Gold Fields and AngloGold Ashanti propose Ghana JV to create Africa’s largest gold mine
AngloGold Ashanti Limited
(Incorporated in the Republic of South Africa)
Reg. No. 1944/017354/06
ISIN: ZAE000043485 – JSE share code: ANG
CUSIP: 035128206 – NYSE share code: AU
(“AngloGold Ashanti” or “AGA” or the “Company”)
Gold Fields Limited
Reg. No. 1968/004880/06)
(Incorporated in the Republic of South Africa)
JSE, NYSE, DIFX Share Code: GFI
ISIN Code:ZAE000018123
(“Gold Fields” or the “Company”)
JOINT MEDIA RELEASE
Gold Fields and AngloGold Ashanti propose
Ghana JV to create Africa’s largest gold mine
JOHANNESBURG, 16 March 2023 - Gold Fields and AngloGold Ashanti (“The Parties”)
have agreed the key terms of a proposed joint venture in Ghana between Gold Fields’
Tarkwa and AngloGold Ashanti’s neighbouring Iduapriem mines (the “Proposed Joint
Venture”).
The Tarkwa Mine is held by Gold Fields Ghana, in which Gold Fields currently owns a
90% share and the Government of Ghana (GoG) holds 10%. The Iduapriem Mine is
currently 100% owned by AngloGold Ashanti. Both mines are located near the town of
Tarkwa in the country’s Western Region.
The Parties have agreed in principle on the key terms of the Proposed Joint Venture.
The Parties have commenced with preliminary, high-level and constructive
engagements with senior government officials in Ghana and will continue engaging with
the GoG, relevant regulators and other key stakeholders, with a view to implementing
the Proposed Joint Venture as soon as practically possible. The Parties have agreed to
mutual exclusivity during this engagement.
It is intended that the Proposed Joint Venture will be an incorporated joint venture,
constituted within Gold Fields Ghana and operated by Gold Fields. AngloGold Ashanti
will contribute its 100% interest in Iduapriem to Gold Fields Ghana in return for a
shareholding in that company.
The Parties do not anticipate that any material, additional capital injection will be
required by either company to establish the Proposed Joint Venture and is expected to
materially improve its capital intensity once operational.
Excluding the interest to be held by the GoG, Gold Fields will have an interest of 66.7%,
or two-thirds, and AngloGold Ashanti will have an interest of 33.3%, or one-third, in the
Proposed Joint Venture.
The Proposed Joint Venture would create the largest gold mine in Africa and one of the
largest in the world. It will be a high-quality operation, supported by a substantial mineral
endowment and an initial life spanning almost two decades.
Operational synergies will be achieved by optimising mining of the combined ore bodies
and consolidating the infrastructure of the immediately adjacent mines for the long-term
benefit of all shareholders and stakeholders.
Martin Preece, Interim CEO Gold Fields:
“The Proposed Joint Venture is an exciting opportunity to combine mining operations
that are essentially part of the same mineral deposit and is something that Gold Fields
and AngloGold Ashanti have discussed many times before over the years. The ability
to optimise mining and the use of shared infrastructure across the combined operation
will result in significant flexibility in mine planning, materially enhancing the economics
of the mine and ensuring quality and scale of operation that will be world class. That
unlocked value will underpin the Proposed Joint Venture’s continued contribution to our
host communities and Ghana for decades to come. For Gold Fields, it will also
significantly enhance the overall quality of our portfolio.”
Alberto Calderon, CEO AngloGold Ashanti:
“This combination puts together two parts of the same world-class ore body, allowing
us to share skills and infrastructure to significantly enhance every aspect of this mining
operation, from exploration and planning, to mining and processing. By creating one of
the world’s largest open-pit gold operations, in a pre-eminent mining jurisdiction, we will
create longer-term value not only for AngloGold Ashanti and Gold Fields, but for the
combined stakeholders in our local host communities and for all of Ghana.”
Benefits of the Proposed Joint Venture include:
• Estimated life of at least 18 years, which could increase through an extension and
optimisation plan, which will be considered under the Proposed Joint Venture over
the next three years, and which could also enhance envisaged production and cost
parameters.
• Estimated average annual production (100% basis) of almost 900koz over the first
five years and average annual production in excess of 600koz over the estimated
life of operation
• Estimated all in sustaining cost (in 2023 terms) of less than US$1,000/oz over the
first five years and less than US$1,200/oz over the estimated life of operation.
• It is expected that the Ore Reserves for the Proposed Joint Venture will exceed the
sum of the Ore Reserves for the stand-alone operations due to the anticipated
operational synergies, and the declaration of additional Mineral Resources and Ore
Reserves as a result.
Key principles of the Proposed Joint Venture:
• Gold Fields and AngloGold Ashanti have collaborated across a broad and
comprehensive range of work streams to formulate the indicative base case for the
combination, which underpins the estimates above. Additional, detailed work will
now be undertaken to develop the optimised initial operating plan which will apply
from commencement of the Proposed Joint Venture.
