Gold major AngloGold Ashanti, which saw a 225% increase in income from uranium sales in the quarter to March, was planning a new R1-billion-plus uranium expansion at the Kopanang mine to take production to more than two-million pounds a year, AngloGold Ashanti CEO Mark Cutifani said.

Reporting overall headline earnings of $150-million for the quarter, Cutifani said that AngloGold Ashanti’s uranium business was “going from strength to strength” as a result of increasing its exposure to the spot price through a restructuring of its uranium contracts.

“We remain bullish on the prospects for uranium, and are examining further ways to continue to improve the value con- tribution from uranium,” Cutifani said.

Uranium production was up another 5%, to 369 000 lb, in the quarter, in line with AngloGold Ashanti’s 1,4-million-pound full-year target from the present 1,2-million pounds.

Uranium’s contribution towards the total cash costs of the South African operations was now $5/oz, or R 1 684/kg.

Cutifani said that the company had been studying ways to improve the value contribution of uranium to the business and would ask the board to decide on the go-ahead of the Kopanang uranium expansion project in the third quarter.

“We are looking to expanding our ura- nium capacity, which is good news for South Africa because that will involve capi- tal expenditure in South Africa. We can see real and significant value improvements over the next three years,” he said.

The Kopanang plant was originally expected to cost R2-billion, “but the investment required will be substantially below that and I am talking tens of per cent”.

AngloGold Ashanti was targeting a “better-than-two-million-pounds of pro- duction”.

“On a long-term basis, we see a uranium price at around $65/lb to $70/lb, so we are very optimistic about the uranium business and our ability to make a significant con- tribution.

Analysis had identified recovery improvement opportunities that would be incor- porated into the design of the Kopanang expansion, which would lower the current $24/lb cost base.

To watch a video in which AngloGold Ashanti CEO Mark Cutifani reports on the company’s plans to build a new uranium plant at Kopanang and increase uranium production to more than two-million pounds a year, click here.

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