Pretoria | Thursday
ANGLOGOLD on Wednesday announced the sale of all its assets in South Africa’s central Free State province, which includes four gold mines, for R2,2-billion ($222-million.)
The buyers are African Rainbow Minerals (ARM) and Harmony Gold Mining (Harmony).
The announcement by AngloGold chief executive Bobby Godsell comes a day after a rival bidder — the Khumo Bathong Consortium — announced its withdrawal from the bid, saying it was not willing to overpay for the mines at stake.
The four mines are: Bambanani, Joel, Matjhabeng and Tshepong, all situated in the gold-rich northwestern part of the province.
The transaction marked an important moment in consolidating the gold mining industry, Godsell told reporters in Pretoria. He said the transaction formed part of the company’s objective to close or to sell mines approaching the end of their profitable lives to operators that were better suited to mine them.
ARM and Harmony will hold equal joint venture interests in the assets — which included infrastructure, equipment and the Ernest Oppenheimer Hospital in Welkom — when the transaction takes effect on January 1 next year.
The deal is subject to recognition by the South African tax authorities as a rationalisation scheme, in which case no recoupment tax will be payable by AngloGold on the proceeds of the sale. – AFP