AngloGold Ashanti Ltd. is looking to sell its Sadiola mine in Mali as the company kicks off a process to streamline its assets to focus on high-quality, core operations.
The world’s third-largest gold producer has initiated a process to sell Sadiola, one of its smallest operations, which it jointly owns with Iamgold Corp., Chief Executive Officer Kelvin Dushnisky, said on a conference call Monday. Sadiola, where AngloGold has been negotiating a new fiscal regime with the government, would “sit well in another portfolio,” he said
Dushnisky said he sees potential to develop new projects at exploration sites in Nevada, in the U.S., if exploration activities currently underway confirm commercial deposits.
Key Insights
- AngloGold plans to sell assets that aren’t core to the business and focus on its best assets and where the company is able to lower costs. The producer’s geographical spread with 14 assets “feels heavy” and it makes sense for it to streamline, Dushnisky said.
- Dushnisky, who took over in September, has ruled out “fire sales” as it considers its future in its home country. The Johannesburg-based company has no plans to exit Mponeng, South Africa’s deepest gold mine. Mponeng’s deposit can still be exploited until 2036 and AngloGold is in “good shape” there, the CEO said.
- “We certainly think there is potential” in Nevada, Dushnisky said. “We have a lot of experience in the U.S. and certainly if it’s a deposit that has commercial value, it’s an area we are comfortable developing an operating project in the future.
Bloomberg