AngloGold Ashanti
Encyclopedia
AngloGold Ashanti Limited is a global gold mining
company. It was formed in 2004 by the merger of AngloGold
and the Ashanti Goldfields Corporation
.
AngloGold Ashanti Limited is now a global gold producer with 21 operations on four continents. The company is listed on the New York, Johannesburg, Accra, London and Australian stock exchanges, as well as the Paris and Brussels bourses.
In 2008, AngloGold produced 4.98 million ounces of gold from its operations, estimated to be seven percent of the global production. In 2009, the company's gold output dropped to 4.6 million ounces.
and the Ashanti Goldfields Corporation
three days earlier. This came almost a year after the merger was announced on 16 May 2003. In the transaction, Ashanti shareholders received 0.29 ordinary shares of AngloGold for every Ashanti share.
The new company sold its Union Reef Gold Mine in the Northern Territory
of Australia in August 2004, followed by the sale of the Freda-Rebecca Gold Mine in Zimbabwe a month later.
In late 2007, Mark Cutifani
replaced Bobby Godsell
as CEO of AngloGold Ashanti, being appointed a director of the company on 17 September 2007 and as CEO on 1 October that year.
In January 2009, AngloGold Ashanti sold its 33% stake in the Boddington Gold Mine
in Australia to Newmont Mining
for US$ 1.0 billion.
Russell Edey, chairman of AngloGold since 2002 and, after the merger also of AngloGold Ashanti, was replaced by Tito Mboweni
in May 2010. The company's Tau Lekoa Gold Mine in South Africa was sold to Buffelsfontein Gold Mines Limited in February 2009, with ownership being transferred on 1 August 2010.
The company announced the elimination of the last of its hedge book in October 2010. The company had heged
11.3 million ounces of gold, as of early 2008, under previous CEO Bobby Godsell. Under its new CEO, this was gradually reduced to 3.22 million. In October 2010, this remaining amount was paid off with US$2.63 billion, or US$1,300 per ounce of gold.
AngloGold Ashanti is a signatory participant of the Voluntary Principles on Security and Human Rights.
for its handling of its exploration operation in the Democratic Republic of Congo. The company has admitted paying extortion money to Nationalist and Integrationist Front
in exchange for access to gold mines in the Ituri
province of the DRC (AngloGold 2005). AngloGold Ashanti responded to the allegations in Human Rights Watch's report with a statement released in 2005.
In August 2007 British charity War on Want
published a report accusing AngloGold Ashanti's parent company Anglo American of profiting from the abuse of people in the developing countries in which the company operates. The report alleges abuses committed by AngloGold Ashanti subsidiaries in Colombia, Ghana and Mali.
According to Forbes
AngloGold Ashanti was accused in 2007 in Colombia for "murders of trade union and community leaders who opposed the company's activities in the region". The company disclosed itself in 2006 or in 2007 unacceptable safety performance in its platinum mines. Safety measures were taken.
In January 2011, AngloGold Ashanti was named the world's "Most Irresponsible Company" at the Public Eye Awards
, hosted by the Berne Declaration and Greenpeace in Davos, Switzerland. The nominating organisation, WACAM (Wassa Association of Communities Affected by Mining), catalogued the company's history of "gross human rights violations and environmental problems."
, aimed at reducing the company's number of fatalities to zero by 2015. Of the 16 fatalities experienced by the company in 2009, 13 were in South Africa (2007: 27 of 34, 2008: 11 of 14). The number of fatalities in company since formation in 2004 were:
Gold mining
Gold mining is the removal of gold from the ground. There are several techniques and processes by which gold may be extracted from the earth.-History:...
company. It was formed in 2004 by the merger of AngloGold
AngloGold
AngloGold was a gold mining company based in South Africa and majority-owned by the Anglo American group. In 2004 it merged with the Ashanti Goldfields Corporation to create the world's second-largest gold producer, AngloGold Ashanti. It's a big company....
and the Ashanti Goldfields Corporation
Ashanti Goldfields Corporation
This is the article on the mining company. For the football club of the same name see Ashanti Gold SC.The Ashanti Goldfields Corporation is a gold mining company based in Ghana that was founded by Edwin Cade. The Ashanti Mine, located at Obuasi, 56 km south of Kumasi, has been producing since 1897...
