AngloGold Ashanti's Boston Shaker mine in Western Australia has began production, the company announced on Thursday.
Commercial production at the underground mine located in Tropicana kicked-in this month, and the site is expected to deliver about 1.1 million tonnes of ore per annum, adding approximately 100,000 ounces per annum to gold production over a seven-year mine life. Construction was concluded below the $77 million (R1.2 billion) budget.
AngloGold Ashanti, which recently sold its last remaining gold asset in South Africa, owns and manages a 70% stake in the Australian mine.
"Underground mining at Boston Shaker will leverage further value from this high performing operation, achieving payback in just over three years with upside potential as the deposit remains open at depth," AngloGold Ashanti Senior Vice President, Michael Erickson.
Development of the Boston Shaker mine was approved in March 2019.
The mining company concluded the sale of its Mponeng mine, the world's deepest gold mine to Harmony Gold, in a R4.4 billion deal.