(Adds detail, quotes)
LONDON, Nov 27 (Reuters) - La Mancha Group plans to buy more underground gold mines in Africa and is ready to snap up mines that Barrick Gold ABX.TO and Randgold Resources RRS.L will sell after their merger, its billionaire chairman Naguib Sawiris said on Tuesday.
"(The Barrick disposals) might be in geographies where we are very strong and that makes sense for us," Sawiris told reporters on the sidelines of the Mines and Money conference in London. "We can extend the mine lives."
Sawiris said he was looking for mines with lives of at least 10 years and with output of 150,000 to 250,000 ounces per annum.
La Mancha is a private gold company with investments in Toronto-listed Endeavour Mining EDV.TO , Australia's Evolution Mining EVN.AX and in August bought a 30 percent stake in Ghana-focused Golden Star Resources GSC.TO .
Golden Star will look for assets in east Africa and mainly Sudan, Sawiris said.
Canada's Barrick has said it will sell some non-core assets following its $6.1 billion takeover of Africa-focused Randgold in a deal set to close on Jan. 1.
Sawiris said the mining industry still needed some consolidation even after the Randgold-Barrick deal which will create the world's top gold producer.
"We believe today is the problem is the whole mining industry needs consolidation and the proof to that the two big ones decided to merge but what about the smaller ones," Sawiris said.
"There is more sense and more urgency for the smaller mining companies to come together than for the bigger ones."
Sawiris also said he could pursue a secondary listing for Endeavour Mining EDV.TO or one of the gold companies he plans to invest in Africa on the London Stock Exchange.
Sawiris said he would not work with Chinese companies in gaining a bigger footprint in Africa as China had "closed its borders" to investors.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.