Anglo American sells Gold Fields stake

Mining giant Anglo American today said it has sold its 20 per cent stake in Gold Fields to MMC Norilsk Nickel for around $1

Mining giant Anglo American today said it has sold its 20 per cent stake in Gold Fields to MMC Norilsk Nickel for around $1.16 billion.

The disposal will realise a gain of around $480 million for Anglo American. The group said the proceeds will be used to pay down its South African debt and finance its capital-expenditure programme in South Africa.

In 2003, it booked investments in the South African gold miner in its balance sheet at $686 million.

Gold Fields, which also has operations in Ghana, Australia and the United States, is one of the world's largest precious metals producers. It produces over 4.3 million ounces of gold of 81.5 million ounces of mineral reserves. It employs over 48,000 people across its operations.

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Anglo American was also reported to be investing $20 million over the next three to five years in platinum mining exploration projects in the southeast province of Sichuan, according to the China Business Weekly.

Anglo American, which has capital of $37 billion, with $21 billion in annual sales, has invested $50 million in China since the mid 1980s when it started doing business here, the paper reported.

AFP