AngloGold Ashanti, the world’s third-largest gold producer, has announced that it is putting its Crixas gold mine in Brazil up for sale. The company said that the decision to divest the mine was part of its ongoing strategy to focus on its core operations and to reduce its exposure to countries with high political and operational risk.
The Crixas gold mine is located in the state of Goias in Brazil and has been in operation since 2003. It is one of the largest gold mines in Brazil, with an estimated proven and probable reserve of 3.2 million ounces of gold. The mine is operated by AngloGold Ashanti’s subsidiary, Mineração Crixás Ltda., and employs around 1,000 people.
The announcement of the sale comes as AngloGold Ashanti continues to focus on its core operations in Africa, Australia and the Americas. The company has been divesting non-core assets in recent years in order to reduce its exposure to countries with high political and operational risk. In 2017, the company sold its Obuasi gold mine in Ghana for $275 million and its Córrego do Sítio gold mine in Brazil for $220 million.
“This divestment is consistent with our strategy to reduce our exposure to countries with high political and operational risk,” said Srinivasan Venkatakrishnan, Chief Executive Officer of AngloGold Ashanti. “We remain committed to our core operations in Africa, Australia and the Americas, and this divestment will enable us to focus on these regions.”
The sale of the Crixas mine is expected to be completed by the end of 2019. AngloGold Ashanti has appointed Rothschild & Co. as its financial advisor for the transaction. The divestment of the Crixás mine is the latest in a series of divestments by AngloGold Ashanti as it seeks to focus on its core operations. The company has been divesting non-core assets in recent years in order to reduce its exposure to countries with high political and operational risk.
In 2018, the company sold its Siguiri gold mine in Guinea for $250 million and its Quebradona gold mine in Colombia for $100 million. Earlier this year, the company announced the sale of its Cerro Vanguardia gold mine in Argentina for $105 million.
The divestment of the Crixas mine is part of AngloGold Ashanti’s ongoing strategy to focus on its core operations and to reduce its exposure to countries with high political and operational risk. The company is expected to use the proceeds from the sale to reduce its debt and to reinvest in its core operations.
The sale of the Crixas gold mine is expected to be completed by the end of 2019. AngloGold Ashanti has appointed Rothschild & Co. as its financial advisor for the transaction. The company is currently in the process of engaging with potential buyers and is expecting to receive offers in the coming months.
