Home / Business / Barrick Gold sells half of Kalgoorlie Consolidated Gold Mines for $ 750 million

Barrick Gold sells half of Kalgoorlie Consolidated Gold Mines for $ 750 million

KCGM's Super Pit, which is expected to run out of ore by 2029, unless mining continues after that. ( Image: Chris Fithall | Flickr Commons )

Canada's Barrick Gold (TSX: ABX) (NYSE: GOLD), the world's second largest producer of yellow metal, reached an agreement to sell its 50% interest in Kalgoorlie Consolidated Gold Mines in Western Australia to Saracen Mineral Holdings (ASX: SAR).

Saracen already has two gold operations in the Kalgoorlie region, namely the Carosue Dam and the Thunderbox mining sites.

In a media statement, Barrick said that the KCGM transaction involved the payment of $ 750 million in cash and that such funds will be used to further strengthen the company's balance sheet, invest in future projects and deliver returns to its shareholders.

-operative interest in KCGM represents the first step in our plan to realize over $ 1

.5 billion from the divestment of non-core assets by the end of next year. While this iconic gold mine has been a valuable contributor to Barrick over the years, access does not fit with our strategy of running mines that we own, says Mark Bristow, Barrick's president and CEO, in the press briefly. "The sale enables us to further focus our portfolio on our core business."

Bristow said Barrick was pleased to have achieved a successful result following a competitive sales process and was convinced that Saracen would be an excellent partner for Newmont Goldcorp at KCGM going forward.

The KCGM operation includes the Fimiston open pit, also known as the Super Pit, the Mt Charlotte underground mine and the Fimiston and Gidji processing plants, all located adjacent to the city of Kalgoorlie-Boulder about 600 kilometers east of Perth. KCGM produces about 700,000 ounces of gold each year and has a gold reserve of 6.9 million ounces.

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