JOHANNESBURG, July 6 (Reuters) - AngloGold Ashanti's newly-appointed chief executive officer Alberto Calderon told Reuters on Tuesday he will take action to remove a roughly 80% discount in value relative to its gold mining peers and dismissed merger rumours.
Following the news, AngloGold shares rose more than 4%, outpacing its Johannesburg-listed gold mining peers Harmony Gold and Gold Fields , before giving up some gains to be 1.89% higher at 1405 GMT. Calderon is an industry veteran, who previously headed Melbourne-based explosives maker Orica Ltd and worked as a senior executive at mining giant BHP Group . He also served as CEO of Cerrejn, Colombia's largest mining operation. In an interview, he said he would seek to resolve the issues that have weighed on AngloGold, including fast-tracking project approvals.
"Clearly at some point the board and myself will need to address this and land on a solution," he said. AngloGold - which has mines in several other African countries as well as Argentina, Australia and Brazil - had previously considered moving its primary listing. Calderon's appointment takes place a year after former CEO Kelvin Dushnisky resigned, following a two-year stint in charge. Interim CEO Christine Ramon has been appointed as chief financial officer. AngloGold's share price was hurt by Dushnisky's resignation, as miners globally battled the impact of the pandemic, although record high bullion prices boosted profits.
"I don't see any other option in the short-run to add better value than through organic and efficient, optimised growth internally," he said. "I think any other thing will just be a distraction." Sibanye-Stillwater CEO Neal Froneman floated the idea of a merger with AngloGold and Gold Fields in March, saying consolidation was needed for South Africa's gold miners to compete globally.
Major companies such as Newmont Goldcorp, Kinross Gold, AngloGold Ashanti, Barrick Gold and Gold Fields are active in the region, alongside controversial artisanal miners, who are especially active in Ghana, Mali and Burkina Faso.
While traditional companies and artisanal miners contributing to Ghanas gold production, some of the largest include Kinross Gold (Chirano mine), Newmont Goldcorp (Akyem and Ahafo mines), AngloGold Ashanti (Obuasi and Iduapriem mines), Gold Fields (works the Tarkwa gold mine) and Asanko Gold (Asanko mine).
The minerals mined in Ghana account for 37% of the countrys total exports, with gold comprising 90% of total mineral exports. Miningglobal.com estimates Ghanas gold reserves to be 1,000 metric tonnes.
Declining gold ore grades in South Africa over the past eight decades have seen the country lose its African top spot to Ghana. In 2019, gold production fell to 118 metric tonnes from 137 metric tonnes in the previous year.
The Witwatersrand Basin, an underground geological formation in South Africa, holds one of the largest gold placer deposits in the world. Top gold mines in the country include South Deep (the largest gold mine in the world in terms of reserves and currently owned by Harmony Gold), Mponeng (operated by AngloGold Ashanti and the deepest mine in the world) and Driefontein (owned by Sibanye-Stillwater). South Africas oldest mine, Kromdraai, is a currently a huge tourist attraction.
The north-east African country of Sudan comes third in this list with gold production of more than 76 metric tonnes in 2019. This was, however, a big drop from the 93 tonnes produced the previous year and the 107 tonnes in 2017. The Sudanese government, however, claims annual gold production in the range of 120-200 tonnes.
For years one of Africas top gold producing countries, Sudanese gold is found in the Eriab region of the Nuba mountains, along the alluvial regions of the Nile River and quartz vein formations in Obaidiya, Blue Nile region and North Kurdufan.
Africas third-largest country by area, Sudans gold mines include Hassai gold mine (owned by Sudans Ariab Mining Company and Canadas La Mancha Resources) and Block 14 open pit mine project (operated by Canadas Orca Gold).
The north-west African country of Mali produced more than 71 metric tonnes of gold in 2019, a sizeable jump from the 61.2 tonnes in 2018 placing it fourth in our list of the continents top gold producers. Malis gold mining operations not only involve large mining companies, but also artisanal miners, who have also produced a sizeable chunk of gold and made a significant contribution to the countrys economy.
Its gold mines include Morila (managed by Government of Mali, AngloGold Ashanti and Barrick Gold), Sadiola (managed by Government of Mali, AngloGold Ashanti and LamGold), Loulo-Gounkoto (managed by Barrick Gold) and Yatela (managed by Government of Mali, AngloGold Ashanti and LamGold).
Burkina Fasos 62 metric tonnes of gold produced in 2019 places it in fifth position in our list. Said to have one of the most dynamic mining sectors in West Africa, Burkina Fasos other major resources are copper, zinc, limestone, manganese and phosphate.
