LONDON, Jan 8 (Reuters) – Barrick Gold Corp said it
was no longer in talks to sell a stake in its majority-owned,
London-listed gold producer African Barrick Gold to a
Chinese buyer, calling time on months of talks.
Canadian mining major Barrick Gold, which owns 74
percent of African Barrick, said in August it was in early-stage
talks with state-owned China National Gold about the possible
sale of all or part of its stake.
The termination of talks over what would have been one of
China’s largest mining deals in Africa suggests that China is
becoming an increasingly tough negotiating partner.
Chinese companies made a string of deals in gold miners in
2012 as the country’s demand for bullion, where it is sought for
jewellery and as an inflation hedge, soars, and it has been
increasingly seen as a deep-pocketed investor.
“We are approaching this in a prudent and disciplined manner
and will only proceed with opportunities that generate
acceptable value for Barrick,” Barrick Gold’s Chief Executive
Jamie Sokalsky said in a statement on Tuesday.
Barrick, the world’s largest gold producer, has said it is
evaluating all of its portfolio as it grapples with falling
profits and soaring costs.
African Barrick said in a separate statement on Tuesday that
its board had asked management to conduct an operational review
of the business with the intention of improving returns from its
projects, which are primarily based in Tanzania.
Since it was listed separately in London in 2010, African
Barrick has lagged expectations, suffering setbacks ranging from
villagers armed with machetes invading a mine to power woes and
fuel thefts.
The board of the London-listed firm said it intended to
recommend that its full-year dividend be maintained at the 2011
level of $67 million.
Other Chinese investments in gold have primarily been in
Australia. In the last six months, Zhongrun Resources Investment
Corp agreed to buy a stake in Noble Mineral
Resources Ltd, Shandong Gold Group agreed
to buy part of Focus Minerals Ltd, and Zijin Mining
Group acquired Norton Gold Fields.
