QMEB ยป Resources multinational offers $29B for eight mines
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Resources multinational offers $29B for eight mines

Cadia mine
Cadia mine

A foreign mining giant will purchase multiple operations for a colossal sum.

United States-headquartered Newmont Corporation recently made an acquisition offer for Newcrest Mining for A$28.8 billion.

Newcrest’s board of directors unanimously recommended that investors vote in favour of the scheme implementation deed, offering A$29.27 per share, at a future meeting scheduled for either September or October 2023.

If the bidder purchases all target company shares the change of ownership will affect up to 6150 employees at the following operations:

  • US$65 million (A$97.5M) Haverion underground mine, 450km southeast of Port Hedland
  • Ridgeway underground mine, 262km west of downtown Sydney
  • Cadia underground mine, 262km west of downtown Sydney
  • Red Chris mine, 1665km northwest of Vancouver
  • Brucejack mine, 950km northwest of Vancouver
  • Telfer mine, 476km southeast of Port Hedland
  • Wafi-Golpu mine, 313km north of Port Moresby
  • Lihir mine, 900km northeast of Port Moresby.

Newcrest believes the deal will deliver many benefits including a larger organisation and improved workplace safety.

“The combined group will set a new benchmark in gold production while benefitting from a material and growing exposure to copper and a market leading position in safety and sustainability,” company chairman Peter Tomsett said in a public statement.

“We are very proud of the entire Newcrest team for building a world class metals business, which will form a key part of the combined group.”

Approval was also required from the Australian Foreign Investment Review Board and Federal Court of Australia at the time of publication.

The sale is expected to close before Christmas 2023.

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