1% AngloGold wants lower power hikes
I-Net Bridge | Tue, 02 Feb 2010 17:06[miningmx.com] -- AngloGold Ashanti, South Africa's largest gold producer, on Tuesday said it was still holding out for a reduction in the electricity price hikes scheduled to kick in this year. South African power utility Eskom has reduced its request for electricity price hikes from 45% of 35% in each of the next three years starting in April this year. "We are hopeful we will see another step change on those numbers," AngloGold Ashanti CEO Mark CutifaniMark Cutifani said. Addressing the Mining Indaba, Cutifani said AngloGold Ashanti had reduced its energy consumption by 15% and is targeting a further 15% with a view to reduce cost levels. The company is aiming to reduce costs at its South African operations by 5% and 10%. Input costs at South African gold mines are among the highest in the world with input costs rising by 10% a year. While labour makes up about half of South African producers' costs, the remainder includes fuel, steel and diesel costs. Speaking about AngloGold Ashanti's strategy for its South African operations, which represents 40% of its global production, Cutifani said the company was looking at operating model improvement with a view to improve operating productivity by 30% within the next 18 months. In the longer term, he said the company was looking at mining beyond 4,000m. "In South Africa it has been a challenging year," said Cutifani. The company's first half was hit by safety stoppages but Cutifani said the market could expect to see an improved performance in the second half. But overall, Cutifani said there was still a long way to go.
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