AngloGold Ashanti and Gold Fields Suspend Ghana Joint Venture Plans

The Johannesburg-listed gold giants announced on Tuesday, marking a shift from a partnership originally unveiled in March 2023. The proposed joint venture aimed to create Africa’s largest gold mine, with Gold Fields set to operate the merged entity and hold a 60% stake, pending a 10% government interest. However, the companies could not secure this critical agreement with the Ghanaian government, and the deal never reached completion.

While both companies did not explicitly state the reasons for the pause, a post by Miningmx on its official X account suggested the soaring price of gold, up approximately 44% over the past year, was a key driver in the decision. The higher gold prices have reportedly made it more economically feasible for each miner to extract additional resources from their ore bodies.

AngloGold Ashanti noted that it had “identified changes in its standalone mine plan for Iduapriem which have the potential to unlock significant additional value.” The company said it would consolidate improvements in its long-term mining strategy while the joint venture remains on hold, aiming to “identify the highest value of its options.”

Gold Fields, in its first quarter update, described the merger as “compelling” but affirmed its commitment to developing Tarkwa as an independent operation.

Though Ghana has undergone a government change amid a broader economic crisis, sources indicate that the new administration was supportive of the venture. Regulatory hurdles were not cited as a reason for the pause.

The decision marks a significant moment for Ghana’s mining sector, where both Iduapriem and Tarkwa remain central to gold production. Analysts will now closely watch how both firms recalibrate their strategies in light of the bullish gold market.

Source: Nana Esi Brew Monney

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