For more detail on the performance at each operation, including their sustainability performance see the <OP>
Following an extensive review and restructuring of this region between 2016 and 2020, the last two remaining operating entities in the region were sold effective 30 September 2020.
Mponeng, the world’s deepest gold mine, is in the West Wits mining district southwest of Johannesburg, on the border between Gauteng and North West Province. Mponeng exploits the Ventersdorp Contact Reef via a twin-shaft system at depths of between 2,800m and 3,400m below surface. Ore is treated and smelted at the mine’s gold plant.
Surface Operations encompasses surface facilities in the West Wits and Vaal River areas. These facilities process and extract gold from marginal ore dumps and tailings storage facilities. Surface Operations includes Mine Waste Solutions (MWS), which operates independently, processing slurry material reclaimed by hydro powered machinery from various tailings storage facilities.
Contribution to group production*8%
* For 2020, group production includes the
South African operations to September 2020
The South Africa region’s operations produced 241,000oz at a total cash cost of $1,149/oz for the nine months to September 2020 compared to 307,000oz produced at a total cash cost of $1,003/ oz for the same period in 2019. The decline in annual production was mainly due to the slow start to the year, a result of poor ground conditions; safety stoppages owing to seismic events and related fatalities; and the national COVID-19-related lockdown implemented at the end of March 2020.
All-in sustaining cost for the South Africa region for the nine months to September 2020 was $1,296/oz, versus $1,156/oz the same period in the prior year. The increase was due to lower gold production, higher royalties, inflationary cost increases for power, labour and consumables, higher hauling contractor costs and IT-related expenditure at surface operations. This was partially offset by favorable by-product contributions, lower sustaining capital expenditure, and the weaker rand against the dollar.
Growth and improvement
Total capital spend in South Africa was $34m for the nine months ending September 2020 compared to $44m for the same period in 2019.