AngloGold Ashanti selling its Namibian division for $110 million
Africa’s No. 1 bullion producer AngloGold Ashanti (NYSE:AU) said Monday it’s selling its Namibian division, sole owner of the Navachab mine, for $110 million to private mining group QKR.
The deal, subject to regulatory approvals in Namibia and South Africa, is part of a renewed drive for AngloGold to rationalize and focus on its bigger operations, said the company.
Navachab has been owned and operated by AngloGold Ashanti 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.
On a separate note, Spy Ghana reports the South African miner is also mulling the closure of its Obuasi gold mine for two years to upgrade the site. Currently Obuasi, once the top gold mine in Ghana and the leading employer in the industry, is dealing with old equipment, poor security, inadequate power supply, and the activities of illegal miners.
Image courtesy of the Geological Survey of Namibia.