Home » AngloGold Ashanti Buys Stake in Guyana Goldfields Despite Venezuela’s Claim

AngloGold Ashanti Buys Stake in Guyana Goldfields Despite Venezuela’s Claim

The South African mining giant invests in a promising gold project in a disputed territory

by Victor Adetimilehin

AngloGold Ashanti, the fourth-largest gold producer in the world, has announced that it is buying a stake in G2 Goldfields, a Canadian company that operates the OKO project in Guyana. The deal comes amid rising tensions between Guyana and Venezuela, which claims two-thirds of Guyana’s territory, including the area where the OKO project is located.


A Milestone for Nuclear Fusion


The OKO project is one of the most promising gold discoveries in the Guiana Shield, a mineral-rich region that spans parts of Guyana, Suriname, French Guiana, Brazil, and Venezuela. 


According to a report by Mining com, the project hosts an initial resource of 1.2 million ounces of gold, with significant potential for expansion.


AngloGold Ashanti said that it was impressed by the exploration results and the growth prospects of the project, and that it wanted to have a strong position in one of the world’s key gold provinces. The company will pay C$22.5 million for 11.7% of G2 Goldfields, and will have the option to increase its stake to 19.9% by spending another C$7.5 million on exploration.


The investment is part of AngloGold Ashanti’s strategy to diversify its portfolio and increase its exposure to greenfield projects in prospective regions. The company operates 14 mines in nine countries, and has a strong presence in Africa, Australia, and South America.


A Territorial Dispute


However, the deal also comes with a geopolitical risk, as Venezuela has recently intensified its claim over the Essequibo region, which covers about 60% of Guyana’s land area and includes the OKO project. Venezuela’s President Nicolás Maduro has declared that he will not recognize the 1899 arbitration award that settled the border dispute in favor of Guyana, and has called for a referendum to reclaim the territory.


Venezuela’s claim has been rejected by Guyana, as well as by the United States, the United Kingdom, Brazil, and other countries. Guyana’s President Irfaan Ali has said that his country will defend its sovereignty and territorial integrity, and that it welcomes international investors who want to partner with Guyana in developing its natural resources.


G2 Goldfields has also issued a statement, saying that its operations are not affected by the actions in Venezuela, and that it will continue to be a supportive international investor in Guyana. The company said that it has five drill rigs operating around the clock, and that it expects to update its resource estimate next year.


A Bright Future for Gold Mining


Despite the political uncertainty, Guyana’s gold sector is booming, thanks to the high gold prices and the discovery of several world-class deposits. Guyana is home to the Aurora mine, which was sold by Guyana Goldfields to China’s Zijin Mining last year for $238 million, and the Toroparu project, which is being developed by Aris Mining. Guyana also hosts the Omai mine, which produced 3.7 million ounces of gold from 1992 to 2005.


The Guiana Shield is also attracting interest from other major gold miners, such as Barrick Gold, Newmont, and IAMGOLD, who are exploring for new opportunities in the region. Analysts expect that the Guiana Shield will become one of the most important gold districts in the world, as it still remains largely underexplored and has favorable geology and mining conditions.


AngloGold Ashanti’s investment in G2 Goldfields is a sign of confidence in the future of gold mining in Guyana and the Guiana Shield, despite the challenges posed by Venezuela’s claim. The deal also shows that the company is willing to take calculated risks and pursue growth opportunities in emerging markets.


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