Castlemine to buy Ballarat goldfield, 90 to lose jobs
Castlemaine Goldfields has decided that it will buy Ballarat Gold Mine in Victoria from Lihir Gold Limited (LGL). The ill-fated gold project has almost hundred people working on it, who are going to become unemployed because of the deal.
The decision was made after the two companies entered into an agreement. As per the agreement, Lihir would be getting $4.5 million as hard cash after the asset sale. It would also be getting 2.5 per cent as royalty payments, which would be interest free and will be capped at $50 million.
Lihir was forced to sell the Ballarat goldfield because of the continuous losses that it was making. As per the latest data available, it had not shown any improvement and Lihir had to bear $413 million as an impairment charge.
It had bought the fields from Ballarat Goldfields for $350 million scrip deal in the year 2006.
Meanwhile, 200 workers have already lost their jobs and another 90 will be issued pink slips very soon.
As per the company, 40 will be thrown in the beginning itself and the rest 50 will prepare the field for takeover, before being shown the doors.
