Harmony adds AngloGold Ashanti assets

JOHANNESBURG – Harmony Gold concluded the R5 billion ($300 million) acquisition of AngloGold Ashanti’s South African assets, the Mponeng mine and Mine Waste Solutions, the company said yesterday.

The transaction is scheduled to close at the end of the month after all conditions precedent have been met, including the approval by the Department of Mineral Resources and Energy to transfer the West Wits mineral rights from AngloGold Ashanti to Harmony.

Harmony, which is expected to take effective control of the assets in October, said aside from improving its portfolio mix between the surface and underground operations, the transaction had the potential to improve the group’s overall recovered grade and increased cash flow margins.

Harmony chief executive Peter Steenkamp said the group would only be in a position to estimate the full benefit of the integration once it had taken ownership of the assets.

“This is a proud moment for Harmony, further demonstrating our well-established belief in and commitment to the sustainability of gold, our confidence in South Africa and our determination to grow value for all of our stakeholders,” Steenkamp said.