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Ghana Joint Venture talks halted by AngloGold Ashanti and Gold Fields

AngloGold Ashanti, Gold Fields and the Ghanaian government have agreed to suspend talks on merging their two mines, Iduapriem and Tarkwa, which are adjacent. The companies announced this Tuesday, nearly two years after they first announced the plan.

Ghana's government has yet to decide whether or not to approve the regulatory approval for the plan to combine two mines that would have created Africa’s largest gold mine.

The companies decided to stop discussing the joint venture in order to concentrate on improving their current performance, as a standalone entity, at each of their sites.

Gold Fields stated in a separate press release that, while the combination of both mines was "compelling", each miner would continue to focus on its respective operations "on an individual basis".

According to the joint venture agreement, Gold Fields would own 60% of the combined operation and AngloGold 30%, respectively. The government would hold 10%.

It was estimated that the joint operation would produce 900,000 to 600,000 pounds of gold annually in the first five-year period and over an estimated 18 years.

(source: Reuters)