For Newmont, the deal increases its proceeds from the asset sale agreements executed in 2019 to $1.4bn
Newmont Goldcorp has completed the sale of its 50% stake in Kalgoorlie Consolidated Gold Mines (KCGM) to Australian gold producer Northern Star Resources for $800m.
KCGM is the management company of the Kalgoorlie operations for joint venture owners Newmont and Saracen Mineral.
The company’s operations include the Fimiston Open Pit (Super Pit), Mt Charlotte Underground Mine, and the Fimiston and Gidji Processing Plants. The mines and the assets are located near Kalgoorlie-Boulder nearly 600km east of Perth in Western Australia.
As per its life of mine plan, gold processing at KCGM is expected to continue until 2034.
Northern Star Resources said that the acquisition will give it half ownership in one of the most significant gold systems in the world having an endowment of around 80Moz and a gold content of nearly 45,000 to 60,000oz per vertical meter.
Newmont Goldcorp president and CEO Tom Palmer said: “Newmont is pleased to complete the sale of KCGM to Northern Star and hand over the asset in good order to a well-established gold producer with a commitment to safety, community development and responsible environmental practices.
“Proceeds from the transaction will support Newmont’s disciplined approach to capital allocation, which includes strategically reinvesting in the business, strengthening the Company’s investment-grade balance sheet and returning cash to shareholders.”
For Newmont, the deal increases its proceeds from the asset sale agreements executed in 2019 to $1.4bn. The sale agreements include the divestiture of the Red Lake gold complex in Canada to Evolution Mining for $375m and the company’s 19.9% stake in Continental Gold to Zijin Mining Group for $260m.
Newmont inaugurated Borden gold project in Canada in September 2019
In September 2019, Newmont Goldcorp had launched its Borden gold project in Ontario, Canada.
Located near Chapleau, Ontario, Borden is known as ‘Mine of the future’ as it possesses digital mining technologies, low carbon-energy vehicles and health and safety controls.