In a bid to get higher returns, South Africa’s AngloGold Ashanti said it will review divestment options for its remaining South African assets.
The gold miner employs around 6,000 people in South Africa where mining companies have faced volatile labour relations, rising costs, regulatory disruptions and technical issues.
The Chief Executive Officer of AngloGold Ashanti, Kelvin Dushnisky, said “we believe that under the right ownership, our South African assets offer a compelling long-term value proposition that may allow for an extension to Mponeng Mine’s current life”.
Last year, the company cut about 2,000 jobs by restructuring its South African assets. Its remaining assets include Mponeng mine, the world’s deepest gold mine, a surface rock dump processing business and a mine waste retreatment operation.
According to AngloGold, gold production for the first quarter to March 31 fell 9 percent to 752,000 from 824,000 a year earlier hampered by regulatory stoppages at its Brazilian operations, an unfavourable performance at its Siguiri mine in Guinea and power disruptions and other challenges in South Africa.