A SOUTH African company has purchased a majority stake in Scotland’s only gold mine – with the intention to reopen the site.
Operations at Cononish in the Loch Lomond and The Trossachs National Park have been at a standstill since 2023 after the mine’s parent company went into administration, leaving the 80 person workforce on unpaid leave.
Acrux Sorting Technology, a mining group based in Johannesburg and London, has now purchased a majority stake in SGZ Cononish Limited, the UK registered company, which is not in administration, for an undisclosed fee.
Acrux chief executive Sean Browne said the agreement reflects confidence in the future of gold mining in Scotland and that he hopes production can resume in the first quarter of next year.
Browne said trade creditors who were owed money will be paid and aims to recruit an unknown number of staff in the coming months.
Scotgold Resources, the previous owner, spent over a decade planning and fundraising for the mine, with the first gold extracted in 2020.
The site could not meet the 23,500 ounces of gold expected before shutting down production, with Scotgold admitting that the viability of the business depended on the quantity and grade of ore it was able to produce being in line with what was originally forecast.
The pandemic, equipment problems, staff shortages and weather conditions were each factors that impacted the amount of gold extracted.
There were also concerns about the quality and amount of gold and silver being recovered with more cost-effective mining methods having to be employed.
A 2023 plan by Scotgold Resources suggested there would need to be upgrades to power and ventilation systems to support underground development work and a robust drilling programme to grow ore production to profitable levels.
Browne confirmed investment will be made into the mine, and remains confident it can produce up to 2000 ounces per month.
Browne thanked Crown Estate Scotland and the Loch Lomond and The Trossachs National Park Authority for their support and said: “This is a transformative opportunity."
“The growing value of gold presents an exciting investment landscape, and we are committed to ensuring long-term success while adhering to the highest environmental and social economic standards."
A spokesman for the national park said: “We welcome the clarity and progress brought by the announcement of Acrux Sorting Technology’s investment in SGZ Cononish Ltd.
“This marks an important positive step forward following what has been an uncertain, prolonged period of care and maintenance at the Cononish mine site.
“Acrux’s proactive engagement with the national park authority on planning requirements and obligations is recognised, providing reassurance on the approach to implementing the existing permission and, in time, restoring the site."
The abandoned site became a hotbed for illegal exploring, prompting a police warning over potential serious injury or even death.
