AngloGold Ashanti and Gold Fields have announced a decision to suspend discussions on their proposed joint venture to merge the Iduapriem and Tarkwa gold mines in Ghana, a move that was expected to create Africa’s largest gold-producing operation.

The companies first disclosed plans for the merger in March 2023 and have since engaged in what they describe as “constructive dialogue” with the Government of Ghana to secure the necessary approvals. However, both firms have now agreed to put the talks on hold to focus on their individual operations.

In a joint statement issued on Tuesday, the companies said, “AngloGold Ashanti and Gold Fields have agreed to pause discussions about a proposed joint venture to combine their Iduapriem and Tarkwa gold mines in Ghana.”

According to AngloGold Ashanti, recent developments at its Iduapriem mine have shifted the company’s priorities. “Over that time, AngloGold Ashanti has identified changes in its standalone mine plan for Iduapriem which have the potential to unlock significant additional value,” the statement explained.

As a result, both companies believe that refocusing on optimising their current operations is the most prudent course of action. “The companies have decided to pause discussions around the joint venture to allow them to focus on improving the current, standalone performance at their respective sites, while also allowing AngloGold Ashanti to consolidate the improvements to its long-term mining plan, which currently shows the highest value of its options,” the release added.

The Iduapriem mine, located in Ghana’s Western Region about 70 kilometres north of Takoradi, began operations in 1992 and was acquired by AngloGold Ashanti in 2002 through its merger with Ashanti Goldfields. In 2024, the mine produced 237,000 ounces of gold at a total cash cost of $1,118 per ounce.

Its close proximity to Gold Fields’ Tarkwa mine made the merger a strategic fit, with industry observers widely expecting the union to enhance efficiency and boost output. The suspension of the merger, however, suggests both companies are placing more immediate value on their existing mine plans and operational independence.

Though the talks have been paused, neither company has completely ruled out the possibility of revisiting the merger in the future. The announcement did not specify any timeline for a potential resumption of the discussions.