Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF)’s commitment to the Global Industry Standard on Tailings Management is a positive step in light of past disasters unconnected to Anglo Asian, such as Vale’s Corrego de Feijao mine collapse in Brazil, said analysts at stockbroker SP Angel.
Led by the Church of England Pensions Board and the Swedish Council on Ethics, the GIS on Tailing Management was a response to the mine collapse, which resulted in the deaths of 270 people.
SP Angel noted that Anglo Asian’s existing tailings dam, part of the Gedabek gold and copper mine, has passed thorough checks and audits by three leading international consultancies.
These confirmations asserted the dam's compliance with both local regulations and international standards, ensuring a robust foundation for Anglo Asian's operational integrity.
Looking ahead, Anglo Asian is not only focusing on maintaining its current standards but also on expansion.
The company is in the process of preparing new tailings facilities, aligning with its plans for new copper and gold mines in the region.
Operations at Anglo Asian resumed in stages from 7 November 2023, with the heap leach operation notably continuing throughout the partial shutdown.
This strategic move has enabled the ongoing generation of “significant” cash flow for the company, according to analysts.
“Anglo Asian have worked through concerns pertaining to the existing tailings facilities. We believe this should allow the company to proceed as previously intended with the running of its existing mines as well as the development of the new copper and gold mines at Gilar, Garadag and XarXar.”
Anglo Asian shares are a 'buy' at the current market price of 55.75p, according to SP Angel.