Great Central Mines
Encyclopedia
Great Central Mines was an Australia
n gold
mining
company.
The company lost its independence in 1999, when it was taken over by Normandy Mining
, and was renamed Normandy Yandal Operations Limited in 2000. The company's takeover however led to lengthy court proceedings, initiated by the Australian Securities and Investments Commission
, which only finalised in February 2003. At this stage, Normandy Mining itself had been taken over by the Newmont Mining Corporation.
under the code GCM.
, who was, after almost having been ruined by the 1987 stock market crash
, advised by the Rebbe
Menachem Schneerson to go back to the Australian desert and search for "gold and diamonds".
In 1988, Gutnick's company discovered the deposit which was to become the Plutonic Gold Mine
in Western Australia, which he sold for A$50 million.
GCM acquired the majority of the Bronzewing deposit
from Mark Creasy, a sale which earned the later an entry into the Guinness Book of Records
, becoming the prospector receiving the richest payout, having received A$
115 million for it from GCM. The company purchased the remaining 30% of Bronzewing it didn't own in early 1995 for US$
89 million, together with the remaining 49% stake of the Jundee Gold Mine
it hadn't owned previously.
By 1996, GCM was worth A$500 million, but Gutnick's web of companies was built on debt.
On 21 August 1997, GCM made an offer for Wiluna Mines Limited, owner of the Wiluna Gold Mine
. This offer closed on 10 October 1997 and was followed by a second offer, lasting until 2 January 1998. GCM acquired the necessary 90% acceptance in the second offer and moved to compulsory acquisition on 5 January 1998.
were found to have illegally structured a takeover of the company and Gutnick was ordered to return $28.5 million to investors. The court found that their behaviour in jointly bidding $450 million earlier that year for Great Central Mines was unlawful and deceptive. Both Gutnick and Crespigny had shareholdings in GCM before this bid was launched, and they agreed together to form the Yandal Gold company. The court found however, that it was only Gutnick who received any benefit and it was therefore him who had to pay the $28.5 million. Justice Ron Merkel of the Federal Court found that Yandal Gold, jointly owned by Gutnick's family company Edensor Nominees, and Normandy, acted illegally during the takeover. Court proceedings finalised only in February 2003, after Normandy Mining itself had ceased to exist.
The deal nevertheless went ahead and brought the Bronzewing
, Jundee
and Wiluna Gold Mine
's to Normandy. The ongoing court proceedings however meant, that GCM could not be delisted from the ASX, as planned, on 22 June 1999. Instead, GCM continued to trade, acquiring the Mt McClure Gold Mine, near Bronzewing, in September 1999 and integrating it in the later.
On 5 April 2000, Joseph Gutnick, Robert Champion de Crespigny and Ian Gould resigned as directors of the company, to be replaced by three new directors.
code to NYY. Normandy Yandal, in turn, was renamed Newmont Yandal Operations Limited, after the takeover of Normandy by Newmont, on 24 May 2002. At the end of court proceedings, on 28 February 2003, Newmont Yandal was delisted from the Australian Securities Exchange. The final court decision modified the original court order such that former GCM shareholders were not be able to reacquire their shares in GCM, making the existence of the company for legal reasons unnecessary.
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
n gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
mining
Mining
Mining is the extraction of valuable minerals or other geological materials from the earth, from an ore body, vein or seam. The term also includes the removal of soil. Materials recovered by mining include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock...
company.
The company lost its independence in 1999, when it was taken over by Normandy Mining
Normandy Mining
Normandy Mining was an Australian mining company which predominantly mined gold. Normandy was, during much of the late 20th century, Australia's largest gold miner....
, and was renamed Normandy Yandal Operations Limited in 2000. The company's takeover however led to lengthy court proceedings, initiated by the Australian Securities and Investments Commission
Australian Securities and Investments Commission
The Australian Securities & Investments Commission is an independent Australian government body that acts as Australia's corporate regulator...
, which only finalised in February 2003. At this stage, Normandy Mining itself had been taken over by the Newmont Mining Corporation.
