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Anglogold Ashanti to divest South African assets to Harmony, Heaven-Sent

EBR Staff Writer Published 20 October 2017

AngloGold Ashanti has signed agreements to sell assets in South Africa to Harmony Gold Mining as well as Chinese investment firm, Heaven-Sent SA Sunshine Investment Company.

Under a $300m deal with Harmony Gold, AngloGold agreed to sell itsstake in the Moab Khotsong mine, which incorporates the Great Noligwa mine, located in Vaal River region.

Harmony Gold will also purchase AngloGold’s 100% interest in Nuclear Fuels Corporation of South Africa Proprietary as well as entire stake in Margaret Water Company NPC.

AngloGold Ashanti CEO Srinivasan Venkatakrishnan said: “This transaction is in line with our capital allocation strategy and our aim to effect the improvement of our global portfolio, through projects that extend mine lives, enhance margins and provide quicker cash turns oninvestment.

“We are pleasedto have agreed the sale of the Moab assets on fair terms to a well-established mining company with plans tosecure its long-term future.”

Proceeds from the sale will be used by AngloGold Ashanti to reduce debt and strengthen balance sheet.

Harmony CEO Peter Steenkamp said:“Buying Moab Khotsong means we boost our cash flows by more than 60%, increase our average overall underground recovered grade by 12% and grow our South African underground resource base by 38%.”

Additionally, AngloGold Ashanti signed a deal with Heaven-Sent to sell the Kopanang mine situated in the Vaal River region as well as the West GoldPlant and the related infrastructure for undisclosed amount.

The two deals, however, are subject to number of conditions including receiving regulatory approvals.

Upon completion of the two transactions, AngloGold Ashanti will cease to have underground mining operations in the Vaal River region in South Africa.