.
AngloGold Ashanti Limited is now a global gold producer with 21 operations on four continents. The company is listed on the New York, Johannesburg, Accra, London and Australian stock exchanges, as well as the Paris and Brussels bourses.
In 2008, AngloGold produced 4.98 million ounces of gold from its operations, estimated to be seven percent of the global production. In 2009, the company's gold output dropped to 4.6 million ounces.
Company history
The company was formed on 26 April 2004, after the High Court of Ghana approved the merger of AngloGoldAngloGold
AngloGold was a gold mining company based in South Africa and majority-owned by the Anglo American group. In 2004 it merged with the Ashanti Goldfields Corporation to create the world's second-largest gold producer, AngloGold Ashanti. It's a big company....
and the Ashanti Goldfields Corporation
Ashanti Goldfields Corporation
This is the article on the mining company. For the football club of the same name see Ashanti Gold SC.The Ashanti Goldfields Corporation is a gold mining company based in Ghana that was founded by Edwin Cade. The Ashanti Mine, located at Obuasi, 56 km south of Kumasi, has been producing since 1897...
three days earlier. This came almost a year after the merger was announced on 16 May 2003. In the transaction, Ashanti shareholders received 0.29 ordinary shares of AngloGold for every Ashanti share.
The new company sold its Union Reef Gold Mine in the Northern Territory
Northern Territory
The Northern Territory is a federal territory of Australia, occupying much of the centre of the mainland continent, as well as the central northern regions...
of Australia in August 2004, followed by the sale of the Freda-Rebecca Gold Mine in Zimbabwe a month later.
In late 2007, Mark Cutifani
Mark Cutifani
Mark Cutifani is an Australian businessman and the current CEO and a director of South African gold mining company AngloGold Ashanti, a position he has held since October 2007....
replaced Bobby Godsell
Bobby Godsell
Robert Michael "Bobby" Godsell is a retired South African businessman and the former CEO of South African gold mining company AngloGold Ashanti, a position he held from 1998 to 2007...
as CEO of AngloGold Ashanti, being appointed a director of the company on 17 September 2007 and as CEO on 1 October that year.
In January 2009, AngloGold Ashanti sold its 33% stake in the Boddington Gold Mine
Boddington Gold Mine
The Boddington Gold Mine is a gold and copper mine located 17 km northwest of Boddington, Western Australia.Officially reopened on 3 February 2010, the mine is expected to become Australia's largest gold mine once it reaches full production.-History:...
in Australia to Newmont Mining
Newmont Mining
Newmont Mining Corporation , based in Denver, Colorado, USA, is one of the world's largest producers of gold, with active mines in Nevada, Indonesia, Australia, New Zealand, Ghana and Peru. Holdings include Santa Fe Gold, Battle Mountain Gold, Normandy Mining, Franco-Nevada Corp and Fronteer Gold...
for US$ 1.0 billion.
Russell Edey, chairman of AngloGold since 2002 and, after the merger also of AngloGold Ashanti, was replaced by Tito Mboweni
Tito Mboweni
Tito Mboweni was the eighth Governor of the South African Reserve Bank. He succeeded Dr. Christian Lodewyk Stals on the 8 August 1999 and was succeeded by Gill Marcus who replaced him as Governor on 9 November 2009. He is currently the Chairman of AngloGold Ashanti.The youngest of three children,...
in May 2010. The company's Tau Lekoa Gold Mine in South Africa was sold to Buffelsfontein Gold Mines Limited in February 2009, with ownership being transferred on 1 August 2010.
The company announced the elimination of the last of its hedge book in October 2010. The company had heged
Hedge (finance)
A hedge is an investment position intended to offset potential losses that may be incurred by a companion investment.A hedge can be constructed from many types of financial instruments, including stocks, exchange-traded funds, insurance, forward contracts, swaps, options, many types of...
11.3 million ounces of gold, as of early 2008, under previous CEO Bobby Godsell. Under its new CEO, this was gradually reduced to 3.22 million. In October 2010, this remaining amount was paid off with US$2.63 billion, or US$1,300 per ounce of gold.
AngloGold Ashanti is a signatory participant of the Voluntary Principles on Security and Human Rights.
