New | BlackRock seeks unity with minority shareholders in blocking ‘primary’ gold mine asset sale by G-Resources
Hong Kong-listed goldminer is proposing asset sale to consortium led by its vice chairman
BlackRock is calling upon fellow minority investors in Hong Kong-listed G-Resources Group, to vote against the board’s proposal to sell its crown jewel Indonesian gold mining business to a consortium led by a fund partly owned by its vice-chairman.
BlackRock, the world’s largest asset manager, said plans to sell the recently opened mine for close to its book value made little sense.
“We considered the primary asset of the company, the Martabe mine, to be particularly attractive based on its low costs of production, long mine life and significant exploration potential,” BlackRock said in a letter addressed to all other G-Resources shareholders.
“We strongly oppose the sale of the mine and urge all shareholders to reject the proposed sale at the special general meeting on March 8.”
BlackRock has invested in G-Resources since 2009 to gain exposure to the “highly attractive” mine and for exposure to the gold sector.
Its funds own a combined 8 per cent stake in the firm that runs the mine in western Sumatra, Indonesia, which began production in 2012 and made an operating profit of US$55.5 million (HK$431.4 million) in the first half of last year.