Published: December 10, 2024 |

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U.S. mining operator Newmont has reportedly initiated corporate restructuring that involves cutting nearly a dozen management positions, including an executive team member.

This move is part of company’s strategy to streamline operations following its acquisition of Newcrest Mining, according to a report by Bloomberg.

“Following the Newcrest acquisition and progress with our key divestments, we are continuing to execute our strategy focused on a portfolio of tier 1 assets and projects. An integral part of this strategy is to ensure that we have an organization that is fit-for-purpose from operational, functional and cost perspectives, and our business is well positioned for long-term success,” A Newmont spokesperson stated in an email.

The restructuring also includes merging several business units to optimize the reporting structure.

According to the report, the company plans to consolidate five business units into three, eliminating stand-alone divisions that manage operations in Australia and Africa. These will be combined with units overseeing North America and East Asia.

This decision follows a challenging earnings report in late October that highlighted difficulties in managing costs and leveraging high gold prices.

The company has been spending more than anticipated on mining operations in Australia, Canada, Peru, and Papua New Guinea.

The restructuring is partly in response to the $15 billion acquisition of Newcrest Mining in 2023, which expanded Newmont’s portfolio with major gold and copper mines, said the report.

Despite a 30 percent rise in gold prices this year, driven by U.S. interest rate cuts and central bank purchases, Newmont’s share performance has not mirrored this growth.

The company is also divesting non-core assets as part of its strategy and has agreed to sell the Cripple Creek & Victor Gold Mine in Colorado to SR Mining for $100 million, with potential additional payments of up to $175 million.

Additionally, Newmont has signed an agreement to sell its Éléonore underground gold mine in Quebec, Canada, to UK-based Dhilmar for $795 million in cash.

This sale is part of Newmont’s divestiture program, which has exceeded its initial $2 billion target.

Source: Global Data

Newmont is the world’s leading gold company and a producer of copper, zinc, lead, and silver. The company’s world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social, and governance practices. Newmont is an industry leader in value creation, supported by robust safety standards, superior execution, and technical expertise. Founded in 1921, the company has been publicly traded since 1925.

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