Newmont Increases Ownership in Minera Yanacocha With Purchase of Buenaventura Stake

By Adriano Marchese

Newmont Corp. said Tuesday that it has agreed to purchase Compania de Minas Buenaventura S.A.'s 43.65% stake in Minera Yanacocha in Peru for up to $400 million.

The mining company said the acquisition enhances its ownership of the asset as it continues to advance its sulfides project, which is expected to increase Newmont's copper position. Newmont owned 51.35% of Yanacocha before the acquisition, and Sumitomo Corp. holds 5%, according to Newmont's website.

Under the terms of the agreement, Newmont will acquire the stake for $300 million, as well as contingent payments of up to $100 million.

The company said the latter payments are tied in part to higher metal prices.

Newmont said it will also transfer its ownership interest in the La Zanja joint venture to Buenaventura and will receive royalties in exchange on any future production from that operation.

The project is expected to add average annual production of 525,000 gold equivalent ounces a year, with all-in sustaining costs expected to be between $700 and $800 an ounce for the first five full years of production.

Write to Adriano Marchese at [e-mail]

(END) Dow Jones Newswires

February 08, 2022 08:11 ET (13:11 GMT)

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