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- Mining giant AngloGold Ashanti (AGG) will temporarily suspend production at its South African operations for three weeks
- The decision was made when South Africa’s President declared a nationwide lockdown for 21 days, to reduce the spread of COVID-19
- AngloGold has already had to suspend production at its Cerro Vanguardia mine in Argentina, due to COVID-19 related travel restrictions
- Despite disruptions, the company still plans to proceed with an asset sale to Harmony Gold Mining in June of this year
- AngloGold’s share price is up 8.01 per cent, and shares are trading for $6.74 each
Mining giant AngloGold Ashanti (AGG) will temporarily suspend production at its South African operations for three weeks.
South Africa’s President Cyril Ramaphosa recently declared that the nation would go into a 21-day lockdown to reduce the spread of COVID-19.
In compliance with the President’s order, all AngloGold operations in the country will shut down at midnight on March 26. At that point, the company will place the operations into care and maintenance for the three-week period.
AngloGold, which is working alongside the authorities, hopes that the decision will protect the health and safety of employees. Where possible, the company will work on developing plans to safely regain the production that is lost during the delay.
This the second virus-related suspension that the company has had to announce. Recently, AngloGold announced the suspension of mining at its Cerro Vanguardia project in Argentina, due to government travel restrictions with the suspension there lasting until the end of March.
Despite the disruptions caused by the coronavirus, the company is planning to proceed with an asset sale to Harmony Gold Mining. Harmony Gold has also indicated that it is still committed to the transaction.
AngloGold has agreed to sell South African assets, including the Mponeng Mine, Mine Waste Solutions, and surface rock-dump processing operations. These collectively produced 419,000 ounces in the year ending December 31, 2019.
The transaction, which is subject to certain conditions, should close on or about June 30 this year.
AngloGold’s share price is up 8.01 per cent, and shares are trading for $6.74 each at 11:11 am AEDT.
