AngloGold Ashanti took direct control of mining operations at the Iduapriem gold mine near Tarkwa, Ghana, following a $66.5 million transition agreement with Australian company Perenti, officials said Thursday. The deal ended a long-running contract mining arrangement by shifting operatorship from Perenti’s African Mining Services to AngloGold Ashanti, which already wholly owns the open-pit mine.
Under the terms of the $66.5 million (A$95 million) transition agreement announced Thursday, AngloGold Ashanti will purchase most of the mining equipment used by Perenti’s African Mining Services (AMS) at the Iduapriem gold mine, officials said. The acquisition of AMS-owned mobile mining equipment and related assets is integral to AngloGold Ashanti’s assumption of direct operational control, enabling a seamless shift from contract mining to owner-operated mining without interruption to production, sources confirmed.
The mine produced 248,000 ounces of gold in 2022, with a total cash cost of $970 per ounce and an all-in sustaining cost of $1,299 per ounce, according to company data.
The six-month transition period will see AMS continue surface mining and support services at Iduapriem while AngloGold Ashanti prepares to fully assume responsibility for mine planning, production, and site management, according to Perenti’s announcement. This planned handover marks the end of an eight-year contract mining partnership between AngloGold Ashanti and AMS at the site near Tarkwa in Ghana’s Western Region. During this period, AMS will maintain production levels to ensure operational continuity, officials said.
Iduapriem is an open-pit gold mine wholly owned by AngloGold Ashanti Limited, a South African gold producer formed in 2004 through the merger of AngloGold and Ashanti Goldfields Corporation. AngloGold Ashanti is the world’s seventh-largest gold miner by 2023 production, operating 21 mines across four continents and listed on stock exchanges in Johannesburg, New York, and Accra, records show. As of December 31, 2022, Iduapriem held proved and probable gold reserves of 2.42 million ounces and measured, indicated, and inferred mineral resources totaling 3.92 million ounces.
Perenti, an Australian mining services group, has provided contract mining and support services at Iduapriem through its subsidiary AMS, which operates under the AMAX joint venture with Ghanaian partner MaxMass, sources said. The transition agreement does not involve the sale of the mine itself but rather a shift in operatorship from AMS to AngloGold Ashanti. This structure allows AngloGold Ashanti to directly manage mining operations using largely acquired equipment and any new fleet it opts to deploy.
AngloGold Ashanti’s long-standing presence in Ghana dates back to its $1.3 billion acquisition of Ashanti Goldfields in 2004, which established the company’s combined entity. The company also operates or holds interests in other major Ghanaian assets, including the Obuasi gold mine. The redevelopment of Obuasi received Ghanaian government approval as part of broader growth plans involving AngloGold Ashanti and Gold Fields, according to industry reports.
AngloGold Ashanti and Gold Fields have agreed on key terms for a proposed joint venture combining Gold Fields’ Tarkwa Mine and AngloGold Ashanti’s neighboring Iduapriem Mine. The joint venture, which aims to create Africa’s largest gold mine, would see Gold Fields hold a 66.7% stake and AngloGold Ashanti 33.3%, excluding the Government of Ghana’s 10% carried interest. However, as of late 2024, both companies confirmed that the requisite approvals from the Government of Ghana had not yet been obtained, indicating ongoing regulatory engagement.
The Government of Ghana typically holds a 10% free-carried interest in operating mines, a standard framework reflected in the proposed joint venture structure. At Tarkwa, this interest is held through Gold Fields Ghana. The Iduapriem mine’s operational and ownership arrangements are subject to similar regulatory oversight, requiring engagement with the Minister of Lands and Natural Resources and other authorities. Major changes in mine operatorship and joint venture arrangements in Ghana’s gold sector generally necessitate such approvals, as seen with Obuasi’s redevelopment and other projects.
The transition agreement with Perenti and the planned joint venture with Gold Fields form part of AngloGold Ashanti’s strategic efforts to consolidate and expand its footprint in Ghana’s gold mining sector. Officials from both companies have described their interactions with Ghanaian regulators as constructive, though formal government endorsement of the proposed Tarkwa-Iduapriem joint venture remains pending.
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