Barrick to sell subsidiary

 BARRICK Gold Corporation says it will sell one of its subsidiaries in Papua New Guinea to withstand challenges in the mining industry.

The Canadian-based mining giant said it would pursue the sale of Barrick Niugini Ltd, which holds 95 per cent interest in the Porgera Joint Venture (PJV), to potential buyers while they refocus on core assets in the Americas.

Barrick Niugini Ltd executive general manager Greg Walker said the industry was experiencing challenging times as gold mining companies’ worldwide experience a lower gold price environment 

and pressure to reduce company debt.

“Over the past year, in response to these challenges, Barrick has been changing the structure of its operations portfolio with an increasing focus on operations in North and South America,” Walker said.

“The company has implemented a strategy to divest the mines and properties that are not best-suited to the new strategic direction of the company.

“For this reason, Barrick has announced that in the coming months it will be evaluating options for the potential sale of Porgera and will be inviting expressions of interest in the purchase of the mine.”

Walker said the sale would take several months but there was no certainty that a sale would occur as a result of this process.

He said, however, that the mine would still respect its obligations to its employees and communities, including legal commitments and local contracts, under a new owner.

Yesterday, Barrick said its Cowal mine in New South Wales was up for grabs.