AngloGold Ashanti has placed the Córrego do Sítio (CDS) gold mine in Brazil’s Minas Gerais state on care and maintenance. CDS is part of the company’s AGA Mineração mining complex. The company said that the mine has been unable to overcome production challenges with costs that remain well above the current price for gold. For that reason, the mine has been unable to sustain itself or to fund the capital needed to ensure its long-term future.

For the first six months of 2023, CDS produced 30,000 oz of gold at a total cash cost of $2,278/oz and an all-in-sustaining cost of $3,031/oz. CDS reported negative free cash flow of $30 million over that period. Last year, CDS produced 69,000 oz at a cash cost of $1,946/oz and an all-in sustaining cost of $2,887/oz.

CDS is AngloGold Ashanti’s smallest operation. It consists of an open-pit mine and an underground mine. Oxide ore is treated by heap leach and a pressure leaching plant treats sulphide ore. The combined annual plant capacity is about 1.6 million metric tons.