Mark Cutifani, CEO AngloGold Ashanti

Undersea gold search: AngloGold's view

Allan Seccombe | Tue, 06 Oct 2009 09:56 In an interview on 702 @ 18:18 on 5 October 2010 [miningmx.com] -- ANGLOGOLD Ashanti will know by the end of next year and after spending up to $15m whether its joint venture with De Beers to hunt for gold on sea beds is a winner or not, said CEO Mark Cutifani.

AngloGold and De Beers, the world’s leading producer of rough diamonds, have agreed to set up a venture using data garnered by De Beers in its search for marine diamonds and its equipment to hunt for gold deposits in the sea. AngloGold is putting up $40m over three years to earn into the venture.

“There are a few million dollars to be spent the balance of this year, probably $7-8m next year and the expenditure accelerates as we see more potential. By the end of next year and in the range of $10-15m we’d have a pretty good idea if we’re on a winner,” Cutifani said on the World at Six, a week-nightly business radio show.

De Beers has found gold and other mineral formations during its search for offshore diamonds, he said.

“There are indications that in materials dredged for diamonds there is gold. There’s no doubt there’s gold. The question is how much and is it available in economic concentrations? We think it is and they think it is. We’ll find out in the next two or three years,” he said.

Anglo American, a 45% shareholder in De Beers and which recently sold its remaining stake in AngloGold, is an 11% shareholder in an Australian company called Nautilus Minerals, which is preparing to mine a copper, zinc and gold deposit in the sea off Papua New Guinea.

Cutifani has said in the past that there was a sense of relief at AngloGold at the departure of Anglo from its share register.

The politics between the two companies is not affecting this joint venture, he said.

“None of us will let the politics get in the way and certainly we haven’t seen any on either side,” he said.

The partnership between AngloGold and De Beers is a good one, he said.

“Their geologists recognised the gold structures and formations of other mineral structures so they have a running start in identifying what ground and areas are prospective. If you add our expertise in gold and put the two together, we’ve got the will and a certain budget allocation for these kinds of things… it’s a good marriage,” he said.

He was fairly coy about saying where the prospective targets were, citing sensitivity on De Beers’ side about making that kind of knowledge public.

“It’s the Africa continental shelf, the Americas, Australasia, those kinds of areas. It’s a pretty broad search scope. We won’t say more until we lock in on certain areas,” he added.

MORE RADIO WRAP

We're not looking for acquisitions, says Implats CEO Miningmx Mon, 22 Feb 2010
The MiningMx.com team debates the implications of the Mining Royalty Bill to the industry and speaks ...
Pan African declares war on criminal miners Miningmx Tue, 16 Feb 2010
The MiningMX team gets insight into Pan African’s war against illegal miners, reviews the past weeks ...
Nationalisation? Not in my life time Miningmx Tue, 09 Feb 2010
The Miningmx team reflects on the week long Mining Indaba and the launch of the 2010 edition of Rain ...
Metal Heads, April 20 '09 Fri, 08 May 2009
The Miningmx.com team takes a look at upcoming gold quarterlies, Pamodzi's provisional liquidation a ...