Iamgold’s Yatela mine in Mali
Canada's Iamgold Corp. is in talks to buy AngloGold Ashanti's stake in two mines in Mali that the companies own together.
Iamgold and South Africa's AngloGold each own about 40 per cent in the Sadiola and Yatela mines, with the Mali government holding the remaining 20 per cent.
"Acquiring [AngloGold's] share of these assets under the right terms has always been an option for us," said Laura Young, Iamgold's director of investor relations.
The companies have been discussing the transaction for about a year.
The prolonged slump in bullion prices has forced the gold industry to sell assets and suspend projects to cut costs.
AngloGold is trying to raise capital to pay down debt. Iamgold is trying to improve its portfolio.
In addition to the potential sale of its Mali operations, AngloGold has put its only American mine up for sale.
The mine, called Cripple Creek & Victor, has generated interest from North America-based companies.
Iamgold is one of a handful of gold miners that made it to the second round of bidding for Cripple Creek, sources have said.
Kinross Gold Corp., Yamana Gold Inc. and Newmont Mining Corp. are competing with Iamgold for Cripple Creek, according to sources.
Earlier on Tuesday, AngloGold confirmed that Cripple Creek was on the auction block. The company also announced that it had "received an approach for the purchase of its stakes" in Sadiola and Yatela from an unnamed company.
Rachelle Younglai