Tuesday, 11th July 2006 (2924 views)

A merger worth A$523 million has been agreed between two Australasian mining companies, Oceana Gold and Climax Mining.

The new joint venture between the two companies could create a new power in the gold mining sector in Australia and perhaps one big enough to make waves in the global marketplace.

The merger means that the new single company will be able to use its low-cost production base and renewed market strength to consolidate its holdings and improve its overall stature.

It aims to become a one-million-ounce-a-year producer before long, according to Stephen Orr, the new chief executive-elect of the group, and become "a globally significant gold company".

"We see the merged group as a consolidation vehicle within Australasia and this is our first step in that strategy," he told Australian newspaper The Age.

Oceana's main focus of exploration is several gold projects in New Zealand, whereas Climax brings a multitude of gold and copper projects from throughout the region, including Australian and Philippine projects, to the table.

 

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