Barrick steps back from Super Pit
Barrick Gold will take a back seat in Kalgoorlie-Boulder's Super Pit after agreeing to streamline future decision-making, effectively handing control to joint venture partner Newmont Mining.
Kalgoorlie Consolidated Gold Mines confirmed the change yesterday, saying it would remove duplication.
The 50-50 ownership structure of Australia's second-biggest gold operation, which also includes the Mt Charlotte underground mine, will not change and KCGM will maintain the status quo as an independent brand.
The hope is KCGM will no longer have one hand tied behind its back, as has been the case in the past, with management forced to seek approval from the Toronto and Denver-based owners for even small capital decisions.
The shake-up will spark renewed talk that Barrick may be preparing to exit the venture, in line with its gradual withdrawal from Australia, or that it and Newmont are again thinking about a merger of their global operations.
Barrick, the world's biggest gold miner, has over the past 18 months offloaded its Kanowna, Plutonic and Yilgarn South assets in WA. The company is also selling the Cowal mine in NSW and its Porgera joint venture in Papua New Guinea to help cut its debt level by at least $US3 billion ($3.8 billion) this year.
KCGM acting general manager Ian Butler said business would continue as usual for the Super Pit's 1100 employees and other stakeholders. He said the management deal aligned KCGM under one set of business standards and procedures.
Barrick's March-quarter report revealed its share of Super Pit production was 59,000 ounces at an all-in sustaining cost of $US1271/oz. The operation's output fell from 162,000oz in the December quarter to 118,000oz, blamed on a 16-day shutdown in February.
KCGM said the Super Pit was on track to finish open-pit mining by 2019 but processing of low-grade stockpiles would continue until 2029.
