Waihi mining operations to sell

Waihi's Martha Pit Photo/file

Newmont Mining Corporation today announced its intention to sell its mining operations in Waihi.

Newmont has entered into a non-binding 'Letter of Intent' to sell its Waihi mining operations toOceanaGold Corporation which will acquire the business by purchasingWaihi Gold Mining Company Limited, the New Zealand holding company for Newmont's Waihi operations.

The sale will be subject to approval under the Overseas Investment Act 2005. This is expected to take between 60 and 90 days. Once that approval is obtained, completion of the sale will occur soon after, most likely July 2015.

Newmont Waihi Gold general manager Glen Grindlay says that until that time, it will be 'business as usual following the current operating plans' at Waihi.

'We want this transition to be as smooth as possible', says Grindlay. 'Newmont Waihi Gold employees will continue to be employed by the same company, Waihi Gold Company Ltd, but with new owners.'

'All of our current existing New Zealand contracts will be transferred directly to the new owners of the company. This includes the smaller contracts we have with local businesses and the large contracts we have with companies such as Macmahon, Leighton and Boart Longyear.'

Grindlay also said that all consent conditions would remain the same, and that closure bonds and conditions set by local regulators would remain in place.

'Operating Consent Conditions for the Martha open pit, the Correnso underground, and the site will remain unchanged. This includes vibration and noise limits, and hours of work. All other consent conditions will remain the same; for example, the Investment Review Panel (IRP) and Waihi Community Forum (WCF) funding, and Amenity Effects Programme (AEP) payments.'

Omar Jabara, Group Executive Corporate Communications for Newmont Mining Corporation in Denver, says that OceanaGold Corporation approached Newmont with an interest in acquiring Waihi and that approach has led to the recent negotiations.

'The company has 24 years' experience in New Zealand. They have a reputation for developing and maintaining strong positive relationships with communities. We believe they will be a good strategic, practical, and philosophical 'fit' for Waihi.'