AngloGold Ashanti (NYSE:AU) Stops Services to Pamodzi Gold Liquidators

AngloGold Ashanti (NYSE:AU) said they have stopped supplying services to Orkney mines, which had been owned by Pamodzi Gold Ltd.

The mines are under provisional liquidations at this time.

“Our decision follows the failure of the liquidators of Pamodzi Gold Orkney to settle debt of about 38 million rand owed to us for services supplied to the operation over the past 10 months,” the company said in a statement today. “An additional 59 million rand of debt has been due since before Pamodzi Orkney’s provisional liquidation in March 2009.”

It's surprising that AngloGold Ashanti has waited this long to get paid. More than likely it's because they didn't want to look like the bad guy, but at the same time they were probably hoping to not press things too hard before pulling the plug.

The liquidators evidently have no intention of paying AngloGold, otherwise this length of time wouldn't have been allowed to go on.