Anglo Gold buys mining block from Gold Fields

Accra, Sept. 19, GNA- Gold Fields Limited has sold a portion of the Driefontein Mining area (blocks 1C11) to Anglo Gold for a cash consideration of 315 million rands, about 43 million dollars.

A joint statement issued in Accra on Friday by Gold Fields Limited and Anglo Gold, indicated that the sale was subjected to the suspenseful conditions and approved by the Competition Commission.

Mr. Ian Cockerill, the Chief Executive Officer, Goldfields, speaking after the signing of the sale agreement at Goldfields' offices in Johannesburg on Thursday, September 18, said the deal makes a lot of sense.

" For Goldfields, it brings value forward and we shall use the cash from the deal to invest in our current operations for the benefit of all Gold Fields' stakeholders".

Anglo Gold has 27 per cent shares in Gold Fields Limited. "We believe that this is not only a good deal at fair value for both companies, but a win-win situation for the local gold mining industry. It is yet another breakthrough in the removal of farm fences and is an example of working together to optimise the extraction of ore bodies." he added.

Mr. Bobby Godsell, Chief Executive Officer for Anglo Gold said, " We are also sure that this kind of transaction will lead to a more profitable and sustainable South African gold mining industry." The block 1C11, located on the western boundary of Driefontein, covers an area of 280,000 square metres, with 1.4 million tons of reserves at a grade of 12.7 grams a ton.

The statement added that Anglo Gold, which is mining adjacent to the area, would be able to reach the reserve by the end of 2004 instead of Gold Fields projected 10 years.