Newmont Mining Corp. welcomed Sumitomo Corp. as a new and valued partner in Minera Yanacocha SRL (Yanacocha) following its purchase of a five-percent stake in the partnership. Newmont, Buenaventura and Sumitomo completed the transaction in which Sumitomo paid $48 million for the ownership interest in Yanacocha. In December 2017, Yanacocha repurchased the International Finance Corporation’s (IFC) five-percent stake which it held since 1992 when it provided debt financing for construction of the operation.
As a result of the transaction, Newmont and Buenaventura’s ownership interests in Yanacocha will revert to 51.35 percent and 43.65 percent, respectively, the proportion held prior to the repurchase of the IFC’s ownership stake in December. The transaction is structured as a new share issuance to Sumitomo, with the payment going towards Yanacocha’s cash balances.
“Sumitomo brings mining expertise, high performance standards, and a shared commitment to extending profitable and responsible production at Yanacocha,” said Randy Engel, executive vice president, strategic development. “We had a long and productive partnership with Sumitomo at Batu Hijau in Indonesia, and we look forward to working with them and Buenaventura to advance the next generation of profitable production at Yanacocha.”
In October, Newmont’s Board of Directors approved full funding for Quecher Main which is expected to extend Yanacocha’s oxide mine life to 2027. Quecher Main also will serve as a bridge to future growth options, including development of Yanacocha’s extensive sulfide deposits. If approved, the sulfides project could extend Yanacocha’s operational life through 2039.
Sumitomo also is currently partnered with Buenaventura at Freeport’s Cerro Verde copper mine in southern Peru.