Newmont confirmed on Friday that it plans to sell Newcrest’s share of the Telfer mine in Western Australia.
The expectation is that the most likely buyers are Regis Resources or Gold Road Resources.
Northern Star Resources and Evolution Mining, which flagged in its results last week that acquisitions were off the agenda for the year, will sidestep the auction.
Macquarie Capital is expected to emerge as the adviser to the sale, which is said to have been worked on since at least August last year.
US-based Newmont launched a buyout of Newcrest Mining last year, paying $29bn for Australia’s largest gold producer.
Telfer produces copper and gold and is the largest processing facility in the Paterson province.
The valuable Havieron deposit, which is 70 per cent owned by Newcrest and 30 per cent by Greatland Gold, is 45km away.
Greatland, which has listing plans through Bank of America, has first right to buy the asset, and many think there is a real possibility it takes up this option.
The question is which buyer is best positioned, with share prices down and the S&P/TSX Global Gold Index off 16 per cent this year. The asset is worth hundred of millions of dollars.
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