AngloGold Ashanti Loses 20,000 Ounces in South African Power Cut
Stock Chart for AngloGold Ashanti Ltd (ANG)
AngloGold Ashanti Ltd., the world’s third-largest producer of the metal, said a power failure that cut electricity supply to some of its South African operations will reduce first-quarter output and raise costs.
A fire at the Midas substation near Carletonville, west of Johannesburg, left AngloGold’s Mponeng and Tau Tona mines idle from March 13 to March 15, the company said in a statement.
“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,” Johannesburg-based AngloGold said today.
Mines that account for more than 20 percent of South Africa’s gold output, including Sibanye Gold Ltd.’s Driefontein mining complex, were idled after the blaze at the substation, owned by the country’s state-run power utility Eskom Holdings SOC Ltd., cut supply to parts of two provinces.
The company is building the world’s third- and fourth- largest coal-fired power plants as part of plans to overcome an electricity deficit that halted factories and mines for five days in 2008.
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