Harmony Gold gets a greenlight to purchase the remaining assets of AngloGold Ashanti

SOUTH AFRICA – The Department of Minerals and Energy (DMRE) has given the green light for the sale of AngloGold Ashanti’s last remaining assets in the country to Harmony Gold on condition that it does not delist from the Johannesburg stock Exchange.

Harmony agreed in February to buy rival AngloGold Ashanti’s assets in South Africa, including Mponeng, the world’s deepest gold mine, for about US$300 million.

Every sale in the mining industry in South Africa must be approved by the ministry under mineral resources rules in accordance with Mineral and Petroleum Resources Development regulations.

“The Department can confirm that an application in terms of Section 11 of the MPRDA has been received and was approved on 24 July,” the DMRE said via email.

The ministry said the granting of the application was based on an understanding between AngloGold Ashanti and the department that the company would not disinvest from the South African economy by delisting from the JSE or relocate its headquarters.

AngloGold had said in February it would consider moving its primary listing on the JSE as it streamlines its portfolio. But in August the company said moving its listing was no longer a priority amid the pandemic.

AngloGold said it had not yet received all necessary approvals and was still in talks with government.

“We remain in dialogue with the DMRE in relation to these and will make the necessary disclosures once those engagements are concluded,” AngloGold Ashanti said.

Harmony Gold said: “We are continuing to engage with the DMRE and hope to conclude the transaction as soon as possible.”

AngloGold Ashanti has also appointed Dr Kojo Busia as an independent non-executive director to its board of directors, effective 1 August 2020. Dr Busia will serve as a member of the Investment Committee and the Social and Ethics and Sustainability Committee.

Dr Busia recently held the position of Chief of Natural Resources Management Section, Division of Technology, Climate Change and Natural Resource Management at the United Nations Economic Commission for Africa (UNECA).

Dr Busia is an internationally renowned leader and promoter of good governance in Africa, having 25 years of working experience in multilateral and bilateral organisations.

He previously served as Coordinator of the African Mineral Development Centre (AMDC), a Pan-African Center of Excellence charged with the implementation of the African Mining Vision, an African Union policy framework for sustainable mineral resources development.

In addition, Dr Busia’s outstanding contributions to African natural resources governance has seen him serve on several advisory boards including the Global Mining Sustainability, a global non-profit platform for sustainable mining; the Responsible Mining Foundation, an independent research organisation responsible for publishing the Responsible Mining Index report.

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