AngloGold lifted by Ashanti deal

ANGLOGOLD on Friday welcomed the green light given by the Ghana government to its $1.4bn (£825m) bid for Ashanti Goldfields to create the world's biggest gold producer.

Ghana effectively controls Ashanti through its 16.9% golden share of the group. Earlier this week, the government approved AngloGold's bid over that of rival bidder Randgold Resources, even though the London-based gold miner had trumped AngloGold's original offer with a $1.7bn bid.

The Ghana government approved the bid because of 'AngloGold's superior operating expertise in deep-level mining, its capital endowment and its record of dividend payments.' But the company on Friday warned that the merger would take three to six months to complete.

The Ghana government will also welcome AngloGold's plans to lay foundations at the country's largest goldmine - the Obuasi Deep Project - that will extend the life of the mine by more than 20 years 'at current production rates or higher'.

That will make Obuasi the world's longest-life gold orebody. In the three months to September, AngloGold production rose 'marginally' to 1.39m ounces. It achieved a 3% rise in price for its gold to $364 an ounce, boosting headline earnings by 2% to $67m.