JOHANNESBURG: AngloGold Ashanti , the world’s third-largest gold producer, is interested in the potential for exploration in newly independent South Sudan, its chief executive said on Thursday.
But Mark Cutifani also told Reuters in an interview that US restrictions on the North should not be imposed in such a way that they also throttle development and investment in Africa’s newest state.
US sanctions against the North do not directly apply to the South. But analysts say companies with US listings must tread carefully, because American rules say US businesses in the South should not benefit the North, for example by sending exports through it or receiving imports by way of it.
"One thing I think the US has to be careful of is that they don’t make the constraints in terms of South Sudan such that it makes it very difficult for people to do business there," Cutifani said.
"We have no intention of working in Sudan. However, South Sudan is interesting, and we think the regulators have to make sure that in constraining whatever they do with Sudan, they don’t constrain South Sudan," he said after the company unveiled second-quarter earnings that showed a surge in profits.
South Sudan became independent from Sudan on July 9, taking with it 75 percent of the African country’s 500,000 barrels a day of oil production. But it is also widely regarded as rich in minerals and largely unexplored.
AngloGold, which has a secondary US listing but is based in Johannesburg, is keen on South Sudan because it lies close to the group’s Congolese operations, and the neighborhood in general is seen as untapped.
"We think it (South Sudan) is highly prospective. It’s not that far from our two DRC (Congo) positions. Will wait and see what the requirements are to be a participant," Cutifani said.
AngloGold is expanding in the region with exploration projects in Eritrea, Ethiopia and Egypt. In Saudi Arabia it has 24 exploration license applications and hopes to strike gold in the oil giant.
Cutifani said the region it is interested in — north-eastern Africa and the Middle East — is twice the size of the gold-rich area of western Australia and has similar rocks.
"We think it has untapped potential. It’s that simple. When you look at the area there are lots of historical diggings and works and lots of smoke and in fact fire. We’ve already stubbed our toe on gold in Eritrea, Ethiopia and Egypt," he said.
"For us, we’ve only been there five minutes when you look at the time, and we’re already seeing gold. That’s why we’re excited," he said.
