African Barrick eyes cost cuts

Suzie Neuwirth
MINER African Barrick Gold said yesterday that it is targeting $185m (£121m) in cost cuts, after posting half-year losses of $701m due to a $727m impairment charge.

The FTSE 250-listed firm was forced to take the charge due to the plummeting price of gold and a review of its lower grade mines.

African Barrick has maintained its full-year cost and production targets however, forecasting a 2013 cash cost of $925 to $975 per ounce and output of 540,000 to 600,000 ounces for the year.

Separately, the firm is being sued by Tanzanian villagers who say it was complicit in police violence in 2011. “African Barrick believes that these proceedings are without merit, and intends to vigorously defend its interests,” said the firm.