Consolidation in the global gold mining sector continues apace. After Randgold’s acquisition of Barrick Gold in 2019, Endeavour Mining’s acquisition of Semafo and Teranga Gold between 2020 and 2021 and Newmont’s acquisition of Newcrest last year – and the price of gold hitting all-time highs ($2,508 an ounce on 10 September) – it’s now the turn of another gold giant to embark on a takeover.
AngloGold Ashanti has announced a $2.5bn deal with Centamin, which includes Egypt’s first industrial gold mine, Sukari.
Launched in 2009, Sukari Gold Mine produces around 450,000 ounces a year. AngloGold should thus reach 3 million ounces a year, and with it enter the top five of the world’s gold producers, according to 2023 data. The deposit still contains 5.8m ounces and could be mined until at least 2034.
Centamin is exploring three other sites in Egypt, giving AngloGold a solid footprint in a country seeking to attract mining investors. The agreement also sees the mining giant take over two projects in Côte d’Ivoire.
According to results published at the beginning of September, one of these projects, Doropo, is expected to produce more than 200,000 ounces during its first five years of operation. The announcement comes after Côte d’Ivoire’s discovery of the country’s largest gold deposit in May.
Growing network across Africa
The transaction, backed by the boards of AngloGold and Centamin, is expected to be completed by the end of the year if the necessary approvals are obtained. It would be another success in African gold for Centamin’s CEO, Martin Horgan. In 2009, he founded Toro Gold, one of the pioneers of industrial-scale gold mining in Senegal, and sold the company to Resolute Mining for $274m in 2019.
AngloGold remains a leader in gold extraction on the continent, with 1.54 million ounces from five mines
The acquisition of Centamin signals a strengthening of AngloGold’s presence on the African continent, after several years of withdrawal from its native South Africa. AngloGold completed the sale of its South African gold mines in 2020.
Last year, the group, led by Alberto Calderon, moved its headquarters from Johannesburg to London, and its main listing from South Africa to the United States.
However, AngloGold remains a leader in gold extraction on the continent, with 1.54 million ounces from five mines. These include Africa’s largest, Kibali, in the Democratic Republic of Congo, jointly owned with Barrick and Sokimo. There are also Siguiri in Guinea, Iduapriem and Obuasi in Ghana, and Geita in Tanzania. The group also operates assets in Australia, Brazil, Argentina, Colombia and the US.