Newmont puts Telfer up for sale

Newmont Corporation has announced it will divest six of its non-core assets, including its Telfer goldmine in the Pilbara, with Andrew Forrest-backed Greatland Gold the likely buyer. 

The world's largest gold producer, Newmont said it also intended to sell its 70 per cent stake in the Havieron gold-copper project - an adjacent joint venture with Greatland - which it acquired in October last year, as part of Newcrest Mining's $26 billion merger with the company, which was the biggest goldmining acquisition in history. 

It also plans to offload its Akyem operation in Ghana, which could be pursued by Subiaco-based Perseus Mining, following comments from managing director and chief executive officer Jeff Quartermaine on Friday. 

Newmont aims to raise $US2 billion, or $A3.04 billion, from the sales. 

This announcement follows January's news that the US-headquartered company had temporarily stopped production at Telfer due to seeping and cracking on one of its embankments, which was detected on December 24 last year. 

While gold production ceased, additional mining operations have continued at the site.

Prior to Newmont's fourth quarter and 2023 full-year update, Greatland told the market last night it was heartened by the company's recent upgraded reserve and resource for Havieron.

"We welcome Newmont's update to the Havieron mineral resource today, which increases Newcrest's previous estimate for the indicated mineral resource category by approximately 35 per cent in terms of gold equivalent content, bringing it into line with Greatland's latest estimate," Greatland managing director Shaun Day said.

"The increased indicated mineral resource can now support an ore reserve estimate update as part of the feasibility study, which is ongoing."

In September 2022, Mr Forrest's private company Wyloo Metals secured an 8.5 per cent stake in Greatland, as part of a funding package up to $120 million. Additionally, it formed one of the strongest mining boards in the state, securing the services of Mark Barnaba as non-executive chairman, along with Elizabeth Gaines and Jimmy Wilson. 

A London-listed company, Greatland indicated it was planning to trade on the Australian Securities Exchange last year, however this decision was deferred by the company on September 14 2023. 

"Having carefully considered the current ASX listing timetable and upcoming activities and opportunities for the business, Greatland does not believe it is optimal for the company and its shareholders to pursue the ASX cross-listing this calendar year," Greatland said. 

"Greatland has therefore decided to defer the ASX cross-listing until next year."

On the same day, the company also entered into a $50 million unsecured standby debt facilty with Wyloo. 

Newmont's assets and core production rank it third on Business News' list of goldminers.