TORONTO – Barrick Gold Corp. (TSX:ABX) has signed a strategic partnership with Chinese mining company Zijin Mining Group Co. Ltd. which will take a stake in its Porgera Joint Venture gold mine in Papua New Guinea.
Under the deal, Zijin will acquire 50 per cent of Barrick (Niugini) Ltd., the company which owns 95 per cent of and manages the project, for $298 million in cash.
In addition, Barrick and Zijin have signed a long-term agreement which outlines the intent of both companies to collaborate on future projects.
Barrick’s share of gold production from the Porgera mine in 2014 was 493,000 ounces at all-in sustaining costs of $996 per ounce.
Production for 2015 is expected to be 500,000-550,000 ounces of gold at all-in sustaining costs between $1,025 and $1,125 per ounce.
Barrick has been looking to sell non-core assets as it streamlines its operations and cuts costs.
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