A South African mining company has acquired a majority stake in Scotland’s only gold mine, with plans to resume production.
Operations at the Cononish mine, located in Loch Lomond and The Trossachs National Park, have been suspended since 2023 after its former owner, Scotgold Resources, went into administration. The closure left 80 workers on unpaid leave.
Acrux Sorting Technology, a mining group with bases in Johannesburg and London, has now taken control of SGZ Cononish Limited—the UK-registered entity that remains operational—for an undisclosed amount.
Plans for Revival
Acrux CEO Sean Browne expressed confidence in the future of gold mining in Scotland and aims to restart production in the first quarter of next year. He also assured that trade creditors will be paid and new staff will be recruited.
Scotgold Resources had spent over a decade developing the mine, with the first gold extracted in 2020. However, production fell short of the expected 23,500 ounces, with challenges such as the COVID-19 pandemic, equipment failures, staff shortages, and adverse weather conditions affecting operations.
Browne confirmed that Acrux will invest in upgrades to power and ventilation systems and intends to increase gold output to 2,000 ounces per month.
Environmental Commitments and Regulatory Approval
The acquisition has been welcomed by Crown Estate Scotland and the Loch Lomond and The Trossachs National Park Authority. The park authority acknowledged Acrux’s engagement with planning requirements, ensuring compliance with existing regulations and eventual site restoration.
The abandoned site had recently become a hotspot for illegal exploration, prompting police warnings about the risk of serious injury or death.
Browne described the acquisition as a “transformative opportunity,” highlighting the rising value of gold and the company’s commitment to responsible and sustainable mining practices.