Negotiations with the government and key stakeholders on the proposed Joint Venture (JV) between Gold Fields Ghana's Tarkwa Mine and AngloGold Ashanti's Iduapriem Mine is expected to be completed by the end of the year, the Executive Vice President (EVP) of Gold Fields West Africa, Joshua Mortoti, has said.
"We have given ourselves sufficient time, at least to the end of the year to be able to get the necessary agreements that we have to get to make the transaction on the JV come into fruition," he said during a press briefing on the JV in response to a question on when negotiations concerning merging of the two entities were expected to be completed.
Gold Fields and AngloGold Ashanti, last Wednesday, announced a proposed JV in Ghana between Gold Fields' Tarkwa and AngloGold Ashanti's neighbouring Iduapriem Mine.
The proposed JV, according to the two entities, is projected to create Africa's largest gold in Africa and among the top ten biggest mining companies in the world.
Gold Fields is expected to hold 60 per cent stake in the new biggest mining company to be created through the JV, while AngloGold Ashanti and the government of Ghana will hold 30 per cent and ten per cent stakes respectively.
Mr Mortoti said negotiations with the government and key stakeholders would soon begin and is expected to be completed by the end of the year.
He said the negotiations would, among others, centre on the proposed structure of the JV and regulatory approvals from entities such as the Environmental Protection Agency.
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Mr Mortoti explained that the JV would improve the life mine of the two fields, ensure business efficiency and operational synergy through combining respective ore bodies and infrastructure for the benefits of shareholders and stakeholders.
"We are extremely excited about the opportunity to create a mining entity with the potential to become the largest gold mine in Africa, delivering safe, sustainable and profitable production over the long term, by combing two parts of the same world-class ore body," he said.
The Managing Director of AnglogGold Ashanti Ghana, Eric Asubonteng, said the combination of the two entities would provide scale and help the new entity produce at a reduced cost.
"By creating one of the world's largest gold operations - in a pre-eminent mining jurisdiction - we will create longer-term value not only for AngloGold Ashanti and Gold Fields, but for our combined stakeholders," he said.
