Gold Fields and AngloGold Ashanti are working on a proposed deal to combine their neighbouring operations in Ghana.
Bruce Whitfield interviews Martin Preece, interim CEO of Gold Fields.
– Gold Fields and AngloGold Ashanti plan to join forces to create Africa’s biggest gold mine
– They have signed an in-principle agreement to combine their neighbouring gold mines in Ghana
Gold Fields and AngloGold Ashanti are set to join forces to create Africa’s biggest gold mine, in Ghana.
They announced an in-principle agreement to combine AngloGold’s 100%-owned Iduapriem mine and the neighbouring Tarkwa mine in which Gold Fields holds a 90% stake.
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Bruce Whitfield finds out more from Martin Preece, interim CEO of Gold Fields.
Preece points out that this is still a proposed deal, which has been shared recently with the government of Ghana.
He says it was met with a “fairly warm” reception.
We have agreed high-level terms with AngloGold Ashanti, but obviously the third party in this transaction is the government of Ghana and we will start now in-depth discussions and negotiations with them.
Martin Preece, Interim CEO – Gold Fields
Driving the agreement is the economics and synergies behind it he says, something that the two gold miners have been discussing for years.
The two mines separately produce just shy of 800 000 ounces of gold a year and it’s expected combining these assets will push production up to 900 000 ounces per annum, Preece says.
This is largely as a result of the location of the ore bodies, accessing higher-grade ores which are currently locked up between the two mines, shorter trucking distances, cheaper processing costs…
Martin Preece, Interim CEO – Gold Fields
We’re going to do this with not spending capital and improving our capital efficiency, so we see huge opportunities for our shareholders… importantly also for the government of Ghana and stakeholders in the communities in which we operate.
Martin Preece, Interim CEO – Gold Fields
It’s an open pit… The AngloGold Ashanti operations are right next door… It’s a matter of just mining the pieces in-between and joining it all up.
Martin Preece, Interim CEO – Gold Fields
Gold Fields will be the operator, with the larger share out of the two miners.
We’re taking two thirds, and then one third… which will be diluted as we do negotiations with the government of Ghana. They will most probably take a 10% stake in this which they’re entitled to.
Martin Preece, Interim CEO – Gold Fields
For more detail scroll up to listen to the interview
This article first appeared on CapeTalk : Gold Fields, AngloGold joining forces to create Africa’s biggest gold mine
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