AngloGold Ashanti is in talks to sell one of its South African mines. The company has previously outlined plans for the mine’s closure as part of a restructuring process.
South African gold mining companies have struggled for growth in their home market as a volatile currency, labour unrest and government plans for new ownership rules have dimmed prospects.
Through a press statement on June 28, the Company said it was considering laying off 8 500 workers, some 30% of its workforce, resulting from the maintenance of Kopaneng Mine.
“Based on unsolicited expressions of interest received from a number of parties, AngloGold Ashanti initiated a process to assess the sale of the Kopanang mine. In this regard, a memorandum of understanding has now been signed with a selected party.”
South Africa, for many years the largest bullion producer globally, has slipped to No.6 in the past decade as gold ore becomes more expensive to extract because of the depth of mines.
Shares in AngloGold were up 1.1% at R130.07 by 1240 GMT, in line with a 1% rise in the JSE’s gold mining index.