GGM surpass gold output target in second quarter.

By Prosper Makene

Geita Gold Mine (GGM)

Gold production at Geita Gold Mine (GGM) increased by nearly four per cent in the second quarter of this year over the targeted output of 126,601 ounces, the miner has said.

 

GGM also managed to cut operations cost by about 22 per cent for every ounce that was produced during the period.

 

“Gold production for the 2nd quarter was 131,549 ounces (oz) against a target of 126,601 ounces, making production 103.9 per cent achievement against the budget,” Managing Director Terry Mulpeter notes in a report.

 

“Direct cash operating costs were US$506/oz compared to the set budgeted of US$651/oz,” he added in the report published in the local press on Wednesday.

 

GGM is owned by AngloGold Ashanti, which is the largest gold producer in Africa, with further operations around the globe. 

 

Mulpeter said that since gold prices are close to their lowest over the last few years, GGM’s strategy has been to create and defend its margins by reducing and containing costs.

 

He pointed out that between 2000 and 2013 GGM has paid over 1.5trn/- (US$790 million) as direct contributions to the government through taxes and royalties.

 

Meanwhile, mineral royalty paid to the government by the seven major gold mines during the past year was US$ 62.4 million, which represents a decrease of 11.2 per cent over the US$70.3million that was remitted in 2013. 

 

“AngloGold Ashanti has invested over 1.8/- trillion (US$ 915 million) in Geita Gold Mine between 1999 and 2013, which is an open cast mine with three active pits. It currently employs over 3,500 people both directly and indirectly, with a further 155 casuals and apprentices,” the GGM chief said.

 

Gold output data show that CGM was the leading gold producer in 2014 with 37.5 per cent of total production. During the year, the seven major mines produced 1.27 million ounces, which was 1.6 per cent more over the 2013 output of 1.25 million ounces.

 

The seven mines are Biharamulo, Bulyanhulu, Buzwagi, Geita, Golden Pride, New Luika and North Mara.

 

According to the report, Geita Gold Mine has prioritized securing a harm free workplace with a special focus of reducing risk and exposure of employees to harm. 

 

“During the quarter, no lost time injuries (LTI) were recorded…however eight High Potential Incidents (HPI’s) were recorded, making a total of 18 in year to date,” GGM said. 

 

The miner also said it had maintained its ISO 14001 certification, which will remain valid until June, 2016. GGM’s Environmental Management System was audited against the ISO14001 international standard in May. 

 

The GGM boss revealed that the financial loss during the quarter attributed to theft of company assets amounted to US$ 83,064, which was significantly less than the US$394,735 loss incurred during the previous quarter. 

 

“Illegal miners invading active mining pits continue due to demand of ore by illegal mills located in Nyakabale village and Samina village. Influx of migrants to Nyakabale village and lack of employment opportunity within the community contributed to the initial increase of invasion trends at Nyankanga pit,” he said. 

 

According to Tanzania Chamber of Minerals and Energy, Tanzania is the 4th largest gold producer in Africa after South Africa, Ghana and Mali. Gold production currently stands at roughly 40 tonnes a year, copper at 2980 tonnes, silver at 10 tonnes and diamond at 112670 carats.