The countrys gold mines include Kalsaka (operated by Banlaw Africa Limited), Youga (jointly operated by Government of Burkina Faso and Etruscan Resource), Karma (operated by Endeavour Mining), Mana (operated by Semafo), Yaramoko (operated by Roxgold), Taparko-Boroum (owned and operated by Socit des Mines de Taparko SA), Essakane (operated by IAMGOLD), and Inata (jointly operated by the Government of Burkina Faso and Avocet).
Gold has historically been a safe haven in times of uncertainty. With economies and stock markets around the world crashing as a result of the ongoing COVID-19 pandemic, investors have once again flocked to buy with demand resulting in the commodity reaching a 7 year high of >$1,700/oz in recent days.
Golds latest run is spurred by cash injections to mitigate the severe impact of COVID- 19 on the global economy. Governments worldwide are signing off on massive stimulus measures on top of the near-zero interest rates and quantitative easing in the hopes of jumpstarting businesses.
One would think that the high price would encourage more investment into South African gold mines, however market price is only one consideration and there are other factors that investors take into account and may, in fact, place more emphasis on.
The history of gold in South Africa goes back to 1873 when the first large-scale production began when alluvial deposits were discovered at Pilgrims Rest, followed shortly by gold discovery in Witwatersrand in 1884.
The discovery of gold in the late 19th century gave rise to the development of the city of Johannesburg, Egoli, or the City of Gold and for many years, South Africa was the worlds primary gold producer.
This is no longer the case and South Africas gold output has continued to decline for several decades. From peak production of around 1,000t in 1970, the nations gold output fell to 130t in 2018, with South Africa now only accounting for c.4% of the worlds gold production.
This decline, however, is not a result of a depletion in reserves and one would be wrong to assume that South Africa is running out of gold. In fact, over 50% of all gold reserves are found in South Africa, with the Witwatersrand Basin remaining the largest gold resource in the world.
The decline in production over the decades has been driven by a combination of closure, maturing assets and industrial strife which has created an inhospitable operating environment. Investors, and especially foreign investors, are not attracted to South Africas mining industry.
The industry has its challenges and many have stated that its simply too complicated to invest in South Africas mining industry from the stringent BEE requirements to the constant changes the Government can, and does, make to the Mining Charter, resulting in significant uncertainty for investors.
And it is not just new investment that is being deterred. Even the leading miners headquartered in South Africa are now focusing elsewhere, with Anglo Gold Ashanti recently selling the last of its South African mining assets and exiting the South African market to focus on looking offshore for less risky investments.
However, this would require significant capital investment and the key is whether South Africa can attract investment, especially when the rest of Africa is becoming more accessible and less risky to invest in the mining sector.
South Africa had long been the worlds most dominant country for gold mining. While gold mining is still going strong in the country, it is nowhere near as popular as it used to be. This is in spite of the strong history that South Africa has in the gold mining industry.
South Africa had been a very popular place for the mining of precious metals since the mid-nineteenth century when the Kimberley diamond mine was discovered. It would not be until the 1880s when gold was first found. It was found in the Witwatersrand area in the Gauteng Province.
The Witwatersrand Gold Rush of 1886 helped bring South Africa to prominence. The Golden Arc of gold deposits was believed to have once been an inland lake and that gold deposits settled into the region over time. The demand for gold mining activities in the area eventually led to the foundation of Johannesburg, a settlement that has since become South Africas largest city. This also led to the Second Boer War in 1899 as political disputes became more prevalent.
Gold mining activities became popular in South Africa throughout the twentieth century although the mining numbers have declined in recent time. In 1970, South Africa had been mining about 1,000 metric tons of gold each year. That total fell to 650 metric tons per year around the end of the decade. Today, South Africa is mining a little less than 200 metric tons of gold each year.
The East Rand Mine in Boksburg, a city just east of Johannesburg, is noteworthy for being one of the deepest gold mines in the world. It is about 11,700 feet deep. The mine has been active since 1893 although production levels have declined to below 80,000 ounces per year.
The TauTona Mine in Carletonville is only a few feet shallower than the East Rand Mine. Also located near Johannesburg, this mine has been in operation since 1962. It is getting about 190,000 ounces of gold each year although it was getting about half a million ounces in 2005.
The Kloof mine in Westonaria is also a popular place for mining with nearly ten thousand workers operating in the mine on a daily basis. However, it is estimated that this mine will close around 2033 based on current trends in the region.
The Witwatersrand Basin continues to be a popular region of South Africa to look into as nearly a third of all the gold that has ever been mined in the world has come from it. This is in spite of companies having to go deep to actually find gold today.
