Precious metals miner said its platinum group metals (PGM) operations had delivered "solid operational results" in the first-half of 2017, prompting an upward revision to its 2017 production forecast and a downward revision to guided costs.
AngloGold Ashanti Mining News
Mine is expected to generate about 300,000 ounces annually by late 2021/early 2022, increasing total PGM production from Sibanye’s operations in the US by more than 50%.
A strong price recovery for the main commodities South Africa mines and exports has helped the country’s sector stage a turnaround in 2017, the first time in five years the industry is back in the black.
The decision to offload the asset is part of a restructuring process that includes laying off about 8,500 workers, roughly 30% of the company’s workforce.
South Africa holds the world's biggest reserves of platinum, chrome and manganese, but investment in the sector has dropped in each of the past two years as a result of increasing legal uncertainty and labour disputes.
The miner, South Africa’s largest gold producer, said that in the absence of a dividend, it’ll give investors two new shares for every 100 held.
The miner, Africa's biggest gold producer, reported a loss of $176 million in the six months to June 30, compared to a profit of $52 million in the same period last year.
Should the spinoff happen, AngloGold would be the latest miner to reduce exposure to South Africa, where political instability, controversial new mining rules and a stronger rand have made it less attractive to operate.
The suspension follows a pending a judgement in an urgent interdict application by the country's Chamber of Mines.
The miner said it continues to seek a “constructive dialogue” with the country's government to gain assurance that its operations will not be affected by newly enacted mining law.
President John Magufuli has also ordered the mining ministry to freeze the renewal of expired permits.
Measure is part of a restructuring aimed at “protecting the viability” of the company’s South African business over the long-term, AngloGold said.
The junior miner claims the Department of Antioquia's mining authority did not process its exploration application in accordance with the country’s mining code.
Workers at the mine downed tools over a week ago, angered by the company’s actions to eradicate illegal miners from its operations.
The country will require local miners to be 30% black-owned and has set a 12-month deadline for them to comply with the new rules.
Companies are pressing the government to better regulate public consultations and votes on mining projects, as they see legal uncertainty as the industry's main current challenge.
$2 billion La Colosa project boasts reserves of over 25m ounces of gold.
Gold price under pressure.
The lawsuit is against the government's order to Gran Colombia Gold to halt its Marmato project until it has further consulted with local residents.
The 10 largest gold mining companies produce 30% of the world's gold and enjoy some of the sector's fattest margins.
As 2017 gold price rally begins to look shaky, top listed gold producers are being punished disproportionately.
Only three of the world's largest gold producers managed to lift output in 2016 – Barrick loses 600,000 ounces of annual production but slashes costs.
Heavy losses across the board – Barrick down 4.6% in massive volumes and second tier Canadian miners hardest hit.
Work on AngloGold Ashanti's Mponeng gold mine in South Africa started in 1981 – a brownfield expansion project will extend the mine's life beyond 2050.
The Canadian junior explorer argues its exploration application was not processed in accordance with the country’s mining code.