HomeGoldAngloGold to sell Tau Lekoa mine

AngloGold to sell Tau Lekoa mine

The twin shafts at
AngloGold’s Tau
Lekoa mine in the
Vaal River region
Johannesburg, South Africa — MININGREVIEW.COM — 18 February 2009 – AngloGold Ashanti – Africa’s largest gold miner and  the world’s number three gold producer –  is planning to sell its Tau Lekoa mine in South Africa to smaller rival Simmer & Jack for R600 million plus royalties.
Reuters quotes AngloGold as saying in a statement here late yesterday that it had agreed to sell the mine for the cash amount, plus a royalty of 3% on sales. The company pointed out that Tau Lekoa is one of its smallest South African operations, and that it is both geographically and geologically separated from its other mines.

The statement went on to say that the mine also had generally lower gold grades and did not contain viable uranium quantities, compared to the company’s other mines. The sale also included the adjacent Weltevreden and Goedgenoeg project areas.

“The transaction will act to strengthen our balance sheet further, and after an orderly transition process will enable us to focus our key human resources and financial resources across our strategic asset base and growth initiatives,” said AngloGold CEO Mark Cutifani.

The sale is subject to Simmers raising the required cash, as well as approvals by Simmers shareholders and the competition authorities.

Reuters points out that AngloGold has been disposing of assets to raise cash. Last month it sold its one-third stake in the Boddington gold mine project in Australia for up to US$1.1 billion (R11 billion) to Newmont Mining Corporation, which owned the rest of the stake in the project.