Barrick and Newmont sell off super pit

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barrick and newmont sell off kcgm super pit

“The asset does not fit with our strategy of operating mines that we own”

Barrick Gold has sold its 50 per cent interest in Kalgoorlie Consolidated Gold Mines (known as the ‘super pit’) in Western Australia to Saracen Mineral Holdings Limited for $750 million in cash. Saracen is an ASXlisted company which already owns two gold mines in the area.

“The sale of our non-operating interest in KCGM represents the first step in our plan to realize in excess of $1.5 billion from the disposal of non-core assets by the end of next year,” said Mark Bristow, Barrick president and chief executive officer. “While this iconic gold mine has been a valuable contributor to Barrick

over the years, the asset does not fit with our strategy of operating mines that we own. The sale allows us to further focus our portfolio on core operations.”

Operations began at KCGM in 1989 and the mine has produced 21 million ounces of gold over the last three decades.

Less than a month after Barrick Gold’s announcement, Newmont Goldcorp followed suit with a deal to dispose of its half of the JV to Northern Star Resources Limited for $800 million.

“This transaction generates exceptional value and further strengthens our financial position by increasing proceeds from our 2019 asset sale agreements to more than $1.4 billion,” said Tom Palmer, president and CEO. “Australia remains a core operating region for Newmont, and the sale of KCGM allows us to focus on investing in profitable growth and long-term value creation at our top-tier Tanami and Boddington complexes, in addition to our active exploration campaigns across the region.”

This adds to Newmont Goldcorp’s previous agreements to sell Red Lake in Canada for $375 million and its stake in Continental Gold for $260 million.

Saracen and Northern Star form KCGM Executive Committee

Saracen and new JV partner Northern Star have moved quickly to agree a joint operatorship model, establish a new management structure and initiate an extensive strategic review / optimisation process, establishing the KCGM Executive Committee, comprising two Saracen representatives and two Northern Star representatives

Having agreed upon joint operatorship of the mine, three JV sub-committees have been established:

• Technical and operations • Financial and commercial • Exploration and growth This co-operative approach will enable the partners to capitalise on Saracen’s widely-recognised open pit mining capability and Northern Star’s highly successful underground mining knowledge and experience. Saracen managing director Raleigh Finlayson will play a leading role in the strategic review / optimisation.