AngloGold weighs fate of underperforming South African mines
SA underperformance offsets world gains, but the producer sticks to its full-year production target
AngloGold Ashanti is reviewing its underperforming South African mines after a poor start to the year offset increased output in its international portfolio, prompting the world’s number three gold miner to study its options for the Kopanang and TauTona mines.
The South African mines had a difficult March quarter, posting a considerable loss despite a stellar safety performance and the group’s first fatality-free first quarter. They produced 198,000oz at an all-in sustaining cost of $1,327/oz versus 236,000oz at $919/oz for the first quarter of 2016. AngloGold received $1,216/oz for the gold it sold during the quarter.
The mines in SA, which contributed about a quarter of the company’s gold output in the March period, dragged group production down to 830,000 oz, compared with 861,000oz a year earlier.
CEO Srinivasan Venkatakrishan said the review was partly to see if other mines could be integrated into their infrastructure to lower costs and give extra access to tackle the reef.
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