Mining behemoths Gold Fields and AngloGold Ashanti have confirmed that the required permissions are still pending, which has put a halt to their planned joint venture to merge their Tarkwa and Iduapriem gold mines in Ghana.
Initially announced in March 2023, the partnership sought to establish Africa's largest gold mine, with Gold Fields owning 60% of the project, AngloGold Ashanti 30%, and the Ghanaian government 10%.
Initially announced in March 2023, the partnership sought to establish Africa's largest gold mine, with Gold Fields owning 60% of the project, AngloGold Ashanti 30%, and the Ghanaian government 10%.
The two businesses expressed their dissatisfaction with the delay in obtaining government licenses prior to Ghana's December national elections in a joint statement issued on Thursday.
"Given that it is expected to prolong the mine's life, boost production, and reduce costs, creating value for all stakeholders, we continue to believe that combining the two adjacent mines into a single managed entity is compelling," they said.
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"Given that it is expected to prolong the mine's life, boost production, and reduce costs, creating value for all stakeholders, we continue to believe that combining the two adjacent mines into a single managed entity is compelling," they said.
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However, both businesses will now pursue individual upgrades to their respective assets while continuing talks on a possible merger, as Ghanaian authorities have not provided a clear timescale.
"Notwithstanding constructive engagement with the Government of Ghana since the announcement of the Proposed Joint Venture on 16 March 2023, the requisite approvals by the Government of Ghana for the Proposed Joint Venture have not yet been obtained," added the statement.
"Notwithstanding constructive engagement with the Government of Ghana since the announcement of the Proposed Joint Venture on 16 March 2023, the requisite approvals by the Government of Ghana for the Proposed Joint Venture have not yet been obtained," added the statement.
Prior to the October 2024 parliamentary recess and the December 2024 Ghanaian national elections, Gold Fields and AngloGold Ashanti have attempted to obtain the necessary permits, including the Ghanaian Parliament's approval of the proposed joint venture.
Given that it is expected to prolong the mine's life, boost production, and reduce costs, so creating value for all stakeholders, the Parties remain convinced that combining the two nearby mines into a single controlled entity is compelling.
Given that it is expected to prolong the mine's life, boost production, and reduce costs, so creating value for all stakeholders, the Parties remain convinced that combining the two nearby mines into a single controlled entity is compelling.
Gold Fields and AngloGold Ashanti will continue to discuss a possible asset combination while independently pursuing asset improvements as long as the Ghanaian government has not given its approval and there are no set deadlines for the agreement's implementation.
The joint venture was expected to produce 600,000 ounces of gold throughout its estimated 18-year lifespan, including an average of 900,000 ounces per year for the first five years.
The joint venture was expected to produce 600,000 ounces of gold throughout its estimated 18-year lifespan, including an average of 900,000 ounces per year for the first five years.
Both Gold Fields and AngloGold have been concentrating more on overseas operations, such as those in Ghana, Australia, and the Americas, rather from their traditional base of South Africa. Because of South Africa's complicated and difficult geology, extracting gold has become increasingly difficult and expensive, which has led to the mines
