2.2.0.7 false Acquisitions and Disposals of Businesses and Assets 00930 - Disclosure - Acquisitions and Disposals of Businesses and Assets true false false false 1 USD false false Monetary Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 EarninsPerShareUSD Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 $ 2 Acquisitions And Disposals Of Businesses And Assets Abstract 0 au_AcquisitionsAndDisposalsOfBusinessesAndAssetsAbstract au false na duration No definition available. false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string No definition available. false 3 Acquisitions And Disposals Of Businesses And Assets 1 au_AcquisitionsAndDisposalsOfBusinessesAndAssetsTextBlock au false na duration Acquisitions and disposals of businesses and assets during the periods under review. false false false false false false false false false false false terselabel false 1 false false false false 0 0 2009 acquisitionsThe Company made the following acquisitions during the year: <ul><li style="margin-left:54px;list-style:disc;">Acquisition of an effective 45 percent interest in the Kibali gold project</li></ul>With effect from December 22, 2009, AngloGold Ashanti and Randgold Resources Limited ("Randgold") each hold an effective 45 percent interest in the Kibali gold project (formerly the Moto gold project), while L'Office des Mines d'Or de Kilo-Moto ("OKIMO"), a Congolese parastatal, holds the remaining 10 percent stake, thereby maintaining the continued vested interest of the Government of the Democratic Republic of the Congo ("the DRC") in the Kibali gold project.  The purchase price for the acquisition of AngloGold Ashanti's initial interest of 35 percent in the Kibali gold project was funded by an offering of 7,624,162 ordinary shares at an issue price of $37.25 per ADS (or R288.32 per ordinary share) which represented an approximate 3 percent discount to the closing price of its ADS on the NYSE on August 31, 2009. The offering closed on September 8, 2009 and AngloGold Ashanti received total gross proceeds, before underwriting discounts and expenses, of approximately $284 million. Total consideration for the effective 45 percent interest acquired in the Kibali gold project amounted to $345 million.<ul><li style="margin-left:54px;list-style:disc;">Acquisition of an additional interest in Sadiola</li></ul>On December 29, 2009, AngloGold Ashanti, together with IAMGOLD Corporation purchased from the International Finance Corporation ("IFC"), the IFC's 6 percent stake in Société d'Exploitation des Mines d'or de Sadiola ("SEMOS"), which owns the Sadiola Gold Mine for $12 million (AngloGold Ashanti's share being $6 million) to be followed by contingent payments not exceeding $3 million (of which AngloGold Ashanti's share is $1.5 million). This transaction has resulted in AngloGold Ashanti and IAMGOLD each increasing their respective interest in Sadiola from 38 percent to 41 percent. In addition, AngloGold Ashanti and IAMGOLD have extended an offer to the Government of the Republic of Mali to take up its proportionate entitlement of 19.15 percent of the 6 percent sale interest, by acquiring an equal 0.574 percent interest in SEMOS from each. The Government of the Republic of Mali has advised the parties that they expect to confirm their intention by the end of June 2010.2009 disposalsThe Company's disposals during the year included:<ul><li style="margin-left:54px;list-style:disc;">Disposal of Boddington Gold Mine</li></ul>On January 28, 2009, AngloGold Ashanti announced that it had agreed to sell its 33.33 percent interest in the Boddington Gold Mine to Newmont Mining Corporation ("Newmont"). The transaction was completed on June 26, 2009.  In terms of the agreement, the Company received payment of $750 million in cash during June 2009 and a further $240 million in December 2009. In addition, the Company is entitled to receive a royalty on any gold recovered or produced by the Boddington Gold Mine, where the gold price is in excess of Boddington Gold Mine's cash costs plus $600 per ounce. The royalty commences on July 1, 2010 and is capped at a total amount of $100 million. All refunds and reimbursements between the Company and Newmont have been settled. <ul><li style="margin-left:54px;list-style:disc;">Disposal of Tau Lekoa </li></ul>On February 17, 2009, AngloGold Ashanti announced that it had agreed to sell with effect from January 1, 2010, the Tau Lekoa mine, together with the adjacent