[South Africa] AngloGold starts process to sell loss making Kopanang gold mine
South African gold producer AngloGold Ashanti has signed an agreement with an undisclosed party to sell the loss making Kopanang gold mine located in the west of Johannesburg. This, with a view to returning the company to profitability.
The company had informed its shareholder in June this year that it had started a consultation process to restructure its South African operations, with the aim of ensuring that the business could be safely returned to profitability, whilst mitigating job losses. This restructuring process includes the Kopanang Mine ceasing operations and transitioning to care and maintenance.
Should the potential sale be successfully concluded, this will have a positive impact on the restructuring. The Kopanang Mine would no longer be placed on care and maintenance but would continue to operate under the ownership of the selected party. The agreement has also spelt out that the severance benefits due to all Kopanang employees will be paid out by AngloGold Ashanti on the closing of the potential sale.
In the event that the sale does not proceed, the severance benefits will be paid to employees on conclusion of the restructuring process announced in 28 June 2017 and the Kopanang Mine will move to care and maintenance.
The potential sale, if concluded, would not be a categorized transaction in terms of the JSE Limited Listings Requirements. Whether an agreement to sell the Kopanang Mine is concluded remains uncertain and any such agreement will be conditional upon securing a number of regulatory approvals.