[UPDATED] Newmont Mining Completes Sale of Jundee Underground Gold Mine
Newmont Mining Corporation announced the completion of the sale of its Jundee underground gold mine in Australia to Northern Star Resources Limited for a total profit of approximately $91 million.
Randy Engel, Newmont’s Executive Vice President for Strategic Development, commented on the sale by saying, “We are pleased to have completed the sale of Jundee as part of our ongoing effort to increase shareholder value by focusing on lower cost, longer life operations. With the closing of this sale, Newmont has generated approximately $800 million in proceeds over the last 12 months from the divestment of non-core assets.”
Located 520 kilometers north of Kalgoorlie in Western Australia, the Jundee gold mine began producing in 1995 from a complex of open put mines that no longer operate. Underground mining has been performed at the site since 1997. All of Newmont’s existing fixed plant and onsite equipment has been transferred to Northern Star. Additionally, the majority of Jundee’s non-contract staff were offered continuing employment. In 2013, Jundee produced 279,000 ounces of gold and remains one of Australia’s top-producing mines.
A leading producer of gold and copper, Newmont was founded in 1921 and has been publicly traded since 1925. The company is headquartered in Colorado and has approximately 30,000 employees and contractors, the majority of whom work at managed operations in the United States, New Zealand, Peru, Australia, Indonesia and Ghana.
Northern Star Resources Limited is an Australian gold producer that owns and operates several high-grade mines including Paulsens, Plutonic, Kanowna Belle and Kundana.
Zimbabwe targets £8.8bn mining industry by 2023
Zimbabwe’s government plans to fast-track exploration, evaluation and digitalisation of selected reserved mining areas under the Ministry of Mines and Mining Development as part of wider measures to achieve a £8.8 billion mining industry by 2023, according to a senior government minister.
Information Minister Monica Mutsvangwa said other plans include stopping the issuance of special grants in the reserved areas under the Ministry of Mines and Mining Development until the exploration and evaluation is complete and a robust value addition program for diamonds is implemented.
Mutsvangwa was speaking at a post-cabinet media briefing on December 15.
She adds that the issuance and renewal of special grants for energy should also be based on the financial and technical capacity to value add all types of coal, as well as for ideal exploration of Coal Bed Methane.
For renewal of special grants, consideration should take into account the period the Special Grant has been held as well as plans with milestones for value addition of the special grant, Mutsvangwa says. She adds that the Zimbabwean government expects gold to drive the mining sector in order to achieve the ambitious target, with the precious metal expected to contribute approximately £2.96 billion to the overall target.
Mining is one of Zimbabwe’s major contributors to its economy, alongside agriculture, which is the mainstay. The mining sector accounted for more than 60 percent of the country’s foreign currency receipts in 2019, and contributed around 16 percent to national Gross Domestic Product, the Chamber of Mines says.
The country’s mining industry is focused on a diverse range of small to medium mining operations. The most important minerals produced in Zimbabwe include gold, asbestos, chromite, coal and base metals.
Zimbabwe expects its economy to expand by 7.4 percent in 2021 from a projected contraction of 4.5 percent this year, due to the effects of drought and the COVID-19 global pandemic.
When presenting the 2021 National Budget in November this year, Finance and Economic Development Minister, Professor Mthuli Ncube, said that the mining sector is projected to rebound by 11 percent next year after surviving a COVID-19 induced shock that saw the sector contract by 4.7 percent in 2020. In September, mining bans in national parks were introduced, according to news agencies.
He added that the National Budget would allocate £1 billion towards the operations of the ministry for planning, promotion and exploration, data capturing, and automation, among other key mining processes.
Other factors necessary for the achievement of the £8.8 billion target include a stable macroeconomic environment, policy consistency, and availability of long-term capital to fund mining projects along the entire mineral value chain, the minister said.
Stopping "illicit financial flows" from gold smuggling is another key issue to address, according to media reports.