India-based jewellery maker Rajesh Exports has acquired the 100% stake in European Gold Refineries Holding, which owns Switzerland-based Valcambi, through its Singapore subsidiary for $400m, which includes the stake of Newmont Mining.

US-based Newmont Mining has sold its stake for $119m.

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Newmont Mining strategic development executive vice-president Randy Engel said: "This sale further strengthens Newmont’s balance sheet and enhances our focus on our core business.

"Since mid-2013, we have executed $1.6bn in non-core asset sales, allowing us to further pay down debt, invest in new, profitable production and return capital to shareholders."

"This acquisition will add significantly to the revenues and profitability of REL group during the coming years."

Following the deal, Newmont said it will continue its relationship with Valcambi through a new ownership mechanism.

The Valcambi refinery was jointly owned by Newmont and a group of Swiss investors, which started its operation in 1961.

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Newmont bought interest in the gold refinery in from Credit Suisse in 2004.

Newmont Mining vice-president David Faley said: "We have long-term contracts with Valcambi for refining the gold produced from a number of our mines primarily due to the trust, credibility and global standards of Valcambi."

Valcambi processed and sold 945t of gold and 325t of silver per year during the last three years, which is more than the gold consumed in India.

Rajesh Exports chairman Rajesh Mehta said: "The coming together of REL and Valcambi would expand the global gold business and would prove very productive for the future global plans of REL group.

"The acquisition is also of national importance for India, as India is the largest consumer of gold in the world, it would be a step in the right direction by an Indian company to own a world-class asset like Valcambi.

"On a theoretical basis Valcambi is capable of supplying the entire gold requirement of India. This acquisition will add significantly to the revenues and profitability of REL group during the coming years."