US-based gold miner Newmont has signed an agreement to sell its Éléonore underground gold mine in Quebec, Canada, to UK-based private mining company Dhilmar for $795m (£632.16m) in cash.
The sale is a part of Newmont’s divestiture programme aimed at offloading non-core assets, which has now surpassed its initial $2bn target.
Located in Eeyou Istchee/James Bay, in a remote corner of the Northern Quebec region, the Éléonore mine commenced commercial production in 2015.
Dhilmar previously collaborated with Newmont in 2016 to acquire the Batu Hijau mine in Indonesia.
The deal with Dhilmar is due to be finalised in the first quarter of 2025, subject to certain conditions.
Newmont’s divestiture programme, announced in February 2024, includes the sale of operations and projects across Australia, Ghana and North America.
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To date, agreements for four operations and one project have been secured, with Newmont focusing on finalising the remaining North American asset sales by early 2025.
The total gross proceeds from these divestitures and other investment sales are expected to reach up to $3.6bn, which includes the recent sale of the Éléonore mine.
Newmont president and CEO Tom Palmer said: “Today’s announcement is another step forward in Newmont’s journey to create a go-forward portfolio of Tier 1 gold and copper assets, each with the scale and mine life to generate strong free cash flows for several decades.
“When we announced the acquisition of Newcrest in 2023, we committed to generating at least $2bn in cash through portfolio optimisation.
“With this announced sale, we have meaningfully exceeded our target by more than $1.5bn to date. Proceeds from this transaction will support Newmont’s comprehensive approach to capital allocation, which includes strengthening our investment-grade balance sheet and returning capital to shareholders.”
Last week, Newmont agreed to sell its Musselwhite mine in Canada to Orla Mining for $850m in upfront cash and another $40m contingent on the gold price.
Located on the shore of Opapimiskan Lake in north-western Ontario, the Musselwhite underground gold mine has a production history spanning more than 25 years.
