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Barrick-Newmont's Nevada JV clears regulatory hurdles

The proposed JV between Barrick Gold and Newmont Goldcorp has received all required regulatory approvals to proceed.
Barrick-Newmont's Nevada JV clears regulatory hurdles Barrick-Newmont's Nevada JV clears regulatory hurdles Barrick-Newmont's Nevada JV clears regulatory hurdles Barrick-Newmont's Nevada JV clears regulatory hurdles Barrick-Newmont's Nevada JV clears regulatory hurdles

Barrick and Newmont have received regulatory clearance to create the world's largest gold-mining complex in Nevada, USA

Staff Reporter

The deal, which sees the creation of the world's largest gold-producing complex, on Friday received an early termination of the mandated waiting period under the US Hart-Scott-Rodino Act, paving the way for the deal to close before the end of June.

When the two companies agreed on an implementation agreement last month, they expected the JV would allow them to capture an estimated US$500 million in average annual pre-tax synergies in the first five years and $5 billion over a 20-year period.

The companies are yet to decide on a name for the new JV, but it will be owned 61.5% by Barrick and 38.5% by Newmont, with Barrick the operator.

The JV assets produced more than 4Moz gold last year, three-times more than the world's next biggest gold production centre.

Barrick CEO Mark Bristow said asset integration was expected to be completed by June.

"The JV agreement represents a historic accord between our companies that will unlock the enormous geological potential of the Nevada goldfields and maximise its many value-creating opportunities," Bristow said.

Newmont CEO Gary Goldberg added that combining operations and assets in Nevada would enable it to extend profitable production, lower costs and create new opportunities for stakeholders in the region.