AngloGold Ashanti issues update on West Wits power outage

AngloGold Ashanti, the global gold mining company, has issued an update relating to power interruptions that occurred at its two main operational sites in the West Wits region in South Africa.

The Mponeng and Tau Tona sites experienced power disruption between March 13th and March 15th, after a fire caused by lightning damaged a transformer at a main regional substation belonging to power utility Eskom.

AngloGold reported that while emergency procedures allowed safe and prompt evacuation of all underground work areas, continued disruption of power to the mines due to the unplanned interruption of the main Eskom electricity supply halted all but essential water pumping services on those two operations.

It said that there was not sufficient power to run ventilation and cooling plants, hoisting infrastructure or metallurgical plants and other associated production activities.

AngloGold reported that Eskom has "partially restored power until the transformer is repaired".

It said that Tau Tona resumed underground mining activities on March 15th while Mponeng resumed most of its operations on March 18th.

The company said that Eskom had advised that the work to repair the damage is receiving "urgent attention" to restore permanent supply at the regional substation.

The company added: "While all efforts will be made to recover output once power is fully restored, production for the first quarter will be affected. The total adverse impact from this incident on first quarter 2013 gold production is likely to be in the region of 20,000 ounces, with consequential impact on unit costs."

AngloGold's Vaal River operations have not been affected.

AngloGold Ashanti produced 3.944m ounces (Moz) of gold in 2012, generating $6.35bn in gold income. As of December 31st, AngloGold Ashanti's Ore Reserve totalled 74.1Moz.

AngloGold Ashanti's share price was unchanged at 1,675p by mid-afternoon on Monday.

MF