After a century, mining company AngloGold has sold its remaining assets in South Africa for R4.4 billion to Harmony.
Since taking control of the company in 2018, Chief Executive Officer Kelvin Dushnisky has shifted the company’s focus towards more profitable mines in Australia, Ghana, and the Americas.
The two companies are finalising the exact terms of the deal for the Mponeng mine and surface facilities.
Chief Executive Officer Peter Steenkamp said Harmony is looking at potential acquisitions in South Africa.
The company is looking at assets with at least 1 million ounces of reserves and a 10-year life span.
AngloGold has its roots in Anglo American, which was started as a gold mining company by Ernest Oppenheimer in 1917.
Anglo American originally focused only on developing and expanding the country’s East Rand gold mines, and saw massive expansion by tapping into the rich goldfields of the Vaal Reef and Free State.
It used this to expand and diversify into several other fields over the course of its history.
In 1926, Anglo American became the single largest shareholder in diamond company De Beers, and Oppenheimer later became chairman of the company.
AngloGold’s Mponeng mine is the world’s deepest and produced 265,000 ounces of gold in 2018. The output from its surface operations, which extract the metal from ore dumps, totalled 171,000 ounces. Those South African assets accounted for about 13% of AngloGold’s production in the same year.
Meanwhile, other large multinational companies are exiting the country due to load shedding and regulatory uncertainty.