Nevada Gold Mines is 61.5% owned by Barrick Gold and the remaining stake is held by Newmont Mining
Image: Barrick Gold and Newmont Goldcorp have concluded the transaction establishing Nevada Gold Mines. Photo: Image by PublicDomainPictures from Pixabay.
Barrick Gold and Newmont Goldcorp have launched joint venture company Nevada Gold Mines, following completion of previously announced agreement.
As par the deal signed in March 2019, the firms agreed to combine their respective mining operations and assets in the US state of Nevada into new joint venture (JV), which is now 61.5% owned by Barrick Gold as operator and 38.5% by Newmont Mining.
Nevada Gold Mines aims to produce between 1.8 and 1.9 million ounces
For the second half of 2019, Nevada Gold Mines aims to produce between 1.8 and 1.9 million ounces at a preliminary estimated cost of sales of $940 to $970 per ounce and AISC6 of $920 to $950 per ounce.
Barrick president and CEO Mark Bristow said: “Its creation was driven by a compelling logic which had long been evident to all but had been elusive for two decades until we finally achieved a breakthrough this year,” Bristow said.
“Over the past months we have selected and set Nevada Gold Mines’ leadership in place. The company now has one team that shares one vision, and who are more than ready to race out of the starting blocks.
“We have also identified the very significant synergy opportunities which are immediately available and those which have been targeted for the future.”
The joint venture will include Barrick’s Goldstrike, Turquoise Ridge, Cortez, and Goldrush, and Newmont’s Carlin, Twin Creeks, Phoenix, Long Canyon, in addition to the associated processing plants and infrastructure of both companies.
It’s assets in North-eastern Nevada comprise 10 underground and 12 open pit mines, two autoclave facilities, two roasting facilities, four oxide mills, a flotation plant and five heap leach facilities.
In 2018, the assets operations produced a total of 4.1 million ounces of gold, nearly double that of the industry’s next largest gold mine, Muruntau in Uzbekistan.
Newmont Goldcorp CEO Gary Goldberg said: “This innovative joint venture represents a unique opportunity to generate additional long-term value for our shareholders, employees, and the communities of northern Nevada.
“By combining our assets and talent in Nevada, the joint venture will extend safe, profitable and responsible production much further than what each company could have done on its own.”