| Mon 28 Jan 2008, 7:49 | | ANG - AngloGold Ashanti Limited - Updates on electricity supply situation |
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ANG
ANANO
ANG - AngloGold Ashanti Limited - Updates on electricity supply situation
AngloGold Ashanti Limited
Incorporated in the Republic of South Africa
Registration Number: 1944/017354/06)
ISIN Number: ZAE000043485
JSE Share Code: ANG
ANGLOGOLD ASHANTI UPDATES ON ELECTRICITY SUPPLY SITUATION
AngloGold Ashanti has today agreed a process with Eskom, whereby the supplier
will give its normal guarantees for sufficient power for the company to
undertake shifts from tonight for the purpose of re-establishing safe workplaces
at each of the deep level underground mines in South Africa. The company is
anticipating a ramp up in additional power later in the week that should enable
a phased return to normal mining operations. A protocol has also been agreed
with the electricity supplier whereby Eskom, will provide the company with four
hours warning, prior to having to reduce power supply.
This decision follows a meeting today of a multilateral task team established
at a meeting on Saturday evening of officials and executives from the
Departments of Minerals and Energy and Public Enterprises, Eskom, the Chamber of
Mines, mining companies and the National Union of Mineworkers. Today`s meeting
considered ways in which Eskom and the mining industry could collaborate to
reduce sector demand by 10% and, simultaneously, provide mines with confidence
in an uninterrupted power supply, providing the necessary guarantees for
workplace safety.
Since 2004, Eskom and AngloGold Ashanti have been working to improve energy
efficiencies and reduce consumption, with both organisations committing funds
and resources to the programme. These combined efforts have achieved an 18%
improvement in energy efficiencies. In the light of this success, AngloGold
Ashanti is confident that, with continued collaboration between the company and
Eskom, the 10% reduction target set at yesterday`s meeting can be achieved
without necessarily affecting workplace safety or production.
With respect to the immediate future, it is not yet possible to indicate with
any certainty how long it will take the seven AngloGold Ashanti mines in South
Africa to return to full production. This will be determined by the rate at
which Eskom is able to increase supply to the mines without compromising the
national grid and, importantly, how much work will be necessary at each
operation to ensure that working places are safe following their unanticipated
closure.
Mark Cutifani, AngloGold Ashanti`s CEO said today: "I think that we are
starting to emerge from a crisis that had the potential to undermine the
viability of the South African gold industry. It is encouraging to see the
Government and Eskom acknowledge the industry and its importance to South
Africa. As a company we have worked with Eskom to reduce energy consumption over
the past four years. Together, we have already achieved significant success in
reducing consumption and must continue to work together, as we seek, in the
first instance to re-establish safe work places in our deep level operations,
and over the next few days to start to return to more normal production
practices. I am confident that we can find workable solutions to the challenges
we face if we have the full co-operation of Eskom, the Departments of Minerals
and Energy and Public Enterprises and the unions. Given the level of co-
operation experienced over the weekend we are confident we can move forward
together".
ENDS
AGA04.08
27 January 2008
JSE Sponsor - UB
Queries
South Africa Tel: Mobile:
Steven Lenahan +27 (0) 11 637 6248 +27 (0) 83 308 2200
E-mail: slenahan@AngloGoldAshanti.com
Alan Fine +27(0)11 637 6383 +27(0)83 350 0757
E-mail: affine@AngloGoldAshanti.com
Certain statements made during this communication, including, without
limitation, those concerning the economic outlook for the gold mining industry,
expectations regarding gold prices, production, cash costs and other operating
results, growth prospects and the outlook of AngloGold Ashanti`s operations
including the completion and commencement of commercial operations of certain of
AngloGold Ashanti`s exploration and production projects, and its liquidity and
capital resources and expenditure, contain certain forward-looking statements
regarding AngloGold Ashanti`s operations, economic performance and financial
condition. Although AngloGold Ashanti believes that the expectations reflected
in such forward-looking statements are reasonable, no assurance can be given
that such expectations will prove to have been correct. Accordingly, results
could differ materially from those set out in the forward-looking statements as
a result of, among other factors, changes in economic and market conditions,
success of business and operating initiatives, changes in the regulatory
environment and other government actions, fluctuations in gold prices and
exchange rates, and business and operational risk management. For a discussion
of such factors, refer to AngloGold Ashanti`s annual report for the year ended
31 December 2006, which was distributed to shareholders on 29 March 2007.
AngloGold Ashanti undertakes no obligation to update publicly or release any
revisions to these forward-looking statements to reflect events or circumstances
after today`s date or to reflect the occurrence of unanticipated events.
In connection with the proposed merger transaction involving AngloGold
Ashanti and Golden Cycle Gold Corporation, AngloGold Ashanti will file with the
SEC a registration statement on Form F-4 and GCGC will mail a proxy
statement/prospectus to its stockholders, and each will be filing other
documents regarding the proposed transaction with the U.S. Securities and
Exchange Commission ("SEC") as well. BEFORE MAKING ANY VOTING OR INVESTMENT
DECISION, INVESTORS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS REGARDING
THE PROPOSED TRANSACTION AND ANY OTHER RELEVANT DOCUMENTS CAREFULLY WHEN THEY
BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE
PROPOSED TRANSACTION. The final proxy statement/prospectus will be mailed to
GCGC`s stockholders. Stockholders will be able to obtain a free copy of the
proxy statement/prospectus, as well as other filings containing information
about AngloGold Ashanti and GCGC, without charge, at the SEC`s Internet site
(http://www.sec.gov). Copies of the proxy statement/prospectus and the filings
with the SEC that will be incorporated by reference in the proxy
statement/prospectus can also be obtained, without charge, by directing a
request to AngloGold Ashanti, 76 Jeppe Street, Newtown, Johannesburg, 2001 (PO
Box 62117, Marshalltown, 2107) South Africa, Attention: Investor Relations, +27
11 637 6385, or to Golden Cycle Gold Corporation, 1515 S. Tejon, Suite 201,
Colorado Springs, CO 80906, Attention: Chief Executive Officer, (719) 471-9013."
Date: 28/01/2008 07:49:29 Produced by the JSE SENS Department.
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