Tag Archives: Iduapriem

Gold Fields and AngloGold Ashanti agree on deal to create Africa’s largest gold mine

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Gold Fields and AngloGold Ashanti have agreed the key terms of a proposed joint venture in Ghana between Gold Fields’ Tarkwa (pictured above) and AngloGold Ashanti’s neighbouring Iduapriem mines to create what they say will be the largest gold mine in Africa and one of the largest in the world.

The Tarkwa mine is held by Gold Fields Ghana, in which Gold Fields currently owns a 90% share and the Government of Ghana (GoG) holds 10%. The Iduapriem mine is currently 100% owned by AngloGold Ashanti. Both mines are located near the town of Tarkwa in the country’s Western Region.

The parties have agreed in principle on the key terms of the proposed jv and have commenced with preliminary, high-level and constructive engagements with senior government officials in Ghana and will continue engaging with the GoG, relevant regulators and other key stakeholders, with a view to implementing the proposed jv as soon as practically possible. They have also agreed to mutual exclusivity during this engagement.

It is intended that the jv will be an incorporated joint venture, constituted within Gold Fields Ghana and operated by Gold Fields. AngloGold Ashanti will contribute its 100% interest in Iduapriem to Gold Fields Ghana in return for a shareholding in that company.

The companies do not anticipate that any material, additional capital injection will be required by either company to establish the proposed jv, and is expected to materially improve its capital intensity once operational.

Excluding the interest to be held by the GoG, Gold Fields will have an interest of 66.7%, or two-thirds, and AngloGold Ashanti will have an interest of 33.3%, or one-third, in the jv.

The Iduapriem mine is currently 100% owned by AngloGold Ashanti

The companies said: “The proposed jv would create the largest gold mine in Africa and one of the largest in the world. It will be a high-quality operation, supported by a substantial mineral endowment and an initial life spanning almost two decades.”

Operational synergies will be achieved by optimising mining of the combined orebodies and consolidating the infrastructure of the immediately adjacent mines for the long-term benefit of all shareholders and stakeholders, the companies said.

Martin Preece, Interim CEO of Gold Fields, said: “The proposed jv is an exciting opportunity to combine mining operations that are essentially part of the same mineral deposit and is something that Gold Fields and AngloGold Ashanti have discussed many times before over the years. The ability to optimise mining and the use of shared infrastructure across the combined operation will result in significant flexibility in mine planning, materially enhancing the economics of the mine and ensuring quality and scale of operation that will be world class. That unlocked value will underpin the proposed jv’s continued contribution to our host communities and Ghana for decades to come. For Gold Fields, it will also significantly enhance the overall quality of our portfolio.”

Alberto Calderon, CEO AngloGold Ashanti: “This combination puts together two parts of the same world-class orebody, allowing us to share skills and infrastructure to significantly enhance every aspect of this mining operation, from exploration and planning, to mining and processing. By creating one of the world’s largest open-pit gold operations, in a pre-eminent mining jurisdiction, we will create longer-term value not only for AngloGold Ashanti and Gold Fields, but for the combined stakeholders in our local host communities and for all of Ghana.”

The combined operation comes with an estimated life of at least 18 years, which could increase through an extension and optimisation plan to be considered under the proposed jv over the next three years, and which could also enhance envisaged production and cost parameters.

It would come with estimated average annual production (100% basis) of almost 900,000 oz over the first five years and average annual production in excess of 600,000 oz over the estimated life of operation. All-in sustaining costs (in 2023 terms) were expected to be less than $1,000/oz over the first five years and less than $1,200/oz over the estimated life of operation.

AngloGold investigating use of battery-electric vehicles at Cuiaba mine in Brazil

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AngloGold Ashanti says it is weighing up the potential introduction of battery-electric vehicles at its Cuiaba mine in Brazil as a small part of a wider initiative to achieve a 30% absolute reduction in its Scope 1 and 2 Greenhouse Gas (GHG) emissions by 2030.

The company says this carbon emission reduction target could be met through a combination of renewable energy projects, fleet electrification and lower-emission power sources. The company has already reduced its absolute GHG emissions by more than two thirds since 2007, and remains committed to achieving net zero emissions by 2050.

The targeted reduction announced today, from a 2021 baseline of 1.4 Mt of carbon dioxide equivalent (CO2e), aims to see emissions from the company’s activities diminish to about 1 Mt by the end of the decade. When growth projects are factored in, including those in Nevada and Colombia, AngloGold Ashanti is targeting a 46% reduction in emissions by the end of the decade.