Names and listings
The company started its existence under the name of Great Central Mines NL, changing its name to Great Central Mines Limited on 19 December 1996. The company was listed on the Australian Securities ExchangeAustralian Securities Exchange
The Australian Securities Exchange was created by the merger of the Australian Stock Exchange and the Sydney Futures Exchange in July 2006. It is the primary stock exchange group in Australia....
under the code GCM.
Great Central Mines
Great Central Mines was led by the ordained Rabbi Joseph GutnickJoseph Gutnick
Joseph Isaac Gutnick is an Australian businessman and mining industry entrepreneur. He is also an ordained rabbi and is well known for his philanthropy in the Jewish world.-Business holdings:Among Gutnick's business holdings:...
, who was, after almost having been ruined by the 1987 stock market crash
Black Monday (1987)
In finance, Black Monday refers to Monday October 19, 1987, when stock markets around the world crashed, shedding a huge value in a very short time. The crash began in Hong Kong and spread west to Europe, hitting the United States after other markets had already declined by a significant margin...
, advised by the Rebbe
Rebbe
Rebbe , which means master, teacher, or mentor, is a Yiddish word derived from the Hebrew word Rabbi. It often refers to the leader of a Hasidic Jewish movement...
Menachem Schneerson to go back to the Australian desert and search for "gold and diamonds".
In 1988, Gutnick's company discovered the deposit which was to become the Plutonic Gold Mine
Plutonic Gold Mine
The Plutonic Gold Mine is a gold mine located 82 km east north east of Peak Hill, Western Australia.It is operated by Barrick Gold and located at the Plutonic Well Greenstone Belt.-History:...
in Western Australia, which he sold for A$50 million.
GCM acquired the majority of the Bronzewing deposit
Bronzewing Gold Mine
The Bronzewing Gold Mine is a gold mine located approximately 83 km north-east of Leinster, Western Australia. The mine, owned by Navigator Resources Limited, was, until early 2010, in care and maintenance after its previous owner, View Resources Limited went into administration.The mine is...
from Mark Creasy, a sale which earned the later an entry into the Guinness Book of Records
Guinness World Records
Guinness World Records, known until 2000 as The Guinness Book of Records , is a reference book published annually, containing a collection of world records, both human achievements and the extremes of the natural world...
, becoming the prospector receiving the richest payout, having received A$
Australian dollar
The Australian dollar is the currency of the Commonwealth of Australia, including Christmas Island, Cocos Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru and Tuvalu...
115 million for it from GCM. The company purchased the remaining 30% of Bronzewing it didn't own in early 1995 for US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
89 million, together with the remaining 49% stake of the Jundee Gold Mine
Jundee Gold Mine
The Jundee Gold Mine is an active gold mine in Western Australia, approximately 55 km north east of the town of Wiluna, owned by Newmont Mining.-History:...
it hadn't owned previously.
By 1996, GCM was worth A$500 million, but Gutnick's web of companies was built on debt.
On 21 August 1997, GCM made an offer for Wiluna Mines Limited, owner of the Wiluna Gold Mine
Wiluna Gold Mine
The Wiluna Gold Mine is an active gold mine in Western Australia near the town of Wiluna. The mine was active from 1984 till its closure in 2007; when it was put into care and maintenance; and again since late 2008....
. This offer closed on 10 October 1997 and was followed by a second offer, lasting until 2 January 1998. GCM acquired the necessary 90% acceptance in the second offer and moved to compulsory acquisition on 5 January 1998.
Normandy takeover
In early 1999, Normandy Mining made an offer for GCM through Yandal Gold, a company it owned a 49.9% interest in. This offer came under investigation from the Australian Securities and Investments Commission, which demanded a termination of the offer on 23 March 1999. Gutnick and Normandy chairman Robert Champion de CrespignyRobert Champion de Crespigny
Robert James Champion de Crespigny, AC is an Australian businessman.-Early life and education:Champion de Crespigny was educated at Melbourne Grammar School and the University of Melbourne, from which he graduated with a Bachelor of Commerce degree.-Accounting:Upon completing his studies, he...
were found to have illegally structured a takeover of the company and Gutnick was ordered to return $28.5 million to investors. The court found that their behaviour in jointly bidding $450 million earlier that year for Great Central Mines was unlawful and deceptive. Both Gutnick and Crespigny had shareholdings in GCM before this bid was launched, and they agreed together to form the Yandal Gold company. The court found however, that it was only Gutnick who received any benefit and it was therefore him who had to pay the $28.5 million. Justice Ron Merkel of the Federal Court found that Yandal Gold, jointly owned by Gutnick's family company Edensor Nominees, and Normandy, acted illegally during the takeover. Court proceedings finalised only in February 2003, after Normandy Mining itself had ceased to exist.
