AngloGold sees clarity on Ashanti deal

World number two gold miner AngloGold (ANG) expects clarity from the Ghanaian government by mid-September regarding the proposed merger with Ashanti Goldfields, said AngloGold CEO Bobby Godsell on Thursday.

In other news, AngloGold announced that its board had approved the capital project of 1.2 billion rand at its Tautona mine in South Africa, with the project expected to deliver 1.8 million ounces of gold over the next ten years.

"We understand and support the government of Ghana seeking advice," Godsell added.

The Ghana government has appointed a consortium led by Societe Generale to act as advisors in the Ashanti transaction.

AngloGold is seeking to merge with Ghana's Ashanti Goldfields to create a company to challenge US Newmont Mining Corporation's spot as the world's largest gold miner.

The Ghana government has a 17% stake in Ashanti. Godsell refused to be drawn on the offer by AngloGold for Ashanti.

"We have no comment on the offer. We made the offer with enthusiasm and we can't say more than that," Godsell said.

Regarding AngloGold's strategy going forward, Godsell said the company had never been driven by a "continental logic" regarding it acquisitions and diversifying its production away from South Africa.

However, he said the geological mix of mining as well as getting a mix of shallow, open cast and deep level gold mines played a part in driving the company's focus.