NEWMONT Mining is dishing out $1bn to acquire 100% control of the Boddington Gold Mine in Western Australia.
The deal will buy out Anglogold Ashanti’s minority share in the mine, which is set to become Australia’s largest gold operation.
According to Anglogold, the sale will provide the company with “financial flexibility” during a stormy time for commodity companies and allow the miner to pay a “substantial part” of its bridging loan agreements.
Newmont expects the mine, southeast of Perth in Western Australia, to yield about one million ounces of gold each year at a low cost for a predicted 20 year mine life.
The open-pit mine is still undergoing construction and is expected to start production by mid 2009.
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