South Africa’s Harmony Gold is interested in buying gold production assets in the Kamchatka peninsula in Russia’s far east from Russian investment firm Renova, Interfax news agency reports.Mark Buzuk, the head of Renova in South Africa told Interfax, that Harmony was interested in the assets and the two firms would take a “couple of months” to estimate their value.

Renova’s Kamgold subsidiary produces around 3 tonnes of gold a year in Kamchatka, a volcano-strewn wilderness that stretches 1,000 miles (1,600 km) into the Pacific Ocean.

Interfax cited banking sources as saying Renova planned to float the firm in an initial public offering of shares in the first half of 2007, organised by UBS, but a source close to Renova said Harmony could take a stake as a strategic investor.

Investment in Kamgold might run to $200 million, while Renova also agreed a uranium cooperation deal with Harmony on Wednesday, which might total $100 million, the source said.

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