by Charles Kennedy, Oil Price:
TThese are bad days for AngloGold Ashanti in Ghana, where its gold mining operations are suffering from rising costs and declining production to the point that the company will have to make cuts at the country’s largest gold mine.
As reported by Reuters on Monday, AngloGold Ashanti CEO Srinivasan Venkatakrishnan conceded that the mine “is currently making losses at the operating level … The current cost structure at the operation is clearly unsustainable.”
Since 2008, AngloGold has seen production costs more than double at the Obuasi mine. This, coupled with a decline in gold prices has made the Ghana branch dependent on financing from the parent company.
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