AngloGold Ashanti to buy 50 % of Brazilian gold mine from Kinross

Africa's largest gold miner AngloGold Ashanti today agreed to buy the 50 per cent it does not already own in Brazil's Serra Grande (Crixs) gold mine, for $220 million in cash from Kinross Gold Corp as part of its plan to expand in the Americas.

The move comes two months after Johannesburg, South Africa-based AngloGold acquired Mine Waste Solutions, a tailings recovery project from Canada's First Uranium Corp for $335 million.  AngloGold is the largest shareholder in First Uranium, with a 19.79-per cent stake.

The Serra Grande operation comprises three underground mines, namely Mina III, Mina Nova and Mina Palmeiras, and one open pit mine as well as a single dedicated processing plant.

To date the Serra Grande mine, which is operated by AngloGold, has produced 3.4 million ounces of gold, and produced 134,000 oz of gold at a cash cost of $767/oz in 2011.

Kinross's share at the Serra Grande mine proven and probable gold reserves was about 375,000 ounces.

The acquisition is expected to increase AngloGold's annual production from Brazil in excess of 500,000oz and the contribution from the Americas region as a whole to more than 1Moz.