Newmont Goldcorp Corp. confirmed that it is selling the Red Lake gold mine in Canada as part of a continuing effort to streamline its portfolio following a merger.
The company said Sept. 13 that the sale process is now underway, with President and incoming CEO Tom Palmer to provide more details in a company presentation on Sept. 17 at the 30th annual Denver Gold Forum.
In August, the Metals and Mining Research team at S&P Global Market Intelligence listed Red Lake as one of the Canadian gold projects that may potentially be on the block. Operating the mine, a noncore asset located in a historical gold camp, remains expensive despite cost-cutting, the team said in its analysis.
"However, in 2018, then-owner Goldcorp took a second impairment in two years of US$664 million due to a reduction in gold resources of 2.2 million ounces, which reduced the life of the mine," the team said.
"The Cochenour expansion project, which was initially set to go ahead in 2016, went into production April 1, 2019, and will add between 30,000 ounces per year and 50,000 oz/y. Newmont Goldcorp, however, seems to have dropped its plans to expand production further with the HG Young project since the merger."
Newmont Goldcorp, together with BHP Group and Orano SA, recently agreed to divest its stake in the Nimba iron ore deposit in Guinea to High Power Exploration Inc.