The capital cost required to achieve these reductions over the coming eight years is anticipated to be about $1.1 billion, of which $350 million will be funded over that period by AngloGold Ashanti and the remaining $750 million through third-party funding, including from providers of renewable energy infrastructure. The company plans in the coming weeks to initiate a process to secure a green funding facility of $250-300 million to finance its portion of these decarbonisation initiatives across its business.

“We have a clear pathway to achieve our target by 2030, when we expect to have lowered our overall emissions by almost a third,” AngloGold Ashanti Chief Executive Officer, Alberto Calderon, said. “This ensures we continue to do our part in reducing our carbon footprint, while also improving the value of our business.”

The targeted reductions announced today incorporate initiatives at each business unit including the introduction of renewable energy, cleaner grid power and partial fleet electrification.

Approximately 60% of the planned emissions reductions will come from large renewable energy projects including wind and solar projects at the company’s Australian operations and solar-power plants at both Siguiri in Guinea and the Iduapriem and Obuasi operations in Ghana, AngloGold said. In addition, a prefeasibility study has commenced at the Cuiaba mine in Brazil to confirm the benefits of replacing some mobile fleet with battery-electric vehicles. AngloGold will also be working with Sandvik to trial underground mining’s largest-capacity BEV truck, the 65-t payload TH665B at Sunrise Dam.

The Cuiabá complex includes the Cuiabá and Lamego underground mines and the Cuiabá and Queiroz plants. Ore from the Cuiabá and Lamego mines is processed at the Cuiabá gold plant. The concentrate produced is transported by aerial ropeway to the Queiroz plant for processing and refining. Total annual capacity of the complete Cuiabá circuit is 1.75 Mt.

The viability of a wind farm at Cerro Vanguardia in Argentina is also being investigated. The vast majority of these projects are expected to be NPV-positive adding value to the business by reducing energy costs and improving energy security, the company said.

Two “clean grid” initiatives are already close to completion – a switch from diesel generation at the Geita mine site in Tanzania to the country’s national power grid, which has a high proportion of power sourced from gas and renewables, and the transition to full hydro-grid power in Brazil.

AMS to continue servicing AngloGold’s Iduapriem with help of MAXMASS

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AMAX, a joint venture between Perenti Global’s surface mining business in Africa, African Mining Services (AMS), and Ghana-based mining services company MAXMASS Ltd, has been awarded a new circa-A$470 million ($346 million), five-year contract at AngloGold Ashanti’s Iduapriem gold mine in the Western Region of Ghana.

Perenti’s work in hand will increase by circa-A$280 million over the term of the contract, which is expected to commence immediately.

The new contract is structured as a 60:40 joint venture agreement between AMS and MAXMASS and represents AMS’ significant and ongoing commitment to developing and expanding the capacity and capability of local partners, Perenti explained.

Mark Norwell, Managing Director and CEO of Perenti, said the continued transformation of AMS, including the winning of quality projects underpinned by robust financial and commercial disciplines, remains a key strategic initiative in Perenti’s 2025 Group Strategy.

“We’re delighted to be extending our relationship with our long-standing client, AngloGold Ashanti,” Norwell said. “AMS has a reputation for delivering excellence while generating enduring value and certainty for stakeholders and the award of this new contract at a site where AMS has previously operated for AngloGold Ashanti provides further support for that reputation.”

Perenti Mining Chief Executive Officer, Paul Muller, said AMS had a long history of delivering operational excellence and value to clients, having provided mining services in Ghana for 30 years.

“We have provided surface mining services at the Iduapriem gold mine since 2012, establishing a successful partnership with AngloGold Ashanti,” he said. “We look forward to continuing to strengthen this partnership and also welcome the opportunity to work with our newest joint venture partner, MAXMASS.

“We have a strong commitment to support and build local capability to generate social and economic value for the regions in which we operate. Under this contract, and through the AMAX joint venture, we expect to continue to support the many local businesses that have become important suppliers and contractors to our operations under previous contracts. The joint venture also expects to employ more than 475 Ghanaians with approximately 40% of the workforce employed from the surrounding local communities and the remaining 60% from other regions within Ghana.”

Iduapriem is an open-pit mine with two circuits each comprising two-stage milling – a gravity circuit and a carbon-in-leach (CIL) plant. The gravity circuit recovers about 30% of the gold and the remainder is recovered by the 418,000 t/mth capacity CIL plant, according to AngloGold.