• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 7 hours Would bashing China solve all the problems of the United States
  • 12 hours COVID 19 May Be Less Deadly Than Flu Study Finds
  • 5 hours Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 1 hour China to Impose Dictatorship on Hong Kong
  • 5 hours Incompetent "Journalists"
  • 12 hours Model 3 cheaper to buy than BMW 3 series.
  • 2 hours Thugs in Trumpistan
  • 14 hours Iran's first oil tanker has arrived near Venezuela
  • 15 hours Let’s Try This....
  • 18 hours Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 20 hours HVDC Cheaper Than Low-carbon Natural Gas
  • 15 hours Pompeo's Hong Kong
  • 6 hours 60 mph electric mopeds
  • 20 hours Oil and Gas After COVID-19
The Oil Storage Crisis Is Far From Over

The Oil Storage Crisis Is Far From Over

Despite the tremendous comeback rally…

Ghana: AngloGold Ashanti Faces Falling Production

These are bad days for AngloGold Ashanti in Ghana, where its gold mining operations are suffering from rising costs and declining production to the point that the company will have to make cuts at the country’s largest gold mine.

As reported by Reuters on Monday, AngloGold Ashanti CEO Srinivasan Venkatakrishnan conceded that the mine “is currently making losses at the operating level … The current cost structure at the operation is clearly unsustainable.”

Since 2008, AngloGold has seen production costs more than double at the Obuasi mine. This, coupled with a decline in gold prices has made the Ghana branch dependent on financing from the parent company.

Related article: Foreign Mining Companies Flee China

Second-quarter 2013 financial results show a loss.

Now layoffs are in order, with the company citing major losses primarily due to labor costs and electricity prices. There have been no details on the number of layoffs to be expected, but the company has said layoffs are being considered presently, among other operational cuts.

According to the Ghana Mineworkers' Union, though, AngloGold Ashanti has already given some 450 people notification of layoff. The total workforce comprises more than 5,000 people.

Moody’s ratings agency has assigned a (P)Baaa3, negative outlook to AngloGold Ashanti as of 25 July.

By. Charles Kennedy



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News