Newmont sells its Kalgoorlie power business to Northern Star for $ 95 million

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(Kitco News) – Newmont (NYSE: NEM, TSX: NGT) today announced that it has agreed to sell its Kalgoorlie power business to Australian firm Northern Star Resources (ASX: NST).

Under the deal, Newmont said it received $ 95 million in cash, including the $ 25 million option payment previously received from Northern Star in connection with its purchase of Newmont’s 50% stake. in Kalgoorlie Consolidated Gold Mines (KCGM) in 2020.

Kalgoorlie’s electrical business has been a profitable asset for Newmont since the sale of its stake in KCGM, the company said in a statement.

Newmont explained that Kalgoorlie’s power company supplies power to KCGM through a series of contracts, licenses, approvals and arrangements with third parties, including a 50% stake in the turbine at Dual fuel gas 110 MW 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 leading jurisdictions. With the sale of this non-core asset, we will continue to focus on creating long-term value in our Boddington and Tanami operations and advancing our future portfolio of projects through active exploration campaigns, ”said said Tom Palmer, President and CEO of Newmont.

Newmont is the world’s largest 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.

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