Gold Fields, AngloGold joint venture deal could conclude in 2023 - Executive Vice President

The Executive Vice President and Head Gold Fields West Africa, Joshua Mortoti, says barring any hitches the proposed joint venture with AngloGold could be concluded by the end of 2023 or early next year.

“It is hard to offer an exact timeline, given that this will involve detailed discussions with government and requires regulatory approvals, but we hope to be able to implement the transaction by the end of 2023 or early next year at the latest,” he said at a briefing on the deal.

He said there were also plans to earnestly engage the government on the proposed joint venture soon.

He said the deal would bring major benefits to the communities as revenues grow and the foundations operated by both companies received enough contributions to execute their activities.

Gold Fields and AngloGold Ashanti announced last week they had agreed on the key terms of a proposed joint venture in Ghana between Gold Fields’ Tarkwa and AngloGold Ashanti’s neighbouring Iduapriem mines.

The Proposed Joint Venture would have an estimated average annual production (100 per cent basis) of almost 900koz over the first five years and average annual production in excess of 600koz over the estimated life of operation and an estimated all in sustaining cost (in 2023 terms) of less than US$1,000/oz over the first five years and less than US$1,200/oz over the estimated life of operation.

The proposed Joint Venture would be an incorporated joint venture, constituted within Gold Fields Ghana and operated by Gold Fields.

The Proposed Joint Venture would create the largest gold mine in Africa and one of the largest in the world.

It will be a high-quality operation, supported by a substantial mineral endowment and an initial life spanning almost two decades.

It said operational synergies would be achieved by optimising mining of the combined ore bodies and consolidating the infrastructure of the immediately adjacent mines for the long-term benefit of all shareholders and stakeholders.

Benefits of the proposed Joint Venture include an estimated life of at least 18 years, which could increase through an extension and optimisation plan, which would be considered under the Venture over the next three years, and could also enhance envisaged production and cost parameters.

Commenting on the deal, Mr Eric Asuboteng, Managing Director AngloGold Ashanti Ghana, said the proposed joint venture managed to capture true synergies in a commercially sensible way by removing the fence between two halves of the same deposit and managing their operations and infrastructure under a single structure.

“We expect reserves of the proposed Joint Venture will exceed the sum of the reserves for the standalone operations, given the extent of the anticipated operational synergies,” he added.

Goldfields Ghana limited will own 60 per cent of the Joint Venture, anglogold Ashanti 30 per cent and government 10 per cent of that company.