KALGOORLIE (miningweekly.com) – Gold miner AngloGold Ashanti and its joint venture (JV) partner Independence Group on Thursday officially opened the Tropicana gold mine, in Western Australia.

Executive VP of AngloGold Ashanti’s group planning and technical division, Graham Ehm, said the eight-million-ounce mine was on track to produce 500 000 oz/y of gold over the first three years of operation.

Average mine life production was estimated at between 330 000 oz/y and 350 000 oz/y for the remainder of the 11-year mine life.

“After the first operating quarter, and during the ramp-up period, Tropicana produced 95 000 oz - the orebody delivered what was expected. The plant has achieved 90% run time and has met and exceeded the design throughput rate,” Ehm said on Thursday.

He added that operating costs had also placed the Tropicana operation among the lowest-cost producers in Western Australia.

“Consequently, even with a subdued but hopefully improving gold price, Tropicana is delivering for its shareholders,” Ehm said.

AngloGold Ashanti chairperson Sipho Pityana added that the Tropicana mine required a capital investment of about A$800-million.

“The last 12 months has been quite a tough time for the gold industry, with the sudden and dramatic fall in the gold price early last year,” said Pityana.

He noted that while there was a current uptick in the gold price, the miner was not banking on the rise being sustainable, adding that AngloGold Ashanti and its JV partner would instead focus on lowering production costs.

“We have taken considerable costs out of our business at all levels - operating costs, overheads, exploration and discretionary spending. We are keenly aware of the centrality of increased production to the enhanced value of the business, we have focused on improving the quality of our portfolio.”

Besides developing the Tropicana mine, AngloGold Ashanti also developed the Kibali mine in a JV with Randgold Resources, in the Democratic Republic of Congo, where first gold pour took place in September last year.

The miner also sold off its Navachab mine, in Namibia, in an effort to cut back on costs.

“We have not sacrificed long-term optionality while addressing these challenges. We retain a focused exploration programme and continue to invest in our reef boring technology in South Africa. We believe that the South African technology project will enhance efficiencies and improve safety,” Pityana said.

Mines and Petroleum Minister Bill Marmion congratulated the JV partners, calling the Tropicana mine the most significant gold find in Australia in the last decade.