'We Do Not Want To Be Passive Investors’: Barrick To Sell Super Pit Stake
During Barrick Gold's 2Q discussion with investors, CEO Mark Bristow said the company is selling its 50% stake in Kalgoorlie Consolidated Gold Mines.
The KCGM joint venture is a 50/50 ownership split between Newmont Goldcorp and Barrick Gold. Kalgoorlie Consolidated Gold Mines operates the Super Pit, located about 600 km east of Perth near Kalgoorlie. The open pit operation is considered Australia's deepest at 3.5 kilometres long, 1.5 kilometres wide and more than 600 metres deep. Kalgoorlie Consolidated Gold Mines' operations produce around 700,000 ounces of gold each year and has a gold reserve of 6.965 million ounces.
"Kalgoorlie, operated by Newmont Goldcorp, is the only asset in our portfolio which could be performing better," said Bristow.
"Whilst it continues to be a valuable asset, we are moving down the road of selling our 50% stake in this archon of gold mining. Given we are not the operators, it does not fit...as we do not want to be passive investors in assets that we own."
Barrick is selling and re-arranging its assets to make them all Tier Ones, high production and low-cost operations.
"The new Barrick has a unique ability to grow three-dimensionally: through its large and high-quality exploration portfolio and geological capability; the brownfields extension potential at its existing operations; and new projects destined to become Tier One mines," Bristow said earlier this year in a press release.