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Australasia

POTENTIAL FOR GROWTH

 
1
Western Australia
Sunrise Dam246,000oz
Graham Ehm, Executive Vice President - Auatralasia

Graham Ehm
Executive Vice President – Auatralasia

PODCAST

Based on what I see so far and experience at Sunrise Dam, which has been an excellent orebody, it [the Vogue discovery] will give us the scope for another 15 years... and will allow us to reconfigure Sunrise Dam from a 20th century to a 21st century mine.

Listen to podcast

AngloGold Ashanti’s sole operating mine in Australasia is Sunrise Dam in Australia, while development of the Tropicana project, also in Australia, proceeds apace.

Production from Australasia declined by 38% to 246,000oz in 2011. This was equivalent to 6% of group production. This unforeseen decline in production was due to work stoppages caused by the high-wall slip and floods following excessive rainfall which resulted in operations both underground and at the open pit being affected for approximately six months.

Australia – contribution to
group production [graph]

Total cash costs increased by 46% to $1,431/oz, while in local currency, total cash costs rose 30% to A$1,386/oz, due primarily to lower production and the cost of remedial work.

In all, an average of 509 people, including contractors were employed at the Sunrise Dam operation, 3% more than in 2010.

Total capital expenditure for the region more than doubled to $102m, the bulk of which ($73m) was spent on the Tropicana project, which is scheduled to begin production in 2013. Most of this was spent on the main access road, operational readiness and accommodation.

The Tropicana gold mine is being developed by AngloGold Ashanti (70%) and joint venture partner, Independence Group (30%). AngloGold Ashanti is managing the Tropicana project and has also undertaken an extensive exploration programme in the area that covers some 13,500km2 of tenements along a 600km strike length. This area in Western Australia is considered one of the most prospective for new gold discoveries in Australia.

At year-end, the attributable Mineral Resource for Australasia totalled 7.45Moz and the attributable Ore Reserve 4.26Moz.