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Newmont (NEM) to sell Aussie power arm to Northern Star (NST)

By Andreas Ismar

06:55, 23 November 2021

Top to bottom view of Kalgorlie 'super pit' gold mine in Western Australia
Top to bottom view of Kalgorlie 'super pit' gold mine in Western Australia – Photo: Shutterstock

Newmont Corporation plans to sell its stake in an Australian power station to gold miner Northern Star Resources for $95m (£71m) and exit its non-core business.

Newmont owns a 50% stake in the 110 megawatts (MW) Parkeston power unit, with the remainder owned by Canadian energy utility firm TransAlta Corporation. The power station supplies electricity to Kalgoorlie Consolidated Gold Mines (KCGM), half of which is owned by Northern Star.

“With the sale of this non-core asset, we will continue our regional focus on delivering long term value at our Boddington and Tanami operations and advancing our future project pipeline through active exploration campaigns,” Newmont president and chief executive Tom Palmer said in a statement.

Lower power cost for Northern Star

For Northern Star, the purchase of the power station will cut the electricity costs at KCGM and further options to implement renewable energy.


37,626.45 Price
+1.550% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00


0.61 Price
+1.540% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

Oil - Crude

76.87 Price
+2.230% 1D Chg, %
Long position overnight fee -0.0211%
Short position overnight fee -0.0008%
Overnight fee time 22:00 (UTC)
Spread 0.030


2,034.68 Price
+0.870% 1D Chg, %
Long position overnight fee -0.0194%
Short position overnight fee 0.0112%
Overnight fee time 22:00 (UTC)
Spread 0.50

“The purchase means our Kalgoorlie power supply will now form part of our studies into ways to meet our commitment to becoming carbon-neutral,” Northern Star’s managing director Stuart Tonkin said in a separate statement.

Northern Star, which had paid $25m for the option to buy Newmont’s stake in Parkeston power in 2020, will pay the remaining $70m in cash upon deal completion, which is slated for December 2021.

Following the announcement, the stock price of Northern Star fell 2.7% lower to AUD9.79 on the Australian bourse.

Read more: Northern Star to sell gold mine in Western Australia for A0m

Markets in this article

Newmont Goldcorp
39.47 USD
0.98 +2.570%
TransAlta Corporation Ordinary
8.11 USD
0 0.000%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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