The Independent Consumer and Competition Commission (ICCC) has given the Newmont Corporation the green light to proceed with its proposed acquisition of Newcrest Mining Ltd. Newmont's Chief Executive Officer, Tom Palmer, expressed his appreciation to the ICCC in PNG for their meticulous review and clearance of the acquisition proposal for Newcrest, paving the way for the transaction's closure in the final quarter of this year.
“We appreciate the ICCC in PNG for carefully reviewing and clearing our proposed acquisition of Newcrest,” Palmer said. “Lihir is one of the world’s great gold mines and a Tier One operation by any measure. We also see profitable gold and copper growth through the world-class Wafi-Golpu project. We remain committed to building strong, mutually beneficial and longlasting relationships with the Government and communities. Newmont plans to establish PNG as a standalone fifth region in our portfolio with an in-country senior leadership presence, and pursue a secondary listing of Newmont depositary interests on the PNGX (PNG stock exchange).”
The acquisition of Newcrest opens up significant opportunities for Newmont, with Lihir being one of the world's premier gold mines and a highly regarded Tier One operation. Additionally, Newmont sees promising potential in gold and copper growth through the Wafi-Golpu project, which is renowned for its world-class standards. Newmont is dedicated to forging robust and lasting relationships with the Government and local communities in the region.
Furthermore, Newmont has strategic plans to establish PNG as an essential and independent region within its portfolio, accompanied by an in-country senior leadership presence. They also intend to pursue a secondary listing of Newmont depositary interests on the PNGX (PNG stock exchange).
Despite receiving approval from the ICCC, Newmont and Newcrest will continue engaging with the Government and regulators to secure other necessary approvals and clearances for the proposed transaction. The definitive agreement for the acquisition of Newcrest was announced by Newmont on May 14.
ICCC Commissioner and CEO, Paulus Ain, clarified that the approval was solely based on competition grounds. He acknowledged that there are other areas of national interest currently under scrutiny concerning this acquisition. However, the ICCC's jurisdiction is limited to the assessment of competition effects only. Matters related to investment and capital market listings fall outside the purview of the ICCC and should be addressed by relevant authorities.
“The ICCC understands that there are areas of national interest currently under scrutiny pertaining to this proposed acquisition,” Ain said. “However, the process under which this approval was given is on the competition effects only. Issues on investment and capital market listings are outside of ICCC’s mandate and can be addressed by relevant authorities. While the ICCC has cleared this proposed acquisition on competition grounds, it is not to be taken as the final regulatory approval for the proposed acquisition in PNG.”