CEO says decision to sell SA mines was not a vote of no-confidence in the country but a business move
On Wednesday this week, following a rigorous nine-month bidding process, AngloGold Ashanti announced the sale of our remaining assets in SA to Harmony Gold. The transaction remains subject to a number of standard regulatory and other conditions and is expected to close later this year. Once complete, our company will have no production from SA for the first time in its long history.
Although ultra-deep gold mining has in recent years become a niche business in a global industry that prizes shallower gold-mining operations, this mine — with its deepest workings almost 4km below the surface — is a showcase for SA enterprise and ingenuity. It’s also an excellent example of SA’s geological wealth; after decades of mining, Mponeng still has 8.5-million ounces of reserves.
We have finite capital to invest and need to make these trade-off decisions all the time; what assets will stay in our portfolio and be allocated capital, what assets will be closed, and what assets might fare better in the hands of another operator, with a different approach.
Many commentators could not resist the temptation to view our decision — driven by the realities of capital allocation — as a vote of no confidence in SA. That is simply incorrect.
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