Barrick touts first year of joint operation with Newmont
(Kitco News) - Barrick Gold said the first 12 months of joint operations in Nevada with Newmont was a success due to better co-operation between the two senior gold miners.
Barrick operates NGM, the world’s largest gold mining complex. Barrick owns 61.5% of the business with Newmont Corporation holding the rest.
"In its first year of combined operation, NGM not only met the production and cost targets set out at the start of the joint venture, but did so despite the past few months of stress experienced as a result of the Covid-19 pandemic," said Barrick Gold in a news release.
Barrick's CEO Mark Bristow said the improved organizational structure helped.
“By removing the fences that had previously separated geologically connected assets, mines and projects that clearly belonged together could be combined into larger and more efficient operations, with substantial savings as an immediate benefit. Even more important, this joint venture has created a platform from where we can see a bright new future for NGM as the leader of its industry in every respect: truly a case of the best assets and the best people delivering the best returns.”
In 2019 an agreement on a joint venture was reached when Newmont Mining rejected a takeover bid by Barrick, with the two companies instead deciding to form a joint venture for their Nevada properties in order to capture expected synergies, which officials are estimating at up to $500 million per year during the first five years.
The joint venture is the world’s largest gold-producing complex with three of the world’s top 10 Tier One gold assets: Goldstrike/Carlin, Cortez and Turquoise Ridge/Twin Creeks.