The reduction in gold deposits within South Africa has made it to where the countrys gold mining industry could be in serious jeopardy. The rise in electrical costs for mining operations in the country and the decline in the value of gold and other precious minerals within South Africa over the years have only made things worse.
Companies are also resorting to the use of high-end forms of technology to find gold deposits. This comes as the use of hand tools and dynamite has been deemed to be either obsolete or inefficient by most mining companies. The use of technology, particularly in the form of mining drones and other massive devices has only forced mining companies to spend more money on mining practices than what they can afford to handle.
Whether or not South Africa will rebound and start to become more powerful in the world of gold mining is unclear. South Africas gold economy is still strong but it is clearly a shadow of its former self.
After more than a century of gold mining in South Africa, the US Geological Surveys latest estimate still ranks South Africa as the custodian of the world's second largest gold resources at 6,000 tonnes second only to Australia.
Ever since 1886 when gold was discovered on the Witwatersrand near what would become the metropolis of Johannesburg, South African engineers, universities and technicians have pioneered and developed the techniques for profitably and successfully mining comparatively low-grade gold ores at considerable depths, and in some mines reaching almost five kilometres below surface.
Many South African deposits, which now remain to be exploited, were previously left unmined because of inappropriate mining techniques, or owing to the prevailing unattractive gold prices at the time. With the advancement of technology, South African mining engineers have latterly developed the skills and techniques to extract precious gold reefs safely and profitablyin the South African goldfields.
Elsewhere in the world there has been a significant slowdown in the rates of discovery of major gold deposits. Where they have been discovered they have been in increasingly remote parts of the globe, frequently with significant risk and very high capital requirements. The South African goldfields still offer excellent opportunities to investors who believe in the continued value of this precious metal. This is underpinning the countrys rich mining heritage, infrastructure and institutional knowledge and as access to important information and geological data remains relatively straightforward.
Gold mining in South Africa has a turbulent history with wars, conflicts being fought over its rich reserves and government unrest and takeovers devaluing the gold in South Africa. During the Boer Wars of 1880 and 1899 native workers were forced to work in dank gold mines and this cheap labor plus the high gold content of mines contributed to making South Africa the wealthiest nation on the African Continent. Currently South Africa accounts for 12 percent of the worlds gold production and is the second largest producer of gold. It is speculated that South Africa still retains at least 50 percent of global gold reserves.
3. Gold mining in South Africa includes the two deepest gold mining concerns in the world. The East Rand Mine in the province of Boksburg as well as TuaTona located in Carletonville is over 3600 meters in depth. Rocks this deep are extremely hot and cooling technologies have been specifically developed to protect miners.
6. At this point in time, gold mining in South Africa stocks are highly out of favor due to the expense of extracting gold from the gold fields, the deep mines, and the relative high value of the rand.
Gold mining supplies are at a premium in the gold fields of South Africa since most of the gold is deep underground and machinery, supplies and employees are at a premium. It is also a difficult time to mine gold in South Africa due to government conflicts. There are gold mining claims for sale in the Barberton Greenstone Belt and the Kraaipan greenstone belt outside of the main watershed mines. These claims are easier to mine, but the unrest in the provinces where they are located makes mining some of these claims highly dangerous.
Ancient history has always been interesting. We are always eager to learn about the ancient civilizations that once inhabited our planet Earth. The more we learn about the past, the more we become intrigued by it as we discover the secrets that are not mentioned in the books of history.
Something highly surprising has been discovered in South Africa, to 150 Km west of the port of Maputo. To be specific, the remains of a large metropolis of around 1,500 square kilometers has been found.
The investigator Michael Tellinger teamed up with the local firefighter and pilot Johan Heine to explore the site and upon analyzing the basic structure of the site, he came to the conclusion that the importance of this site has been evidently underestimated.
When Johan first introduced me to the ancient stone ruins of southern Africa, he had no idea of the incredible discoveries we would make in the following years. The photographs, artifacts, and evidence we accumulated, point towards a lost civilization that has never before been and precedes all others not for a few hundred years, or a few thousand years but many thousands of years.
Interestingly, the ancient city is surrounded by several gold mines. It has been suggested by the researchers that a vanished civilization from the distant past, could have lived and proposed in that part of the world while mining gold. This and other shreds point to the Ancient Anunnaki:
Due to the catastrophic fights on Nibiru, the atmosphere of the planet began to deteriorate and it became an unfavorable place to live.Gold was needed by the Annunaki to repair the damage done to Nibiru.It is believed by the researchers that we can use gold nanoparticles to repair the atmosphere so it is believed that they were planning the same.
