Gold Fields sells China stake

GOLD Fields, the world's fourth-biggest gold producer, has sold for R2,27billion its 19,9percent stake in Sino Gold Mining to Canada's Eldorado Gold.

GOLD Fields, the world's fourth-biggest gold producer, has sold for R2,27billion its 19,9percent stake in Sino Gold Mining to Canada's Eldorado Gold.

Under the deal, Gold Fields will receive 48 Eldorado shares for every 100 Sino Gold shares, resulting in Gold Fields holding 27,8million shares in Eldorado or about 7percent in the gold producer with exploration in Brazil, China, Greece and Turkey.

Sino, which owns China's second-largest gold mine, is targeting production of 500000 ounces a year from its Jinfeng mine in Guizhou province, and is also developing another mine in Jilin province.

Nick Holland, Gold Fields chief executive, said the sale did not detract from the firm's strategy to grow its international production as it would retain exploration ventures with Sino in China's Jinshu project.

Holland said Gold Fields would also strengthen its own team in China to allow for independent growth in the world's biggest gold producer.

"We have not changed course and our aspiration to grow production in each of our three international regions, West Africa, South America and Australasia, remains intact," Holland said. - Reuters

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