Newmont considers Super Pit gold mine takeover

Gold miner Newmont has flagged potential  plans to Barrick Gold’s share in the Kalgoolie Super Pit.

Having already taken over Kalgoorlie Consolidated Gold Mines (KCGM) operations at the Super Pit, Newmont chief executive Gary Goldberg admitted last night that he had the joint venture partner’s 50 per cent share in his sights.

“That’s one asset that we know pretty well and if we could obtain it at the right value that would be one that we’d be interested in considering,” Goldberg said of the Super Pit.

However, it appears Barrick has not indicated any interest in selling it’s share of the world famous mine, having been trying to offload six of its U.S. gold mines and projects, namely Bald Mountain, Round Mountain, Spring Valley, Ruby Hill, Hilltop and Golden Sunlight.

“Of their current portfolio in Nevada, we don’t have any interest in the assets that they’re looking to sell,” Goldberg said.

A buyout of Barrick’s share would see Newmont completely replace the KCGM operating structure.

Barrick Gold shares are down 53 per cent over the past year, while Newmont has suffered a 35 per cent loss.

Rumours of an underground expansion from the Super Pit were rife at the Diggers and Dealers conference in August, however at the time Newmont Mining refused to confirm talk that drilling by a private subcontractor made a discovery which lies directly underneath Hannan Street, just behind the Kalgoorlie Primary School.

The new discovery would extend the life of the Super Pit resource to ensure mining continues into the next decade.

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