Newmont Mining agrees to sell Waihi gold mine in New Zealand
Colorado-based Newmont Mining Corporation has signed a non-binding letter of intent to sell its Waihi gold mining operation in New Zealand to Oceana Gold Corporation for $101 million. Terms of the sale also include a $5 million contingent payment as well as a one percent net smelter royalty on a recent discovery north of Waihi’s current operation.
“Our agreement with OceanaGold for the sale of Waihi represents another step in Newmont’s strategy to further strengthen our balance sheet by selling select assets for cash at fair value,” said Randy Engel, Newmont’s Executive Vice President for Strategic Development.
“Waihi is a good strategic fit within OceanaGold’s existing portfolio in New Zealand, and their strong safety and sustainability standards position them well to further develop Waihi in the future.”
Under the deal, Oceana Gold will acquire all of Waihi’s open pit and underground mining assets and liabilities, including social, environmental and employee obligations.
"The investment in Waihi really is an investment in what we see as a high-quality, low-cost, long-life asset," OceanaGold Chief Executive Mick Wilkes said Thursday.
First discovered in 1878, the Waihi gold project is located roughly 94 miles (150 km) southeast of Auckland in New Zealand. Newmont acquired the mine in 2002.
The deal is subject to board, regulatory and other approval.
Read the full press release here.
Unmanned train to allow Vale to reopen iron ore plant
Brazilian miner Vale SA will be able to resume operations at its Timbopeba iron ore dry processing plant in up to two months thanks to the use of an unmanned train, the company said in a statement this week.
Vale - Timbopeba iro ore plant
With the train, Timbopeba will be able to operate at least at 80% of its capacity of 33,000 tonnes of iron ore “fines” per day, reports Reuters.
Vale was forced to shut down the plant in the Alegria mine complex recently after labor authorities in Minas Gerais state banned activities close to the Xingu dam due to concerns of a risk of collapse.
Vale said access by workers and vehicles continues to be suspended in the flood zone of the dam due to the ban even though it remains at emergency level 2, which means there no imminent risk of rupture.
But some workers are allowed entry under strict security precautions and they will get the unmanned train going once it has been tested, which would take between one and two months, the company said.
The unmanned train will travel automatically along 16 kilometers (10 miles) of track operated by a system that can control the speed and activate the brakes, Vale said.
Vale announces first ore at Voisey’s Bay mine extension
Vale has reached the milestone of first ore production at the Reid Brook deposit at the Voisey’s Bay mine expansion project in Northern Labrador, Canada - recognised as the safest mine in Canada.