Dallas, Texas 10/18/2013 (Financialstrend) – In what is being considered by many as a big question mark on South African gold mining company AngloGold Ashanti Limited (ADR) (NYSE:AU) commitment to protect the environment, Norway government has censured the mining firm. The Norwegian government had cited concerns over the mining firms environmental behaviour. It had recommended stoppage of investment going into AU from the $790 billion oil fund which has been floated by the national government.
Share holders of AngloGold would be relieved to know that the government recommendation about stoppage of investment to AngloGold has not been endorsed by Norges Bank. Instead of complete stoppage of fund flow, the bank has come forward to discuss with the gold mining firm the potential damage to the environment that its current operations is causing. It has also opined that active exercise of ownership rights over the mining firm could effectively be used to bring about the desired change in its operations to safeguard environment.
Despite the bad press this development had brought to the company, the markets have put their weight behind this $5.76 billion gold mining firm. At close of business on October 17, the share price had settled at $14.89. This indicated a close to 9.65% increase in value over its previous day close. Trade gurus are linking this substantive jump in stock value to the temporary ceasefire of the debt extension battle being fought on Capitol Hill. With the next round of jostling expected to resume in February, the analysts feel Fed might have its hand tied behind its back with respect to taking any decision about scaling down asset purchase over the next few months. Gold futures have gained close to 3.2% during trading on October 17 backed by this logic. Long term investors of AngloGold Ashanti Limited (ADR) (NYSE:AU)would be hoping that this rebound in stock valuation can be sustained over a longer period.