An­gloGold Ashanti deal talks stall

The Star Early Edition - - COMPANIES -

HAR­MONY Gold’s long-run­ning talks to buy An­gloGold Ashanti’s South African assets have stalled, be­cause of un­cer­tainty over the new Min­ing Char­ter, ac­cord­ing to peo­ple fa­mil­iar with the mat­ter. The dis­cus­sions, which started two years ago, re­cently hit a snag as the gov­ern­ment and the min­ing in­dus­try wage a court fight over the Min­ing Char­ter, ac­cord­ing to two peo­ple, who asked not to be iden­ti­fied be­cause the pro­posed deal is not pub­lic. The assets could po­ten­tially be val­ued around $500 mil­lion (R6.61 bil­lion) to $650m, said an­other per­son. An al­ter­na­tive op­tion be­ing con­sid­ered is a par­tial sale, with Har­mony buy­ing An­gloGold’s Vaal River op­er­a­tions for about $150m, the per­son said. When asked about the deal, a spokesper­son from Har­mony called it “pure spec­u­la­tion” and de­clined to com­ment fur­ther. An An­gloGold spokesper­son also de­clined to com­ment. Har­mony mainly op­er­ates end-of-life mines in South Africa and has spo­ken of­ten about need­ing ac­qui­si­tions to boost de­clin­ing re­serves. Some of its ex­ist­ing mines were pre­vi­ously owned by An­gloGold. With the Har­mony deal un­cer­tain, An­gloGold has started re­struc­tur­ing the mines to stem cash losses. In June, the com­pany said 8 500 jobs, about a third of the to­tal, were at risk. – Bloomberg

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