Oil Report

UPDATE 1-AngloGold suspends ops at Ghana mine

* Seeks new storage facility for toxic mine tailings

* Will try to recover lost output in course of year

(Adds details, quotes)

JOHANNESBURG, Feb 19 (Reuters) - AngloGold Ashanti ANGJ.J the world's No. 3 gold producer, said on Friday it had suspended operations at its Iduapriem mine in Ghana to find a new storage facility for environmentally harmful mine tailings.

Anglogold said it had suspended operations at the mine after discussions with the Environmental Protection Agency of Ghana (EPA) over “potentially adverse environmental impacts arising from the current tailings storage facility”.

“In conjunction with the EPA, we have identified an interim location for tailings storage and will work with the agency over the next month to make this operational,” the company said in a statement.

Anglogold said it was working to fast-track the development of a new tailings storage facility water treatment plant, which it aims to commission by early 2011.

A large quantity of the lost output would be recovered over the course of the year, it said.

The Iquapriem mine produced 190,000 ounces of gold last year, making up about 4 percent of Anglogold’s total gold output. (Reporting by Muchena Zigomo)