Tuesday, 22nd July 2008 (344 views)

International firm Harmony Gold Mining could regain its Mount Magnet gold operations in Australia, it has been revealed.

The company had sold them earlier this year. However, the buyer - Monarch Gold - has now gone into administration, AllAfrica.com reports.

Currently, the Mount Magnet mines are under care and maintenance following a period of several months in which gold grades at the Davyhurst site were found to be below expectations.

According to Graham Briggs, the chief executive officer at Harmony, it is difficult to tell whether the deal will fall through, but if it does, Harmony will reclaim the asset.

It would then seek to sell the mines on again to a different firm because they were nearing the end of their gold-producing life.

Founded in 1950 as a Rand Mines-managed company, Harmony describes itself as the fifth-largest gold producer in the world and has operations in South Africa, Papua New Guinea and Australasia.

 

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