Criticism
It has recently drawn unfavorable comment from Human Rights WatchHuman Rights Watch
Human Rights Watch is an international non-governmental organization that conducts research and advocacy on human rights. Its headquarters are in New York City and it has offices in Berlin, Beirut, Brussels, Chicago, Geneva, Johannesburg, London, Los Angeles, Moscow, Paris, San Francisco, Tokyo,...
for its handling of its exploration operation in the Democratic Republic of Congo. The company has admitted paying extortion money to Nationalist and Integrationist Front
Nationalist and Integrationist Front
The Nationalist and Integrationist Front is a Lendu rebel group active in the Ituri conflict in Ituri, Democratic Republic of the Congo. The FNI has fought against the Hema tribe and is blamed for the ambush and murder of nine MONUC peacekeepers near the town of Kafe in February 2005...
in exchange for access to gold mines in the Ituri
Ituri
Ituri may refer to:* Ituri Interim Administration, an interim administration in the northeastern Democratic Republic of the Congo* Ituri Province, a proposed province in the northeastern Democratic Republic of the Congo* Ituri Rainforest* Ituri River...
province of the DRC (AngloGold 2005). AngloGold Ashanti responded to the allegations in Human Rights Watch's report with a statement released in 2005.
In August 2007 British charity War on Want
War on Want
War on Want is an anti-poverty charity based in London, England. It seeks to highlight the needs of poverty-stricken areas around the world and lobbies governments and international agencies to tackle problems as well as raising public awareness of the concerns of developing nations while...
published a report accusing AngloGold Ashanti's parent company Anglo American of profiting from the abuse of people in the developing countries in which the company operates. The report alleges abuses committed by AngloGold Ashanti subsidiaries in Colombia, Ghana and Mali.
According to Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
AngloGold Ashanti was accused in 2007 in Colombia for "murders of trade union and community leaders who opposed the company's activities in the region". The company disclosed itself in 2006 or in 2007 unacceptable safety performance in its platinum mines. Safety measures were taken.
In January 2011, AngloGold Ashanti was named the world's "Most Irresponsible Company" at the Public Eye Awards
Public Eye Awards
The Public Eye, held every year since 2000, is a counter-event to the annual meeting of the World Economic Forum in Davos. The Public Eye celebrated its ten-year anniversary on 28 January 2009....
, hosted by the Berne Declaration and Greenpeace in Davos, Switzerland. The nominating organisation, WACAM (Wassa Association of Communities Affected by Mining), catalogued the company's history of "gross human rights violations and environmental problems."
Financial
Financial figures for the company:| 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | |
| Revenue Revenue In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover.... (US$ million) |
3,113 | 3,743 | 3,961 | ||||
| Gold income (US$ million) | 2,393 | 2,646 | 3,002 | 3,619 | 3,768 | ||
| Gross loss/profit (US$ million) | 109 | 277 | −248 | 594 | −578 | ||
| Dividend Dividend Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business , or it can be distributed to... s per share (US$ cents) |
56 | 36 | 62 | 19 | 11 | 17 | |
| Total cash cost (US$/ounce) | 264 | 281 | 308 | 357 | 444 | 514 | |
| Total production cost (US$/ounce) | 332 | 374 | 414 | 476 | 567 | 646 | |
| Employees Employment Employment is a contract between two parties, one being the employer and the other being the employee. An employee may be defined as:- Employee :... |
65,400 | 63,993 | 61,453 | 61,522 | 62,895 | 63,364 |
Gold production
Gold production figures for the company's mines since 2004 in ounces per annum were:| Mine | Country | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 |
