AngloGold exits another Australian investment as f
AngloGold exits another Australian investment as focus shifts to Africa
November 25, 2003
By Sherilee Bridge
Johannesburg - AngloGold, the country's largest gold producer, yesterday exited another long-held Australian investment as the company shifted its focus to Africa and the finalisation of its $1.5 billion merger with Ghana's Ashanti Goldfields.
AngloGold has budgeted A$26 million (about R122 million) for Australian exploration this year, most of it earmarked for brownfields exploration.
But the drop in value of the US dollar has also eaten away Australian margins, making Africa a more attractive destination for investment.
In addition, South African foreign exchange controls have been relaxed, giving local companies bigger investment allowances in Africa than in the rest of the world.
AngloGold said Australian junior Tanami Gold had acquired its Coyote gold project in the isolated Tanami Desert region of northern Australia in a cash and share deal valued at A$14 million.
This comes just over one week after AngloGold agreed to sell its the Union Reefs gold mine at Pine Creek to Greater Pacific Gold for A$6.2 million.
"In reaching its decision to divest its interest in the western Tanami region, AngloGold concluded that the region was unlikely to provide projects that would fit into the AngloGold portfolio of long-life, high-margin assets," AngloGold said in a statement on the Stock Exchange News Service in Johannesburg.
Since its failed A$4 billion-plus bid to take over Australian gold mining company Normandy Mining in 2002, AngloGold has slowed investment in Australia.
AngloGold's remaining mining interests in Australia are at Sunrise Dam, where contracts have been awarded to begin work on the underground mine, and in the Boddington joint venture.
Jonathan Best, the chief financial officer of AngloGold, said $72 million was budgeted for Sunrise Dam's underground development and $150 million for the Boddington development.
AngloGold shares closed R5.30 lower at R294.30 yesterday.
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