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S.Africa's mines ministry OKs AngloGold asset sale but blocks delisting

Credit: REUTERS/SIPHIWE SIBEKO

South Africa's mines ministry has given the green light for the sale of AngloGold Ashanti's last remaining assets in the country to Harmony Gold on condition that it does not delist from the Johannesburg stock Exchange.

By Tanisha Heiberg

JOHANNESBURG, Aug 26 (Reuters) - South Africa's mines ministry has given the green light for the sale of AngloGold Ashanti's ANGJ.J last remaining assets in the country to Harmony Gold HARJ.J on condition that it does not delist from the Johannesburg stock Exchange.

Harmony agreed in February to buy rival AngloGold Ashanti's assets in South Africa, including Mponeng, the world's deepest gold mine, for about $300 million.

AngloGold said during its results in August that all other conditions for the sale, barring an approval from the South African Department of Mineral Resources and Energy, had been received.

Every sale in the mining sector must be approved by the ministry under mineral resource laws stipulated in the Mineral and Petroleum Resources Development (MPRDA).

"The Department can confirm that an application in terms of Section 11 of the MPRDA has been received and was approved on 24 July," the Department of Mineral Resources and Energy said via email.

The ministry said the granting of the application was based on a understanding between AngloGold Ashanti and the department that subsequent to the granting of the application they would not disinvest from the South African economy by delisting from the Johannesburg Stock Exchange or relocate their headquarters.

AngloGold, which said in February that it would consider moving its primary listing as it streamlines its portfolio, said moving its listing was no longer a priority amid the pandemic.

AngloGold did not immediately respond to requests for comment.

(Reporting by Tanisha Heiberg; editing by Promit Mukherjee and Jason Neely)

((Tanisha.Heiberg@thomsonreuters.com; +27117753034; Reuters Messaging: tanisha.heiberg.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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