AngloGold Ashanti has entered into an agreement to offload its stake in the Mineração Serra Grande mine in Goiás, Brazil, to Aura Minerals.
The transaction involves the sale of Mineração Serra Grande, which owns the mine, to a Brazilian affiliate of Aura for $76m in cash, subject to working capital adjustments at closing. Additionally, deferred payments will be made quarterly in cash, equivalent to a 3% net smelter returns participation over the mine’s current mineral resource, including the mineral reserve.
The focus at Mineração Serra Grande has recently been on stabilising operations and completing the decommissioning of the legacy tailings storage facility. Despite these efforts, the mine remains one of AngloGold Ashanti’s higher-cost and smallest production sites.
Certain subsidiaries of Mineração Serra Grande, which hold non-mining assets, will be spun off and remain part of AngloGold Ashanti prior to the transaction’s completion.
AngloGold Ashanti CEO Alberto Calderon said: “This sale ensures we further sharpen our focus on capital allocation, operating efficiencies and the optimisation of our portfolio.
“We’ve also worked hard to ensure that MSG and its excellent team joins an established company which will continue to be responsible stewards of this asset for the benefit of all stakeholders.”
The sale is contingent upon obtaining anti-trust approval from Brazilian authorities, completing the tailings storage facility decommissioning, transferring non-core subsidiaries, and no material adverse events occurring before closure. These conditions are expected to be met with the transaction anticipated to conclude in Q3 2025.
Located near Crixás in central Brazil, Mineração Serra Grande consists of three mechanised underground mines and an open pit, supported by a metallurgical plant with an annual capacity of 1.5 million tonnes.
As of 31 December 2024, the mine reported exclusive measured and indicated mineral resources totalling 1.08 million ounces at an average grade of 3.14 grams per tonne. The mine has inferred resources of 1.41 million ounces at an average grade of 3.39 grams per tonne and proven and probable reserves of 0.37 million ounces at an average grade of 2.72 grams per tonne.
In 2024, the mine produced 80 thousand ounces (kOz) of gold, a decrease from 86kOz in 2023.
Aura president and CEO Rodrigo Barbosa said: “Through our disciplined capital allocation, Aura 360 culture, and a targeted exploration programme, we believe we can significantly enhance performance, boost production, reduce costs, and extend the Life of Mine at Serra Grande, which could result in Serra Grande becoming a cornerstone of our portfolio.”