Weltevreden, Jonkerskraal and Goedgenoeg project areas, to Simmer & Jack Mines Limited ("Simmers"). On November 25, 2009, AngloGold Ashanti announced that the closing of the sale may be delayed pending approval of the South African Department of Mineral Resources ("DMR"), of the transfer of the applicable mining rights, the only remaining condition to the sale. AngloGold Ashanti and Simmers have subsequently agreed to extend the deadline for the completion of the transaction from March 31, 2010 to September 30, 2010, to allow for a further possible delay in closing pending the approval of the DMR. Closing of the transaction is anticipated to occur before September 30, 2010. 2008 acquisitionsThe Company made the following acquisitions during the year:<ul><li style="margin-left:54px;list-style:disc;">Acquisition of noncontrolling interests in the United States of America</li></ul>Effective July 1, 2008, AngloGold Ashanti acquired the remaining 33 percent shareholding in the Cripple Creek & Victor Gold Mining Company joint venture ("CC&V") through the acquisition of 100 percent of Golden Cycle Gold Corporation ("GCGC"). The Company issued 3,181,198 AngloGold Ashanti shares (total value $118 million) pursuant to this transaction. The Company completed the purchase price allocation of fixed assets during the third quarter of 2008. The transaction was accounted for as a purchase business combination whereby identifiable assets acquired and liabilities assumed were recorded at their fair market values as of the date of acquisition. The excess of the purchase price over such fair value was recorded as goodwill and as such, the acquisition resulted in goodwill of $18 million being recorded, relating mainly to the premium paid to obtain the remaining interest in CC&V. The goodwill related to the acquisition is non-deductible for tax purposes.<ul><li style="margin-left:54px;list-style:disc;">Acquisition of São Bento mine</li></ul>On December 15, 2008, AngloGold Ashanti announced that it had completed the purchase of São Bento Gold Company Limited ("SBG") and its wholly-owned subsidiary, São Bento Mineração S.A. ("SBMSA") from Eldorado Gold Corporation ("Eldorado") for a consideration of $70 million through the issuance of 2,701,660 AngloGold Ashanti shares. The transaction was accounted for as an asset acquisition. The purchase price was allocated to the underlying assets acquired. The purchase of SBG and SBMSA gave AngloGold Ashanti access to the São Bento mine, a gold operation situated in the immediate vicinity of AngloGold Ashanti's Córrego do Sítio mine, located in the municipality of Santa Bárbara, Iron Quadrangle region of Minas Gerais State, Brazil.2008 disposalsThe Company's disposals during the year included:<ul><li style="margin-left:54px;list-style:disc;">Disposal of exploration interests in Colombia </li></ul>On February 14, 2008, AngloGold Ashanti announced that it had entered into a binding memorandum of agreement ("MOA") with B2Gold Corp. ("B2Gold"). B2Gold would acquire from AngloGold Ashanti, additional interests in certain mineral properties in Colombia. In exchange, B2Gold would issue to AngloGold Ashanti, 25 million common shares and 21.4 million common share purchase warrants in B2Gold. On May 16, 2008, AngloGold Ashanti announced that it had completed the transaction to acquire a 15.9 percent direct interest in B2Gold and increase B2Gold's interest in certain Colombian properties, as stated.<ul><li style="margin-left:54px;list-style:disc;">Disposal of equity interest in Nufcor International Limited</li></ul>During the quarter ended June 30, 2008, the Company disposed of its 50 percent interest held in Nufcor International Limited, a London based uranium marketing, trading and advisory business, to Constellation Energy Commodities Group for net proceeds of $48 million.2007 acquisitionsThe Company made the following acquisitions during the year:<ul><li style="margin-left:54px;list-style:disc;">Strategic alliance in Russia with Polymetal and assets acquired from Trans-Siberian Gold plc</li></ul>During 2006, AngloGold Ashanti entered into a 50:50 strategic alliance (joint venture) with Russian gold and silver producer, OAO Inter-Regional Research and Production Association Polymetal ("Polymetal"). In June 2007, the Company concluded the purchase of Trans-Siberian Gold plc ("TSG")'s interests in its Krasnoyarsk based subsidiaries, OOO GRK Amikan ("Amikan") and OOO Artel Staratelei Angarskaya Proizvodstvennaya Kompania ("AS APK") for a consideration of $40 million. The companies acquired from TSG by AngloGold Ashanti, together with two greenfields exploration companies held by Polymetal, hold the initial operating assets of the joint venture. Of the assets acquired from TSG, assets of $15 million were subsequently sold by the joint venture during the quarter ended March 31, 2008.