By: Mining.com.au

Nedbank CIB has delivered a US$500 million ($714.2 million) financing facility for AngloGold Ashanti’s (NYSE:AU) Geita Gold Mine, one of the largest mine financings solely underwritten by an African bank.

Nedbank is acting as sole underwriter and mandated lead arranger, delivering upfront funding while syndicating a portion of the facility to local Tanzanian banks. The bank notes that this facility highlights the increasingly important role of South African financial institutions in supporting Africa’s mining industry.

Geita is the largest gold mine in Tanzania, with operations supporting around 7,000 employees — 98% of whom are Tanzanian nationals. Since 2000, the mine has contributed over US$2.5 billion to the Tanzanian treasury and is the country’s leading tax contributor.

With these new funds, AngloGold Ashanti is expected to extend the life of the mine beyond 10 years while pushing output towards 600,000oz per annum.

AngloGold Ashanti is a global gold mining company with a large portfolio of operations, projects, and exploration activities across 10 countries on four continents.