Showing posts with label AngloGold Ashanti Ltd. Show all posts
Showing posts with label AngloGold Ashanti Ltd. Show all posts

Monday, March 18, 2013

AngloGold says power cut to cost it 20 000 oz of production

Gold miner AngloGold Ashanti on Monday warned that the fire at a substation in the West Wits region, which cut power to its Tau Tona and Mponeng operations, last week, would result in its first-quarter production being about 20 000 oz lower.

State-owned power utility Eskom reported last Thursday that a fire at a substation had resulted in supply being cut off to the Klerksdorp and Carletonville areas on Wednesday night.

All main power supply to the Tau Tona and Mponeng operations were interrupted between March 13 and 15.

While emergency procedures enabled the safe and prompt evacuation of all underground work areas, continued disruption of power to the mines, owing to the unplanned interruption of the main Eskom electricity supply, halted all but essential water pumping services on the two operations.

“There was insufficient power to run ventilation and cooling plants, hoisting infrastructure or metallurgical plants and other associated production activities,” AngloGold stated.

Eskom had partially restored power until the transformer could be repaired.

Tau Tona resumed underground mining activities on March 15, while the Mponeng operation resumed most of its operations on Monday; however, certain project and hoisting activities did not resume, to enable the gold miner to operate within current electricity supply constraints.

Edited by: Chanel de Bruyn

Friday, September 14, 2012

AngloGold Ashanti sees Colombia as the hottest new bullion district

South African AngloGold Ashanti’s (NYSE: AU) CEO, Mark Cutifani, said gold projects in Colombia are one of the company’s key current priorities and that it has used its first-mover advantage in the country to build a strong position in what he called “the world’s most prospective new gold district.”

Speaking at the Denver Gold Forum, Cutifani said he recently appointed Charles Carter as executive VP of business in the South American country "to ensure appropriate strategy, alignment, resourcing and scheduling," as he wants those projects to move forward “as fast as possible.”

After his presentation, the executive —who is also the vice president of the South Africa’s Chamber of Mines— also referred to the employee unrest that continues to harm the local mining industry.

“We will find a solution in the next month or two; we’ll come together and redefine a pathway that seeks to answer the right issues, ” he told Ventures Africa.

“We’ve all got to work harder on the social issues; connecting and communicating better with the workforce is important,” Cutifani was quoted as saying. “The union has to also have a look in the mirror and think about its processes to improve the way it’s connecting.”

Key projects

AngloGold has three main projects in the country: the 100% owned La Colosa, and Gramalote and Quebradona, both of them in partnership (51%:49%) with Canadian B2Gold (TSX: BTO).

"Colombia is investor friendly with strong government institutions, evolving mining legislation and strong interest from majors," Cutifani said, adding that the company has resources of approximately 30Moz at a net cost of $2/oz. in the country.

La Colosa has significant growth potential and the final scope of the project has still to be determined. The ore body is currently being tested at depth to 1,000 m while drilling to the northwest of the concession area shows improving grades (up to 1.9g/t).

Anaima Toche, which surrounds La Colosa and is also controlled by AngloGold, has potential to become a new mining district, according to Cutifani's presentation.

La Colosa is expected to produce at least 700,000oz/y of gold and cost $3.5 billion.

Potentially Colombia's first open pit gold mine, Gramalote's prefeasibility stage is set to wrap up this year. The focus is on front-end engineering and design, land purchase, and environmental, social and community engagement, according to AngloGold.

A deal with local artisanal miners is approaching completion with 152 miners in the project area moving to self-employment or JV roles.

Gramalote should start producing in 2016 and there is potential to grow the current 4.1Moz resource, said Cutifani.

In terms of the Quebradona project, AngloGold is moving to increase its stake in the project from 51% to 70%.

Other operations of AngloGold Ashanti in Latin America include the 92.5%-controlled Cerro Vanguardia mine in Argentina, and the fully owned AngloGold Ashanti Brasil Mineraçao and Serra Grande mine in Brazil.

In the past year, investors, mining companies and explorers alike have been focusing on the South American country, but recent incidents that include a major strike, a new minister of mines and debated renewal of BHP’s Cerro Matoso nickel mine concession, are making foreign firms more cautious.

Colombia’s economy, which is Latin America’s fifth largest, has grown four times as rapidly as Canada’s in recent years, with foreign investment quadrupling between 2002 and 2008.

Tuesday, May 29, 2012

Kinross sells Crixas stake to AngloGold for $220m

Canada’s third-largest gold miner Kinross Gold has agreed to sell its stake in the Crixas gold mine (Serra Grande), in Brazil, to South Africa’s AngloGold Ashanti.

AngloGold, which already owns the other half of the property and operates the mine, bought Kinross’ interest for $220-million.

"Crixas is a nonoperated, noncore asset for Kinross," Kinross CEO Tye Burt said in a statement.

He added that the property’s divestiture was part of the company’s strategy of portfolio optimisation, and focusing its resources on its core operations and priority projects.

Earlier this month, Kinross reported a 58% drop in first-quarter earnings to $105.7-million, mainly owing to a once-off $110.3-million remeasurement of deferred tax liabilities, as a result of an increase in the Ghanaian corporate income tax rate from 25% to 35%.

