Gold News

Mining company announces decline in output

Anglogold Ashanti, a gold producer operating in 11 countries, has announced a decline in production in some of its operations.

The mining company reported a difficult quarter in Ghana, where the Obuasi mine saw gold production decline by nine per cent due to a reduction in the standard of gold mines, as well as stoppage of the plants for maintenance.

It was also found that costs increased by 18 per cent, the Sydney Morning Herald reports.

"While good progress was made in identifying the steps necessary to effect the
targeted performance turnaround, actual control in key areas was below expectations," the company said in a statement.

The report also said the firm expects gold demand to increase in the coming months, a factor which could also see gold prices rise.

India was particularly highlighted as a sector for growth in demand due to the forthcoming Diwali festival in October, as well as younger consumers entering the market with more disposable income.

In related news, Newcrest, one of the world's largest gold producers, also recorded a drop in output amid fuel supply problems earlier this month.

The company, which is Australia's largest gold mining firm, said that an explosion at its Telfer mine in South Africa had cut gas supplies by 30 per cent, causing some $38.4 million worth of disruption.

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