Dozens of jobs at risk as Scotland’s only gold mine on brink of collapse

SCOTLAND’S only gold mining company is on the brink of collapse with dozens of jobs at risk.

Scotgold Resources shareholder Nat le Roux announced his resignation from the firm with “considerable regret”.

The company expects to appoint administrators in the coming days after talks to bring in new investors failed.

It comes after a review of its operations in July following a “disappointing” production in the first half of this year.

The firm operates the Cononish gold mine near Tyndrum in Argyll.

Scotgold Resources sold more than 1,000 tonnes of gold concentrate last year for nearly £12million, but mining developments led to financial trouble.

In September, most staff were put on unpaid leave following a review of mining strategy.

There were almost 100 employees at the beginning of the year, reports BBC News.

Mr le Roux’s resignation statement read: “After almost 10 years on the board, I have made this decision with considerable regret.

“As Scotgold’s operating subsidiary heads towards administration, there is an unavoidable conflict between the interests of the company and my personal interest as the major secured creditor, and I believe it is in the interests of shareholders generally that I now stand down.

“I remain the company’s largest shareholder, and the board has my full support at this very difficult time.”

Cononish went into initial production in May 2016 and successfully made the first commercially produced gold in Scotland.

A proportion of the gold produced as on site via gravity methods was either minted as commemorative rounds or sold to the jewellery industry.

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