Mining giants AngloGold Ashanti and Gold Fields have announced a pause on their planned joint venture in Ghana which aimed to combine key gold operations in the country The decision comes after months of talks and planning but the companies say more time is needed to assess the best way forward
The proposed deal was expected to merge AngloGold’s Obuasi mine and Gold Fields’ Tarkwa and Iduapriem operations creating one of the largest gold producers in Africa The goal was to cut costs improve efficiency and increase output in a highly competitive global gold market
Both companies said in a joint statement that while the idea still holds strong potential certain commercial and technical issues need further review They have agreed to suspend the process and will revisit the plan in the future once conditions are right
Analysts say the pause reflects the complex nature of large scale mining deals which involve operational integration financial risk and government approvals Ghana’s government had expressed support for the merger as a way to boost local industry and jobs
The joint venture would have been owned 50 50 by the two companies with shared management and resources Talks had also included how to align the workforce logistics and long term investment
Gold prices remain strong globally but mining costs have also risen due to inflation and energy prices Both firms are now focusing on strengthening their current operations while keeping the door open for future collaboration
Industry experts say the pause is not a cancellation and the partnership could still move ahead later with a better structure and clearer benefits for both sides and for Ghana’s economy
For now each company will continue operating separately while monitoring the market and their strategic goals
