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AngloGold Ashanti expected to lose 10,000 ounces of gold this year from Obuasi mine
AngloGold Ashanti CEO, Bobby Godsell, has said the Obuasi mine could lose 10,000 ounces of gold this year due to the power crisis in Ghana, and he described this situation as very "disappointing".
Ghana has been hit by power rationing due to the low level of water to propel the turbines in the Akosombo dam. Responding to press questions after his presentation to the Denver Gold Forum, Godsell made the statement about his expectations. In monetary value, the 10,000oz was equivalent to $5.9 million in trading on the New York Stock Exchange, at $591 per ounce.
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AngloGold acquired the deep level mine when it merged with Ashanti and viewed it as a major asset, which the group could bring to account through major capital investment and its technical expertise. But following a string of initial problems at Obuasi, Godsell subsequently told a quarterly press conference in Johannesburg that the AngloGold Ashanti management was staking its technical reputation on turning the mine around.
He told the Denver conference that Obuasi would in future produce at a level of 400,000 oz/year and management's challenge was to maximize value from the operation at that level. The 2005 AngloGold Ashanti annual report said the original target at Obuasi was to raise sustainable production to a level of 500,000 oz/year but that this level was unlikely to be reached.
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