South Africa\u2019s mines ministry has approved AngloGold Ashanti\u2019s (JSE: ANG) (NYSE: AU) the sale of its last remaining assets in the country to rival Harmony Gold (JSE: HAR) (NYSE: HMY), on condition that it does not delist from the Johannesburg stock Exchange.<\/p>\n
AngloGold announced the\u00a0sale of its remaining asset<\/a> in the home country\u00a0earlier this year for $300 million. The portfolio included Mponeng, the world’s deepest gold mine and the company\u2019s last underground operation in South Africa.<\/p>\n The company said at the time it would consider moving its primary listing on the JSE after leaving the country. Earlier this month, however, it said that was no longer a priority amid the covid-19 pandemic.<\/p>\n Harmony\u2019s acquisition of AngloGold\u2019s operations in South Africa is expected to help the miner sustain growth and replace capacity. Most of Harmony\u2019s output in the country currently comes from its Masimong and Unisel mines, which are running out of ore<\/a>.\u00a0<\/p>\n The Department of Mineral Resources and Energy (DMRE) corroborated on Wednesday the approval of the proposed transaction.<\/p>\n \u201cThe Department can confirm that an application in terms of Section 11 of the MPRDA has been received and was approved on 24 July,\u201d the DMRE told Reuters via email.<\/p>\n AngloGold said on Wednesday it had not yet received all necessary approvals and was still in talks with government.<\/p>\n The sale would mark the miner\u2019s exit from South Africa to focus on more profitable mines in Ghana, Australia and the Americas.<\/p>\n The company, which recently lost Kelvin Dushnisky as chief executive<\/a>, was born out of the mines bought and built by Anglo American (LON: AAL), the mining mammoth founded by the Oppenheimer family more than a century ago.<\/p>\n The company was the dominant gold miner for decades, but progressively became weaker as it closed and sold old mines in South Africa, in favour of offshore investments.<\/p>\n Harmony\u2019s chief executive officer, Peter Steenkamp, has repeatedly said<\/a> that South Africa is its main investment target.<\/p>\n South Africa\u2019s gold industry, however, continues to face mounting challenges, including geological and safety aspects of extracting ore from the world\u2019s deepest mines.<\/p>\nEnd of an era<\/strong><\/h2>\n