Review of operations: Zimbabwe (PDF - 46.7KB)

Review of operations

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Zimbabwe

For the purposes of reporting, the effective period for Freda-Rebecca, a former Ashanti operation, begins in May 2004. The mine was, however, sold (see below) and is thus reported on for only four months.

Freda-Rebecca

Description: AngloGold Ashanti had a 100% interest in the Freda-Rebecca underground mine, which it sold to South Africa-based Mwana Africa Holdings for a consideration of $2 million with effect from 1 September 2004.

Location: The mine is located at Bindura, north of Harare, in Zimbabwe.

Operating performance: Gold production for the period was 9,000 ounces, at a total cash cost of $417 per ounce. Mining operations were severely hampered by the unavailability of trackless mining equipment and material resources. The operating loss for the year amounted to $1 million, while capital expenditure was $1 million.

Outlook: The mine was sold with effect from 1 September 2004.