[miningmx.com] – ANGLOGOLD Ashanti said two mines affected by a 5.3 magnitude earthquake on August 5 would lose a combined 30,000 ounces of gold, but
total group production was still likely to come in as guided.
“Based on what we know of the earthquake, full year production guidance remains unchanged at between 4.2 to 4.5 million ounces,” said Richard Duffy, AngloGold CFO in a presentation today.
The AngloGold mines affected by the earthquake, which reverberated as far afield as KwaZulu-Natal province, were Moab Khotsong and Great Noligwa which comprise 212,000 ounces and 83,000 oz respectively of the 4.1 million oz produced by AngloGold in its 2013 financial year.
“Work has been underway over the past three days to complete … inspections ahead of the first production shift scheduled to start tonight, Monday August 11,” AngoGold Ashanti said in an announcement today. Repairs to affected areas and equipment were ongoing, it added.
There was a risk that lost production could rise slightly as AngloGold planned a slow ramp-up of operations at Moab Khotsong and Great Noligwa.
AngloGold CEO, Srinivasan Venkatakrishnan (Venkat) said news of the earthquake was “one of the most terrifying days of our lives” given that some 3,300 miners were working underground at the time.
The evacuation of the mine within seven hours of the event, with only 28 injuries, most of which were light, has been hailed as a master-stroke of protocol and organisation and capped an excellent safety record at AngloGold for the quarter.
AngloGold reported its first fatality-free quarter since 2010, and only the third in its history, while it also registered its second ever lowest all-injury frequency rate of 6.79 per million man hours.
Asked if the earthquake might be related to blasting by AngloGold in the region, Venkat said: “Earthquakes are driven by geology and not by mining.
“Also the epicentre of the earthquake is far from our infrastructure and so it’s not related to blasting. Thirdly, the magnitude of this event cannot be caused by the activities of a single company”.
AngloGold said that the epicentre of the earthquake was now thought to be in Stilfontein.
