manager CIC Electrical Service Eng. Manager

Community Engineering & comm. Manager Mgt Service Industri al Property Manager Medical Services Training Develop HR Systems

Chief Accountant

Manager Safety & Health Safety Manager Asset Protecti on Manager

Geology Manager

U/G Manager South

Manager

Chief Geologis

Environment al Manager

Production Engineering Mgrs

ManagerCost Control Budget Commerci al HeadProcureme nt Head Contracts &

Occupational Hygiene/ Systems Manager

Chief Geotech Planning Manager

South & North Prod Engineering Mgr

Plant Engineering Manager

Land Managemen t & Closure Manager

Ventilation Manager

Plant Manager Concentration Engineering Manager Recovery

Economic Developmen t Manager

Head- SCO/ Projects Head Warehouse Ops Head-SCM Finance

Chief Mining Enginee rs Survey Manager

Mining Project Manager

Business Improvement Manager BPF Project Leader Engineering BPF Project LeaderProcessing BPF Project LeaderMining BPF Support Team

Contracts Manager

Project Manager

Manager U/G Devt

Plant Manager Metallurgical

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MISSION STATEMENT OF ANGLOGOLD ASHANTI

We create value for our shareholders, our employees and our business and social partners though safety and responsibly exploring, mining and marketing our products. Our primary focus is gold and we will pursue value creating opportunities in other minerals where we can leverage our existing assets, skills and experience to enhance the delivery of value. To be the leading mining company.

1.3

MAIN ACTIVITIES OF ANGLOGOLD ASHANTI OBUASI MINE

As the name portrays, AngloGold Ashanti Ltd is a gold mining company situated at Obuasi in the Ashanti Region. Its main activities are mining and milling of gold. The mining is done from both surface and underground operations where the ore is extracted and conveyed to the processing plant for milling in order to come out with the final product in terms of goldounces.

CHAPTER TWO 2.0 2.1 WORK SCHEDULE DETAILED DESCRIPTION OT THE TRAINING / WORK PERFORMED.

I was attached to the claims department of the National Health Insurance Scheme (NHIS). In this department, before a patient can receive his/her claim, there are four main processes that the patient would have to go through before the claims department comes in. A brief description of the four processes are outlined below. 2.1.1 STAGE ONE

When a person visits the hospital, first point of call is the record office. The person goes to the record office with either NHIS card or not (that is by cash) for registration to be than. The new patient registration form consist of the name, date of birth or age, occupation, place of residence, marital status, home address, OPD number, telephone number and contact name. It is the OPD number the patient is going to use throughout his or her visit to the hospital. 2.1.2 STAGE TWO

The patient is sent to see a Doctor. 2.1.3 STAGE THERE

The prescription is sent to the data entry clerks for it to be entered.

2.1.4

STAGE FOUR

The prescription is then sent to pharmacy department for the drugs to be given to the patient. Finally, the patient with NHIS card receives drugs without paying but a patient without NHIS card pays for the drugs and given a receipt. 2.2 CLAIM DEPARTMENT

The OPD number of patients who visited the hospital is sent to the claim office to be processed. We therefore separate the in-patients from the out patients. In- patients are patients who are on admission whiles out- patients are patients not on admission. The claim department uses a software call HAMS (Hospital Administration Management System). The software helps to process, edit write a report and print claims. We than submit the claim to the NHIS office for reimbursement. 2.2.1 PROCESS

HAMS (Hospital Administration Management System) is designed is sure a way that, the moment you type in the patients OPD number, every detail about the person is shown. This is because, the whole company is using the software HAMS in their operations. The moment the patient enters the hospital, details about him or her is recorded for accountability purposes. 2.2.2 EDIT

With the help of HAMS we are able to edit to make sure that all mistakes and errors are corrected otherwise the NHIS office will not pay back their money. We also make sure that, the diagnoses matches with the drugs given to the patient

2.2.3

REPORT

We than write a report summarizing the total amount they have incurred for the year. This report is sent to the NHIS office including the patient claims. The report is prepared yearly. 2.2.4 PRINT

The report and the patient claims are than printed and sent to the NHIS office. 2.2.5 SUBMISSION OF CLAIMS

The patient claims and the report are finally sent to the NHIS office for reimbursement. 2.3 SAFETY DAY BRIEF

It is a safety day brief organized every Thursday by Management except at the mining site which is organized every two days in a week . It is made compulsory for all workers in the organization. This is intended to keep reminding workers of the organization of the dangers and precautious steps to preventing accidents.

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CHAPTER THREE 3.0 BENEFIT

The field attachment was, indeed, an exposure to the practical aspect of the theory learnt at school. Apart from the knowledge gained in the accounting and auditing aspect of the field training, I had the opportunity to practically learn and use the software designed for the department called HAMS (Hospital Administration Management System). Among other things was the chance to learn some of the diagnoses to some drugs. However, with less or no supervising, I was able to process, edit, and print patient claims as well as prepare receipts for patients without health insurance cards. At the end of the day, preparing reports was a major role in this department. I can, however, say for sure that I now have some insight to report writing and presentation. 3.1 CHELLENGES

Though, I was taking through tee proceedings of the department, there were still some challenges. Among them were the difficulties in identifying some of the varying diagnosis to their drugs. Most of the time, new cases come and the supervisor has to come in to help with such diagnosis. Also, the use of the software (HAMS) was one challenge that cannot be overlooked since my knowledge on computing was not up to standard.

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CHAPTER FOUR 4.0 CONCLUTION

In conclusion, the field attachment, in general, was helpful in exposing us to the real world where one have to combine theory with practical and sometimes with skills not learned from in the classroom. It also help enrich your CV since the workers in the company or organization, recognizing the hard work and expertise of the student helps to market him/her as well as advertising the institution. 4.1 RECOMMENDATIONS

It is recommendable to say that the field attachment should be incorporated as a compulsory part of the students academic work to enforce to enforce them take part in the attachment program with all seriousness. The school should also liaise with some of the companies, industries and all other relevant organizations to help absorbed students from the institution to undertake their attachment program.

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