AngloGold Ashanti discontinues services to Pamodzi Orkney mines due to non-payment of debt
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| Tuesday, June 01, 2010 |
(JOHANNESBURG) -- AngloGold Ashanti regrets to announce its decision to halt the supply of services to the Orkney mines currently under provisional liquidation. The mines are represented by provisional liquidator Enver Motala and others. Last September the liquidators entered into a management arrangement with Aurora Empowerment Systems.
Our decision follows the failure of the liquidators of Pamodzi Gold Orkney to settle debt of about R38m owed to us for services supplied to the operation over the past 10 months. This is despite repeated requests by us for payment of amounts owing.
An additional R59m of debt has been due since before Pamodzi Orkney’s provisional liquidation in March 2009. Since then, AngloGold Ashanti has been paid only a small proportion of amounts owing by Pamodzi Orkney for these services.
The debt is increasing by R1.8m to R3.5m per month, depending on the nature of Pamodzi Orkney’s operations in any month. AngloGold Ashanti can no longer justify to its employees or shareholders the accumulation of debt which compromises its ability to maintain its own operations.
The services involved here include water, compressed air, electricity and sewage services for mining operations. AngloGold Ashanti will continue to supply potable water and electrical power to Pamodzi’s mine residences for as long as they are occupied.
| Queries |
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Tel: |
E-mail: |
| Alan Fine (Media) |
+27 (0) 11 637 6383 |
afine@anglogoldashanti.com |
| Joanne Jones (Media) |
+27 (0) 11 637 6813 |
jjones@anglogoldashanti.com |
| Sicelo Ntuli (Investor Relations) |
+27 (0) 11 637 6339 |
sntuli@anglogoldashanti.com |
| Stewart Bailey (Investor Relations) |
+1 212 836 4303 or +27 82 330 9628 |
sbailey@anglogoldashanti.com |
Disclaimer
Certain statements made in this communication, including, without limitation, those concerning AngloGold Ashanti’s strategy to reduce its gold hedging position including the extent and effects of the reduction, the economic outlook for the gold mining industry, expectations regarding gold prices, production, cash costs and other operating results, growth prospects and outlook of AngloGold Ashanti’s operations, individually or in the aggregate, including the completion and commencement of commercial operations of certain of AngloGold Ashanti’s exploration and production projects, the resumption of production at AngloGold Ashanti’s mines in Ghana, the completion of announced mergers and acquisitions transactions, AngloGold Ashanti’s liquidity and capital resources, and expenditure and the outcome and consequences of any litigation proceedings or environmental issues, 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 including environmental approvals and actions, fluctuations in gold prices and exchange rates, and business and operational risk management. For a discussion of certain of these factors, refer to AngloGold Ashanti's annual report for the year ended 31 December 2009, which was distributed to shareholders on 30 March 2010. The company’s annual report on Form 20-F, was filed with the Securities and Exchange Commission in the United States on April 19, 2010 and as amended on May 18, 2010. 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. All subsequent written or oral forward-looking statements attributable to AngloGold Ashanti or any person acting on its behalf are qualified by the cautionary statements herein.
AngloGold Ashanti posts information that is important to investors on the main page of its website at www.anglogoldashanti.com and under the "Investors" tab on the main page. This information is updated regularly. Investors should visit this website to obtain important information about AngloGold Ashanti. | |
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