17 Dec Northern Star Resources acquires Newmont’s 50% stake in Kalgoorlie Super Pit
The Kalgoorlie Super Pit is set to have full Australian ownership for the first time in its operating life after Northern Star Resources agreed to buy Newmont Goldcorp’s 50% stake in the iconic Western Australian gold mine.
ASX-listed Northern Star secured the remaining portion of the Super Pit’s operating company Kalgoorlie Consolidated Gold Mines (KCGM) with a total cash offer of US$800 million.
The deal was announced almost exactly a month after fellow Australian miner Saracen Mineral Holdings paid $750 million for Barrick Gold’s 50% stake in the Super Pit, which is Australia’s largest open cast gold mine.
Northern Star Executive Chairman Bill Beament said the acquisition would create substantial value and provide enormous short, medium and long-term opportunities for the company.
“The purchase of a 50% stake in the Kalgoorlie Super Pit meets our key strategic objectives of generating strong financial returns and growing our gold inventory from Tier 1 mines in Tier 1 locations,” said Beament.
The Super Pit has produced over 60 million ounces of gold in its life and produces close to 800,000 ounces of gold per annum.