Benzinga | Nov 22, 2021 06:00PM EST

Newmont Press Release Confirms Sale Of Kalgoorlie Power Unit To Northern Star For $95M In Cash

Newmont (NYSE:NEM, TSX:NGT) (Newmont or the Company) has agreed to sell its Kalgoorlie power business to Australia's Northern Star Resources Limited (ASX: NST) (Northern Star).

Under terms of the agreement, Newmont receives US$95 million in cash, inclusive of the US$25 million option payment previously received from Northern Star as part of its purchase of Newmont's 50 percent stake in Kalgoorlie Consolidated Gold Mines (KCGM) in 2020.

The Kalgoorlie power business has been a profitable asset for Newmont since the sale of its stake in KCGM. The Kalgoorlie power business supplies electricity to KCGM via a suite of contracts, licenses, approvals and third party arrangements, including a 50% interest in the 110MW duel fuel gas turbine Parkeston Power Station near Kalgoorlie, owned in joint venture with Canadian energy utility, TransAlta Corporation.

"Australia is a critical contributor to Newmont's global portfolio of world-class assets, located in top-tier jurisdictions. With the sale of this non-core asset, we will continue our regional focus on delivering long term value at our Boddington and Tanami operations and advancing our future project pipeline through active exploration campaigns," said Newmont President and CEO Tom Palmer.