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Tuesday, 16th March 2004 (4731 views)

South African mining company AngloGold has announced that it plans to invest intensively in operations during 2004.<BR/><BR/>The company said that it planned to spend about two-thirds more on capital projects than last year, pledging 63 per cent of its total $596 million capital allowance to its African mines.<BR/><BR/>In its annual report, AngloGold predicted that its gold production would climb to 6.5 million ounces this year, despite a drop in production from its core operations, boosted by an additional 1.2 million ounces from Ashanti.<BR/><BR/>Production from AngloGold's existing operations is expected to drop by 300,000 ounces this year, to 5.3 million ounces, as Union Reefs (Australia) has closed and Jerritt Canyon (US) sold.<BR/><BR/>South Africa contributed 48 per cent of AngloGold's operating profit and 58 per cent of production in 2003, while the East and West African mines contributed 21 per cent to operating profit in 2004 and South America added a further 18 per cent.<BR/><BR/>Costs at AngloGold's operations will climb by seven per cent in 2004, to around $243/oz, the firm predicts.<BR/><BR/>AngloGold aims to invest $596 million in maintaining and ultimately growing its production levels this year, with Ashanti earmarked as one of the primary beneficiaries.

 

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