- South African government has ordered AngloGold Ashanti Ltd to keep its primary listing in Johannesburg
- The South African government’s move indicates that South Africa is trying to retain some control over an industry that’s been steadily declining
South African government has ordered AngloGold Ashanti Ltd to keep its primary listing in Johannesburg in order to conclude the sale of its last remaining local assets. The Government also advised AngloGold Ashanti, that transfer of mining rights to Harmony Gold Mining Co. — which is necessary to close the sale of the Mponeng mine and surface assets in South Africa — is also conditional on AngloGold keeping its headquarters in the country. In a mail to the company the Department of Mineral Resources and Energy said that AngloGold Ashanti Ltd. shall not disinvest from the South African economy by delisting from the Johannesburg Stock Exchange, nor by relocating its headquarters from South Africa.
The company was examining the possibility of shifting its main listing, so the state’s move effectively keeps AngloGold tied to the country even if it concludes the assets sale. The South African government’s move indicates that South Africa is trying to retain some control over an industry that’s been steadily declining. The news brought about a 4.7% decline the company’s shares in Johannesburg.
AngloGold emerged from a mining empire created by Ernest Oppenheimer a century ago. Earlier this year, it announced the sale of the assets in a $300 million deal, paving the way for an exit from South Africa. Faced by several challenges,the company reportedly wanted to focus on more profitable operations in Africa, Australia and the Americas.
