Video: Gold mining faces a cliff after 2025, CRU analyst predicts
Global gold production will peak at about 3,250 tonnes (105 million oz.) next year, according to CRU's Oliver Blagden.
Indian billionaire Anil Agarwal is trying to buy a stake of as much as 2 billion pounds ($2.4 billion in Anglo American (LON:AAL), representing about 12% of the firm, one of the main rivals to the tycoon’s Vedanta Resources (LON:VED).
Deal makes of Volcan Investments Ltd., Agarwal’s family trust, the second-largest investor in Anglo American.
The deal would make of Volcan Investments Ltd., Agarwal’s family trust, the second-largest investor in Anglo American behind Public Investment Corp., South Africa’s state-run pension fund.
It could also give Vedanta’s founder and chairman a commanding voice at Anglo American, the world’s fifth-largest miner by market value, which Agarwal described in a statement as “a great company with excellent assets and a strong board and management team who are executing a focused strategy.”
While he noted he didn’t intend to take control of the diversified miner, this is not his first attempt to grab a stake in Anglo. Last year, he approached the London-listed company with an offer to merge with Hindustan Zinc, a mining firm he controls through Vedanta, India’s largest miner. But Anglo stopped the approach in its tracks saying a deal didn’t make sense and wasn’t feasible.
The investment is a major vote of confidence in Anglo American, which has staged an impressive turnaround since commodity prices began climbing last year. Last month, the firm logged a profit of $1.6 billion for 2016, its first annual revenue in five years.
The company’s shares soared on the news and they were trading 8.7% higher to 1,298 pence at 12:55 p.m GMT. The stock almost quadrupled last year, recovering after five years of losses.
