Tropicana goldmine ahead of schedule despite $500m cost-cutting drive
While fellow goldminers are delaying projects due to a weaker price and higher costs, AngloGold Ashanti executive vice-president Graham Ehm said two of the company's mines would begin producing this year.
The Tropicana joint venture in Western Australia is slightly ahead of schedule and the Kibali joint venture in the Democratic Republic of Congo would come online later in the year, he said.
"We expect the first gold at Tropicana to occur this quarter," Mr Ehm told the Diggers and Dealers conference.
"Together these projects will add an attributable 550,000 to 600,000 ounces of production."
If developed to its full potential, Tropicana could become one of Australia's top five goldmines, in terms of gold production volumes.
The company, which also has major assets in South Africa, is not immune from the industry downturn, reporting a 47 per cent fall in 2012 net profit to $US830 million. AngloGold Ashanti's plans to cut $US500 million in costs will include shedding around 27 local jobs over the next year.
Frequently Asked Questions about this Article…
AngloGold Ashanti said the Tropicana joint venture in Western Australia is slightly ahead of schedule and expects the first gold at Tropicana to occur this quarter.
The company said the Tropicana and Kibali projects together will add an attributable 550,000 to 600,000 ounces of gold production.
Yes — the article says that if developed to its full potential, Tropicana could become one of Australia’s top five goldmines by production volume.
Kibali is a joint venture mine in the Democratic Republic of Congo; AngloGold Ashanti said Kibali is expected to come online later in the year.
AngloGold Ashanti is pushing ahead with a $US500 million (about $556 million) cost-cutting drive in response to an industry downturn, weaker prices and higher costs.
Yes — the company said the $US500 million cost cut will include shedding around 27 local jobs over the next year.
The company reported a 47% fall in 2012 net profit, down to $US830 million, reflecting the challenging conditions in the gold mining industry.
Investors should note that AngloGold Ashanti, the world’s third-largest gold producer with major assets in South Africa, is bringing Tropicana forward while planning $US500 million in cost cuts. Key facts to watch are first gold at Tropicana this quarter, Kibali coming online later in the year, the expected 550,000–600,000 ounces of additional production, and the recent drop in 2012 net profit to $US830 million.
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