AngloGold Ashanti to review divestment options for SA assets
The gold miner’s current South African assets include underground Mponeng mine, the world’s deepest gold mine, and a surface rock dump processing business and a mine waste retreatment operation.
JOHANNESBURG - AngloGold Ashanti Ltd will review divestment options for its remaining South African assets in a bid to focus on higher returns, the South African gold miner said on Thursday.
AngloGold employs around 6,000 people in South Africa where mining companies have faced volatile labour relations, rising costs, regulatory disruptions and technical issues.
“We believe that under the right ownership, our South African assets offer a compelling long-term value proposition that may allow for an extension to Mponeng Mine’s current life,” Chief Executive Officer Kelvin Dushnisky said in a statement.
The firm restructured its South African assets last year, cutting around 2,000 jobs.
Its remaining assets include Mponeng mine, the world’s deepest gold mine, and a surface rock dump processing business and a mine waste retreatment operation.
The firm said gold production for the first quarter to March 31 fell 9% to 752,000 from 824,000 a year earlier hampered by regulatory stoppages at its Brazilian operations, an unfavourable performance at its Siguiri mine in Guinea and power disruptions and other challenges in South Africa.
State-owned power utility Eskom, which supplies more than 90% of South Africa’s electricity, cut power across the country in February and March as low coal supplies, a severe cash crunch, and multiple failures at its aging power stations curbed supply.