Johannesburg, May 11: Anglogold Ashanti, the world's second-biggest gold producer, will boost production by a quarter over the next three years, following the acquisition
of Ashanti Goldfields, the company said.
Output in 2006 will be seven million ounces, up from 5.62 million in 2003, Alan Fine, public affairs manager for the company said. Johannesburg-based Anglogold completed the 1.5 billion dollar takeover of Ghana's Ashanti last month, allowing the company to adopt its new name.
The takeover of Ashanti brings Anglogold closer to matching the output of the world's biggest gold producer, Newmont Mining, and lessens its dependence on South Africa,
where a 73 percent rally in the rand against the dollar since 2001 has slashed profit margins. Costs are paid in local currency while metal is sold for dollars.
The company plans to spend 63.3 million dollar this year on exploration, with 57 percent of that money to be spent near mines Anglogold already runs. Anglogold is digging mines or considering digging mines that will produce 27 million ounces of gold in the future.
Bureau Report
