AngloGold Ashanti, Gold Fields pause joint venture discussions in Ghana

ANGLOGOLD Ashanti's share price surged 3.65% on the JSE Tuesday after it and Gold Fields announced they would pause their proposed Ghana joint venture plans.

- EDWARD WEST

AngloGold Ashanti and Gold Fields have agreed to suspend discussions about a proposal to combine their Iduapriem and Tarkwa gold mines in Ghana.

AngloGold's share price increased 3.65% to R789.09 on the JSE Tuesday afternoon, driving its price even higher from the R431.38 that it traded at a year ago. Gold Fields' share price was up 1.09% to R422.60. The gold price was up 5.29% to $3 389.75 per ounce.

The companies proposed the combination of the neighboring mines in March 2023 and had spent much of the time since then in talks with the Ghana government to obtain the necessary approvals.

"Over that time, AngloGold Ashanti has identified changes in its standalone mine plan for Iduapriem, which have the potential to unlock significant additional value," AngloGold said in a statement.

The companies have paused discussions to allow them to focus on improving the standalone performance at their respective sites, while also allowing AngloGold Ashanti to consolidate the improvements to its long-term mining plan, which currently shows the highest value of its options.