| Bibiani 1 |  Ghana Ghana |
105,000 | 115,000 | 37,000 | --- | --- | --- | --- |
| Brasil Mineração |  Brazil Brazil |
240,000 | 250,000 | 242,000 | 317,000 | 320,000 | 329,000 | |
| Cerro Vanguardia Cerro Vanguardia Mine The Cerro Vanguardia Mine is a gold and silver mine located 150 km north west of Puerto San Julián, in the Santa Cruz province of Argentina. It is majority-owned and operated by AngloGold Ashanti, which holds a 92.5% interest in the mine... (92.5%) |
 Argentina Argentina |
211,000 | 211,000 | 215,000 | 204,000 | 154,000 | 192,000 | |
| Cripple Creek & Victor Cripple Creek & Victor Gold Mine The Cripple Creek & Victor Gold Mine, formerly and historically Cresson Mine, is a gold mine located near the town of Victor, in the Cripple Creek mining district in the US state of Colorado. It is the largest current producer of gold in Colorado... |
 United States United States |
329,030 | 329,625 | 283,486 | 282,000 | 258,000 | 218,000 | |
| Freda-Rebecca 3 |  Zimbabwe Zimbabwe |
9,000 | --- | --- | --- | --- | --- | --- |
| Geita Geita Gold Mine The Geita Gold Mine is an open pit gold mine located in the Geita District of the Mwanza Region of Tanzania. It is operated by AngloGold Ashanti.... |
 Tanzania Tanzania |
570,000 | 613,000 | 308,000 | 327,000 | 264,000 | 272,000 | |
| Great Noligwa |  South Africa South Africa |
795,000 | 693,000 | 615,000 | 483,000 | 330,000 | 158,000 | |
| Iduapriem Iduapriem Gold Mine The Iduapriem Gold Mine is an open-pit gold mine situated 10 km south of Tarkwa, in the Western Region of Ghana. The mine is owned by AngloGold Ashanti and consists of the Iduapriem and the Teberebie operation, which were merged in 2000... |
Ghana Ghana |
125,000 | 174,000 | 167,000 | 167,000 | 200,000 | 190,000 | |
| Kopanang | South Africa South Africa |
486,000 | 482,000 | 446,000 | 418,000 | 362,000 | 336,000 | |
| Moab Khotsong 2 | South Africa South Africa |
--- | --- | 44,000 | 67,000 | 192,000 | 247,000 | |
| Morila Morila Gold Mine The Morila Gold Mine is an open-pit gold mine situated 180 km south of Bamako, near the community of Sanso, in the Sikasso Region of Mali. The operation is jointly owned by AngloGold Ashanti and Randgold Resources, who each have an effective holding of 40% through jointly-owned Morila Limited,... (40%) |
 Mali Mali |
204,000 | 262,000 | 207,000 | 180,000 | 170,000 | 137,000 | |
| Mponeng | South Africa South Africa |
438,000 | 512,000 | 596,000 | 587,000 | 600,000 | 520,000 | |
| Navachab Navachab Gold Mine The Navachab Gold Mine is an open-pit gold mine situated near Karibib, in the Erongo Region of Namibia. The operation is owned by AngloGold Ashanti.... |
 Namibia Namibia |
67,000 | 81,000 | 86,000 | 80,000 | 68,000 | 65,000 | |
| Obuasi Obuasi Gold Mine The Obuasi Gold Mine is an open-pit and underground gold mine situated near Obuasi, in the Ashanti Region of Ghana. The operation is owned by AngloGold Ashanti .... |
Ghana Ghana |
255,000 | 391,000 | 387,000 | 360,000 | 357,000 | 381,000 | |
| Sadiola Sadiola Gold Mine The Sadiola Gold Mine is an open-pit gold mine situated near Sadiola, in the Kayes Region of Mali. The operation is jointly owned by AngloGold Ashanti and Iamgold, who each have an effective holding of 41%, while the Government of Mali owns the remaining 18%... (41%) |
Mali Mali |
174,000 | 168,000 | 190,000 | 140,000 | 172,000 | 135,000 | |
| Savuka | South Africa South Africa |
158,000 | 126,000 | 89,000 | 73,000 | 66,000 | 30,000 | |
| Serra Grande Serra Grande Gold Mine The Serra Grande Gold Mine is a gold mine located 5 km from Crixás, in the Goiás state of Brazil. It is jointly owned by AngloGold Ashanti and Kinross Gold Corporation, who are equal partners. The mine is operated by AngloGold Ashanti but revenue is spread evenly between the two companies.In... (50%) |
Brazil Brazil |
94,000 | 96,000 | 97,000 | 91,000 | 87,000 | 77,000 | |
| Siguiri (85%) |  Guinea Guinea |
83,000 | 246,000 | 256,000 | 280,000 | 333,000 | 316,000 | |
