Commodities Buzz: Newmont Sells Stake In Yanacocha Gold Mine

Newmont Mining Corp. has sold Japans Sumitomo Corp. a 5%-stake in its Yanacocha gold mine in Peru for $ 48 million, making the Asian trading house a partner in the business that also involves local miner Buenaventura.

The US miner and Buenaventuras ownership interests in the mine, which was Perus largest gold operation until output began falling in recent years, will be 51.35% and 43.65%, respectively. Newmont, the only gold company that forms part of the S&P500 index, approved last year full funding for the Quecher Main project, which is expected to extend the Peruvian mine productive life to 2027. Based on Newmonts March report, Yanacocha is expected to produce 470,000-545,000 ounces of gold this year on a 100% basis.