Gold Fields (JSE, NYSE: GFI) and AngloGold Ashanti (JSE: ANG, NYSE: AU) announced on Thursday that they have yet to make progress on their proposed joint venture in Ghana, initially revealed in March 2023.
The two companies had planned to merge their neighboring Tarkwa and Iduapriem mines to create Africa’s largest gold mine. According to the agreement, Gold Fields would hold a 60% stake, AngloGold Ashanti 30%, and the Ghanaian government 10%.
The joint venture was projected to yield an average of 900,000 ounces annually for the first five years, with an 18-year lifespan and an eventual production rate of 600,000 ounces per year.
In anticipation of Ghana’s national elections in December, both companies have been working to obtain the necessary permits. However, without approvals and clear timelines from the government, Gold Fields and AngloGold have chosen to continue discussions on a potential asset combination while independently working on enhancements to their respective mines.
“We continue to believe that combining the two neighboring mines into a single managed entity is a compelling strategy, as it is expected to extend the life of the mine, increase production, and lower costs, delivering value to all stakeholders,” the companies said in a joint statement.
Expanding Operations Abroad
Both miners have been increasingly focused on operations in Ghana, Australia, and the Americas, as they shift from their historical roots in South Africa. Mining in South Africa has become more difficult due to the challenges of extracting gold from the world’s deepest deposits.
Gold Fields recently completed a C$1.93 billion ($1.39 billion) acquisition of Osisko Mining, securing sole ownership of the Windfall project in Québec, Canada. This acquisition is expected to support Gold Fields’ aging assets in Ghana and Peru, with Windfall projected to produce 300,000 ounces per year at an all-in sustaining cost of under $800 per ounce, starting in early 2027.
Meanwhile, AngloGold is finalizing its acquisition of Egypt-focused miner Centamin, with shareholders approving the deal last month. This acquisition is anticipated to be completed by the end of November, adding the world-class Sukari mine to AngloGold’s portfolio.
