DENVER--(BUSINESS WIRE)--Newmont Mining Corporation (NYSE: NEM) (Newmont or the Company) welcomed Sumitomo Corporation (Sumitomo) as a new and valued partner in Minera Yanacocha SRL (Yanacocha) following its purchase of a five percent stake in the partnership. Newmont, Buenaventura and Sumitomo completed the transaction today in which Sumitomo paid $48 million for the ownership interest in Yanacocha. In December 2017, Yanacocha repurchased the International Finance Corporation’s (IFC) five percent stake which it held since 1992 when it provided debt financing for construction of the operation.
As a result of the transaction, Newmont and Buenaventura’s ownership interests in Yanacocha will revert to 51.35 percent and 43.65 percent, respectively, the proportion held prior to the repurchase of the IFC’s ownership stake in December. The transaction is structured as a new share issuance to Sumitomo, with the payment going towards Yanacocha’s cash balances.
“Sumitomo brings mining expertise, high performance standards, and a shared commitment to extending profitable and responsible production at Yanacocha,” said Randy Engel, Executive Vice President, Strategic Development. “We had a long and productive partnership with Sumitomo at Batu Hijau in Indonesia, and we look forward to working with them and Buenaventura to advance the next generation of profitable production at Yanacocha.”
In October, Newmont’s Board of Directors approved full funding for Quecher Main which is expected to extend Yanacocha’s oxide mine life to 2027. Quecher Main also will serve as a bridge to future growth options, including development of Yanacocha’s extensive sulfide deposits. If approved, the sulfides project could extend Yanacocha’s operational life through 2039.
Sumitomo also is currently partnered with Buenaventura at Freeport’s Cerro Verde copper mine in southern Peru.
Newmont is a leading gold and copper producer. The Company’s operations are primarily in the United States, Australia, Ghana, Peru and Suriname. Newmont is the only gold producer listed in the S&P 500 Index and was named the mining industry leader by the Dow Jones Sustainability World Index in 2015, 2016 and 2017. The Company is an industry leader in value creation, supported by its leading technical, environmental, social and safety performance. Newmont was founded in 1921 and has been publicly traded since 1925.
Yanacocha is South America's largest gold mine, located in the province and department of Cajamarca, approximately 800 kilometers northeast of Lima, Peru. The operation is a joint venture between Newmont Mining Corporation (51.35%), Minas Buenaventura (43.65%) and Sumitomo Corporation (5%). Yanacocha has been in production since 1993, directly and indirectly supporting thousands of well-paying jobs and contributing nearly $3 billion in taxes and royalties. In addition, Yanacocha has invested more than $640 million in economic, social and infrastructure development in the Cajamarca region for water facilities, education, health care, agricultural support, and small business development and training.
Legal Cautionary Statement
This release contains “forward-looking statements” within the meaning of applicable securities laws that are intended to be covered by the safe harbors created by Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended, and other securities legislation, including statements that use forward-looking terminology such as “could,” “may,” “will,” “expect,” or other variations thereof. Such forward-looking statements may include, without limitation, statements regarding the future performance, production and financial results, and future growth, including relating to the development of Quecher Main, extension of oxide mine life, development of sulfide deposits, future approval and funding of the sulfides project and related mine life extension, and other growth options. Such statements are based on current expectations that involve a number of risks and uncertainties. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect. Such assumptions, include, but are not limited to: (i) there being no significant change to geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the operations and projects being consistent with current expectations and mine plans; (iii) political developments being consistent with current expectations; (iv) certain price assumptions for gold, copper and oil; (v) prices for key supplies being approximately consistent with current levels; (vi) the accuracy of current mineral reserve and mineralized material estimates; and (vii) other assumptions. For a discussion of risks relating to the business and other factors, see the Company’s Form 10-K, filed on or about February 22, 2018, with the Securities and Exchange Commission (SEC) under the headings “Risk Factors” and “Forward-Looking Statements,” and other SEC filings. Investors should not place undue reliance on forward-looking statements. Newmont does not undertake any obligation to release publicly revisions to any forward-looking statement to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued forward-looking statement constitutes a reaffirmation of that statement. Continued reliance on forward-looking statements is at investors’ own risk.