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The Mponeng gold mine near Carletonville in Gauteng.
- Harmony will assume ownership of the world’s deepest mine from AngloGold, Mponeng, and other assets on October 1
- The deal is worth approximately $ 300 million.
- AngloGold Ashanti says that exiting its South African operations will allow it to focus on high-performance projects elsewhere.
Harmony will take control of AngloGold Ashanti’s remaining South African assets, including the world’s deepest mine, Mponeng, following approval of the $ 300 million transaction by authorities, the companies announced Monday.
“This is a proud moment for Harmony, further demonstrating our strong belief and commitment to the sustainability of gold, our confidence in South Africa and our determination to increase value for all of our shareholders,” said CEO Peter Steenkamp. . in a note.
With the go-ahead from the Department of Mineral Resources and Energy, Harmony will take control of the mine southwest of Johannesburg and Mine Waste Solutions, on October 1, in what would effectively be AngloGold’s exit from mining operations in South Africa.
AngloGold, which continues to operate mines in Ghana, Guinea, Australia and South America, said the decision to sell its assets “was not easy.” You have expressed confidence in Harmony’s ability to ensure its long-term sustainability.
“We can now fine-tune our focus to pursue high-performance projects in several of our key assets, deliver new ounces from the world-class Obuasi mine in Ghana, and advance studies in Colombia, a new frontier for our business,” said the CEO. AngloGold interim. Christine Ramon.
The company is also in the process of selling its assets in Mali, which it said would result in an “optimized, high-margin business with quality assets and a strong growth portfolio.”
Proceeds from the transaction will be used to reduce debt.
The associated assets of the South African transaction include the Tau Tona and Savuka mines, rock dumps and tailings storage facility recovery sites, as well as mine closure and rehabilitation activities located in the West Wits region.
According to AngloGold, Harmony will also pay a contingent compensation of $ 260 per ounce on underground gold production from the Mponeng, Savuka and TauTona mines in excess of 250,000 ounces per year over a six-year period beginning January 1, 2021.
With one of the oldest and deepest mining sectors in the world, gold production has declined in South Africa over the last decade, making mining increasingly expensive.
