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Denver miner Newmont sells stake in Argentina gold, copper project

Matt Whittaker

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Gold in a Brasilian museum.Sheep"R"Us / Flickr

By Matt Whittaker / NewsBreak Denver

(Denver, Colo.) Commodity trading and mining giant Glencore will buy Colorado miner Newmont Corp.’s stake in a gold and copper project in South America, the companies said Friday.

Glencore, a Switzerland-headquartered multinational commodities company involved in metals and energy products, will acquire Denver-based Newmont’s 18.75 percent share in the Argentina mine for $124.9 million and as much as $50 million in deferred payment once the mine begins commercial production.

Known as the MARA project, the mine is a joint venture formed in 2020 between Canada-headquartered miner Yamana Gold, Glencore and Newmont – the biggest gold miner in the world, both by stock market value and ounces produced.

After Newmont sells its stake, Yamana will continue operating the mine with a 56.25 percent stake and Glencore will own the rest.

The mine isn’t a core asset for Newmont but represents a sizable project for the other two companies, with proven and probable mineral reserves of 5.4 million metric tons of copper, 7.4 million ounces of gold and an initial mine life of 28 years.

Newmont operates mines in North and South America, Africa and Australia. In June, the company said it completed the acquisition of mining claims in Canada to make them available for indigenous land planning.

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Matt Whittaker writes about natural resources industries, including oil and gas, mining, renewable energy, agriculture and cannabis. He's been based in the Denver metro area since 2013. You can follow him on Twitter @mattswhittaker.

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