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We'll look at Barrick's stake in South Deep if it's for sale - Bernard Swanepoel, Harmony CEO
In an interview on 702 @ 18:50 on 7 August 2006
[miningmx.com] -- JARMONY Gold will look at possibly acquiring Barrick Gold's 50% stake in South Deep gold mine if it comes up for sale, CEO Bernard Swanepoel said on Monday.
Harmony has a 29% holding in Western Area's that it bought for R1.9bn earlier this year. It's rival Gold Fields holds another 18% in Western Areas, which owns the other half of the South Deep mine.
South Deep is regarded as the largest untapped orebody in South African and has some 30m oz of gold.
There has been a lot of speculation about what Harmony and Gold Fields intend doing with their stakes in Western Areas, and what Barrick Gold intends doing with its share in South Deep that it acquired when it bought Placer Dome.
"That stake, when it is for sale, I'm pretty sure -- if it is for sale -- it will be shown to all potential interested parties. Harmony would have to have a look then,"
Swanepoel told the World At Six business radio show broadcast on 702.
"We've demonstrated our ability to do South African acquisitions," Swanepoel said when asked whether Harmony would put in a bid.
Harmony is likely to sit back and wait to see what Western Areas will do in coming months before making any decisions with that investment, he said.
Western Areas has to sort out a damaged main shaft that has cut production from the mine by half, and an onerous hedge book, which means management attention is not entirely focused on corporate strategy.
Harmony is busy with growth projects that will add an additional one million ounces to its portfolio from 2010, Swanepoel said.
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