JOHANNESBURG, Oct 15 (Reuters) - AngloGold Ashanti ANGJ.J, the world's third-largest gold miner, is considering underground mining at its Geita opencast operations in Tanzania, the Business Day newspaper reported on Friday.
Geita, which was a loss-making mine in northwest Tanzania, has undergone a remarkable turnaround after it was marked as a “fix or sell” asset, the paper said. “The work we are doing now suggests we go underground rather than do a Cut 8,” the paper quoted Graham Ehm, head of the Australian division as saying. The paper said a “Cut 8” is an option to make the pit larger.
The company said it would take 18 months to reach a decision on the underground option at the Geita’s Nyankanga pit.
AngloGold has said it is bullish on the outlook for gold next year and expects to benefit from the rally in prices after eliminating its hedge book. [ID:nLDE6960YQ] (Reporting by Olivia Kumwenda, editing by Jane Baird)
Our Standards: The Thomson Reuters Trust Principles.