Business#OFMBusinessHour - Mponeng acquisition, higher gold price, help Harmony soar
─── 20:02 Tue, 31 Aug 2021
Harmony Gold’s over $300 million acquisition of Mponeng Mine in South Gauteng, alongside higher commodity prices, helped up the mining giant’s 2021 profits by 66%.
Financial Director at Harmony, Boipelo Lekubo, was on the OFM Business Hour on the back of the release of the mining giant’s financials for the period ending June 2021.
Harmony acquired Mponeng in early 2020 from AngloGold Ashanti - considered the world’s deepest mine. The latter company said Harmony had the “financial capacity and proven technical capability in operating ultra-deep, hard-rock mining assets in South Africa”.
Due to its depth, the Mponeng mine was viewed as somewhat of a risk, requiring billions of Rands in investments to extend its lifespan. It is this risk that prompted AngloGold Ashanti to sell its remaining assets in the country to focus on its more profitable operations elsewhere. The other assets included mine waste solutions, the mine waste retreatment operation, and a surface rock dump processing business.
#OFMBusinessHour - Mponeng acquisition, higher gold price, help Harmony soar: