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Gold Fields faces $1.44 bln claim over Western Areas

Fri Aug 22, 2008 7:07am EDT

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JOHANNESBURG, Aug 22 (Reuters) - Gold Fields (GFIJ.J), the world's No. 4 gold producer, said on Friday it had received summonses over claims totalling 11 billion rand ($1.44 billion) from companies alleging fraud by a subsidiary of the group.

Gold Fields said the claims lie only against subsidiary Western Areas Ltd. (WAL), which owns a 50 percent stake in Gold Field's South Deep mine in South Africa.

Randgold and Exploration Company Ltd and African Strategic Investment (Holdings) Ltd lodged the claim citing the fraudulent sale of shares belonging to Randgold and Uranium One (UUU.TO).

They said the fraud took place when WAL was controlled by a company led by slain mining executive Brett Kebble and others.

Gold Fields said WAL's attorneys would defend the claims, and that the alleged liability was historic and relates to a period prior to Gold Fields purchasing WAL.

(Reporting by James Macharia; Editing by David Cowell)



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