[miningmx.com] — JSE-LISTED gold major AngloGold Ashanti has bought
the 50% it doesn’t own in Brazil’s Serra Grande mine from Kinross Gold for $220m, an
asset which the TSX-listed miner described as “non-core’ to its portfolio.
AngloGold said the purchase would be funded by cash reserves and existing debt
facilities.
In 2011, Serra Grande – which is operated by AngloGold – produced 134,000 oz of
gold at a cash cost of $767/oz, which was slightly over the group’s general cash cost
profile of $728/oz.
The deal would increase AngloGold’s annual attributable production from Brazil to well
in excess of 500,000 oz and the contribution from the Americas region as whole to
more than 1Moz.
The group also said the purchase would increase its mineral reserves by 1.18Moz,
with further upside likely.
“This deal further simplifies our portfolio and gives us greater exposure to Brazil,
where we’ve had significant success in growing our production as well as our reserve
and resource base,’ said Mark Cutifani, CEO of AngloGold. “We see long-term, lower
risk, potential from Serra Grande, which is a key component of our strategy to grow
the contribution from the Americas.’
The transaction is expected to be finalised before the end of June.
In a separate statement, Kinross CEO Tye Burt said the mine was a non-operated and
non-core asset of the group. “Its divestiture is consistent with our strategy of
portfolio optimisation, and focusing our resources on the company’s core operations
and priority projects,’ Burt said.
This is the second corporate deal that AngloGold has concluded in recent months,
following on its announcement in March to acquire First Uranium’s Mine Waste
Solution for $335m. This deal would be voted on by First Uranium shareholders on
June 13.
