[miningmx.com] – A PROPOSAL by AngloGold Ashanti to unbundle its
South African mines was blocked by the South African government, according to a
report by Bloomberg News which cited people familiar with the plan.
According to the newswire service, the plan was submitted to government after the
firm’s shareholders, including John Paulson of Paulson & Co – once AngloGold’s largest
single shareholder – said it would boost the stock.
AngloGold’s South African rival, Gold Fields, in February this year finalised the
unbundling of most of its South African mines. However, it’s worth noting the stock
has underperformed AngloGold Ashanti since.
Shares in Gold Fields are down 38% over the last three months compared to the 20%
decline in AngloGold shares.
Citing Peter Leon, head of law firm Webber Wentzel’s Africa mining and energy
projects, Bloomberg said AngloGold’s proposal, had it been made, would have needed
the approval of the mineral resources minister.
“Some other mining companies have tried, but not succeeded, in obtaining the
National Treasury’s consent for the re-domiciliation of their non-South African assets,’
Leon told Bloomberg News.
AngloGold Ashanti declined to comment. The National Treasury said it didn’t comment
on specific cases while there was also no comment from the mineral resources
department.
