US 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.
A Newmont spokesperson stated in an wrote in an email: “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 organisation that is fit-for-purpose from operational, functional and cost perspectives, and our business is well positioned for long-term success.”
The restructuring also includes merging several business units to optimise 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 $15bn acquisition of Newcrest Mining in 2023, which expanded Newmont's portfolio with major gold and copper mines, said the report.
Despite a 30% rise in gold prices this year, driven by US 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 $100m, with potential additional payments of up to $175m.
Additionally, Newmont has signed an agreement to sell its Éléonore underground gold mine in Quebec, Canada, to UK-based Dhilmar for $795m (£632.16m) in cash.
This sale is part of Newmont’s divestiture programme, which has exceeded its initial $2bn target.
