American gold mining company Newmont Corporation has announced that the Securities Commission of Papua New Guinea (SCPNG) has granted the necessary exemptions and other requested confirmations under PNG capital markets law to allow the company to proceed with its proposed acquisition of Newcrest Mining Limited.
Last week, the Philippine Competition Commission (PCC) also indicated its approval of the proposed transaction.
All of the government regulatory approvals necessary for the transaction to proceed have now been secured.
Newmont President and Chief Executive Officer Tom Palmer said: “We look forward to building strong and mutually beneficial partnerships with the government and people of Papua New Guinea to generate lasting shared value and meaningful economic development through the world-class Lihir gold mine and the highly prospective Wafi-Golpu gold and copper project.
“As the world’s leading gold company, we recognise PNG’s significant, untapped economic potential and support providing its citizens the opportunity to invest in and benefit from our operations, projects and social contributions.”
Newmont recently announced it had taken steps to establish a dedicated Business Unit in PNG with the appointment of Alwyn Pretorius who will assume the role of managing director and be based in Port Moresby.
The company also plans to establish a secondary listing of Newmont stock depositary interests on the PNGX from closing of the transaction.
Newmont announced its definitive agreement to acquire Newcrest on May 14 earlier this year.
The acquisition would create a world-class portfolio of assets with the highest concentration of tier 1 operations — primarily in favorable, low-risk mining jurisdictions.
Upon closing of the transaction, the combined company would deliver a multi-decade production profile from 10 large, long-life, low cost tier 1 operations and increased annual copper production, primarily from Australia and Canada.
The combined business is anticipated to generate annual pre-tax synergies of $500 million, expected to be achieved within the first 24 months, while also targeting at least $2 billion in cash improvements through portfolio optimisation in the first two years after closing.
Newmont and Newcrest anticipate the transaction closing in the fourth quarter of this year and it is subject to the satisfaction of customary closing conditions.
Newmont stockholders will vote on the proposed transaction on 11 October 2023 and Newcrest’s shareholder vote will take place on 13 October 2023.