JOHANNESBURG (miningweekly.com) – JSE-listed gold miner AngloGold Ashanti has concluded the acquisition of Kinross Gold’s 50% interest in the Serra Grande (Crixás) mine in Brazil, taking its ownership to 100%.
The company bought out its partner for $220-million in cash.
Kinross CEO Tye Burt said in May that the company decided to sell the mine as part of its strategy of portfolio optimisation, and focusing its resources on its core operations and priority projects.
In 2011, the Serra Grande mine produced 134 000 oz of gold at an average cash cost of $767/oz. The Serra Grande operation comprises three underground mines, namely Mina III, Mina Nova and Mina Palmeiras, and one openpit mine on the outcrop of the Mina III mineralised zone, as well as a single dedicated processing plant.
To date, the Serra Grande mine has produced 3.4-million ounces of gold.
AngloGold Ashanti said full ownership of the mine would bring its yearly production from Brazil to more than 500 000 oz and the contribution from the Americas region as a whole to more than one-million ounces.