Rajesh Exports buys gold refiner Valcambi for Rs. 2,500 cr.

Jewellery company Rajesh Exports has acquired Switzerland-based gold refining company Valcambi SA for Rs. 2,500 crore ($400 million) from US-based mining company Newmont Mining Corporation.

The Bengaluru-based company plans to fund 65 per cent of the acquisition cost through internal accruals and has tied up with Credit Suisse for a $140-million (about Rs. 880-crore) loan. The refiner has an assured supply of ore from Newmont for five years with an option to extend this further.

Valcambi has the capacity to refine 1,600 tonnes of gold and 400 tonnes of other precious metals. Last year, it processed 945 tonnes of gold and 325 tonnes of silver to generate $38 billion (Rs. 2.36 lakh crore) of revenue, with an Ebitda of $33 million (Rs. 205 crore).

HBL