Newcrest Mining Ltd., Australia’s largest gold miner, has agreed to sell its minority stake in the Boddington mine to partner Newmont Mining Corp. for $166 million.
Melbourne-based Newcrest said in a statement to the Australian Stock Exchange on Monday it will use the proceeds of the sale of the 22.2 percent stake to repay debt.
The estimated cost of developing the Boddington gold mine in Western Australia has doubled because of higher steel and labor costs, Denver-based Newmont has said, even as gold prices soared to a 25-year high. Newmont, Newcrest and AngloGold Ashanti Ltd. were to decide on approving the go-ahead this month.
With the purchase, Newmont would own 66.6 percent of Boddington, and AngloGold the remainder.
The partners have the first right to purchase Newcrest’s stake, and last August rejected Newcrest’s sale price.
