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Gold Fields may sell smaller sized mines to concentrate on brand-new Canadian Osisko assets

Gold Fields might try to find buyers for its smaller mines in Ghana and Peru to focus on larger operations and is intending to make brand-new mineral discoveries at both mines to enhance their appeal, CEO Mike Fraser stated on Thursday.

The Johannesburg-based gold miner is shifting focus to advancing its new Salares Norte mine in Chile as well tasks coming from Osisko Mining, which it recently purchased for about $ 1.6 billion. Gold Fields could potentially sell its Damang mine in Ghana where it is just processing stockpiled ore after stopping mining operations last year, Fraser stated.

The miner could likewise seek buyers for its Cerro Corona in Peru operation in Chile - which has five years left on its lifespan - the CEO added.

Gold Fields is studying the capacity for new mineral discoveries at both mines to help draw in buyers, he said.

We do want to set it up in a way that, if we keep it, we understand we have unlocked the value, Fraser informed Reuters. If we decide to offer it to someone else, we would have sold it with an ingrained choice for life extension.

Gold output at Damang, which has actually been mined given that 1997, fell 11% to about 33,000 ounces in the 3 months to September, the company said. The Peru mine produced 20,800 ounces compared to 16,800 ounces the previous quarter.

Gold Fields' output increased 12% to 510,000 ounces in the September quarter and the business preserved its production for the year at about 2.1 million ounces.

A strategy to merge Gold Fields' Tarkwa and AngloGold Ashanti's. Iduapriem mines in Ghana, to help cut costs, has actually been held back. by a parliamentary recess as the west African nation holds. elections on Dec. 7.

Due to the election we just lacked time, Fraser stated.

(source: Reuters)