Bloomberg News reported today that AngloGold Ashanti Ltd., principal owner of the Cripple Creek & Victor Gold Mining Co. in Teller County, is looking at selling some of its “key operating assets.”
While AngloGold CEO Srinivasan Venkatakrishnan declined to specify which assets were being considered for sale, the company is seeking to reduce its $3.1 billion of net debt by at least $1 billion by selling assets either partially or entirely.
The mining company is managed by AngloGold Ashanti (Colorado) Corp., a wholly owned subsidiary of AngloGold Ashanti North America Inc.
The mine has been in operation for 20 years, and has produced more the 4 million ounces of gold. In 2013, the mine yielded 230,793 ounces, down from 266,685 in 2011. The mine’s current permits will allow it to operate until 2025, but that date might be extended if additional reserves are proven.
“We’ve been told everything’s on the table,” said CC&V Communications Director Jane Mannon. “We think that this is an attractive property for anyone to own. We know what we have here.”
If the mine is sold, operations would likely continue without substantial change.
“It wouldn’t make much sense to buy it and a shut it down,” Mannon said.
The CC&V mine is a major economic engine in Teller County and the Pikes Peak region. The company employs more than 500 workers, with average salary and benefits of more than $70,000. In its 2012 application for a mine-life extension, the company noted that it had paid $3,308,294 in taxes to Teller County in 2011, and $6,556,706 to the State of Colorado.