AngloGold Ashanti plans 
 to spend as much as 
 $120-million on its Geita gold mine, in northern Tanzania, to boost production to 500 000 oz by 2013, CEO Mark Cutifani said.

Production at Geita, about 
80 km south-west of Tanzania’s second-largest city, Mwanza, would increase to 315 000 oz this year, from about 264 000 oz in 2008, Cutifani said in an interview in Stone Town, Zanzibar. 
Output at the mine dropped from a peak of 618 571 oz in 2005 because of equipment failure.

“We are opening up new areas to mining and improving processing,” Cutifani said.

A partial slope collapse at Geita in early 2007 temporarily halted production at one pit, while a mill was shut down during October and November, according to a company statement.

“We’re putting in new skills and making new capital investment,” Cutifani said. 
“It’s a high-quality deposit and it should have a long life, so it’s worth quite a lot to us.”

The cost of producing an ounce of gold at Geita is about $700, which is “too high” and can be reduced to $650, he said.

Tanzania is Africa’s third-largest gold producer, after South Africa and Ghana. Barrick Gold, the world’s biggest gold-miner, 
operates three mines and is building a fourth, which is due to 
open this year. 
Australia’s Resolute Mining operates the Golden Pride gold mine in the East African nation.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.