Mining
Wednesday, October 4th, 2023 2:46 pm EDT
Key Points
- The Securities Commission of Papua New Guinea (SCPNG) and the Philippine Competition Commission (PCC) have granted regulatory approvals for Newmont Corp.’s proposed acquisition of Newcrest Mining Ltd., allowing the acquisition to proceed.
- Newmont aims to build strong partnerships in Papua New Guinea, where the acquisition includes the Lihir gold mine and the Wafi-Golpu gold and copper project. The combined company expects significant synergies and cash improvements, with the transaction anticipated to close in the fourth quarter of the year, pending shareholder votes and customary closing conditions.
The Securities Commission of Papua New Guinea (SCPNG) has granted the necessary exemptions and other requested confirmations under Papua New Guinea (PNG) capital markets law to allow Newmont Corp. to proceed with its proposed acquisition of Newcrest Mining Ltd. 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’s President and Chief Executive Officer, Tom Palmer, thanked PNG’s government and went on to state, “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 recognize 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 has 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. Newmont also plans to establish a secondary listing of Newmont stock depositary interests on the PNGX from closing of the transaction.
On May 14, 2023, Newmont announced its definitive agreement to acquire Newcrest. The combination 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 optimization in the first two years after closing.1
Newmont and Newcrest anticipate the transaction closing in the fourth quarter of this year, subject to the satisfaction of customary closing conditions. Newmont stockholders will vote on the proposed transaction on October 11, 2023, at 8:00 a.m. MDT and Newcrest’s shareholder vote will take place on Friday, October 13, 2023, at 10:30 a.m. AEDT.
About Newmont
Newmont is the world’s leading gold company and a producer of copper, silver, zinc and lead. The Company’s world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in North America, South America, Australia and Africa. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social and governance practices. The Company is an industry leader in value creation, supported by robust safety standards, superior execution and technical expertise. Newmont was founded in 1921 and has been publicly traded since 1925.
At Newmont, our purpose is to create value and improve lives through sustainable and responsible mining. To learn more about Newmont’s sustainability strategy and initiatives, go to www.newmont.com.
