Australian acquisition next on the agenda for Indian gold baron

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Australian acquisition next on the agenda for Indian gold baron

By Peter Ker
Updated

The Indian gold baron who paid $US200 million ($274 million) for one of the world's largest gold refineries on Monday insists that an Australian acquisition is next on his agenda.

Rajesh Mehta, whose company Rajesh Exports is one of the world's biggest private sector gold buyers and the operator of more than 80 jewellery stores across the subcontinent, is the new owner of the Valcambi gold refinery in Switzerland, after buying it from a syndicate led by Newmont Mining on Monday.

Rajesh Mehta is the new owner of the Valcambi gold refinery in Switzerland and is eyeing Australian acquisitions.

Rajesh Mehta is the new owner of the Valcambi gold refinery in Switzerland and is eyeing Australian acquisitions.Credit: Reuters

Mr Mehta vowed earlier this year to spend up to $US700 million on Australian gold assets in a bid to secure supply of gold for his jewellery empire, and speaking to Fairfax Media on Monday, Mr Mehta said those plans would be resumed once the Valcambi transaction was completed.

"We will look at Australia after that [transaction]," he said.

"We are very very seriously looking … we have a lot of interest coming from [Australia], we have made a list of interesting assets there and we will be taking that forward."

The comments come after a busy two years of asset sales in the Australian gold sector, with Newmont and fellow North American gold major Barrick playing a major role by selling numerous Australian assets.

The trend has slowed down of late but some companies are still looking to sell assets, including Newcrest Mining, which has put its Telfer mine in the shop window.

The gold price has fallen 16 per cent since January and was touching a 65 month low at $US1083 per ounce last week.

But the yellow metal recovered somewhat in recent days and was fetching $US1104 per ounce on Monday.

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Not surprisingly, Mr Mehta said he was confident the gold price would recover.

"I am of the opinion that from here it should turn back," he said.

Newmont confirmed on Monday that it had netted $US119 million from the sale of its 60 per cent stake in the Valcambi refinery.

The sale is part of Newmont's ongoing efforts to sell non-core assets.

Mr Mehta said that Credit Suisse had assisted his company with finance for the Valcambi transaction.

"The acquisition is of global importance for India, as India is the largest consumer of gold in the world," he said.

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