The Gold Fields and AngloGold Ashanti merger to combine Tarkwa and Iduapriem gold mines in Ghana faces delays due to missing government approvals, affecting project timelines.
The proposed joint venture between Gold Fields and AngloGold Ashanti to merge their Tarkwa and Iduapriem gold mines in Ghana has faced significant delays due to a lack of government approvals. The deal, which was initially announced in March 2023, aimed to create the largest gold mine in Africa, with Gold Fields holding a 60% stake, AngloGold Ashanti 30%, and the Ghanaian government 10%.
In a joint statement, the companies noted that “Gold Fields and AngloGold Ashanti have sought to secure the requisite approvals, which include approval of the Proposed Joint Venture by the Parliament of Ghana, ahead of the October 2024 Parliamentary recess before the Ghana national elections to be held in December 2024”
However, as the necessary permits have not been granted ahead of Ghana’s national elections in December 2024, both companies are now separately focusing on improving their respective assets.
Despite the delay, both companies continue to believe that combining the two mines into a single managed entity will extend the life of the mines, increase production, lower operational costs, and create substantial value for all stakeholders.
The joint venture was expected to produce around 900,000 ounces of gold annually over the first five years and 600,000 ounces per year over its 18-year lifespan. However, without a clear timeline or the required approvals, the two companies will continue to pursue separate efforts while keeping the potential merger on the table.
With the current standoff in parliament, which has led to a second indefinite adjournment of sitting, there is little to no chance of the mining companies securing the needed approval before the elections on December 7.
The joint venture was part of Gold Fields and AngloGold Ashanti’s broader strategy of shifting focus from their traditional base in South Africa to international operations in countries such as Ghana, Australia, and the Americas, as mining in South Africa has become increasingly complex and costly due to challenging geology.
