DENVER – Newmont Mining Corp. welcomed Sumitomo Corp. as a partner in Minera Yanacocha SRL after its purchase of a 5 percent stake in the Peru mine.
Newmont, Buenaventura and Sumitomo completed the transaction June 20 in which Sumitomo paid $48 million for the ownership interest in Yanacocha. In December 2017, Yanacocha repurchased the International Finance Corp.’s 5 percent stake, which it held since 1992, when it provided debt financing for construction of the operation.
As a result of the transaction, Newmont and Buenaventura’s ownership interests in Yanacocha will revert to 51.35 percent and 43.65 percent. The transaction is structured as a new share issuance to Sumitomo, with the payment going toward Yanacocha’s cash balances.
In October, Newmont’s board of directors approved full funding for Quecher Main, which is expected to extend Yanacocha’s oxide mine life to 2027. Quecher Main also will serve as a bridge to future growth options, including development of Yanacocha’s extensive sulfide deposits. If approved, the sulfides project could extend Yanacocha’s operational life through 2039.
Newmont also partnered with Sumitomo at Batu Hijau in Indonesia, and Sumitomo is partnered with Buenaventura at Freeport’s Cerro Verde copper mine in southern Peru.