Sibanye and Harmony Vie for AngloGold’s South African Assets

LAGOS (Capital Markets in Africa)  – AngloGold Ashanti Ltd. has narrowed the list of bidders for its remaining South African assets to two of the nation’s largest gold miners, according to people familiar with the matter.

AngloGold is evaluating offers from Sibanye Gold Ltd. and Harmony Gold Mining Co., said the people, who asked not to be identified because the information is private. The initial interest shown by other companies has waned, and Sibanye and Harmony are the only ones with the technical expertise and experience to operate AngloGold’s Mponeng mine, the world’s deepest, one of the people said.

Chris Nthite, a spokesman for AngloGold, declined to comment on speculation about the sale. Sibanye continues to engage with AngloGold as the process progresses, said spokesman James Wellsted. Marian Van Der Walt, a spokeswoman for Harmony, declined to comment.

The sale of Mponeng and some surface assets would complete AngloGold’s withdrawal from South Africa as Chief Executive Officer Kelvin Dushniskyfocuses on more profitable mines in West Africa, Australia, and South America. The CEO said last month the sale may close as early as the first quarter of 2020.

For AngloGold, the sale could be a precursor to the company shifting its primary listing away from Johannesburg to London or Toronto. It would also help remove the discount at which the company’s shares trade to global peers such as Barrick Gold Corp., according to RBC Capital Markets.

Sibanye CEO Neal Froneman has said Mponeng would complement the company’s adjacent Driefontein mine. Harmony boss Peter Steenkamp has previously described Mponeng as an “opportunity” as his company seeks to replace depleting reserves.

Chinese buyers, including Heaven-Sent Capital Management Group, previously showed interest in some of AngloGold’s smaller South African assets, people familiar said in September.