AngloGold Halts Output Guidance from Ghana Mine

SEATTLE (Scrap Monster): South Africa-headquartered global gold mining company AngloGold Ashanti Limited announced its decision to suspend output and cost guidance from the Ghanaian Obuasi mine. The decision follows suspension of operations at the mine following an underground collapse which resulted in missing of a miner.

According to the company, the accident which occurred on 18^th May, 2021, is attributed to a suspected pillar failure at the underground mine. The company is in search for the missing mineworker. Meantime, it has suspended the operations at the mine, stating that the focus is currently on the rescue mission.

This would result in delay to the planned ramp-up of production at Obuasi. The company had begun redevelopment of the underground mine in early 2019. Since 2016, the mine was placed on care and maintenance. The mine was expected to produce 300,000 to 350,000 ounces of gold in 2021 at an all-in sustaining cost (AISC) of $950 to $1,050 per ounce, said the company press release.

Christine Ramon, interim chief executive officer, AngloGold noted that the total impact caused by Obuasi mine disruption to the group’s annual production has not been estimated. However, Ramon assured that the company’s dividend policy would not be impacted.