South Africa’s largest gold-mining company is already mining close to 4 km below surface. Now it is all set to devise a model to mine safely and profitably 5 km below surface and beyond.
One of the first utterances of AngloGold Ashanti CEO Mark Cutifani when he took the reins from Bobby Godsell was that he believed in the feasibility of mining at depth. Now he has a team in place that is going all out to devise a new model for doing so.
AngloGold Ashanti’s Mponeng mine currently operates at a record-breaking 3 955 m below datum. Now the company’s executive vice- president, Robbie Lazare, has a 12- month operating strategy that Cutifani believes will make a signi- ficant operational impact.
This is happening as AngloGoldrock breaker for sale Ashanti enters a new phase under the chairpersonship of former South African Reserve Bank governor Tito Mboweni, who made his appearance at last Friday’s presentation of results that saw a faltering South Africa being buoyed by Tanzania and Brazil.
Cutifani expects the team under Lazare to improve on its current position of being South Africa’s lowest-cost and most-productive gold miner.
Lazare reports that the company is in “active contact” with a range of leading service providerused mobile crushers sales to help hone the technologies that allow mining at great depth.
“This is not a purely academic exercise. We have already invited a number of international and local companies specialising in transport, drilling, blasting and support to a two-day workshop to get the project under way,” he says.
All existing AngloGold Ashanti mines are already in line for extreme make- overs as part of Project One.
South Africa is currently AngloGold Ashanti’s problem child and the target stone crush equipment price priceis to cut the costs of the South African operations by an initial 10%.
South Africa was an underperformer in the March quarter, which relied on the company’s mines in Tanzania and the Americas to offset “seasonally lower production from South Africa” to be able to post first-quarter adjusted headline earnings of $61-million.
“Our operations in Brazil and Argentina had another strong quarter and the turnaround progress in the US and Tanzania was also very encouraging,’’ crushing copper in labCutifani tells Mining Weekly.
Production was 1,08-million ounces at a total cash cost of $619/oz in the three months to March 31, compared with production the previous quarter of 1,18-million ounces at $598/oz and February guidance of 1,07-million ounces at $655/oz.
The Brasil Mineraçáo operation cut costs by 12%, to $369/oz, con- solidating its position as the company’s lowest-cost producer.
“We’ve got an incredible slate of new projects in the Americas, Africa and Australasia. Our focus is squarely on developing the potential that exists within our port- folio,’’ Cutifani says, cautioning that the go-ahead for the company’s Australian projects will require greater clarity on Australia’s new punitive 40% super-profits tax.
AngloGold Ashanti strength- ened its balance sheet after the quarter end, with the first investment-grade issue of a 30-year bond by a South African corporate. The issue of $300-million of 30-year notes and $700-million of ten-year notes was more than six times oversubscribed.
This $1-billion bond issue was completed in April, only days after the company agreed with a group of 16 banks to a $1-billion, four-year revolving credit facility, which was 1,6 times oversubscribed.
“The overwhelming appetite to provide us with long-term debt demonstrates a strong vote of confidence not only in AngloGold Ashanti, but also in South Africa.
“Wrapping up a $2-billion refinancing facility at very competitive interest rates gives us the flexibility to focus on delivering our operating and growth commitments,’’ Cutifani adds.
Production in the second quarter is anticipated to be similar to that of the first quarter at a total cash cost of $650/oz.
Full-year guidance is maintained at 4,5-million ounces to 4,7-million ounces at a cash cost of $590/oz to $615/oz.