Zanzibar, Tanzania — MININGREVIEW.COM — 24 March 2009 – AngloGold Ashanti Limited – Africa’s largest gold miner – expects production at its Geita mine in northwest Tanzania to surpass 300 000 ounces this year, up 15% from its production level of 260 000 ounces in 2008.
In an interview with Reuters during a conference here, CEO Mark Cutifani said AngloGold Ashanti’s Tanzanian operations had been through a few rough years with operations below expectations.
“It’s been a tough couple of years, and the mine has not been performing as well as we’d like. We are looking to do over 300 000 ounces this year and over the next three or four years we intend expanding operations and production to over 500 000 ounces,” Cutifani added.
Cutifani revealed that the company planned to invest on average about US$30 million (R300 million) to US40 million (R400 million) in the mine each year to boost production to between an annual 500 000 ounces and 600 000 ounces in five years’ time. “It’s probably going to be a tough 12 months ahead of us, but after that we should do pretty well,” he said.
Geita employs more than 3 000 people and is one of AngloGold Ashanti’s largest of its eight open pit mines in Africa.
AngloGold Ashanti has 21 operations in 10 countries across four continents. More than 40% of production comes from South Africa, with Australia and Ghana the next biggest contributors.
Tanzania – an east African economy of 40 million people – is vying with Ghana to be the continent’s second largest gold producer after South Africa.