AngloGold Ashanti, Gold Fields pause plans to merge Ghanaian gold mines

AngloGold Ashanti and Gold Fields have decided to suspend talks on their joint venture. This merger aimed to combine the Iduapriem and Tarkwa gold mines in Ghana. It was expected to create Africa’s largest gold-producing operation.

The companies announced their merger plans in March 2023. They engaged in “constructive dialogue” with the Government of Ghana for approvals. However, both firms will now focus on their individual operations.

In a joint statement, they confirmed the pause in discussions. AngloGold Ashanti noted recent developments at its Iduapriem mine shifted priorities. The company identified changes that could unlock significant value.

Both companies believe it is best to optimize current operations. They want to improve standalone performance at their respective sites. AngloGold Ashanti aims to consolidate improvements in its long-term mining plan.

The Iduapriem mine is located about 70 kilometers north of Takoradi. It began operations in 1992 and was acquired by AngloGold Ashanti in 2002. In 2024, it produced 237,000 ounces of gold at a cash cost of $1,118 per ounce.

Its proximity to Gold Fields’ Tarkwa mine made the merger strategic. Industry observers expected the union would enhance efficiency and boost output.

The suspension indicates both companies value their existing plans more immediately. Despite pausing talks, neither company has ruled out revisiting the merger later. There is no specified timeline for resuming discussions.