Gold Fields eyes AngloGold’s Iduapriem mine

Alfred Baku

Alfred Baku

Gold Fields Limited says it is interested in buying AngloGold Ashanti’s Iduapriem mine in Ghana as it seeks to increase output from West Africa by about two-thirds to one million ounces.

The precious metal producer is also looking for opportunities to buy mines in Mali, Burkina Faso and Senegal, the company’s vice president for West Africa, Mr. Alfred Baku, said in an interview with Bloomberg.

“We are interested in the Iduapriem mine because of its geographical location and nearness to our Tarkwa mine,” Mr. Baku said, referring to one of its existing mines in Western Region.

He added: “We believe that it’s logical for us to develop the two. We will be happy to get it.”

Gold Fields’ Tarkwa mine is the bigger of the two mines, producing 140,000 ounces in the first quarter of this year, compared with Iduapriem’s 46,000 ounces.

Gold Fields said in February that it is looking to buy assets in the regions where it already operates as it tries to increase metal output and lower costs.

AngloGold, the world’s third-largest miner of the metal, has taken the government to an international arbitration panel over its failure to secure its Obuasi mine, which is not currently producing gold, from illegal miners. The problem has not affected Iduapriem and Tarkwa, which is about 150 kilometres south of Obuasi.

AngloGold’s Chief Executive Officer Srinivasan Venkatakrishnan previously said the company wasn’t under any pressure to let go of assets after it sold its Cripple Creek & Victor mine in the U.S. to Newmont Mining Corporation for $820 million last year to pay off debt.

“Iduapriem is a solid, well-run mine that generates cash and has a range of promising project options that will generate additional value for us over time,” Stewart Bailey, a spokesman for Johannesburg-based AngloGold, said in a response to questions posed by Bloomberg.

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