Barrick Gold to sell its 50% share in Kalgoorlie Consolidated Gold Mines

Barrick Gold Corporation has reached an agreement with Saracen Mineral Holdings for the sale of its 50% interest in Kalgoorlie Consolidated Gold Mines (KCGM) in Western Australia for a fee of US$750 million.

The world’s second largest gold producer said that funds from the sale will be used to further strengthen the company’s balance sheet, invest in future projects and deliver returns to its shareholders.

“The sale of our non-operating interest in KCGM represents the first step in our plan to realise in excess of $1.5 billion from the disposal of non-core assets by the end of next year,” said Barrick president and CEO Mark Bristow.

“While this iconic gold mine has been a valuable contributor to Barrick over the years, the asset does not fit with our strategy of operating mines that we own. The sale allows us to further focus our portfolio on core operations.”

Barrick went on to say that was confident that Saracen, an ASX200-listed gold company with two operations in the Kalgoorlie region of WA, would be an excellent partner at KCGM going forward.

The KGCM operations include the Fimiston open pit, also known as the Super Pit, the Mt Charlotte underground mine and the Fimiston and Gidji processing plants, all located adjacent to the City of Kalgoorlie-Boulder.