The deal nevertheless went ahead and brought the Bronzewing
Bronzewing Gold Mine
The Bronzewing Gold Mine is a gold mine located approximately 83 km north-east of Leinster, Western Australia. The mine, owned by Navigator Resources Limited, was, until early 2010, in care and maintenance after its previous owner, View Resources Limited went into administration.The mine is...
, Jundee
Jundee Gold Mine
The Jundee Gold Mine is an active gold mine in Western Australia, approximately 55 km north east of the town of Wiluna, owned by Newmont Mining.-History:...
and Wiluna Gold Mine
Wiluna Gold Mine
The Wiluna Gold Mine is an active gold mine in Western Australia near the town of Wiluna. The mine was active from 1984 till its closure in 2007; when it was put into care and maintenance; and again since late 2008....
's to Normandy. The ongoing court proceedings however meant, that GCM could not be delisted from the ASX, as planned, on 22 June 1999. Instead, GCM continued to trade, acquiring the Mt McClure Gold Mine, near Bronzewing, in September 1999 and integrating it in the later.
On 5 April 2000, Joseph Gutnick, Robert Champion de Crespigny and Ian Gould resigned as directors of the company, to be replaced by three new directors.
Post-takeover
GCM became Normandy Yandal Operations Limited on 30 June 2000, changing its Australian Securities ExchangeAustralian Securities Exchange
The Australian Securities Exchange was created by the merger of the Australian Stock Exchange and the Sydney Futures Exchange in July 2006. It is the primary stock exchange group in Australia....
code to NYY. Normandy Yandal, in turn, was renamed Newmont Yandal Operations Limited, after the takeover of Normandy by Newmont, on 24 May 2002. At the end of court proceedings, on 28 February 2003, Newmont Yandal was delisted from the Australian Securities Exchange. The final court decision modified the original court order such that former GCM shareholders were not be able to reacquire their shares in GCM, making the existence of the company for legal reasons unnecessary.
Operations
GCM operated three gold mines, all in Western Australia, during its existence:- Bronzewing Gold MineBronzewing Gold MineThe Bronzewing Gold Mine is a gold mine located approximately 83 km north-east of Leinster, Western Australia. The mine, owned by Navigator Resources Limited, was, until early 2010, in care and maintenance after its previous owner, View Resources Limited went into administration.The mine is...
: Developed by GCM in the early 1990s, Bronzwing produced approximately 250,000 to 300,000 ounces of gold annually. - Jundee-Nimary Gold MineJundee Gold MineThe Jundee Gold Mine is an active gold mine in Western Australia, approximately 55 km north east of the town of Wiluna, owned by Newmont Mining.-History:...
: Developed by GCM in the mid-1990s, Jundee and Nimery produced approximately 300,000 ounces of gold annually, with two thirds of it produced from Jundee and one third from nearby Nimary. - Wiluna Gold MineWiluna Gold MineThe Wiluna Gold Mine is an active gold mine in Western Australia near the town of Wiluna. The mine was active from 1984 till its closure in 2007; when it was put into care and maintenance; and again since late 2008....
: Acquired in late 1997, the Wiluna mine produced approximately 130,000 ounces of gold annually under GCM.
Production
Annual production figures of the company:| Year | Production | Cost per ounce |
| 1996-97 | 436,209 ounces | A$277 |
| 1997-98 | 649,322 ounces | A$301 |
| 1998-99 | 783,182 ounces | A$307 |
External links
- MINEDEX website
- 02/398 Yandal: $33 million payout for former Great Central Mines shareholders ASICAustralian Securities and Investments CommissionThe Australian Securities & Investments Commission is an independent Australian government body that acts as Australia's corporate regulator...
website