Two of South Africa’s mining giants, AngloGold Ashanti plc and Gold Fields, have agreed to pause discussions on a proposed joint venture
Image: File photo
Two of South Africa’s mining giants, AngloGold Ashanti plc and Gold Fields, have agreed to pause discussions on a proposed joint venture that would combine their Iduapriem and Tarkwa gold mines in Ghana.
According to reports, the proposed combination, announced in March 2023, was intended to create Africa's largest gold mine, with Gold Fields holding a 60% stake, AngloGold Ashanti 30%, and the Ghanaian government 10%.
However, the two companies have faced difficulties in securing the necessary approvals from the Ghanaian government and released a joint statement last year expressing disappointment over the delays in obtaining government approvals.
Iduapriem is located in the western part of Ghana, roughly 70 kilometres north of the coastal city of Takoradi and approximately 10 kilometres southwest of Gold Fields’ Tarkwa mine.
"We continue to believe that a combination of the two neighbouring mines into a single managed entity is compelling, given that it is anticipated to extend the life of the mine, increase production, and lower costs, creating value for all stakeholders," the companies said at the time.
In a statement released on Tuesday, AngloGold Ashanti announced that it had identified changes to its standalone mine plan for Iduapriem that could unlock significant additional value.
"The companies have decided to pause discussions around the joint venture to allow them to focus on improving the current, standalone performance at their respective sites, while also allowing AngloGold Ashanti to consolidate the improvements to its long-term mining plan, which currently shows the highest value of its options," the statement read.
This announcement comes just days after Gold Fields revealed plans to acquire Gold Road Resources in a deal valued at A$3.7 billion (R44 billion), marking a significant move for its Australian joint venture.
mthobisi.nozulela@iol.co.za
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