Northern Star (ASX:NST) to buy Newmont power business

Company News

by Lauren Evans

Gold miner Northern Star Resources (ASX:NST) has agreed to acquire Newmont’s power business from its Australian subsidiary, Newmont Australia, for US$95 million. 

As part of Northern Star’s purchase of 50 per cent of Kalgoorlie Consolidated Gold Mines and associated assets, Northern Star paid US$25 million for an option to buy the Newmont power business.

Northern Star has entered into a binding sale agreement with Newmont Australia to acquire all the shares in GMK Investments, which holds a 100 per cent interest in Newmont Power and NP Kalgoorlie. NP Kalgoorlie owns 50 per cent of Goldfields Power, the holder of the Parkeston Power Station.

The cost of the option will be deducted from the final purchase price, leaving Northern Star to pay the balance of US$70 million at completion which is expected to occur in December 2021.

Northern Star managing director Stuart Tonkin said the acquisition gave the company greater control over its power supply in Kalgoorlie. “The purchase means our Kalgoorlie power supply will now form part of our studies into ways to meet our commitment to becoming carbon-neutral,” Mr Tonkin said.

Shares in Northern Star Resources (ASX:NST) are trading 2.9 per cent lower at $9.77. 

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