[VIDEO] AngloGold Ashanti reveals plan to offset falling gold prices

In the wake of gold prices falling below $1,000 per ounce, AngloGold Ashhanti CEO Srinivasan Venkatakrishnan revealed the company will counter tough times by harvesting short-life gold mines for cash.

“As an industry, we’re going through pretty rough times but the rougher it gets, the more our determination becomes to see it through and to fight harder,” Venkatakrishna said Monday.

(Source: Miningweekly)

In mining, the term harvesting refers to suspending further investments while mining out the remaining ore until there is nothing left to extract. Many consider it a last ditch effort.

“We’ll look to harvesting them for cash until the crisis improves,” said Venkatakrishnan.

AngloGold is already harvesting two of its gold mines – Sadiloa and Yatela gold mines in Mali – and will continue to do so if gold prices fall below $1,000/oz.

• Related content: Prices for gold hit five-year low; will it jeopardize mining operations?

Among other things, AngloGold is in the midst of wage negotiations with unions in South Africa. 

“I’m hoping that we don’t end up with a strike scenario because we’ve just seen the damage that has been done to the platinum industry on the back of a strike,” Venkatakrishnan said.

“In the event that our workers want to go on strike, I’m just pointing out the diversified nature of our operations and their ability to withstand a strike.”

Stay connected! Follow us on Twitter and like us on Facebook 

Check out the latest edition of Mining Global