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AngloGold Ashanti completes sale of two gold mines

AngloGold Ashanti announced that all conditions precedent have been fulfilled with respect to the sale of the Moab Khotsong mine and related assets and liabilities to Harmony Gold Mining Company and the separate sale of the Kopanang mine and related assets and liabilities to Heaven-Sent SA Sunshine Investment as announced on 19 October 2017.

Both transactions closed on February 28, 2018.

Gross cash proceeds from these transactions of ZAR3.574 billion have been received and applied to reduce debt, in line with AngloGold Ashanti’s strategic commitment to continually improve strategic and financial flexibility.

AngloGold Ashanti’s remaining South African assets include the Mponeng underground gold mine, which is currently ramping up production from its Below 120 Level life-extension project and two surface operations comprising the Mine Waste Solutions tailings dump-retreatment business and the rock dump reclamation and processing business.

Together, these South African operating units will account for about 13% of AngloGold Ashanti’s total annual production.

Moab Khotsong and Kopanang mine

Moab Khotsong, AngloGold Ashanti’s newest South African mine, is located in the Free State and has a single shaft system mining to a depth of 3,100 m.

Given the geological complexity of the Vaal Reef, the mine’s principal reef, scattered mining is employed.

Great Noligwa’s operating infrastructure and employees have been incorporated into Moab Khotsong since 2015.

Kopanang, which is bound to the south by the Jersey Fault, has a single shaft system to a depth of 2,334 m.

It exploits the Vaal Reef almost exclusively, producing gold as its primary output and uranium oxide as a by-product