Harmony To Sell South African Mine to Pan African, Wits Gold

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on January 30 2012 12:34 PM
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Harmony will sell a mine in South Africa, as it continues efforts to expand globally. Reuters

Harmony Gold plans on selling South Africa-based Evander Gold Mines for $219 million (1.7 billion rand) to Pan African Resources and Witwatersrand Consolidated Gold Resources.

The mine in South Africa's eastern Mpumalanga province reportedly could produce up to 90,000 ounces of gold per year for a decade, totaling 34.4 million ounces of gold, with 8 million in reserve, South Africa-based Harmony Gold said Monday.

The buyers, Pan African and Wits Gold, deal in precious metals and gold and uranium, respectively.

Harmony has been working on pulling out of South Africa's mines, where it currently ranks as the country's third-largest gold miner, and refocusing its efforts towards developing new locations, such as Papua New Guinea. Currently, the company has 90 percent of its production centered in South Africa, making it much more dependent on the nation than its competitors.

The nation's mines are already the world's deepest, adding to already rising labor and power costs.

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