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Harmony Inks Deal With AngloGold Ashanti

Harmony Gold Mining Company has entered into an agreement with AngloGold Ashanti to acquire its Moab Khotsong and Great Noligwa mines, as well as tailings assets for $300m in cash.
Image Peter Steenkamp Image Peter Steenkamp

Harmony believes that the acquisition will enhance its position as a robust cash-generative gold mining company, increasing grades, driving down all-in sustaining costs and growing its South African gold portfolio, the company said in a statement.

The acquisition adds more than 250 000 ounces of gold at an all-in sustaining cost below Harmony’s target of $950/oz, increasing Harmony’s average recovered grade to 5.7g/t.

Synergies with Harmony’s current asset portfolio is expected to realise further upside, progressing pillar extraction at Great Noligwa and reclamation at Mispah tailings. “Buying Moab Khotsong means we boost our cash flows by more than 60%, increase our average overall underground recovered grade by 12% and grow our South African underground resource base by 38%. The acquisition creates value for our shareholders, preserves jobs and sustains the surrounding mining communities with the potential to significantly extend the life of mine of the Moab Khotsong operations,” Peter Steenkamp, chief executive officer of Harmony said.

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