How Australia’s mines tax is driving a wedge between the world’s two biggest gold miners
Toronto — A tax hike in Western Australia stands to lower the value of a huge gold deposit and further drive apart its owners: the world’s biggest producers of the metal who have spent the past two years debating what the mine is worth. Newmont Mining, the second-largest gold miner, has been interested in buying Barrick Gold’s 50% stake in the Kalgoorlie Super Pit since at least 2015. Newmont already owns the other half and operates the mine for Barrick, the number one producer of the metal. The only reason a deal has not been done, the two sides say, is price. Now, the royalty increase could further the gap between how much the companies think the operation is worth. The higher tax "adversely" affected the value of Kalgoorlie, said Newmont CEO Gary Goldberg. Goldberg’s comments underscore the arguments over price. Rival Barrick has stressed that selling the stake is all about value, and a failure to reach a deal with Newmont has nothing to do with a culture clash. "If it made sense...
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