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Researched by Industrial Info Resources (Sugar Land, Texas)--The proposed Nevada gold mining joint venture between Barrick Gold Corporation (NYSE:GOLD) (Toronto, Ontario) and Newmont Mining Corporation (NYSE:NEM) (Denver, Colorado) promises to create what they say will be the world's single largest gold producer. The companies still have a way to go in working out the details.
Industrial Info is tracking 14 capital projects by Barrick and Newmont in Nevada, with a combined value of more than $2 billion.
Barrick and Newmont announced on March 11 they had signed an implementation agreement to create a joint venture combining their Nevada mining operations, assets, reserves and personnel.
Barrick Chief Executive Officer Mark Bristow said during a conference call with industry analysts last week that the synergies to be achieved with the venture "put us in a position to invest more capital in our collective mines and projects, complete more focused exploration, with an unconstrained, district-wide approach."
Click on the image at right to see a map by Barrick and Newmont of the Nevada operations to be included in the joint venture.
Bristow said the deal has been 20 years in the making, with past proposals made and rejected. Indeed, the path to a Nevada union has had its share of road bumps.
Having completed a $6.1 billion merger with Randgold Resources Limited in January, Barrick confirmed in February it had made an unsolicited acquisition/merger bid for Newmont. The bid for Newmont was valued at nearly $18 billion. For more information, see February 26, 2019, article - Nevada Mining Operations Key to Barrick Gold's Proposed Acquisition of Newmont Mining.
On March 4, Newmont announced its board of directors had rejected Barrick's bid, saying that proposal relied on synergies from Barrick's management team, which lacked global experience, and that Barrick's portfolio had "unfavorable and high-risk jurisdictions with several ongoing and significant operational and sustainability problems."
Newmont instead had proposed a Nevada-centered joint venture, but Barrick's Bristow fired back that Newmont's earlier joint-venture proposal came "with unrealistic preconditions, including swapping the chairmanship and the leadership of the JV [joint venture]. Experience has shown us that JVs only work well when the majority owner is also the operator."
Under the agreement announced last week, Barrick will be the operator of the joint venture. Barrick will hold a 61.5% stake in the venture, and Newmont will hold 38.5%.
"So we've agreed this is a single business unit, put together under a legal entity with a responsible operator accountable to the shareholders," Bristow said during last week's conference call. One of the key challenges for the joint venture will be the selection of its leadership team, the companies said.
Meanwhile, Newmont will forge ahead with its own planned merger with GoldCorp Incorporated (NYSE:GG) (Vancouver, British Columbia). Newmont plans to hold a special shareholder meeting on April 11 to vote on the $10 billion deal. For related information, see January 15, 2019, article - Newmont Agrees to Acquire Goldcorp to Become Leading Global Gold Producer.
The management of Barrick and Newmont had volleyed some less-than-kind words at each other during Barrick's unsolicited merger/acquisition bid for Newmont, but Newmont Chief Executive Officer Gary Goldberg said during last week's conference call that the companies have been "good neighbors" in Nevada, having helped each other during emergencies.
More recently, Goldberg said, Barrick and Newmont have worked to make their Turquoise Ridge joint venture a success. The 75:25 Barrick/Newmont Turquoise Ridge project is part of a three-phase plan to increase production at the mine from 280,000 ounces of gold per year to 500,000 ounces. For more information, see Industrial Info's project report.
Following the completion of the joint venture, the Barrick-Newmont Nevada complex will be the world's single-largest gold producer, with a pro forma output of more than 4 million ounces in 2018, three Tier One assets, with potentially another in the making; and 48 million ounces of reserves, the companies said in a joint press release.
The joint venture's assets would include Barrick's Goldstrike, Cortez, Turquoise Ridge, Goldrush and South Arturo operations, and Newmont's Carlin, Twin Creeks, Phoenix, Long Canyon and Lone Tree operations.
Industrial Info is tracking eight active Barrick capital projects in Nevada with a combined value of nearly $1.7 billion. This includes Barrick's restart of the South Arturo above-ground gold mine and El Nino underground mine near Carlin, Nevada. The three-phase project is aimed at restarting the South Arturo site as an eight-year, open pit and underground operation. The company also plans to develop the El Nino deposit as an underground longhole stoping mine. High-grade ore from the mine will be trucked five kilometers southeast to Barrick's Goldstrike complex to produce 270,000 ounces of gold. Construction kicked off in mid-2018, with completion planned for late 2019. For more information, see Industrial Info's project report. For related information, see February 14, 2019, article - Barrick Gold Progresses With Nevada, Dominican Republic Projects.
Industrial Info is tracking six active Newmont capital projects in Nevada with a combined value of $388 million. This includes plans for an underground mine addition at the Carlin Emigrant/Rain gold mine. The project includes construction of an access portal at the Rain Open Pit Mine to develop the Saddle deposit as an underground cut-and-fill operation. For more information, see Industrial Info's project report. For related information, see December 11, 2018, article - Newmont Mining Sets 2019 Capital Guidance at $1.07 Billion.
