The international operations of AngloGold Ashanti have virtually halved their all-in sustaining costs (AISC) over three years.

The Johannesburg- and New York-listed gold mining company’s international mines in eight countries began in the fourth quarter of 2012 with an AISC of $1 542/oz and ended in the fourth quarter of 2015 with AISC of $786/oz.

During this week’s financial results presen-tation attended by Creamer Media’s Mining Weekly, AngloGold COO international Ron Largent used three years of data to illustrate the sustainable effectiveness of the process the company implemented.

The Geita mine, in Tanzania, was a fourth-quarter standout with a production of 139 000 oz at a cash cost of $465/oz.

Overall, the international operations, which account for three-quarters of total production, have also managed to improve profit margins on reduced gold prices.

Below Average There has been a transformational move by the company from being in the highest cost quartile in 2013 to below industry average in 2015.

For the international operations, AISC fell from $1 141/oz in 2013 to $822/oz in 2015, com-pared with an industry average of $938/oz.

Cost management has been focused at individual mine sites on strategic planning, mining contract renegotiation, personnel levels, capital allocation and operating efficiencies.

AISC were reduced by some $300/oz since 2013, with cost management and efficiency improvement net of inflation contributing 55%, currency benefits 30% and lower fuel and power prices 15%.

From 2013 to 2014, when the entire gold mining industry reduced AISC by $92/oz, Anglo-Gold lowered them by $175/oz.

From 2014 to 2015, the industry reduced by $52/oz and Anglo-Gold by $110/oz.

The international group’s fourth-quarter output was 745 000 oz at an AISC of $786/oz and a cash cost of $690/oz.

In 2015, the Americas region produced 831 000 oz at a 19%-lower AISC of $792/oz.

At Geita, early self-funded exploration has allowed for quick access to a self-funding under- ground project, which is the begin- ning of a significant underground mine-life extension at Nyankanga.

In Argentina, an agreement has been struck with a neighbouring ground owner to explore the known structures next to the company’s existing Cerro Vanguardia gold and silver mine, in Patagonia.

In Brazil, high-grade expansions are also under way at the Serra Grande and Mineracao mines.