Newmont Mining Corp., the world’s biggest gold miner, is interested in buying some of partner Newcrest Mining Ltd.’s stake in the planned $769 million Boddington gold mine in Western Australia.
“We’re interested in buying Newcrest’s stake at the right price,” said Mike Duggan, a spokesman in Adelaide for Denver-based Newmont. Newcrest, the biggest Australian gold miner, hired ABN Amro Corporate Finance to review options for the sale of its 22.2 percent stake and is in talks with interested groups, Melbourne-based Newcrest said Thursday.
Development cost estimates for the mine more than doubled on rising steel and labor costs, Newmont said in April. Newcrest’s stake may be worth between $92 million and $115 million, analysts said.
Shares of Melbourne-based Newcrest fell as much as 26 cents, or 1.5 percent, on the Australian Stock Exchange.
AngloGold Newmont owns 44.4 percent of Boddington and AngloGold Ashanti Ltd., the world’s No. 2 gold producer, owns the remaining 33.3 percent. Newmont and AngloGold have the first right to purchase Newcrest’s stake under the partnership, Newmont’s Duggan said.
A shared acquisition with AngloGold is Newmont’s preferred option, he said, adding his company’s aim isn’t to gain control of the project.
Newmont and AngloGold still intend to develop Boddington, the companies said in a joint e-mailed statement with Newcrest.
“Newcrest believes it is in its shareholders’ best interests to focus on wholly or majority-owned development assets,” managing director Tony Palmer said.
A decision on whether to mine at Boddington will be made after a study is finished this year. First production is scheduled for mid-2008.
