AngloGold’s transfer of mining rights to Harmony Gold will also depend on keeping its headquarters in the country
AngloGold Ashanti has been asked by the South African government to keep its listing in Johannesburg in order to complete the sale of its remaining assets in the country to Harmony Gold Mining.
The government said that AngloGold’s transfer of mining rights to Harmony Gold will also depend on keeping its headquarters in the country, reported BloombergQuint.
In an email to the publication, the Department of Mineral Resources and Energy said: “AngloGold Ashanti Ltd. shall not disinvest from the South African economy by delisting from the Johannesburg Stock Exchange.”
Though the exact reason for imposing conditions on the approval of the deal is not known, the country wants to have some control over the mining industry that is witnessing a steady decline.
AngloGold spokesperson was quoted by the publication as saying: “AngloGold has not yet received all necessary approvals from the DMRE which are required to fulfil the conditions to the sale agreement for the sale of its South Africa assets to Harmony Gold.
“We remain in dialog with the DMRE in relation to these, and will make the necessary disclosures once those engagements are concluded.”
The Mponeng sale is part of AngloGold’s efforts to streamline its portfolio
The sale of the Mponeng gold mine and surface assets in South Africa would allow AngloGold to exit the country.
An agreement to sell its remaining South African producing assets and related liabilities was reached with Harmony Gold in February this year, though plans to divest the assets were revealed in May 2019.
Mponeng is the world’s deepest mine and the company’s last underground operation in the country.
The divestment is part of AngloGold’s efforts to streamline its portfolio to create a business with more focus on profitable markets in Africa, Australia and the Americas.