AngloGold Ashanti today confirmed that it has initiated a plan to identify a joint venture partner or buyer of its Cripple Creek & Victor (CC&V) mine.
“As we have mentioned since the latter part of 2014, we will work actively to reduce our net debt levels over the next two to three years to provide the company with greater financial flexibility, but in doing so, we will not act in haste nor compromise long-term value.” AngloGold Ashanti Chief Executive Officer Srinivasan Venkatakrishnan said. “As one of a number of options in this regard, we have initiated a plan to identify a joint venture partner or purchaser in respect of our interests in CC&V.”
CC&V is a surface mining operation that provides oxidized ore to a crusher and valley leach facility, one of the largest in the world. The mine produced 211,000 ounces of gold in 2014. Production from the mine life extension project, which involved expanding capacity at the heap-leach pad, began in 2011. A further life extension and production expansion project, approved in 2012, is in implementation phase and is expected to increase production this year, according to a company news release.
CC&V is the largest mining operation in Colorado, and the largest employer in Teller County. The company does not expect that the impending change in ownership will affect its business.
“On the CC&V side we continue to operate,” said Community Affairs Manager Jane Mannon. “There are no changes here.”
In its announcement, AngloGold didn’t specify a price or a time line. The South African company has been seeking to reduce debt and divest itself of certain assets for several months.