Namibia wants a piece of AngloGold Ashanti $110 million mine

Namibia wants a piece of AngloGold Ashanti $110 million mine

Navachab gold mine.

Namibia’s state-owned mining company is negotiating the acquisition of a stake in the Navachab gold mine, which AngloGold Ashanti (NYSE:AU) agreed to sell to private group QKR for $110 million last month.

Bloomberg reports the country’s firm —Epangelo Mining— has already signed confidentiality agreements with Anglo and the current bidder as negotiations are on their way.

Navachab has been owned and operated by AngloGold Ashanti, Africa's No. 1 bullion producer, since in 1998. Its contribution represents less than 2% of AngloGold's total production, mineral resources and ore reserves.

As at 31 December 2012, Navachab had gold resources of 4,410,000 ounces and gold reserves of 2,100,000 ounces, according to data provided by the miner.

The small and relatively low-cost operation, produced 46,000 ounces of gold in the nine months to the end of September last year at a cash cost of $755 per ounce.

Image courtesy of the Geological Survey of Namibia.