Newmont boss counters M&A talk around Telfer
Newmont boss Tom Palmer says Western Australia’s Telfer gold mine is “coming home” after wrapping up his Newcrest acquisition, challenging speculation that Telfer is headed for the auction block.
Broken Hill-born Mr Palmer has flagged selling mines and delaying projects to find $US2 billion ($3 billion) in cash after a challenging year for the world’s biggest miner that has included a four-month strike at its Penasquito mine in Mexico.
Newmont chief executive Tom Palmer ringing the bell at the ASX in Sydney on Tuesday. Louise Kennerley
The ageing Newmont-built Telfer mine in WA’s northern Pilbara and nearby Havieron could be some of the assets the enlarged Newmont looks to offload, analysts have speculated. Newmont is widely expected to sell one or two mines to realise cash now that the $26 billion takeover of Newcrest is done.
Newmont could “comfortably manage” 17 operations in its global portfolio, Mr Palmer said on Tuesday. The former chief operating officer at Rio Tinto’s iron ore mines said Telfer and its associated infrastructure, including a copper concentrator, were highly valuable.
“I know the Pilbara well. It is one of the great mining postcodes in the world,” he said.
“In the Paterson district you have got the Telfer deposit itself, you’ve got Havieron and other opportunities that may exist around that area. You would want to have a good long, hard look at Telfer before making any decision.”
Northern Star Resources and Evolution, the next two biggest gold miners on the ASX after Newcrest disappeared from the boards, have both indicated a lack of interest in Telfer and Havieron.
New York-listed Newmont made its debut on the ASX on Tuesday with a secondary listing.
Mr Palmer is more than happy running the
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