AngloGold Ashanti Limited
(Incorporated in the Republic of South Africa \ Reg. No. 1944/017354/06)
ISIN No. ZAE000043485 – JSE share code: ANG \ CUSIP: 035128206 – NYSE share code: AU
Website: www.anglogoldashanti.com
News Release
ANGLOGOLD ASHANTI SECURES 100% OWNERSHIP OF SERRA GRANDE
AngloGold Ashanti, which currently holds, through its subsidiaries, a 50% interest in the Serra
Grande (Crixás) mine in Brazil, has agreed to acquire the remaining 50% stake in the mine from
Kinross Gold Corporation (“Kinross”) for US$220 million in cash (“the transaction”). The transaction
will be funded from existing cash reserves and debt facilities and remains subject to various
conditions, detailed below.
In 2011, the Serra Grande mine produced 134,000oz of gold at a cash cost of US$767/oz. The Serra
Grande operation comprises three underground mines, namely Mina III, Mina Nova and Mina
Palmeiras, and one open pit mine on the outcrop of the Mina III mineralised zone (between surface
and level 50) as well as a single dedicated processing plant. To date the Serra Grande mine, which
is operated by AngloGold Ashanti, has produced 3.4Moz of gold.
The acquisition, which will entitle AngloGold Ashanti to 100% production from Serra Grande, is
expected to increase AngloGold Ashanti’s annual attributable production from Brazil to well in excess
of 500,000oz and the contribution from the Americas region as whole to more than 1Moz.
The transaction is expected to provide a number of benefits to AngloGold Ashanti, including:
Enhancing AngloGold Ashanti’s production, Ore Reserve and Mineral Resource profiles by
approximately 70,000oz a year, 375,000oz and 1.186Moz respectively;
Making a positive contribution toward AngloGold Ashanti’s near term gold production profile in
Brazil, which the company views as a key jurisdiction in its portfolio. Annual production from
AngloGold Ashanti’s Brazilian operations is expected to increase from 428,000oz in 2011 to
between 540,000oz to 550,000oz whilst annual gold production in the Americas region is
projected to increase to more than 1Moz per annum;
Securing 100% ownership of the Serra Grande mine in AngloGold Ashanti’s hands with no
concomitant increase in management costs; and
Providing AngloGold Ashanti with full exposure to further exploration potential at the Serra
Grande mine, where more than 1.0Moz of Mineral Resources have been added over the past
four years. AngloGold Ashanti anticipates that these additional resources and the exploration
potential that exists at the site create the opportunity to further extend the life of Serra Grande.
“This deal further simplifies our portfolio and gives us greater exposure to Brazil, where we’ve had
significant success in growing our production as well as our reserve and resource base,” Mark
Cutifani, AngloGold Ashanti’s Chief Executive Officer, said. “We see long-term, lower risk, potential
from Serra Grande, which is a key component of our strategy to grow the contribution from the
Americas.”