AngloGold Ashanti's Tropicana JV Approves Phase One of Long Island Strategy

South Africa's AngloGold Ashanti (JSE:ANG) (NYSE:AU), the world's third-biggest producer of the precious metal, plans to boost production and extend the life of its Tropicana joint venture mine in Western Australia.

Long Island will involve a strip-mining approach that minimises waste haulage distances by using in-pit backfill rather than trucking the material long distances to surface waste dumps.

The full Long Island strategy adds 2.1 million ounces to Tropicana's business plan and extends the mine life by seven years to 2027, it said.

"This project is in line with our approach of developing cost-effective brownfield projects with attractive payback periods that extend life and improve margins", AngloGold's Australian senior vice president Michael Erickson said.

AngloGold forecasts gold production at the mine of as much as 492,000oz next year and at least 530,000oz in 2019. Gold production over Tropicana's remaining life of mine is now forecast to be about 4 million ounces, the company said.