| Sunrise Dam Sunrise Dam Gold Mine The Sunrise Dam Gold Mine is located 55 km south of Laverton, Western Australia. It is fully owned by AngloGold Ashanti. In 2007, it accounted for 11% of the company's production.The mine is currently the company's only Australian operation... |
 Australia Australia |
410,000 | 455,000 | 465,000 | 600,000 | 433,000 | 401,000 | |
| Tau Lekoa 4 | South Africa South Africa |
293,000 | 265,000 | 176,000 | 165,000 | 143,000 | 124,000 | |
| TauTona | South Africa South Africa |
568,000 | 502,000 | 474,000 | 409,000 | 314,000 | 218,000 | |
| Surface Operations | South Africa South Africa |
119,000 | 95,000 | 113,000 | 125,000 | 92,000 | 164,000 | |
| Yatela (40%) | Mali Mali |
97,000 | 98,000 | 141,000 | 120,000 | 66,000 | 89,000 | |
| Overall | World | 5,816,000 | 6,166,000 | 5,635,000 | 5,480,000 | 4,982,000 | 4,599,000 |
- Figures for 2004 for Freda-Rebecca, Siguiri, Bibiani, Iduapriem and Obuasi are for the period from May to December, from the merger onwards, having belonged to Ashanti Goldfields CorporationAshanti Goldfields CorporationThis is the article on the mining company. For the football club of the same name see Ashanti Gold SC.The Ashanti Goldfields Corporation is a gold mining company based in Ghana that was founded by Edwin Cade. The Ashanti Mine, located at Obuasi, 56 km south of Kumasi, has been producing since 1897...
before the merger. - Percentage figures behind names indicate the share of production of the mine belonging to AngloGold Ashanti. Production figures shown are those belonging to AngloGold Ashanti, not overall production.
- 1 The Bibiani Gold Mine was sold 1 December 2006.
- 2 The Moab Khotsong Gold Mine started production in 2006.
- 3 The Freda-Rebecca Gold Mine was sold 1 September 2004.
- 4 The Tau Lekoa Gold Mine was sold to Buffelsfontein Gold Mines Limited, with ownership being transferred on 1 August 2010.
Fatalities
Fatalities in the South African gold mining industry, especially the underground mines, are common, with, as of 2009, 100 to 120 reported every year. Since 2007, AngloGold Ashanti has reduced the number of fatalities in its operations by 70%. One of the main reasons for this development is a program led by CEO Mark CutifaniMark Cutifani
Mark Cutifani is an Australian businessman and the current CEO and a director of South African gold mining company AngloGold Ashanti, a position he has held since October 2007....
, aimed at reducing the company's number of fatalities to zero by 2015. Of the 16 fatalities experienced by the company in 2009, 13 were in South Africa (2007: 27 of 34, 2008: 11 of 14). The number of fatalities in company since formation in 2004 were:
| Year | Number | Change |
| 2004 | 31 | new company |
| 2005 | 25 | 6% |
| 2006 | 37 | 48% |
| 2007 | 34 | 8% |
| 2008 | 14 | 57% |
| 2009 | 16 | 14% |
| Overall | 157 | N/A |
Sources
- AngloGold's response to Human Rights Watch allegations (pdf), 2005.
- D.R. Congo: Gold Fuels Massive Human Rights Atrocities – Human Rights Watch article
- Anglo American: The Alternative Report
See also
- Sam E. JonahSam E. JonahSam E Jonah, KBE is the Executive Chairman of Jonah Capital, equity fund based in Johannesburg, South Africa. Mr Jonah was previously President of AngloGold Ashanti and shared the strategic leadership of the company with its CEO, Bobby Godsell....
ACSMAssociateship of the Camborne School of Mines (ACSM)Associateship of the Camborne School of Mines or ACSM is an award of the Camborne School of Mines Trust.Candidates successfully completing programmes of study in the Camborne School of Mines leading to degrees of the University of Exeter are eligible for additional awards made by the Senate of the...
, former president of AngloGold Ashanti. - Gold as an investmentGold as an investmentOf all the precious metals, gold is the most popular as an investment. Investors generally buy gold as a hedge or harbor against economic, political, or social fiat currency crises...