AngloGold to stay intact, but battles to stem losses
CEO Srinivasan Venkatakrishnan says no big plot behind mine closures
AngloGold Ashanti’s closure of old mines in SA at a loss of 8,500 jobs has less to do with making the South African division attractive for a buyer or preparing the company for a split than it has to do with stemming the haemorrhage of cash. Grilled on the closures and the implications for AngloGold, CEO Srinivasan Venkatakrishnan pointed out during the company’s interim results presentation on Monday that a regulatory process was under way with organised labour at its Kopanang and TauTona complexes to find ways of stemming losses at the older mines, limiting what he could say about the outcome. Data for the two complexes, which include the Savuka mine earmarked for closure, show the financial liability they are for AngloGold and the South African division. TauTona, which includes Savuka, generated 35% less gold in the six months to end-June, producing 57,000oz at an all-in sustaining cost of $1,858/oz, a 74% increase on the same period a year earlier. AngloGold is investigating fol...
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