AngloGold Ashanti in talks with buyers for Cripple Creek & Victor gold mine

South African gold mining company AngloGold Ashanti is in second-round talks with two potential buyers for its Cripple Creek & Victor (CC&V) mine in the US, the Financial Times yesterday reported, citing people familiar with the sale process.

Newmont Mining Corp and Canada's Kinross Gold Corp are in talks with AngloGold for part or all of its CC&V stake, the paper said, and added that two other Canadian mining companies Iamgold Corp and Goldcorp Inc have also shown interest.

AngloGold, the world's third-largest gold miner, is seeking to sell part or all of CC&V in a bid to reduce its $3.1 billion debt.

Late last year, the Johannesburg-based company dropped plans to split its South African operations from international assets after investors opposed the accompanying $2-billion share sale.

CC&V, based in Colorado, is a low-grade, surface mining operation. Under current permits, mining at current production rates will continue till approximately 2025, with gold recovery carrying on for at least another four years, followed by final reclamation and closure.

In 2012 CC&V received regulatory approval to extend mining operations through 2025 after an increase in gold ore reserves through ongoing exploration.

The approvals include extended mining areas, a new valley leach facility, new recovery facility, and mill. Construction began in 2012 and will continue until 2016.

CC&V generated 211,000 ounces of gold last year.