Thursday, 16th March 2006 (2780 views)

South African gold miner AngloGold Ashanti has pledged to increase its gold production significantly in 2007, despite forecasting weaker volumes in 2006.

In its annual report, the world's third largest gold producer said it expects production to slip fractionally to between 5.9 million and 6.1 million ounces in 2006.

But despite admitting that declining production at Savuka in South Africa and Bibiani in Ghana could take its toll this year, AngloGold confidently predicted it would be back on the offensive in 2007.

It expects production to vault by between six and eight per cent next year as new projects and grade improvements feed into the top line.

"AngloGold Ashanti continues to take a positive view of the gold price and, consequently, will continue to deliver into maturing forward sales contracts and to increase the proportion of our production which is exposed to the higher price for our product," stated the company.

Anglo American, AngloGold's major shareholder, announced it plans to jettison its stake in the company in January.

Only Canada-based Barrick Gold and US-based Newmont Mining produce more gold than AngloGold.

 

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