AngloGold Ashanti sells its South African mine for $297 million

AngloGold Ashanti sells its South African mine for $297 million

- AngloGold Ashanti has ceased operations in South Africa after selling its mine to Harmony Gold Mining Company Limited

- The deal, valued at $297 million, comes with the assumption of AngloGold's assets and liabilities in the country

- Information available shows that Harmony would begin payments for the sale from 2021

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Ghana’s gold producer, AngloGold Ashanti, has left South Africa after selling its mines here for $297 million (around R4.4 billion).

The mining firm reached an agreement with Harmony Gold Mining Company Limited to offset its remaining assets and liabilities in the country.

Per a report by Business Insider, Harmony is expected to pay $200 million in cash and $260/oz of gold from Mponeng and other underground assets included in the transaction based on production above 250,000oz/year.

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AngloGold Ashanti sells South African mines for over GHc1.5 billion

Source: Business Insider
Source: UGC

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Briefly.co.za understands that payment would be made for six years beginning from 2021.

AngloGold Ashanti explained to investors that it approved the sale because it intends to streamline its portfolio in line with a framework focused on capital allocation.

This would help it create a more focused business with enhanced operating and financial standards.

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Source: Briefly.co.za

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