The Department of Mineral Resources has granted Harmony Gold Mining permissions to go ahead with the transaction relating to the sale of Moab Khotsong by Angloglod Ashanti.

The R4.2 billion transaction will see Harmony purchasing the operational Moab Khotsong mine and its shuttered neighbour, the Great Noligwa mine, as well as gold-bearing tailings and the Nufcor uranium plant.

According to Harmony’s previous statement regarding the transaction, the purchase will boost its operational cash flow by 60% and provide “substantial cost savings”.

“The approval confirms government’s support of the transaction, which will enhance the quality of our asset portfolio and increase our profit margins”, said Peter Steenkamp, chief executive officer.