Engineering & Mining Journal

MAR 2019

Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr

Issue link:

Contents of this Issue


Page 5 of 67

NEWS-LEADING DEVELOPMENTS 4 E&MJ • MARCH 2019 Barrick Signs Nevada JV With Newmont Barrick Gold Corp. initially made an offer to buy Newmont Mining Corp. in February, but was turned down. Instead, Newmont proposed the two establish a Nevada joint venture. On March 11, the two compa- nies signed an implementation agree- ment to create the joint venture, which would combine their mining operations, assets, reserves and talent in Nevada. Newmont's assets in Nevada include Carlin, Phoenix, Twin Creeks, and Long Canyon and Lone Tree properties while Barrick's Nevada assets include Cortez, Goldstrike, Turquoise Ridge, Goldrush and South Arturo. Development assets include Fourmile, Mike and Fiberline. In the proposed joint venture, Barrick will hold an economic interest equal to 61.5% and Newmont Goldcorp will hold 38.5%. Barrick will be the operator. The board of directors will include three Barrick seats and Newmont will control two seats. On the technical, finance and exploration advisory committees, there will be an equal representation by both companies. CEO of Newmont Gary Goldberg said the logic of combining the two com- panies' operations was compelling. "This agreement represents an innova- tive and effective way to generate long- term value from our joint assets in Nevada, and represents an important step forward in expanding value creation for our share- holders," Goldberg said. "Through the joint venture, we will also continue to pur- sue the highest standards in safety, along with responsible and meaningful engage- ment with our employees, communities, and other stakeholders." According to Barrick, the joint venture will allow them to capture an estimated $500 million in average annual pre-tax synergies in the first five full years of the combination, which is projected to total

Articles in this issue

Links on this page

Archives of this issue

view archives of Engineering & Mining Journal - MAR 2019