After failing to reach a pricing agreement, Newmont Mining of New York has decided not to sell a 75% interest in Newmont Australia Ltd., the company said recently.
The proposed sale of its Australian gold interests, was part of a plan to reduce a debt load incurred after the company paid a $2.2 billion(US) dividend to shareholders in 1987.
The dividend was announced to thwart a takeover bid by Ivanhoe Partners of Amarillo, Tex., an investment group led by oilman T. Boone Pickens.
Since the beginning of 1988, Newmont has successfully reduced its debt from $1.93 billion to $1.59 billion following the sale of about 4.2 million shares of E. I. duPont de Nemours for $353 million.
Newmont also realized $74 million after selling holdings in Foote Mineral Co. and a recently announced 1-million-oz gold loan will save the company about $25 million in bank interest charges, Newmont says.
An agreement to sell off its South African mining interests is also part of the debt reduction plan.
On March 30, Newmont agreed to sell a series of stock interests in Palabora Mining, O’okiep Copper Co., Tsumeb Corp., Gamsberg Zinc Corp., Highveld Steel and Vanadium Corp. for 363 million South African Rand. All closings are expected to be completed by April 30.
Meanwhile, Newmont has retained investment banker Goldman Sachs to develop possible buyers for wholly-owned subsidiary Newmont Oil Co.
Based in Houston, Tex., Newmont Oil reported $40.5 million in pre-tax income, compared with $35.1 million in 1986. Daily sales in 1987 averaged 88 million cu ft of gas and 3,542 bbl of oil and liquids.
Assets include offshore and onshore oil and gas production and reserves in Louisiana, Texas, Arkansas, North Dakota, Tennessee and Wyoming; and in the Dutch sector of the North Sea and Canada.
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