Other development assets in Nevada are excluded from the joint venture deal, but could be added later if they clear certain economic hurdles, the companies said.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Industrial Info is tracking 14 capital projects by Barrick and Newmont in Nevada, with a combined value of more than $2 billion.
Barrick and Newmont announced on March 11 they had signed an implementation agreement to create a joint venture combining their Nevada mining operations, assets, reserves and personnel.
Barrick Chief Executive Officer Mark Bristow said during a conference call with industry analysts last week that the synergies to be achieved with the venture "put us in a position to invest more capital in our collective mines and projects, complete more focused exploration, with an unconstrained, district-wide approach."
Bristow said the deal has been 20 years in the making, with past proposals made and rejected. Indeed, the path to a Nevada union has had its share of road bumps.
Having completed a $6.1 billion merger with Randgold Resources Limited in January, Barrick confirmed in February it had made an unsolicited acquisition/merger bid for Newmont. The bid for Newmont was valued at nearly $18 billion. For more information, see February 26, 2019, article - Nevada Mining Operations Key to Barrick Gold's Proposed Acquisition of Newmont Mining.
On March 4, Newmont announced its board of directors had rejected Barrick's bid, saying that proposal relied on synergies from Barrick's management team, which lacked global experience, and that Barrick's portfolio had "unfavorable and high-risk jurisdictions with several ongoing and significant operational and sustainability problems."
Newmont instead had proposed a Nevada-centered joint venture, but Barrick's Bristow fired back that Newmont's earlier joint-venture proposal came "with unrealistic preconditions, including swapping the chairmanship and the leadership of the JV [joint venture]. Experience has shown us that JVs only work well when the majority owner is also the operator."
Under the agreement announced last week, Barrick will be the operator of the joint venture. Barrick will hold a 61.5% stake in the venture, and Newmont will hold 38.5%.
"So we've agreed this is a single business unit, put together under a legal entity with a responsible operator accountable to the shareholders," Bristow said during last week's conference call. One of the key challenges for the joint venture will be the selection of its leadership team, the companies said.
Meanwhile, Newmont will forge ahead with its own planned merger with GoldCorp Incorporated (NYSE:GG) (Vancouver, British Columbia). Newmont plans to hold a special shareholder meeting on April 11 to vote on the $10 billion deal. For related information, see January 15, 2019, article - Newmont Agrees to Acquire Goldcorp to Become Leading Global Gold Producer.
The management of Barrick and Newmont had volleyed some less-than-kind words at each other during Barrick's unsolicited merger/acquisition bid for Newmont, but Newmont Chief Executive Officer Gary Goldberg said during last week's conference call that the companies have been "good neighbors" in Nevada, having helped each other during emergencies.
More recently, Goldberg said, Barrick and Newmont have worked to make their Turquoise Ridge joint venture a success. The 75:25 Barrick/Newmont Turquoise Ridge project is part of a three-phase plan to increase production at the mine from 280,000 ounces of gold per year to 500,000 ounces. For more information, see Industrial Info's project report.
Following the completion of the joint venture, the Barrick-Newmont Nevada complex will be the world's single-largest gold producer, with a pro forma output of more than 4 million ounces in 2018, three Tier One assets, with potentially another in the making; and 48 million ounces of reserves, the companies said in a joint press release.
The joint venture's assets would include Barrick's Goldstrike, Cortez, Turquoise Ridge, Goldrush and South Arturo operations, and Newmont's Carlin, Twin Creeks, Phoenix, Long Canyon and Lone Tree operations.
Industrial Info is tracking eight active Barrick capital projects in Nevada with a combined value of nearly $1.7 billion. This includes Barrick's restart of the South Arturo above-ground gold mine and El Nino underground mine near Carlin, Nevada. The three-phase project is aimed at restarting the South Arturo site as an eight-year, open pit and underground operation. The company also plans to develop the El Nino deposit as an underground longhole stoping mine. High-grade ore from the mine will be trucked five kilometers southeast to Barrick's Goldstrike complex to produce 270,000 ounces of gold. Construction kicked off in mid-2018, with completion planned for late 2019. For more information, see Industrial Info's project report. For related information, see February 14, 2019, article - Barrick Gold Progresses With Nevada, Dominican Republic Projects.
Industrial Info is tracking six active Newmont capital projects in Nevada with a combined value of $388 million. This includes plans for an underground mine addition at the Carlin Emigrant/Rain gold mine. The project includes construction of an access portal at the Rain Open Pit Mine to develop the Saddle deposit as an underground cut-and-fill operation. For more information, see Industrial Info's project report. For related information, see December 11, 2018, article - Newmont Mining Sets 2019 Capital Guidance at $1.07 Billion.
Other development assets in Nevada are excluded from the joint venture deal, but could be added later if they clear certain economic hurdles, the companies said.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
