Barrick agrees sale of super pit as it begins $1.5bn asset disposal
Barrick Gold, one of the world’s largest mining corporations, has begun the disposal of $1.5bn (£1.2bn) of its non-core assets by agreeing to sell its 50 per cent stake in Australia’s Kalgoorlie mine for $750m.
The so-called “Super Pit”, located in the renowned golden mile region of Western Australia, will be bought by Saracen Mineral Holdings, an ASX-listed company which already owns two other gold mines in the area.
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The Kalgoorlie mine produced 490,000 ounces of gold in the last financial year, making it one of Australia’s largest.
Newmont Goldcorp, the world’s leading gold company, will retain its 50 per cent stake in the joint venture.
Mark Bristow, Barrick chief executive officer, commented on the sale: “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.
“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.”
Saracen managing director Raleigh Finlayson said that the acquisition would support the company’s strategic goals:
“This transaction will enhance our business across a variety of key financial and operational metrics and provide our shareholders with exposure to a third high quality Western Australian gold asset.
“The transaction establishes Saracen as a leading gold miner with anticipated production in excess of 600koz per annum exclusively from the Goldfields region of Western Australia for many years to come.”
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In September the shareholders of Tanzanian miner Acacia Holdings forced through a motion to sell the business to Barrick, in an attempt to end a two-year standoff with the Tanzanian government.
It means that Acacia, which was spun off from Barrick in 2010, will come back under the watchful eye of the Canadian giant.
Main image credit: Getty