Northern Star buys Newmont power business for $US95m
Northern Star Resources has exercised an option to buy Newmont Corporation’s Kalgoorlie-based power business for $US95 million (reports The West Australian).
25th November 2021
The investment represents a 50 per cent stake in the 110MW Parkeston gas power station, operated by TransAlta.
Parkeston supplies power to Northern Star’s Kalgoorlie Super Pit operation as well as the city itself through the South West Interconnected System grid.
Northern Star secured an option to buy the business when it acquired a 50 per cent stake in the Kalgoorlie Super Pit last year.
The cost of the option will be deducted from the final purchase price, leaving Northern Star to pay the balance of $US70m at completion next month.
Northern Star said the acquisition would provide infrastructure and power security for its Super Pit operations, lower power costs and provide further options to introduce renewable energy.
Managing director Stuart Tonkin said it gave the company greater control over its power supply in Kalgoorlie.
“The purchase means our Kalgoorlie power supply will now form part of our studies into ways to meet our commitment to becoming carbon-neutral,” he said.
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