SA’s DRD considers buying rivals’ mines

JOHANNESBURG – South Africa’s fourth-largest gold miner Durban Roodepoort Deep (DRD) may buy rival mine assets in the Carletonville area to encourage consolidation in the industry, its Chief Executive Ian Murray said on Friday.

“Things are changing and this country cannot afford to do things the way it did a 100 years ago. Consolidation will benefit all stakeholders,” Murray told Reuters.DRD’s mines in Carletonville, south west of Johannesburg, are alongside those of bigger rivals AngloGold Ashanti, Harmony Gold and Gold Fields.”There are two alternatives, we can all form a joint venture to mine on behalf of the companies or one of us can buy all the assets – I think DRD is best positioned to buy the mines,” Murray said.DRD shares tumbled 3,48 per cent to 10,81 at 1002 GMT, however, underperforming the JSE Securities Exchange’s gold mining index which rose 1,09 per cent.”I have not seen the details yet but I am not surprised the shares fell, most mines in that area are marginal and you have to be a brave man to want to buy all of them,” said one analyst who declined to be named.-Nampa-ReutersConsolidation will benefit all stakeholders,” Murray told Reuters.DRD’s mines in Carletonville, south west of Johannesburg, are alongside those of bigger rivals AngloGold Ashanti, Harmony Gold and Gold Fields.”There are two alternatives, we can all form a joint venture to mine on behalf of the companies or one of us can buy all the assets – I think DRD is best positioned to buy the mines,” Murray said.DRD shares tumbled 3,48 per cent to 10,81 at 1002 GMT, however, underperforming the JSE Securities Exchange’s gold mining index which rose 1,09 per cent.”I have not seen the details yet but I am not surprised the shares fell, most mines in that area are marginal and you have to be a brave man to want to buy all of them,” said one analyst who declined to be named.-Nampa-Reuters