AngloGold Ashanti Limited and its joint venture partner are looking to sell a mine in Mali after failing to reach an agreement with the west African country about an investment project.
AngloGold, Africa’s biggest gold miner by output, said it expected full-year production to reach the upper end of its guidance range, helping to push its shares as much as 9 percent higher. However, Mali, Africa’s third biggest producer of gold after South Africa and Ghana, has struggled to attract investment since Islamist militants seized the desert north in 2012.
After failing to agree the terms of an investment project with the Malian government, AngloGold said it had started the process of selling the Sadiola mine, a joint venture with IAMGOLD.
AngloGold, which along with IAMGOLD had been in talks with Mali about a project to add sulphide-ore processing capability to a plant, said “while this agreement has not yet been reached, AngloGold Ashanti and IAMGOLD, who collectively own an 82 percent interest in Sadiola, have initiated a process to identify third parties that may be interested in acquiring their collective interests in Sadiola”.
After the sale of some South African assets, AngloGold reported a 15 percent fall in production to 851,000 ounces in the quarter ended September 30, 2018 from the same period a year earlier.