Potanin buys stake in Gold Fields

Vladimir Potanin, the Russian banking, mining and oil oligarch, yesterday bought a majority stake in the world's fourth-biggest gold mine from Anglo American for $1.16bn.

Norilsk Nickel, Mr Potanin's mining empire, took the stake in Gold Fields, the South African mining company. It now becomes the biggest shareholder in Gold Fields.

The 20 per cent stake in Gold Fields came in to Anglo American's hands in 2000 as part of a deal to sell off a stake it held in a bank.

The sale of Gold Fields will net Anglo American $480m, which it says it will use to pay down debt and boost investment in its other South African businesses.

"It was a strategic investment but was not core to our gold operations. This was an opportunity to realise value," a spokeswoman for the company said, adding that its stake in AngloGold was the main focus of its gold mining plans.

For Norilsk, the deal is its first gold acquisition outside Russia, following on from a US palladium mine, Stillwater Mining Company, it took over last year. The acquisition comes just weeks after Norilsk issued a warning that its 2003 profits would come in below market expectations. Yesterday's move was being seen as a signal of Norilsk's global intentions.