Australian miner Resolute sells Queensland pit for £159m

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China currently accounts for 70 per cent of rare earths mining and 90 per cent of refined output.
China currently accounts for 70 per cent of rare earths mining and 90 per cent of refined output.

Australian miner Resolute has sold its Ravenswood gold pit in Queensland to a consortium of buyers for AU$300 (£159m).

The dual listed firm said the consortium, which is made up of EMR Capital and Golden Energy and Resources, was committed to the development of the mine, which has produced nearly 2m ounces of gold since 2004.

The sale of the mine fits with Resolute’s aim of switching its attentions to becoming a low-cost, multi-mine African-focused gold producer.

On Monday Resolute had confirmed it was in negotiations with EMR Capital over the sale of the mine. It described EMR as a “leading” resources-focused private equity company with “outstanding” credentials.

Resolute will be paid AU$100m upfront, with the remaining AU$200m linked to investment outcomes and the price of gold.

Last year the firm committed to a strategic review of the mine, focusing on how to maximise returns from an ongoing expansion project.

It hopes that the pit will produce 200,000 ounces of gold annually for 15 years from 2022, up from 55,000 today.

Chief executive John Welborn said: “The sale of our Ravenswood gold mine on the terms announced today provides the opportunity for exceptional value for Resolute shareholders.”

Shares in Resolute were flat on the announcement.