AngloGold Ashanti on Monday reported gold production of 1.745 million oz in the first six months of 2016, down 7.1% from 1.878 million oz in H1 2015 as a result of unforeseen challenges at the Kibali joint venture in the Democratic Republic of Congo and lower output from Australia's Tropicana mine, Ghana's Obuasi mine and Geita in Tanzania.
In its 2016 interim report filed to the Australian Securities Exchange, the Johannesburg-based producer said that its South African operations reported a 2.8% year-on-year drop in production during H1 to 486,000 oz.
The Mponeng mine at South Africa's West Wits operations saw a 25% spike in H1 output at 129,000 oz. AngloGold Ashanti's South African operations continued to be hampered by safety-related stoppages during H1, which the group estimated to have resulted in a loss of about 44,085 oz.
Its international operations, which account for 72% of AngloGold Ashanti's consolidated gold production, produced 1.259 million oz of gold in H1, down 8.6% from 1.378 million oz a year ago.
Production from the group's 45%-owned Kibali mine slumped 23% from a year earlier to 114,000 oz in H1 due to lower throughput, recovery and grade as the operation encountered challenges and complexity of mining and processing.
The company put the Obuasi mine on care and maintenance in H1 because of illegal mining. As the group continues to evaluate the mine's future, it is engaging with the Ghana authorities to re-establish law and order in the area.
At Tropicana, where AngloGold Ashanti holds a 70% stake, gold production fell 18% from a year earlier to 137,000 oz in H1 following the end to grade streaming last December, which meant the head grade was 27% lower than in H1 2015. The processing plant optimization project remains on schedule for completion in September and it has already achieved a record throughput of 7.28 million mt/year in May and June, it added.
In Tanzania, Geita harvested 8.4% less gold in H1 at 229,000 oz due to a planned 11% reduction in recovered grade. The focus for Geita over the next few quarters will be toward improving mining efficiencies in the new underground development and step-up productivity to planned levels, the group said.
The third-largest gold miner has targeted 3.6 million-3.8 million oz of gold production in 2016 from 17 mines in nine countries, which compares with 3.947 million oz produced in 2015.
