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AngloGold picks Harmony to buy SA assets

The two companies are still finalising the exact terms of the deal.

AngloGold Ashanti Ltd. has picked Harmony Gold Mining Co. as the buyer for its last remaining South African operations, according to people familiar with the matter.

The two companies are still finalising the exact terms of the deal for the Mponeng mine and surface facilities, said the people, who asked not to be identified because the information is private.

AngloGold is selling the assets as Chief Executive Officer Kelvin Dushnisky focuses on more profitable mines in Ghana, Australia and the Americas. Harmony — backed by billionaire Patrice Motsepe’s African Rainbow Minerals Ltd. — is hunting for deals to replenish declining reserves in South Africa. Harmony paid $300 million for AngloGold’s Moab Khotsong mine in 2017.

Marian Van Der Walt, a spokeswoman for Harmony, and AngloGold spokesman Chris Nthite declined to comment.

Mponeng, the world’s deepest mine, produced 265 000 ounces of gold in 2018, while output from the surface operations, which extract the precious metal from ore dumps, totalled 171 000 ounces. Those South African assets accounted for about 13% of AngloGold’s production that year.

AngloGold said last week that it plans to provide an update on the asset sale on February 21. In November, AngloGold narrowed the list of bidders for its South African assets to Harmony and Sibanye Gold Ltd., people familiar with the matter said at the time.

© 2020 Bloomberg L.P.

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