AngloGold lets go of the world’s deepest gold mine:
AngloGold Ashanti recently sold its last South African mine to rival Harmony Gold, a decision that might see the company permanently move its primary listing from Johannesburg to London. AngloGold revealed that it made the deal to sell Mponeng and its surface assets for $300m, or less than half book value.
AngloGold chief executive Kelvin Dushnisky, had this to say, “This sale helps deliver on our commitment to sharpen our management focus and capital allocation on the highest return investment options available to us.”
After several years of mining, SA gold producers are battling harsh operating conditions because of the depth of mines and the problems that have swallowed Eskom, the state power company. As a result, a huge part of the industry is currently marginal or lossmaking and consolidation is badly required.