Friday, 10th March 2006 (2653 views)

South African gold miner Harmony will gain access to one of the world's biggest gold ore bodies by acquiring a stake in rival Western Areas.

Harmony announced today (March 10th) that it is poised to grab a 29.2 per cent stake in its smaller rival.

The all-cash move hands the gold giant strategic exposure to the South Deep gold mine, a 50/50 joint venture between Western Areas and Barrick Gold.

Containing a resource of 67 million ounces of gold, Harmony says the property represents "one of the biggest high quality gold ore bodies globally".

"We see this as a strategic exposure to one of the best ore bodies in the world and we look forward to working with the board of Western Areas on realising this asset's full potential," added Harmony boss Bernard Swanepoel in a statement.

Harmony was obviously keen to get its hands on the lucrative asset, agreeing to pay a 7.4 per cent premium on Western Areas' share price for the stake.

Harmony is the world's fourth biggest gold producer and currently carries out 90 per cent of its work in its native South Africa.

 

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