Newmont to sell its Kalgoorlie power business to Northern Star for $95 million
(Kitco News) - Newmont (NYSE: NEM, TSX: NGT) announced today it has agreed to sell its Kalgoorlie power business to Australia’s Northern Star Resources (ASX: NST).
Under terms of the agreement, Newmont said it receives US$95 million in cash, inclusive of the US$25 million option payment previously received from Northern Star as part of its purchase of Newmont’s 50 percent stake in Kalgoorlie Consolidated Gold Mines (KCGM) in 2020.
The Kalgoorlie power business has been a profitable asset for Newmont since the sale of its stake in KCGM, the company noted in a statement.
Newmont explained that the Kalgoorlie power business supplies electricity to KCGM via a suite of contracts, licenses, approvals and third party arrangements, including a 50% interest in the 110MW duel fuel gas turbine Parkeston Power Station near Kalgoorlie, owned in joint venture with Canadian energy utility, TransAlta Corporation.
“Australia is a critical contributor to Newmont’s global portfolio of world-class assets, located in top-tier jurisdictions. With the sale of this non-core asset, we will continue our regional focus on delivering long term value at our Boddington and Tanami operations and advancing our future project pipeline through active exploration campaigns,” stated Newmont President and CEO Tom Palmer.
Newmont is the world’s leading gold company and a producer of copper, silver, zinc and lead. The company’s portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in North America, South America, Australia and Africa. Newmont is the only gold producer listed in the S&P 500 Index. Newmont was founded in 1921 and has been publicly traded since 1925.