Anglogold to look at gold exploration in India: Cutifani

Anglogold Ashanti, the world's third largest producers of gold, is looking at gold exploration projects in India.

This Johannesburg-based, $4 billion company feels that there could be many more Kolar Gold Fields in India. “We need to dig up and see,” the company's chief executive officer Mr Mark Cutifani, told Business Line on Thursday.

Anglogold Ashanti is here to “to understand the gold market and also look at the possibility of gold exploration.”

“First we need to do our homework on rules and regulations; the gold reserves and the Government's attitude towards offshore companies in gold explorations,” he said.

The company's interest comes in the backdrop of India's strong consumer demand for the yellow metal which reached 963.1 tonne in 2010, a 66 per cent increase over to 2009. This was largely driven by the jewellery sector. This was worth $38 billion in value terms, according to the World Gold Council.

“We came to India to see whether there is business opportunity. After two days of deliberations among ourselves and with stakeholders such as local jewellers, we said yes there is potential and we should be a long term player here,” he told Business Line after the deliberations at a private resort in Mahabalipuram. “India is open for business. As we think of global expansion, India is always on top of the mind,” he said.

The company has a marketing tie up with Tanishq of the Tata group. This tie up is a precursor to understand other physical opportunities that may be available in India, he said.

Asked about Anglogold's possible investments in India, Mr Cutifani observed that the company initially commits a small team for two to three years to assess the market potential. If there is potential, the spending will be $5 to $15 million and if there is a project the number will grow exponentially with commitment of hundreds of millions of dollars. “We hope India could see such kind of huge investments from our side in the long term,” he said.

The rising Chinese middle class and the huge money available with them to invest in gold was an eye opener for the company's foray there. With that experience ‘we are in India', which is the world's most dynamic gold market, he said.

With operations in 20 countries, Anglogold annually produces 4.6 million ounces (1 ounce = 31.103 gm), which will increase to 5.5 million ounces by 2014 and to 6 million ounces by 2020. The company employs over 63,000 people, said Mr Cutifani who has been with the industry since 1976.

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