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AngloGold to comply with SA mining rights directive

12th April 2019

By: Bloomberg

  

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AngloGold Ashanti is complying with an order from South Africa’s Department of Mineral Resources to amend its mining rights to reflect black economic empowerment (BEE), company spokesperson Chris Nthite said.

The world’s number three gold producer might have contravened BEE rules tied to its mining rights when it awarded a 4.5% stake to employees, instead of 6%, City Press reported recently. The other 1.5% was sold to a firm belonging to company chairperson Sipho Pityana. AngloGold denied there was anything wrong with the two transactions.

The department directed the company to amend clauses on two of its mining rights to accurately record the two local ownership deals, Nthite said. “We have submitted an application for consent to amend those clauses accordvingly. “We were also requested to provide certain information and we have provided the requested information. We have fully complied with the directive.”

Failure to comply with the directive could have placed South Africa-based AngloGold’s mining licences in the country at risk of cancellation.

Edited by Bloomberg

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