Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Canada’s Jaguar Mining (TSX: JAG) denied on Friday media reports indicating it was engaged with AngloGold Ashanti (JSE: ANG) (NYSE: AU) (ASX: AGG) to acquire the miner’s Córrego do Sítio gold complex in Brazil.
The junior gold miner, which has two main mines in the vicinity of AngloGold’s operation, told MINING.COM there were no negotiations in progress, but did not comment on whether or not it would be interested in adding Córrego do Sítio to its portfolio.
News of AngloGold Ashanti mulling the sale of the vast gold complex in the southeast Brazilian mining state of Minas Gerais hit the wires earlier this week.
The gold complex, operated by the South African miner’s subsidiary AGA Mineração, consists of one open pit mine and one underground mine, which have been in production since 1989.
A spokesperson for AngloGold confirmed the company was considering strategic alternatives for the Córrego do Sítio mining complex, which included the potential sale of the operation.
“The company is working through this process and will provide an update once a final outcome is determined,” the spokesperson told MINING.COM.
The gold company also owns the nearby Cuiabá complex, made up of Cuiabá and Lamego underground mines and the Cuiabá and Queiroz plants.
AngloGold produces around 510,000 ounces of gold in Brazil from the two mining complexes. Together, they account for 15% of the miner’s total global production.
It also owns the vast Serra Grande operation, which comprises three underground mines, an open pit mine and a dedicated metallurgical plant, located in the Goiás State, central Brazil.
