GOLD Fields and AngloGold Ashanti are on the verge of creating Africa’s largest gold mine after agreeing to combine two of their operations in the country.
The then industry rivals said last Thursday they had agreed terms of a proposed Joint Venture (JV) in Ghana between Gold Fields’ Tarkwa and AngloGold Ashanti’s neighbouring Iduapriem mines.
They are also hopeful that ongoing talks with the government and regulators will conclude smoothly for the proposed JV to be incorporated.
The JV would be a high-quality operation, supported by a substantial mineral endowment and an initial life spanning almost two decades, they said in a joint statement.
Structure
The Tarkwa Mine is held by Gold Fields Ghana, in which Gold Fields currently owns a 90 per cent share and the Government of Ghana (GoG) holds 10 per cent.
The Iduapriem Mine is currently 100 per cent owned by AngloGold Ashanti.
Both mines are located near the Western Regional town of Tarkwa.
The mining giants said in the statement that the proposed firm would be constituted within Gold Fields Ghana and operated by Gold Fields.
“AngloGold Ashanti will contribute its 100 per cent interest in Iduapriem to Gold Fields Ghana in return for a shareholding in that company.
“The parties do not anticipate that any material, additional capital injection will be required by either company to establish the proposed JV,” the statement said.
They added that they expected the consolidation of operations to materially improve the capital intensity of the proposed firm once operational.
Proposed shareholding
The statement said, “Excluding the interest to be held by the GoG, Gold Fields will have an interest of 66.7 per cent or two-thirds and AngloGold Ashanti will have an interest of 33.3 per cent or one-third in the proposed JV.
“The Proposed JV would create the largest gold mine in Africa and one of the largest in the world.
“It will be a high-quality operation, supported by a substantial mineral endowment and an initial life spanning almost two decades,” the statement said.