In total, seven developed nations in Southern Mesopotamia. The most important developed nations were Sipar, Nippur and Shuruppak.After the metal was refined, the ore was transported from Africa with ships and sent into orbit.
Some of these structures have been exposed to climate change which resulted in physical damage.These structures mostly consist of stone circles buried in the sand and are only observable by plane or satellites.
I see myself as someone quite open-minded but I admit that it took me over a year to figure it out, and I realized that we are actually dealing with the oldest structures ever built by man on Earth.The main reason for this is that we have been taught that nothing of significance has ever come from South Africa. Powerful civilizations all emerged in Sumeria and Egypt and other places.
It is believed by Tellinger that the Sumerians and even the Egyptians inherited all their knowledge from an earlier advanced civilization that lived at the southern tip of Africa more than 200,000 years ago that is mining gold.
Michael Tellinger firmly believes that Adams calendar is also left by the advanced ancient civilization. Detailed images were carved into the hardest rock, worshipped the sun, and are the first to carve an image of the Egyptian Ankh key of life and universal knowledge, 200,000 years before the Egyptians came to light. Tellinger presents this groundbreaking new evidence in which is released in his latest book Temples Of The African Gods. It graphically exposes these discoveries and will undoubtedly be the catalyst for rewriting our ancient human history.
List Of Gold Mines In South Africa And Their Names.South Africa is one of the countries making a lot of people via mining. The mining sector keeps contributing greatly to the countrys economy, and it is common knowledge that South Africa is blessed with important minerals and metals like diamonds, coal, coal, platinum, and so on. Nevertheless, in this article, we are more concerned with Gold.
There is a lot of gold in South Africa no doubt. In fact, according to reports about half of the gold in the world is located in South Africa. This should point to the fact that the country will have some of the biggest gold mines you can find anywhere.
Gold is an important mineral, and its one of the things that made South Africa an important country too. It is a valuable metal world wide, and mining activities in a country like South Africa is worth a fortune. The gold mining sector has employed a lot of people, and there are several of these mines in different parts of the country.
The South Deep Gold Mine is actually situated in Witwatersrand Basin 45 kilometers southwest of Johannesburg and has a reputation for being the second-largest Gold mine in the whole world (it can boast of having around 39.1Moz of gold reserves).
It is one of the oldest mines in the country, and it used to be known as Western Areas Gold Mine before it became South Deep Gold Mine in 2000. Additionally, it is known as one of the deepest mines in the world. There is a great amount of gold in the mine, and it was made known that mining activities could continue there till 2092.
Mponeng Gold Mine is in Carletonville, owned and run by AngloGold, and it is actually one of the largest gold mines in the world (regarded as the tenth-largest). It was made known that the mine has around 13.81Moz of the gold reserve, and it has the reputation of being the deepest mine in the world.
Here is another popular gold mine in South Africa whose depths reach close to 4km (which made it the third deepest of its kind in the whole world). Located in Gauteng, the Mine is also owned and managed by AngloGold Ashanti.
TauTona Mine is one of the deepest gold mines in the world and is one of the oldest in South Africa (mining operations started there as far back as in 1962). The Mines depths close to 4 kilometers, and it is also owned and managed by the popular AngloGold Ashanti.
East Driefontein Mine started operations in 1952 and is owned by Sibanye-Stillwater. This is obviously a prominent gold mine in South Africa with a reputation of being one of the deepest mines in the world (it has a depth of 3.24 kilometers).
It is necessary to add that the list of gold mines in South Africa is a pretty large and huge one because there are tons of other smaller mines in different places in the country that were not featured on the list. As stated before, there are different gold mines in different places in South Africa, since the country is blessed with the mineral. So, there are also some small players in the gold mining industry in South Africa, contributing in one way or another to the countrys economy.
Mining activities have a long history in South Africa. Several years before now, some groups have been mining resources but some of these mines were abandoned at one point or another. Nevertheless, the discovery of gold led to the birth of more mines in South Africa, and so, today, we discovered that there are more gold mines in the country than others. Here are the Gold mines in South Africa:
In conclusion, you should have noticed that some firms own and manage more than one Gold mine in South Africa, as it is a quite lucrative venture. Additionally, Gold mining is important in the country, as the industry is a major pillar of the economy. Gold is doing well in the global market, and there are buyers always willing to splash huge cash to get luxurious gold products for different reasons. Therefore, as expected, there will always be investors interested in the gold mining industry, and there are several players in South Africa too doing great for some time now.