AngloGold to invest US$900 million in expanding its existing mines

AngloGold Ashanti, the world’s fourth-largest gold mining company by output, is set to make a significant investment to enhance its gold production capabilities. The company plans to invest approximately US$900 million in expanding its existing mines, aiming to boost its annual gold production by at least 400,000 ounces by the decade’s end.

AngloGold Ashanti posted a robust financial performance with a 12% increase in third-quarter EBITDA, totaling US$1.57 billion. This growth was largely driven by higher bullion prices. In the first nine months of the year, the company produced 2.164 million ounces of gold and has set an ambitious target of producing between 2.8 million and 3.17 million ounces by 2026.

The company’s expansion strategy focuses on leveraging existing infrastructure at several mines to maximize returns. The key projects include:

• Geita Mine in Tanzania: This expansion is projected to cost between US$480 million and US$580 million. The goal is to increase production to 600,000 ounces per year by 2030, up from 492,000 ounces in 2025.
• Cuiabá Mine in Brazil: With an investment ranging from US$200 million to US$250 million, this expansion is expected to add 75,000 ounces to its current output of 194,000 ounces starting in 2025.
• Siguiri Mine in Guinea: An additional US$70 million will be allocated to boost production by 100,000 ounces. Last year, the mine produced 289,000 ounces.
• Obuasi Mine in Ghana: The ongoing ramp-up at this mine will also contribute to the overall production increase.

AngloGold Ashanti’s expansion projects are based on a long-term gold price estimate of US$3,000 per ounce. The company anticipates that these growth initiatives will deliver a real internal rate of return exceeding 35%. This strategic investment is expected to strengthen AngloGold Ashanti’s position in the gold mining industry and enhance shareholder value in the coming years.

Overall, AngloGold Ashanti’s comprehensive expansion plan underscores its commitment to sustainable growth and operational efficiency while capitalizing on favorable market conditions.