AngloGold Ashanti Brasil, a wholly-owned subsidiary of AngloGold Ashanti, has placed its Córrego do Sítio (CDS) mine in Brazil on care and maintenance due tosustained operating losses.
The firm said the mine has consistently reported difficult operational performance as a result of low production and costs that remain significantly higher than the price of gold.
In a press statement, AngloGold said: “The mine has been unable to sustain itself or to fund the capital needed to ensure its long-term future.”
During the first six months of 2023, the mine produced 30,000oz at a total cash cost of $2,278/oz and an all-in sustaining cost of $3,031/oz.
The mine reported $30m in negative free cash flow in this period.
AngloGold CEO Alberto Calderon initially planned to divest the CDS mine but could not attract buyers, reported Reuters.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
In 2022, the CDS mine reported production of 69,000 ounces of gold.
AngloGold said in a statement: “The company believes that layoffs are always the last resort and has taken reasonable steps to reduce the number of people affected by this transition to care and maintenance, including through the placement of some employees elsewhere in the company where equivalent roles exist.
“Unfortunately, however, at the end of this process there will be a reduction in the CDS workforce.”
The CDS operation comprises one open pit mine and one underground mine.