Bloomberg News

AngloGold Open to Talks on Sadiola, Sees Potential With Tarkwa

August 06, 2012

AngloGold Ashanti Ltd. (ANG), the third- largest producer of the metal, would be interested in buying IAMGOLD (IAG:US) Corp.’s 41 percent stake in Mali’s Sadiola mine “for the right price,” Chief Executive Officer Mark Cutifani said.

AngloGold, which already owns 41 percent of Sadiola, and IAMGOLD agreed a year ago to maintain the mine’s current ownership structure. The government holds the remaining stake.

“It remains one of those things where, unless one of us takes it on a more substantive basis, you have to question whether it’s the right thing for the people not to have a dedicated leader,” Cutifani said today in an interview in Johannesburg. “So we’re open to that conversation.”

Sadiola is in the northwest of Mali, which ranks alongside Tanzania as Africa’s third-biggest gold producer. In June, AngloGold signed a fiscal stability agreement with Mali’s government over the mine where it’s considering an expansion.

AngloGold may have two or three assets for sale at the moment, Cutifani told investors in Johannesburg today after reporting second-quarter results. He overseas 20 operations in 10 countries on four continents.

AngloGold is open to exploring possibilities at its Iduapriem mine in Ghana, which is close to Gold Fields Ltd. (GFI:US)’s Tarkwa mine, Cutifani said in the interview. It makes sense to “do something sensible” with large adjacent assets, he said.

“Iduapriem and Tarkwa, for example, stand side by side, so we’re always open to those sorts of conversations that make sense for both groups,” he said. “There are no active conversations.”

AngloGold may decide in about 12 months to undertake further studies into the Navachab mine in Namibia, where local ownership requirements are being discussed, Cutifani said. There may be potential to double its capacity to about 200,000 ounces, he said.

To contact the reporter on this story: Carli Cooke in Johannesburg at

To contact the editor responsible for this story: John Viljoen at

The Good Business Issue

Companies Mentioned

  • IAG
    (IAMGOLD Corp)
    • $2.46 USD
    • 0.05
    • 2.03%
  • GFI
    (Gold Fields Ltd)
    • $4.49 USD
    • 0.12
    • 2.67%
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