AngloGold Ashanti sells assets to China’s Heaven-Sent

ANGLOGOLD Ashanti yesterday announced a major sale of its South African assets in a bid to raise cash and cut losses.

AngloGold Ashanti said it had entered into an agreement to sell its Kopanang Mine, the west gold plant and related infrastructure to a Chinese capital management company, Heaven-Sent (HSC) SA Sunshine Investment, headquartered in Hong Kong.

HSC holds a 74 percent interest in Village Main Reef (VMR), which owns and operates the Tau Lekoa Gold Mine in the Vaal River region.

The purchase consideration will be settled by a payment of R100 million in cash and the transfer of certain gold bearing rock dumps from VMR to AngloGold Ashanti. The sale assets exclude the Kopanang gold plant and the Kopanang rock dump, which will be retained by AngloGold Ashanti.

This comes after AngloGold Ashanti in June entered into a consultation process to restructure its South African operations with the aim of ensuring that this business could be safely returned to profitability while mitigating job losses.

This restructuring process included the Kopanang Mine ceasing mining operations and transitioning to care and maintenance.

Yesterday, the miner said the transaction would have a positive impact on the restructuring of its South African operations as the Kopanang Mine would not be placed on care and maintenance, but would continue to operate under the ownership of the purchaser, albeit with a reduced workforce.

Moreover, AngloGold Ashanti agreed to pay severance packages to employees at the sold assets.

Meanwhile, AngloGold Ashanti entered into a definitive agreement with Harmony Gold to acquire some of its operations in the Vaal River region.

Harmony Gold will buy AngloGold Ashanti’s underground mine Moab Khotsong, which incorporates the Great Noligwa underground mine, together with certain long life projects, tailings dams, and related infrastructure for a consideration of $300 million (R4bn) in cash. – ANA