<ul><li style="margin-left:54px;list-style:disc;">Acquisition of noncontrolling interests in Ghana</li></ul>AngloGold Ashanti completed the acquisition of the noncontrolling interests in the Iduapriem and Teberebie mine previously held by the Government of Ghana (5 percent) and the International Finance Corporation (10 percent) effective September 1, 2007 for a total cash consideration of $25 million. The Company finalized the purchase price allocation of fixed assets during the third quarter of 2008. The final purchase price allocation did not vary significantly from the preliminary allocation.2007 disposalsThe Company's disposals during the year included:<ul><li style="margin-left:54px;list-style:disc;">Sale of Ergo surface reclamation operation</li></ul>On June 8, 2007, AngloGold Ashanti announced that it had sold, subject to certain conditions, most of the remaining moveable and immovable assets of Ergo, the surface reclamation operation east of Johannesburg, discontinued in March 2005, to a consortium of Mintails South Africa (Pty) Limited/DRD South African Operations (Pty) Limited. The transaction was approved by the Competition Commissioner on May 5, 2008.<ul><li style="margin-left:54px;list-style:disc;">Sale of Mwana Africa plc shares</li></ul>During July 2007, AngloGold Ashanti disposed of its investment of 600,000 shares previously held in Mwana Africa plc for $0.8 million.<div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 13px"><td style="width: 38px; text-align:left;border-color:#000000;min-width:38px;"> </td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 520px; text-align:left;border-color:#000000;min-width:520px;">Fair value of acquisition of business</td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 86px; text-align:left;border-color:#000000;min-width:86px;"> </td></tr><tr style="height: 13px"><td style="width: 38px; text-align:left;border-color:#000000;min-width:38px;"> </td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 520px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:520px;"> </td><td style="width: 16px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 86px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:86px;">2008</td></tr><tr style="height: 13px"><td style="width: 38px; text-align:left;border-color:#000000;min-width:38px;"> </td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 520px; text-align:left;border-color:#000000;min-width:520px;"> </td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 86px; text-align:right;border-color:#000000;min-width:86px;">Golden Cycle</td></tr><tr style="height: 13px"><td style="width: 38px; text-align:left;border-color:#000000;min-width:38px;"> </td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 520px; text-align:left;border-color:#000000;min-width:520px;"> </td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 86px; text-align:right;border-color:#000000;min-width:86px;">acquisition(1)</td></tr><tr style="height: 13px"><td style="width: 38px; text-align:left;border-color:#000000;min-width:38px;"> </td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 520px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:520px;"> </td><td style="width: 16px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 86px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:86px;">$</td></tr><tr style="height: 13px"><td style="width: 38px; text-align:left;border-color:#000000;min-width:38px;"> </td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 520px; text-align:left;border-color:#000000;min-width:520px;">Property, plant and equipment</td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 86px; border-color:#000000;min-width:86px;"> 93</td></tr><tr style="height: 13px"><td style="width: 38px; text-align:left;border-color:#000000;min-width:38px;"> </td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 520px; text-align:left;border-color:#000000;min-width:520px;">Goodwill(1)</td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 86px; border-color:#000000;min-width:86px;"> 18</td></tr><tr style="height: 