Barrick-Newmont Joint Venture Clears Regulatory Hurdles
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(Kitco News) - An agreed-upon joint venture for Nevada mines owned by Barrick Gold Corp. (NYSE: GOLD; TSX: ABX) and Newmont Goldcorp Corp. (NYSE: NEM; TSX: NGT) has cleared all the required regulatory conditions, the two companies announced Monday.
Officials said the U.S. Federal Trade Commission granted an early termination of the waiting period, under the Hart-Scott-Rodino Act, on Friday.
The new business, yet to be named, will create the world’s largest gold-producing complex. It will be 61.5% owned by Barrick and 38.5% owned by Newmont Goldcorp, and will be operated by Barrick. The operations making up the joint venture produced more than 4 million ounces of gold in 2018, which was more than three times the next largest gold mine, the companies said.
Mark Bristow, Barrick’s president and chief executive officer, said companies are working to integrate assets and expect efforts to form the joint venture to be completed before the end of the quarter.
“The joint venture agreement represents a historic accord between our companies that will unlock the enormous geological potential of the Nevada goldfields and maximize its many value-creating opportunities,” Bristow said in a prepared statement.
When the two companies signed an implementation agreement last month, officials said the joint venture will allow them to capture an estimated $500 million in average annual pre-tax synergies in the first five years and $5 billion over a 20-year period.
“By combining our operations and assets in Nevada, we will be able to extend profitable production, lower costs and create new opportunities for our stakeholders in the region,” said Gary Goldberg, Newmont Goldcorp’s chief executive officer.