NEW YORK — Barrick Gold Corp. and Newmont Goldcorp Corp. today announced that their joint venture in Nevada, which will create the world’s largest gold producing complex, has cleared all the regulatory conditions required for its completion.
The U.S. Federal Trade Commission granted an early termination of the waiting period under the Hart-Scott-Rodino Act on April 19.
The new business, yet to be named, will be owned 61.5 percent by Barrick and 38.5 percent by Newmont Goldcorp, and will be operated by Barrick. The operations making up the joint venture produced in excess of 4 million ounces of gold in 2018, more than three times the next largest gold mine.
Barrick President and Chief Executive Officer Mark Bristow said that practical measures required to integrate the joint venture assets and establish the new business are now being taken and are anticipated to be complete within the current quarter.
“The joint venture agreement represents a historic accord between our companies that will unlock the enormous geological potential of the Nevada goldfields and maximize its many value-creating opportunities,” Bristow said.
Gary Goldberg, Newmont Goldcorp’s chief executive officer, said, “By combining our operations and assets in Nevada we will be able to extend profitable production, lower costs and create new opportunities for our stakeholders in the region.”
Barrick and Newmont reached an agreement announced March 11 for a joint venture in Nevada, at which time Barrick dropped a push for a merger of the two companies.
The joint venture covers Barrick’s Cortez, Goldrush, Goldstrike, South Arturo and Turquoise Ridge mines and Newmont’s Carlin, Long Canyon, Phoenix, Twin Creeks and Lone Tree mines.
The companies expect pre-tax synergies of $500 million a year, Barrick reported earlier.
During a visit to Elko in March, Bristow said there will be savings in many different areas, but that the impact on the workforce should be minimal. There will probably be some reduction in overlap in management, although Bristow said “it makes no sense for Newmont and Barrick to seek to get rid of any expertise.”
The joint venture will reduce ore processing costs and provide opportunities for savings in warehouses, railheads and roads and with more direct travel routes, he said.
Barrick recently merged with Randgold Resources, and Newmont more recently merged with Goldcorp.