Vancouver refiner looks to restart

Australian-based Golden West Refining will breathe new life into International Nesmont Industrial’s dormant gold refinery in Ladner, B.C.

The refinery was shut down last year after brass bars were found amongst the company’s inventory of gold bars, leading to allegations that the company had been overstating its profits.

Nesmont was subsequently granted protection under the Companies’ Creditors Arrangement Act last August, and the Royal Canadian Mounted Police is investigating.

Under the agreement with Golden West, shareholders and creditors of Nesmont will retain a 35% interest in the refinery, while Golden West will hold a 65% interest. Rothschilds North America retains the right to buy a 5% interest in the refinery from Golden West.

The reactivated refinery will operate under the name Regency Gold Refining. Sean Russo, a director of both Rothschild and Golden West, sees a ready market for a refinery operating in the Vancouver area.

The nearest competing refiners are in Salt Lake City, Utah, and Los Angeles, Calif.

Golden West expects to produce about 50 tonnes of gold this year from its wholly owned refinery in Australia and its 45%-owned and operated refinery in Papua New Guinea.

In its first year, Regency Gold is expected to yield more than 9 tonnes, and Russo expects to be producing at an annual rate of more than 15 tonnes within three to five years.