Goldfields adds more Western Areas shares

South African mining house Gold Fields (GFI-N, GOF-L, GOGOF-J) has increased its shareholding in South Deep partner Western Areas (WAR-J).

Gold Fields announced it had bought 3 million shares in a brokered transaction that brought its shareholding in Western Areas to 18.9%. The market price for Western Areas shares on July 11, the day the purchase was finished, was R41.

Shares in Western Areas have rebounded from about R35 in May, when a skip fell down a shaft. Gold Fields took advantage of the low share price to assemble a large ownership position in the company.

Western Areas is a 50% partner with Barrick Gold (ABX-T, ABX-N) in the South Deeps mine southwest of Johannesburg. Barrick inherited its interest when it bought Placer Dome in 2005.