AngloGold zeroes in on rest of Africa
As important as Africa is for AngloGold, generating just less than half of its annual gold production, this is where it faces two of its largest challenges
AngloGold Ashanti will replace the production lost from SA in a massive asset restructuring as its historical home becomes less relevant, says CEO Srinivasan Venkatakrishnan. The restructuring would possibly include adding output from its smaller Sadiola mine in Mali, along with the redesigned Obuasi mine in Ghana and further growth in Australia. AngloGold, once the dominant producer in SA, used its domestic assets to grow internationally. It, like Gold Fields, is a shadow of its former self in SA, which is now ranked eighth among global gold producers. The companies have moved away from SA’s deep-level, expensive, labour-intensive and dangerous mines to shallower, more mechanised operations in other countries. Africa outside SA has become the largest source of gold for AngloGold. The company intends cementing this position by reinvesting $590m in Obuasi, which will be a 400,000oz-a-year mine, offsetting the decline in gold from SA, with low-cost output at a maximum of $850/oz again...
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