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AngloGold Ashanti will no longer be operating in South Africa following the sale of Mponeng and Mine Waste Solutions for approximately US$300 million.

The acquisition will see the two assets incorporated into the Harmony portfolio, enhancing Harmony’s near-term production by adding annual gold production of approximately 350 000oz per annum – increasing Harmony’s South African reserves by 8.27 million ounces (excluding Mponeng infrastructure reserves). Furthermore, Harmony’s portfolio mix between surface and underground operations will be improved.  

In mid-2019, AngloGold Ashanti announced its decision to disinvest from South Africa. Since then, the gold producer has been looking for prospective buyers for its assets.

Commenting on the acquisition, Harmony CEO Peter Steenkamp says Over the past two years, Harmony has added over 500 000 quality gold ounces per annum through the acquisition of Moab Khotsong and now Mponeng and Mine Waste Solutions. “The acquisition has the potential to improve our overall recovered grade and increasing our cash flow margins,” adds Steenkamp.

Harmony believes that the acquisition is a natural next step following the acquisition of Moab Khotsong in 2018. A natural strategic fit with its existing asset base, the acquisition of Mponeng and Mine Waste solutions represents a compelling opportunity to enhance its position as a robust cash-generative gold mining company. “Harmony has demonstrated its ability to increase the life of mines it operates in South Africa – sustaining the mine communities surrounding the mining operations, preserving jobs and further unlocking value for its shareholders through increased grades and stronger margins,” Steenkamp says.

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