By Felix Njini
NAIROBI (Reuters) – AngloGold Ashanti said it has closed its loss-making Corrego do Sitio (CDS) mine in Brazil to lower costs and stem runaway losses.
The Johannesburg-based gold miner said the workforce at the mine will be reduced while it is placed on “care and maintenance” — a process which involves preserving the operation’s vital infrastructure during the time its not producing gold.
The CDS mine, one of AngloGold’s smallest operations, has been hit by poor output and costs of production “well above” the price of gold, the company said in a statement.
“The mine has been unable to sustain itself or to fund the capital needed to ensure its long-term future,” it said.
AngloGold Chief Executive Alberto Calderon initially outlined plans to sell the mine but failed to attract interested buyers.
The CDS mine, in Brazil’s Minas Gerais state, produced 69,000 ounces of gold in 2022.
AngloGold also said in a separate statement it has brought back Richard Jordinson as its chief operating officer.
Jordinson has previously worked at AngloGold’s mines in Tanzania and Australia.
(Reporting by Felix Njini; Editing by David Goodman and Mike Harrison)
