LAS VEGAS: Newmont Corp wants Barrick Mining Corp to address what it says is underperformance at their joint-venture mining operations in Nevada before its partner proceeds with an initial public offering (IPO) of its North American assets.
The world’s top gold miner has been critical of Barrick’s management in Nevada after years of production declines and rising costs, according to people familiar with the matter.
Newmont, which has shown interest in acquiring the Canadian producer’s Nevada assets in the past, believes the IPO needs its approval, said the people, who asked not to be named as the matter is private.
Newmont’s primary concern is the Nevada Gold Mines joint venture, “which has suffered a degradation in performance and subsequent asset value over the past six years, the company said on Monday in a statement.
“Newmont is taking appropriate steps to address these issues with Barrick, with the goal of reversing this decline in performance and ensuring these assets generate the value they are capable of delivering,” it said.
Any transaction involving the Nevada operations “must respect the protections” in the joint venture agreements, including the “transfer restriction requirements,” the statement added.
An intervention by Newmont could create a potential snag in Barrick’s plans to separate its North American assets and sell a 10% to 15% stake in the new company later this year.
The sale would include its interest in the prized Nevada Gold Mines venture, of which Barrick owns 61.5% and Newmont 38.5%, along with its promising wholly owned Fourmile development and a mine in the Dominican Republic, which is another joint venture with Newmont.
A spokesperson for Barrick didn’t respond to a request for comment.
The Nevada joint venture dates back to 2019, after Barrick made a hostile takeover bid for Newmont, which at the time was the smaller of the two companies - before eventually dropping the offer and instead agreeing to pool together their nearby projects in the US state. — Bloomberg