The company also said earlier it would take a massive $2.94-billion noncash goodwill impairment charge related to its acquisition of the Tasiast mine in Mauritiana, and the Chirano mine in Ghana, which it bought for $7.1-billion from Red Back Mining in 2010.

Kinross said its share of Crixas' proven and probable gold reserves was about 375 000 oz as at December 31, and its share of forecast production for the year was about 70 000 oz of gold-equivalent ounces. The company expects to provide updated production guidance for the year with its second-quarter earnings announcement.

In 2011, the Serra Grande mine produced 134 000 oz of gold at an average cash cost of $767/oz. The Serra Grande operation comprises three underground mines, namely Mina III, Mina Nova and Mina Palmeiras, and one openpit mine on the outcrop of the Mina III mineralised zone, as well as a single dedicated processing plant.

To date, the Serra Grande mine has produced 3.4-million ounces of gold.

AngloGold Ashanti said it expects full ownership of the mine to bring its yearly production from Brazil to more than 500 000 oz and the contribution from the Americas region as whole to more than one-million ounces.

“This deal further simplifies our portfolio and gives us greater exposure to Brazil, where we have had significant success in growing our production, as well as our reserve and resource base. We see long-term, lower-risk potential from Serra Grande, which is a key component of our strategy to grow the contribution from the Americas,” AngloGold CEO Mark Cutifani said in a statement.

The transaction is expected to close by the second quarter, pending regulatory approval.

Source: Creamer Media Reporter

Monday, May 21, 2012

AngloGold to invest $400m in Colombia 2013-15

AngloGold Ashanti, the world's No. 3 gold producer, plans to invest $400-million in Colombia in the 2013-2015 period at its La Colosa deposit and other gold exploration projects, a company executive said on Friday.

Some $300-million is earmarked for exploration work at La Colosa, Colombia's largest gold deposit, located in the southern Tolima province.

The remaining $100-million would be invested in exploration projects in the regions of Antioquia, Cauca, Bolivar and Caldas, AngloGold's CEO in Colombia, Rafael Herz, said during a mining conference in the port city of Cartagena.

Hertz said that geological work allowed the company to more than double inferred gold resources at La Colosa to 24-million ounces from initial estimates of 12.3-million ounces.

"Mining resources in the area have been confirmed and are higher than (initially) established," he said.

AngloGold last year unveiled a plan to invest $310-million in Colombia between 2011 and 2013.

A local environmental agency refused to grant a water permit for La Colosa last year, arguing that there is not enough water for the project in the area.

Herz said the lack of environmental and water permits have prevented AngloGold from finishing exploration work at La Colosa in 2012, as it had planned.

The delay with the permits means Colosa may not start production until 2019, two years after initially planned.

The company estimates that la Colosa will produce between 600 000 oz and 800 000 oz of gold per year and that it will have a 20-year lifespan, Hertz said.

Colombia has seen a boom in foreign direct investment, mainly in oil and mining, over the last few years thanks to a US-backed military crackdown on illegal armed groups opening up many areas of the country to exploration.

However, mining and energy investors have run into issues over the past few years from licensing delays to environmental concerns and deadly accidents, forcing the government to overhaul the sectors including creating a new agency to oversee the mining industry.

Sunday, May 13, 2012

AngloGold Ashanti profit jumps 46% on higher bullion prices

Adjusted earnings excluding one-time items surged to $1.11 a share in the three months through March 31, helped by a $90 million tax credit.

AngloGold Ashanti Ltd. (ANG), the third- largest producer of the metal, said first-quarter profit climbed 46 percent and it approved $1.9 billion of projects to boost production.

Adjusted earnings excluding one-time items surged to $1.11 a share in the three months through March 31, helped by a $90 million tax credit, from $0.76 in the prior three months, the Johannesburg-based company said in a statement today. The median estimate of three analysts surveyed by Bloomberg was for 6.46 rand ($0.81).

Chief Executive Officer Mark Cutifani is trying to push output to benefit from bullion prices that have gained for each of the past 10 years. Government safety stops in South Africa and unplanned repairs in Ghana hampered his efforts during the quarter.

Production of 981,000 ounces in the three months through March 31 missed the company's target of 1.03 million ounces. Second-quarter output will probably be about 1.04 million ounces, the company said.

Smaller rival Harmony Gold Mining Co. (HAR) reported a 3.3 percent decline in earnings excluding one-time items yesterday as production lagged behind targets. Gold Fields Ltd. (GFI), Africa's second-largest producer, is scheduled to report on May 17.

AngloGold approved $1.9 billion of investments over the next five years to expand Cripple Creek & Victor mine in the U.S. and dig the Mongbwalu and Kibali mines in Democratic Republic of Congo to add 500,000 ounces a year of production. The company plans to boost output to between 5.4 million and 5.6 million ounces by about 2014.

Gold was little changed at an average $1,689.14 an ounce during the quarter compared with the average in the preceding three months.

Analysts who cover South African gold producers measure quarter-on-quarter performance on the basis of earnings excluding one-time items.