Durban expands

THE determination by South African gold miner Durban Roodepoort Deep to move into the Australasian region has taken another step forward.

The company has acquired a 19.9 per cent stake in Papua New Guinea gold producer, Dome Resources NL, paying 30 cents each for 28.6 million shares.

DRD chief financial officer Charles Mostert and John Stratton have been appointed to the board of Dome.

Mr Mostert said the acquisition confirmed the company’s intention to build a 500,000 ounce per annum gold production base in the region.

“Dome’s Tolukuma gold mine in PNG is a high-grade, low-cost producer from underground mining operations which suits our style of investment,” he said.

“We believe we can assist management to maintain its focus on production costs and increase mine profits.”