One of the bets Harmony Gold is making on its $300m purchase of Great Noligwa and Moab Khotsong from AngloGold Ashanti is that it can extract pillars just like it does at one of its current mines and can strip more costs out of the mines than the current owners have.Harmony rose from being a single mine to becoming one of the world’s leading gold producers by buying other companies’ old mines, cutting costs, flattening the companies’ management structures and adding years to the lives of these assets. It is going back to its roots with this AngloGold transaction. While the Moab Khotsong mine is going to be an attractive cash-generative asset with lots of growth potential due to its undeveloped Zaaiplaats extension, it is the Great Noligwa mine, in North West, where Harmony sees itself doing things differently from the world’s third-largest gold miner. AngloGold rolled Great Noligwa into Moab and used the latter’s infrastructure to tackle Noligwa’s ore body. Harmony wants to focus on...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.