AngloGold, the world's third largest gold mining company, has said that it has agreed to pay $90 million to acquire almost all of an Argentinean gold mine, lessening its dependence on South Africa.
The company doubled its stake in the Cerro Vanguardia mine, which is in the Patagonia region of the South American country, to 92.5 percent by purchasing the interest held by Perez Companc SA, Argentina's second largest energy company. Perez Companc is being bought by Petroleo Brasileiro SA.
AngloGold is looking for acquisitions beyond South Africa where the depth of gold deposits and the danger of mining them now make them the world's most expensive. The company quit its bid earlier this year for Australia's Normandy Mining Ltd. and ceded the battle to Newmont Mining Corp.
The acquisition “will reduce AngloGold's cash and total operating costs per ounce and further operationally and geographically diversify its production,” AngloGold said in a faxed statement.