AngloGold rescheduling sales contracts

[Mining Journal Online, 20 May] South African uranium producer AngloGold Ashanti is reported to be rescheduling some of its uranium sales contracts because of the effects of unreliable power supplies on output. According to a regulatory filing, the company has said that depending on the outcome of negotiations to reschedule some of its contracts it may have to buy uranium on the open market to meet its contractual obligations. Lower than planned output meant the company had to spend $31 million on 400,000 pounds of uranium in 2007 to meet its contractual obligations. Production was affected by power cuts in January, and industrial customers have been warned that they may face limited supplies in future as the country faces ongoing power shortages. AngloGold produces uranium as a byproduct of its gold operations.

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