Speaking at the 2009 Diggers & Dealers forum earlier this week, St Barbara managing director and chief executive officer Tim Lehany said the investment was under review as part of its strategy to divest non-core assets.

St Barbara had previously written down its investment in Bendigo to $7.2 million on a mark-to-market basis at the end of 2008.

The company expects to post a profit before tax on the sale of around $2.7 million this financial year.

At the end of June, St Barbara had cash of $78 million.

Small-scale miner Bendigo operates the Kangaroo Flat mine in Victoria and recently acquired the Henty mine in Tasmania from Barrick Gold Corporation.

Shares in St Barbara were 0.5c down to 22.5c this morning, while Bendigo shares were half a cent higher at 24.5c.