AngloGold to build mine in Australia

AngloGold and Independence Group, which hold 70% and 30%, respectively, of the Tropicana project in Western Australia, have both approved the construction of a mine for a cost of up to $725m, said CEO Mark Cutifani at a presentation of AngloGold’s September quarter results yesterday.

He described the mine, which will produce up to 490000oz of gold a year for the first three years at a cost of up to $588/oz, as the first new greenfield mine developed by AngloGold in a decade.Construction will start in the middle of next year and the first gold is expected from the open- cast mining operation in the final quarter of 2013.

The mine will contribute to AngloGold’s plans to ramp up production by a million ounces in five years.The Tropicana mine, which is 330km northeast of Kalgoorlie, will produce 345-million ounces over a 10-year life, but only a tiny part of the 300km-long gold belt has been explored, meaning it is entirely possible there are further deposits that can be found to extend the life, said Graham Ehm, who heads AngloGold’s Australasian division.

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