ANGLOGOLD Ashanti suspended mining at its Guinea mine, Siguiri, after a community protest at the site, said Reuters citing a statement from the firm’s local subsidiary, Societe Aurifaire de Guinee (SAG).
Protesters from the Fatoyah community invaded the site on Friday, forcing SAG to suspend its operations, the company said.
AngloGold Ashanti was in talks with community leaders to resolve a dispute over a road which sparked the protest, said spokesman Stewart Bailey.
AngloGold Ashanti owns 85% of SAG, whose Siguiri mine produced 242,000 ounces of gold in 2018, said Reuters.
Community protests and mine invasions are not uncommon. Artisanal miners at AngloGold’s Obuasi operation in Ghana during 2016 took nearly a year to clear although government inaction was largely to blame. During that time, AngloGold turned to the International Court of Arbitration for assistance.
In August, AngloGold announced a 7% lift in second quarter gold production taking half year output to 1.55 million oz compared to 1.58m oz in the first six months of last year, excluding its sold assets Moab Khotsong and Kopanang. Full-year guidance has been kept at 3.25m oz to 3.45m oz.
“We are free cash flow breakeven at $1,200 per ounce,” said Kelvin Dushnisky, CEO of AngloGold Ashanti at the time. “The rising gold price is helping in that way. Our key priority is to chip away at debt.”
Shares in AngloGold ended 2.4% lower last week. On a year to date basis, however, the stock is almost 50% higher largely on the back of an improved dollar and rand gold price.
