- Northern Star Resources (NST) is buying Newmont Corporation’s Australian power business for US$95 million (A$131 million)
- The purchase will give Northern Star a 50 per cent interest in the Kalgoorlie-based 110-megawatt Parketon gas power station
- Northern Star paid US$25 million (A$35 million) for the option to buy the power company back in 2020 as part of its purchase of the KCGM Super Pit operation
- Northern Star Managing Director Stuart Tonkin says the buy gives the company greater control over its power supply in Kalgoorlie and more options for renewable energy
- Shares in Northern Star were down 1.84 per cent at $9.87 per share at 10:22 am AEDT.
Gold mining big-cap Northern Star Resources (NST) is buying Newmont Corporation’s Australian power business for US$95 million (A$131 million).
The purchase will give Northern Star a 50 per cent interest in the Kalgoorlie-based 110-megawatt Parketon gas power station, which powers NST’s Kalgoorlie Super Pit operation. The plant also powers the city of Kalgoorlie itself.
Northern Star paid US$25 million (A$35 million) when it purchased its 50 per cent interest in the KCGM Super Pit back in early 2020 for the option to buy the Newmont power business as part of the deal.
Today, Northern Star exercised this option.
The US$25 million option cost will be taken off the final purchase price, meaning Northern Star only has to pay the outstanding balance of US$70 million (A$97 million) to nab control of the power company. NST said it expected the purchase to be completed before the end of the year.
Northern Star Managing Director Stuart Tonkin said the buy gave the company greater control over its power supply in Kalgoorlie.
“The purchase means our Kalgoorlie power supply will now form part of our studies into ways to meet our commitment to becoming carbon-neutral,” Mr Tonkin said.
Further, the company told investors the purchase would help lower power costs at the Super Pit, offer infrastructure and power security for the mine, and create more options for renewable energy in the area.
Shares in Northern Star were down 1.84 per cent at $9.87 per share at 10:22 am AEDT. The company has an $11.5 billion market cap.