13px"><td style="width: 38px; text-align:left;border-color:#000000;min-width:38px;"> </td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 520px; text-align:left;border-color:#000000;min-width:520px;">Current assets</td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 86px; border-bottom-style:solid;border-bottom-width:1px;border-color:#000000;min-width:86px;"> 7</td></tr><tr style="height: 13px"><td style="width: 38px; text-align:left;border-color:#000000;min-width:38px;"> </td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 520px; text-align:left;border-color:#000000;min-width:520px;">Net value of assets acquired</td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 86px; border-color:#000000;min-width:86px;"> 118</td></tr><tr style="height: 13px"><td style="width: 38px; text-align:left;border-color:#000000;min-width:38px;"> </td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 520px; text-align:left;border-color:#000000;min-width:520px;">Purchase price paid</td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 86px; border-color:#000000;min-width:86px;"> (118)</td></tr><tr style="height: 13px"><td style="width: 38px; text-align:left;border-color:#000000;min-width:38px;"> </td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 520px; text-align:left;border-color:#000000;min-width:520px;">- Issuance of common stock</td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 86px; border-top-style:solid;border-top-width:1px;border-right-style:solid;border-right-width:1px;border-bottom-style:solid;border-bottom-width:1px;border-left-style:solid;border-left-width:1px;border-color:#000000;min-width:86px;"> (118)</td></tr><tr style="height: 13px"><td style="width: 38px; text-align:left;border-color:#000000;min-width:38px;"> </td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 520px; text-align:left;border-color:#000000;min-width:520px;"> Gross value</td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 86px; border-right-style:solid;border-right-width:1px;border-left-style:solid;border-left-width:1px;border-color:#000000;min-width:86px;"> (118)</td></tr><tr style="height: 13px"><td style="width: 38px; text-align:left;border-color:#000000;min-width:38px;"> </td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 520px; text-align:left;border-color:#000000;min-width:520px;"> Share issue expenses</td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 86px; border-right-style:solid;border-right-width:1px;border-bottom-style:solid;border-bottom-width:1px;border-left-style:solid;border-left-width:1px;border-color:#000000;min-width:86px;"> -</td></tr><tr style="height: 7px"><td style="width: 38px; text-align:left;border-color:#000000;min-width:38px;"> </td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 520px; text-align:left;border-color:#000000;min-width:520px;"> </td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 86px; text-align:left;border-color:#000000;min-width:86px;"> </td></tr><tr style="height: 15px"><td style="width: 38px; text-align:left;border-color:#000000;min-width:38px;"> </td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;">(1) </td><td colspan="3" rowspan="3" style="width: 622px; text-align:left;border-color:#000000;min-width:622px;">The Golden Cycle Gold Corporation business combination was completed effective July 1, 2008. Refer to: "Acquisition of noncontrolling interests in the United States of America". The Company recorded goodwill, relating to the portion of the purchase price which cannot be attributed to the fair value of assets and liabilities acquired, of $18 million on acquisition. </td></tr><tr style="height: 15px"><td style="width: 38px; text-align:left;border-color:#000000;min-width:38px;"> </td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 86px; text-align:left;border-color:#000000;min-width:86px;"> </td></tr><tr style="height: 7px"><td style="width: 38px; text-align:left;border-color:#000000;min-width:38px;"> </td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;"> </td><td style="width: 86px; text-align:left;border-color:#000000;min-width:86px;"> </td></tr></table></div> 2009 acquisitionsThe Company made the following acquisitions during the year: Acquisition of an effective 45 percent interest in the Kibali gold projectWith false false false us-types:textBlockItemType textblock Acquisitions and disposals of businesses and assets during the periods under review. 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