Barrick to offload stake in Russia’s Highland Gold
BARRICK Gold, the world’s largest gold producer, plans to sell its 20 per cent stake in Russia’s Highland Gold, it announced yesterday.
Barrick bought the stake in Highland, a venture backed by tycoon Roman Abramovich, almost a decade ago, with the aim of using it to gain a foothold to grow in Russia, home to the world’s second-largest gold reserves after South Africa.
Instead, as Highland failed to significantly ramp up its production and with Russia still a tough environment for foreign miners, Barrick Gold has focused on its more lucrative US and Latin American growth assets.
Aim-listed Highland, which missed its 2011 output target after hitting operational hitches, was Barrick’s only major asset in Russia.
Highland is 40 per cent owned by entities linked to Millhouse, Abramovich’s investment vehicle, which said that a sale could be good for the stock as it could boost a free float, currently around 30 per cent.