Mining giants AngloGold Ashanti PLC and Gold Fields have announced a pause in discussions regarding a proposed joint venture to merge their Iduapriem and Tarkwa gold mines in Ghana. This decision comes two years after initial talks began in March 2023.

The proposed merger, which aimed to create Africa’s largest gold mine, was initially met with optimism. Both companies engaged in prolonged negotiations with the Ghanaian government to secure the necessary regulatory approvals.

However, in a recent statement, AngloGold Ashanti revealed that it had made significant discoveries within its updated standalone mine plan for Iduapriem, prompting a reassessment of its strategic priorities.

“The companies have decided to pause discussions around the joint venture to allow them to focus on improving the current, standalone performance at their respective sites, while also allowing AngloGold Ashanti to consolidate the improvements to its long-term mining plan, which currently shows the highest value of its options,” part of the statement from AngloGold Ashanti PLC read.

Located in Ghana’s Western Region, the Iduapriem mine lies about 70km north of Takoradi and just 10km southwest of Tarkwa, creating a compelling case for operational synergy.

Iduapriem has been producing gold since 1992 and became part of AngloGold Ashanti’s portfolio through its merger with Ashanti Goldfields in 2002.

In 2024, the mine produced 237,000 ounces of gold at a cash cost of $1,118 per ounce.

While the merger could have significantly increased efficiency and output, both companies are now prioritising the optimisation of their individual operations.

No timeline has been provided for a potential resumption of talks, but both firms have left the door open for future collaboration, depending on evolving operational and market dynamics.

SP/MA

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