AngloGold Ashanti may be on the verge of selling Kopanang gold mine
AngloGold Ashanti has signed a memorandum of understanding with a group interested in buying its Kopanang gold mine, which the company is preparing to close. The group is also preparing to close its TauTona mine, which would mean a combined loss of 8,500 jobs. It said in June that the mines were old, nearing the end of their lives and a financial drag on its South African division. It received unsolicited offers for Kopanang. The memorandum of understanding could result in a sale agreement, the company said, adding it would talk to organised labour about the sale. In the six months to end-June, Kopanang’s gold output fell 6% to 44,000 ounces, while its all-in sustaining costs shot up 26%, to $1,682 an ounce. Together with TauTona, the two mines were the most expensive in the South African division, pushing the average all-in sustaining cost to a worst level of $1,259 an ounce. If the talks are successful and the sale goes ahead, AngloGold will still pay severance packages to employe...
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.