After buying Valcambi, Rajesh Exports now eyes Australian gold market

Indian jewellery firm Rajesh Exports is eyeing Australian markets in a bid to secure supply of gold for its empire after the company bought Switzerland- headquartered gold refinery Valcambi for USD 400 million.

"We are very very seriously looking ... we have a lot of interest coming from (Australia], we have made a list of interesting assets there and we will be taking that forward," said Rajesh Mehta, the company's chairman.

Mehta had earlier expressed his interest in spending up to USD 700 million on Australian gold assets in a bid to secure supply of gold for his jewellery empire.

He said these plans would be resumed once the Valcambi transaction was completed. Valcambi was bought for USD 400 million (about Rs 2,560 crore) in an all-cash deal.

"We will look at Australia after that (transaction)," he was quoted as saying by Fairfax media.

Mehta also expressed his confidence in the gold prices and said that the yellow metal price would recover.

"I am of the opinion that from here it should turn back," he said.

Valcambi was owned by Newmont Mining Corporation and a group of Swiss investors.

Newmont yesterday confirmed that it had netted USD 119 million from the sale of its 60 per cent stake in the Valcambi refinery.

The sale is part of Newmont's ongoing efforts to sell non-core assets.

Mehta said that Credit Suisse had assisted his company with finance for the Valcambi transaction.

"The acquisition is of global importance for India, as India is the largest consumer of gold in the world," he said.