Gold Fields, AngloGold JV in Ghana hits roadblock

Gold Fields (JSE, NYSE: GFI) and AngloGold Ashanti (JSE: ANG) (NYSE: AU) announced on Thursday that they have yet to make progress on their proposed joint venture in Ghana, announced in March 2023.The companies agreed at the time to merge their neighbouring Tarkwa and Iduapriem mines, aiming to create Africa’s largest gold mine. Under the agreement, Gold Fields would hold a 60% stake, AngloGold Ashanti 30%, and the Ghanaian government 10%.The joint venture was projected to produce an average of 900,000 ounces annually over the first five years and 600,000 ounces over its estimated 18-year lifespan. The parties said they have attempted to secure the required permits before Ghana’s national elections to be held in December.Without the necessary approvals and clear timelines from the Ghanaian government, Gold Fields and AngloGold have decided to continue discussions about a potential asset combination, while separately working on improvements to their respective assets.“We continue to believe that a combination of the two neighbouring mines into a single managed entity is compelling, given that it is anticipated to extend life of mine, increase production and lower costs, creating value for all stakeholders,” they said in the joint statement.Both gold miners have been shifting their focus from their home country to more profitable operations in Ghana, Australia, and the Americas.Despite the historical significance in South Africa of Gold Fields, founded by Cecil John Rhodes in 1887, mining in Africa’s largest economy has become increasingly challenging due to the geological difficulties of extracting gold from the world’s deepest deposits.Gold Fields recently finalized the C$1.93 billion ($1.39 billion) takeover of Osisko Mining, becoming the sole owner of the Windfall project and the surrounding exploration district in Québec, Canada. The asset previously jointly owned by the two companies, is expected to help Gold Fields balance its aging assets in Ghana and Peru, contributing 300,000 ounces per year at an all-in sustaining cost (AISC) of under $800 per ounce, starting in early 2027.AngloGold is in the process of closing the acquisition of Egypt-focused miner Centamin. Shareholders approved the transaction last month and the friendly takeover is expected to be completed by the end of November, adding the world-class Sukari mine to AngloGold’s portfolio.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com