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AngloGold Ashanti Development costs at Tropicana climb

February 1 2013 at 08:00am
By Bloomberg

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The cost to develop AngloGold Ashanti’s Tropicana gold project in Western Australia would be as much as 13 percent more than its previous estimate, Africa’s largest producer of the metal said yesterday. The mine would cost A$820 million (R8 billion) to A$845m to build, the Johannesburg-based company said in a statement. Gold production, estimated at 470 000 ounces to 490 000 ounces in the first three years, was planned to start during the fourth quarter of this year, said AngloGold, which owns 70 percent of the project. Independence Group has the rest. “The Western Australian construction market is overheated and this, along with extreme skills shortages, has impacted labour productivity and subsequently costs,” chief executive Mark Cutifani, who will leave the company on March 31 to take the helm at Anglo American, said in the statement. By the end of December, the Tropicana mine was 56 percent complete, the company said. The shares declined 1.19 percent to close at R249. – Bloomberg


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