Anglo Gold Exits South Africa After 100 Years

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Anglo Gold Ashanti has sold its assets to Harmony Gold for R4. 4 Billion ($300 Million).

As part of the deal, Harmony will acquire Tautona and Savuka mine, tailings storage facilities, First Uranium, Mine waste solutions, Covalent water, Anglo Gold security, Masakhisane investments and Mponeng mine.

CEO Kevin Dushnisky said Anglo Gold is happy to have sold its Assets to Harmony as this will ensure the long term sustainability of the assets – which include the deepest Gold mine in the world, Mponeng.

Anglo announced nine months ago that it will be exiting South Africa.

Harmony CEO, Peter Steenkemp said they will also acquire surface mines, while adding that Harmony Gold is now the biggest Gold miner in South Africa.

Harmony will pay $200 Million in cash and the rest if Mponeng produces more than 250 000 ounces a year.

The deal was funded from cash and debt.

The transaction is subject to regulatory approvals.