Bloomberg reports that AngloGold Ashanti indicated on Thursday that it was reviewing options to sell its South African business – including Mponeng, its last underground mine in the country – as the gold producer focuses on assets that generate higher returns.  

CEO Kelvin Dushnisky said in a statement:  “The investment to extend Mponeng’s life beyond eight years has very strong competition for capital and other scarce resources from a host of other projects in our portfolio, which at current planning assumptions are more attractive, generating higher returns and quicker payback periods.  We have therefore decided to review divestment options for our South African business."  The company said the process was at an early stage and might not ultimately result in any change to the ownership of its SA business.  The sale of Mponeng would be the final step in AngloGold’s withdrawal from SA after it sold and shut other mines in the country to stem losses.  While there would be challenges in getting the backing of the SA government and trade unions, the sale would improve the company’s valuation to investors, observed James Bell, a mining analyst at RBC Capital Markets.

• Read the full original of Felix Njini’s report on this story at Moneyweb

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