Canadian Mining Journal

News

GOLD: Barrick’s sale of Super Pit hits financing snag



WESTERN AUSTRALIA – Barrick Gold of Toronto plans to sell its 50% interest in the Kalgoorlie gold mine, including the Super Pit, appears to have hit a snag. Minjar Gold, a Chinese company willing to pay US$1.3 billion, is having trouble getting Chinese regulatory permission for the purchase, and that is delaying opportunities to arrange financing.

If the deal fails to materialize, Barrick has not said what it will do. Since the company met its US$2 billlion, 2016 debt reduction goal, the sale is not necessary for that reason. Instead, Barrick considers the Super Pit sale part of its ongoing portfolio optimization process, whereby non-core mines will be sold over time.

The Super Pit has yielded more than 50 million oz. of gold in 30 years. (Photo: Kalgoorlie Consolidated Gold Mines)

Barrick and its partner at Kalgoorlie, Newmont Mining of the United States, failed last year to agree on a price were Newmont to pick up Barrick’s share. That deal may be returned to the table.

Guidance for 2016 at Kalgoorlie was between 700,000 and 750,000 oz. at all-in sustaining costs of US$700 to US$750 per oz. Additional information is posted at www.Newmont.com or visit http://SuperPit.com.au.