THE South African government approved the $300m sale of AngloGold Ashanti’s Mponeng mine and Mine Waste Solutions (MWS) to Harmony Gold provided the seller doesn’t delist from the Johannesburg Stock Exchange, said Reuters, confirming an earlier Bloomberg News article.
“The Department can confirm that an application in terms of Section 11 of the MPRDA has been received and was approved on 24 July,” said Reuters citing an e-mail from the Department of Mineral Resources and Energy (DMRE).
The ministry said the granting of the application was based on a understanding between AngloGold Ashanti and the department that subsequent to the granting of the application the company would not disinvest from the South African economy by delisting from the Johannesburg Stock Exchange or relocate its headquarters.
Kelvin Dushnisky, CEO of AngloGold, told Miningmx on August 7 that the company had not prioritised an offshore listing as previously indicated following the outbreak of the Covid-19 pandemic. The firm was focused on “navigating Covid-19”.
“The board’s position on the primary listing has not changed. All options are still on the table. It’s also fair to say that in the current circumstances, as South Africa deals with Covid-19, the company is navigating the pandemic,” he said.
AngloGold has said in the past that in the event of an offshore listing, it would retain its Johannesburg headquarters, largely owing to cost considerations.
It has been reported that mining firms listed on the Toronto Stock Exchange are considering secondary listings in London after an increase in the price of bullion increased investment appetite, especially among generalist funds.