By Paul Ploumis 01 Jul 2015 Last updated at 08:30:29 GMT
MUMBAI (Scrap Monster): Rajesh Exports- the leading Indian gold exporter announced that it is in talks with Newmont Mining Corporation to own a significant stake in Swiss gold refinery. The negotiations are on for acquiring stakes in Valcambi, which refines around 1,200 tonnes of gold every year. According to sources, some other Swiss refineries such as Argor-Heraeus and Metalor have also expressed interest for a deal with the company.
Rajesh Exports has convened a board meeting on July 2nd to seek approval for the purchase of stake in any of the above refineries. The proposed deal would ensure steady supply of rough gold to its gold jewellery manufacturing business. Besides this, the deal would also help the company to transfer technology to its own refinery in India, which currently refines nearly 60 tonnes of gold per year. This could potentially boost the domestic refining capacities.
The all-cash deal is valued at about $400 million at existing exchange rate. Sources indicate that around 70% of the deal money would be met from internal accruals, whereas the balance will be met through overseas borrowings.
The company has recorded strong growth in export orders over the past several months. Last month, it had bagged a massive export order worth Rs 13 biliion from UAE-based Al Jameelat Jewellery towards supply of designer gold and diamond studded jewellery and medallions. Earlier in March it had won a similar order worth Rs 12.65 billion from UAE-based Al Sultan Jewellery.
Rajesh Exports Limited (REL) headquartered in Bangalore, India manufactures gold & diamond jewellery. REL exports its products worldwide and distributes them within India to the wholesale jewellery market. REL also retails its products through its own network of retail jewellery showrooms Shubh Jewellers spread across India. It is also lowest cost gold jewellery manufacturing company in the world.