Newmont Mining (NYSE: NEM) has sold its 60.6% stake in the Valcambi gold refinery in southeast Switzerland to a subsidiary of Rajesh Exports. The sale netted the miner US$119 million in cash.
“Since mid-2013, we have executed US$1.6 billion in non-core asset sales, allowing us to further pay down debt, invest in new, profitable production and return capital to shareholders,” Newmont executive vice-president for strategic development Randy Engel said.
Newmont said it would keep existing relationships with the refinery. As of 2013, 75% of the gold refined at Valcambi came from Newmont’s mines.
Valcambi began operations in 1961, and Newmont acquired its stake in 2004 from Credit Suisse.
The refinery is noted for its capacity, refining 64 million oz. precious metals per year.
In addition the facility employs a fully automated robotic process, and is the only producer of “Green Gold,” which is marketed as fully traceable and sustainably produced.
The buyer, Rajesh, is a jewellery manufacturer based in Bangalore, India. It has been a long-standing customer of the refinery and claims to be the world’s largest and lowest-cost gold jewellery producer, with the capacity to turn 250 tonnes of gold into jewellery every year at its Bangalore plant.