Newmont, Newcrest Mining Announce Joint Venture to Develop Gold Mine
Newmont Corporation and Newcrest Mining Limited have announced a joint venture to develop the Red Chris copper-gold mine in British Columbia
The 50-50 joint venture will see Newmont contribute its 75% interest in the Red Chris mine, while Newcrest will contribute its 70% interest in the Brucejack gold mine in British Columbia. The transaction is expected to close in the second half of 2023, subject to regulatory approvals and other customary closing conditions.
The Red Chris mine is located in northwestern British Columbia, approximately 80 kilometers south of Dease Lake. The mine has been in operation since 2014 and produced approximately 300,000 ounces of gold and 100,000 tonnes of copper in 2022.
The Brucejack mine is located in northwestern British Columbia, approximately 65 kilometers north of Stewart. The mine has been in operation since 2017 and produced approximately 350,000 ounces of gold in 2022.
The joint venture will combine the strengths of two of the world's largest gold producers. Newmont is the world's largest gold producer, with operations in the United States, Canada, Mexico, Peru, Suriname, Ghana, Australia, and Indonesia. Newcrest is the world's fourth-largest gold producer, with operations in Australia, Papua New Guinea, and Indonesia.
The joint venture is expected to generate significant synergies, including cost savings, improved operational efficiency, and increased production. The joint venture will also provide Newmont and Newcrest with a stronger competitive position in the global gold market.
Tom Palmer, President and CEO of Newmont, said, "This joint venture is a significant step forward for Newmont and Newcrest. It combines two world-class assets in a premier mining jurisdiction. We are confident that this joint venture will create significant value for both companies and our shareholders."
Sandeep Biswas, Managing Director and CEO of Newcrest, said, "We are excited to partner with Newmont on this world-class project. The Red Chris mine is a high-quality asset with significant exploration potential, and the Brucejack mine is a world-class gold mine. We believe that this joint venture will create a truly unique and valuable combination of assets that will generate significant value for our shareholders."
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