Newmont has agreed to sell its Kalgoorlie power business to Australia’s Northern Star Resources Limited for US$95 million, inclusive of the US$25 million option payment previously received from Northern Star as part of its purchase of Newmont’s 50 per cent stake in Kalgoorlie Consolidated Gold Mines (KCGM) in 2020.
The Kalgoorlie power business includes a 50 per cent interest in the 110MW Parkeston Power Station and associated infrastructure which provides electricity to KCGM, and the Kalgoorlie area through its connection to the South-West Interconnected System.
The Kalgoorlie power business has been a profitable asset for Newmont since the sale of its stake in KCGM. The Kalgoorlie power business supplies electricity to KCGM via a suite of contracts, licences, approvals and third party arrangements, including a 50 per cent interest in the 110MW duel fuel gas turbine Parkeston Power Station near Kalgoorlie, owned in joint venture with Canadian energy utility, TransAlta Corporation.
The acquisition provides the Northern Star Resources with greater control over power supply to support its Kalgoorlie assets, in particular KCGM, at lower costs and with the ability to implement renewable energy solutions.
Northern Star Managing Director Stuart Tonkin said: “We are pleased to secure this key infrastructure which will enable a simpler pathway to achieving net zero through addition of renewable energy projects”.
Newmont President and CEO Tom Palmer said with the sale of this non-core asset, the company will continue its regional focus on delivering long term value at its Boddington and Tanami operations, and “advancing our future project pipeline through active exploration campaigns”.
