AngloGold’s Navachab
mine in Namibia “’
up for sale
 
Johannesburg, South Africa — 02 May 2013 – AngloGold Ashanti Limited “’ the world’s third-largest producer of the precious metal “’ has selected a shortlist of bidders for its Navachab mine in Namibia, after what it describes as “good interest” in the asset.

“From the initial group we’ve selected a shortlist of parties that will proceed to the next phase of the process, after which these shortlisted bidders will be required to submit a binding offer,” Stewart Bailey, a New York-based spokesman, said in an e-mailed response to Bloomberg News.

AngloGold planned to review whether Navachab should be sold, Mark Cutifani, the company’s then CEO, said on August 6. AngloGold’s stock has dropped 35%  this year in Johannesburg after the bullion price slumped to the lowest in more than two years.

AngloGold’s Navachab gold mine is situated close to Karibib, about 170km north-west of the Namibian capital, Windhoek. The open-pit mine, which began operations in 1989, has a 120,000tpm processing plant, according to the company’s annual report. The mine produced 74,000 ounces of gold last year and cash costs were $929/oz. Gold was trading at US$1,468.03/oz this morning in London.

“Interest is strong in what remains a good asset in an attractive jurisdiction,” Bailey said by phone.

AngloGold is being advised on the sale by CIBC World Markets.

Source: Bloomberg News. For more information, click here.