• Gold Fields and AngloGold Ashanti have agreed the governance principles of the
Proposed Joint Venture, including their respective representation in management
committees for the Proposed Joint Venture and the board of Gold Fields Ghana. As
operator of Gold Fields Ghana, Gold Fields will receive a management and technical
fee determined on an arms-length basis.
• Implementation is subject to reaching agreement with the GoG regarding the
Proposed Joint Venture, conclusion of confirmatory due diligence and definitive
transaction agreements, and securing all requisite regulatory approvals. Subject to
satisfaction of these conditions, the Parties intend to implement the Proposed Joint
Venture as soon as practically possible.
About Gold Fields
Gold Fields is a globally diversified gold producer with nine operating mines in Australia, South
Africa, Ghana (including the Asanko JV) and Peru and one project in Chile. We have total
attributable annual gold-equivalent production of 2.40Moz, proved and probable gold Mineral
Reserves of 46.1Moz, measured and indicated gold Mineral Resources of 31.1Moz (excluding
Mineral Reserves) and inferred Gold Mineral Resources of 11.2Moz (excluding Mineral
Reserves). Our shares are listed on the Johannesburg Stock Exchange (JSE) and our American
depositary shares trade on the New York Exchange (NYSE).
About Tarkwa
Tarkwa is 90%-owned by Gold Fields, with the Government of Ghana holding the remaining
10%. In 2022 it produced 531,600 oz at All-in cost and All-in sustaining costs of $1,248/oz. As
at 31 December 2021, Tarkwa had proved and probable gold Mineral Reserves of 5.22Moz
and measured, indicated and inferred gold Mineral Resources of 3.38Moz. (Updated 31
December 2022 Mineral Reserves and Mineral Resources will be released with the Gold Fields
Integrated Annual Report by 31 March 2023)
About AngloGold Ashanti Ltd
AngloGold Ashanti is an independent, global gold mining company with a diverse, high-quality
portfolio of operations, projects and exploration activities across nine countries on four
continents. The company produced 2.742Moz of gold in 2022 and as at 31 December 2022,
had proved and probable gold Mineral Reserves of 30.41 Moz and measured, indicated and
inferred gold Mineral Resources (inclusive of Mineral Reserve) of 131.36 Moz. AngloGold
Ashanti is listed on the Johannesburg, New York, Ghana and Australian stock exchanges.
About Iduapriem
Iduapriem is wholly owned by AngloGold Ashanti Ltd. In 2022 it produced 248,000 oz at a
total cash cost of US$970/oz and an All-in sustaining cost of $1,299/oz. As at 31 December
2022, Idaupriem had proved and probable gold Mineral Reserves of 2.42 Moz and measured,
indicated and inferred gold Mineral Resources of 3.92 Moz.
Johannesburg
16 March 2023
Sponsor to Anglogold Ashanti
The Standard Bank of South Africa Limited
Sponsor to Goldfields
JP Morgan
Forward-looking statements
Certain statements contained in this announcement, other than statements of
historical fact, including, without limitation, those concerning expectations of
operational synergies, long-term benefits, life of operation, extension plans, average
annual production and all in sustaining cost relating to the Proposed Joint Venture
are forward-looking statements regarding the operations, economic performance
and financial condition of AngloGold Ashanti and Gold Fields. These forward-looking
statements may be identified by the use of words such as “aim”, “anticipate”, “will”,
“would”, “expect”, “may”, “could” “believe”, “estimate”, “project” and words of
similar meaning.
Forward-looking statements involve a number of assumptions, risks and uncertainties
that could cause actual results to differ materially from those suggested by the
forward-looking statements, and should be considered in light of various important
factors, including the signing of definitive transaction agreements, engagement with
the GoG and securing requisite regulatory approvals.
Further details of potential risks and uncertainties affecting AngloGold Ashanti are
described in AngloGold Ashanti’s filings with the United States Securities and
Exchange Commission, including its annual report on Form 20-F filed with the United
States Securities and Exchange Commission (SEC File no. 001-14846). Further details
of potential risks and uncertainties affecting Gold Fields are described in Gold Fields’
filings with the United States Securities and Exchange Commission, including its
annual report on Form 20-F filed with the United States Securities and Exchange
Commission (SEC File no. 001-31318). Other unknown or unpredictable factors could
also have material adverse effects on future results. Consequently, readers are
cautioned not to place undue reliance on forward-looking statements.
These forward-looking statements speak only as of the date they are made. Neither
AngloGold Ashanti nor Gold Fields undertake any obligation to publicly release
revisions to any forward-looking statements to reflect events or circumstances after
the date of this announcement, or to reflect the occurrence of unanticipated events,
except as may be required under applicable securities laws.
Date: 16-03-2023 09:15:00
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