23 Apr Barrick and Newmont complete JV, creating world’s biggest gold complex
Newmont Goldcorp and Barrick Gold have cleared all the regulatory conditions to combine their operations in Nevada, which will now become the largest gold complex in the world.
Both companies announced that the US Federal Trade Commission granted an early termination of the waiting period under the Hart-Scott-Rodino Act on April 19, allowing the joint venture to be completed ahead of schedule.
The new business, yet to be named, will be owned 38.5% by Newmont Goldcorp and 61.5% by Barrick, and is expected to generate savings of US$500 million a year within the first five years.
The complex will comprise of Barrick’s Goldstrike, Cortez, Turquoise Ridge, and Goldrush mines and Newmont’s Carlin, Twin Creeks, Phoenix, Long Canyon mines, plus associated processing plants and infrastructure of both companies.
“The joint venture agreement represents a historic accord between our companies that will unlock the enormous geological potential of the Nevada goldfields and maximise its many value-creating opportunities,” said Barrick’s President and CEO Mark Bristow.
Meanwhile, Newmont’s CEO Gary Goldberg said: “By combining our operations and assets in Nevada we will be able to extend profitable production, lower costs and create new opportunities for our stakeholders in the region.”