Northern Star goes after Barrick Gold’s Super Pit
Australia’s Northern Star Resources (ASX:NST) has been signalled as the frontrunner to acquire Barrick Gold’s (TSX:ABX)(NYSE:GOLD) 50% stake in the Super Pit, once the country’s biggest open-pit gold mine, located in Kalgoorlie, Western Australia.
Barrick’s first attempt to sell its share of the mine, owned with rival Newmont Goldcorp (NYSE:NEM) (TSX:NGT), fell through in 2017, after Chinese bidder Minjar Gold failed to finance the $1.3 billion deal.
The Super Pit, once Australia’s largest gold mine, has gone from being a low-cost operation to the higher end of the cost curve
At the time, the Canadian gold giant didn’t rule out the possibility of selling its part to its joint venture partner. Rumours indicate that should Barrick not find a suitable bidder, it would try to talk operator Newmont Goldcorp into a joint sale of the entire asset, known as the Kalgoorlie Consolidated Gold Mines (KCGM).
Barrick’s boss, Mark Bristow, said during a quarterly result presentation earlier this week that the Super Pit was the only asset in the company’s portfolio not performing as expected.
“While it continues to be a valuable asset, we are moving down the road of selling our stake in this icon of gold mining,” Bristow said. “We are not the operators [and] we do not want to be passive investors in assets that we own.”
Northern Star and Barrick have done businesses before. In 2014, the Aussie gold producer bought the Plutonic mine in Western Australia from its Canadian counterpart. It now belongs to Superior Gold (TSX-V:SGI), a junior majority owned by Northern Star.
The Super Pit has gone from being a low-cost operation to the higher end of the cost curve, mostly due to a partial collapse on the eastern wall of the mine last year. Additionally, the operation is expected to run out of ore by 2029 and when that happens, rehabilitation costs are forecast to run into hundreds of millions of dollars.
source: MINING.COM
Top News
Six last month
MinRes halts Bald Hill mine amid lithium price rout
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Gold price faces worst week since 2021 as Fed signals no rate-cut rush
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Swapping aluminum for copper will maintain China’s resources, group says
Gold loses some luster after Trump’s decisive win
Hedge funds slash bullish wagers on gold over Trump election win
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Families gather at South African mine shaft where hundreds are feared stuck underground
BHP to spend up to $14 billion on Chilean copper expansion
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
China’s germanium, gallium ban could cost the US $3.4 billion
South Africa police standoff with illegal gold miners escalates
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Resolute Mining says it will pay Mali $160 million in tax dispute
Trump chooses oil fracking boss as energy secretary
Gold loses some luster after Trump’s decisive win
