Newmont’s Sale of Cripple Creek and Victor Mine Impacts Australian Mining Industry
Recently, Newmont, a major player in the gold mining industry, announced the sale of its Cripple Creek and Victor (CC&V) gold operation in Colorado, US, to SSR Mining. This deal, valued at up to $US275 million ($430 million), is set to be finalized in the first quarter of 2025.
This move is part of a broader strategy by Newmont to streamline its portfolio by divesting assets that do not meet its criteria for being a ‘Tier 1’ asset. For Newmont, a Tier 1 asset is defined as an operation that produces more than 500,000 gold equivalent ounces per year, has a competitive average all-in sustaining cost per ounce, and boasts a mine life greater than 10 years in geopolitically stable regions.
The company expects to generate a significant sum of up to $US3.9 billion from its divestiture program, including proceeds from selling non-core assets and other investments. So far, Newmont has successfully sold several operations, such as the Telfer operation in Western Australia, the Akyem operation in Ghana, the Musselwhite operation in Canada, and the Éléonore operation in Canada, among others.
Newmont President and CEO Tom Palmer expressed confidence in SSR Mining’s ability to continue the legacy of the CC&V operations and support its employees and local stakeholders post-acquisition. Additionally, the deal includes provisions for Newmont to fund a portion of the closure costs for CC&V, following the completion of an updated regulator-approved closure plan, if needed.
With this divestiture program, Newmont aims to consolidate its position as a leading operator of Tier 1 gold and copper assets. As the company continues to reshape its portfolio, investors and industry watchers will be keeping a close eye on its strategic moves and the impact on its overall operations.
