Northern Star Resources has reached an agreement to acquire Newmont’s power business from Newmont Corporation’s Australian subsidiary, Newmont Australia, for US$95 million.
Northern Star said it paid US$25 million for an option to buy the Newmont power business as part of its purchase of 50% of Kalgoorlie Consolidated Gold Mines (KCGM) and associated assets.
“Northern Star has now entered into a binding sale agreement with Newmont Australia to acquire all the shares in GMK Investments Pty Ltd, which holds a 100 per cent interest in Newmont Power Pty Ltd and NP Kalgoorlie Pty Ltd,” the company told the ASX.
“NP Kalgoorlie owns 50 per cent of Goldfields Power Pty Ltd, 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.”
The 110MW Parkeston Power Station primarily provides electricity to KCGM. It also supplies electricity to the Kalgoorlie area through its connection to the South-West Interconnected System. The plant has a history of continuous reliable generation.
Northern Star Managing Director Stuart Tonkin said the purchase provides the company with significant synergies and value, including power security to support the requirements of KCGM at lower cost, as well as further options to implement renewable energy.
“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 concluded.