Gold price up over 1%, closing in on new record
Bullion is now 18% higher for the year, boosted by anticipation of Fed loosening as well as significant buying by central banks.
Barrick Gold’s (TSX, NYSE:ABX) planned $1.3 billion sale of its stake in Australia’s Kalgoorlie mine has hit a roadblock as Minjar Gold, the Chinese bidder, has been unable to secure financing for the deal.
Minjar Gold is still waiting for Chinese regulatory clearance and hasn’t been able to secure funding for the $1.3 billion deal.
The Perth-based firm, a unit of Shanghai-listed Shandong Tyan Home, is also still waiting for Chinese regulatory clearance to go ahead with the acquisition, people with knowledge of the matter told Bloomberg.
Minjar Gold has been on the hunt for Australian mines for over a year. In August it purchased Evolution Mining’s (ASX:CAH) Pajingo mine for $40 million — a deal that looks like small change in comparison to the offer on the table for Kalgoorlie.
But if it fails to get its hands on Barrick’s 50% stake in the vast Western Australia mine, then the company may decide to re-enter talks with other buyers, including its joint venture partner Newmont Mining (NYSE:NEM), which owns the other half. Price, however, has been an issue and a deal has so far eluded the Denver-based company.
Another option for Barrick, the world’s No.1 gold producer, would be to keep the asset, which is Australia’s largest open-pit gold mine.
The Super Pit is expected to be depleted of ore by 2029 but underground mining could continue after that.
Comments
Wayne Waters
GOOD! Keep the Chinese with their pilferd money away from good situations! Let this bunch of Bandits find their own deals