Lihir Gold has decided to sell its Ballarat gold mine in Victoria, Papua New Guinea, following a review of the mine’s production capacity.

Lihir said the mine, which is expected to produce 20,000oz of gold this year, cannot sustain large-scale bulk mining techniques, limiting its annual production capacity to 100,000oz.

The company said it has received interest from several companies and plans to complete the sale process by early 2010.