Goldbely, an Austrian gold mine company, announced on Friday it was selling its gold to Chinese mining giant China National Gold Corporation (CNGC) for more than $300 million, the world, biggest gold miner, announced.
Goldbely is also taking a 25% stake in the CNGC in an agreement that was announced in March.
Goldbey, which is controlled by the country’s largest gold mining group, the Süddeutsche Zeitung, has been operating in the country for more to seven decades.
The company said in a statement that it has agreed to sell the majority of its gold in exchange for a stake in CNGC.
The gold, which was mined by the company in the 1960s, is currently being stored in the Sauerhalt Mine in the Austrian city of Wien.
According to the company, the gold mining operations of Goldbeleys gold mines are highly sensitive, and the new ownership agreement will allow it to better manage the mine’s environmental and environmental protection.
“The decision to sell our gold reserves is part of our strategy to ensure that our business continues to thrive, and we are also working towards the implementation of the environmental management plan,” Goldbelys CEO and chairman Hans-Joachim Munch said.
Munch said that Goldbeleys gold reserves have been mined for more a quarter century.
“In the coming months, we will be launching a comprehensive plan to increase the gold reserves of the Söhne Gold Reserve,” he said.
In the first nine months of this year, gold prices fell below $1,600 per ounce, according to the Stockholm International Peace Research Institute (SIPRI).
The price of gold was also lower in the first half of 2018 than in the same period of 2017.
Ahead of the announcement, Goldbeley said that its mining operations would remain in operation for “another decade” as part of a joint venture with CNGC, and that the sale of the majority stake in Goldbelies mining operations will not have a negative impact on the company’s financial position.
In a statement, the company said it was looking forward to a long-term future for the SÖhne gold reserves, which will have a positive impact on our business, shareholders and the community.
The announcement comes at a time when gold prices have fallen significantly, especially as the US Federal Reserve begins to tighten monetary policy, while commodity prices have been rising.
Last week, the European Central Bank (ECB) announced it would lift its benchmark lending rate to a record high of 0.5% in January.
The ECB is aiming to boost growth and the economy by increasing monetary stimulus.
On the gold market, the Swiss company is in talks with Chinese investors for a sale of its assets in an initial public offering (IPO) of its shares, the Wall Street Journal reported on Friday.