AngloGold seeks buyer or partner for Cripple Creek & Victor mine in US

31 March 2015 (Last Updated March 31st, 2015 18:30)

South African mining company AngloGold Ashanti has started a process to find a joint venture partner or buyer for its Cripple Creek & Victor (CC&V) mine in the US.

South African mining company AngloGold Ashanti has started a process to find a joint venture partner or buyer for its Cripple Creek & Victor (CC&V) mine in the US.

The company has received an offer for the acquisition of its 41% stake in Sadiola and 40% stake in Yatela in Mali.

In 2014, Sadiola and Yatela produced 85,000oz and 11,000oz of gold respectively.

AngloGold Ashanti CEO Srinivasan Venkatakrishnan said: "As we have mentioned since the latter part of 2014, we will work actively to reduce our net debt levels over the next two to three years to provide the company with greater financial flexibility, but in doing so, we will not act in haste nor compromise long-term value.

"We will work actively to reduce our net debt levels over the next two to three years to provide the company with greater financial flexibility."

"As one of a number of options in this regard, we have initiated a plan to identify a joint venture partner or purchaser in respect of our interests in CC&V."

In order to simplify its portfolio, improve cashflow generation and reduce debt, the company is pursuing various measures such as plans to realise additional savings from existing operations and capture synergies from combining neighbouring mines and infrastructure in South Africa.

AngloGold also plans to introduce partners in its Colombia business, in addition to entering into a joint venture or divest one of its operating assets.

The surface mining operation CC&V, which provides oxidised ore to a crusher and valley leach facility, produced 211,000oz of gold in 2014.

The sale proposal is said to be in-line with an objective to simplify and improve the overall quality of the company's portfolio.