Harmony Gold‘s (HGMCY-Q) CEO Bernard Swanepoel says his company “has no intention to dispose of its Free State assets,” after a bid by a rival consortium, led by black empowerment group Khumo Bathong Holdings.
Swanepoel calls the Khumo’s bid opportunistic as the two groups are currently in competition for AngloGold‘s (AU-N) Free State assets.
“We regret if the continued rumours cause confusion for our shareholders, employees and the other stakeholders, and Harmony wants to put on record its intention to continue to remain in the Free State. The Khumo consortium and its agents have been informed in writing of our stated position,” he concluded.
The two syndicates are bidding for the Free State gold properties held by South African house AngloGold.
The Khumo group (which operates the East Rand Proprietary mine), includes JCI Gold and black empowerment group Mvelaphanda Holdings. The group announced its bid in reply to Harmony Gold and African Rainbow Minerals, which has put in an all-cash bid of US$225 million for AngloGold’s Bambanani and Tshepong mines.
The second group’s bid covers four mines in the Free State area: Bambanani and Tshepong, plus H.J. Joel and Matjhabeng.
Tshepong produced 320,000 oz. of gold in 2000 at a total cash cost of US$236 per oz. The mine employs 3,870 workers. During the same period, Bambanani produced 441,000 oz. at US$272 per oz. It has 6,130 employees.
Last year, AngloGold sold two other Free State mines, Elandsrand and Deelkraal, to Harmony US$107.9 million in cash.
Be the first to comment on "Harmony rejects rival’s bid"