Shandong Tyan Home Co. said it has ended talks to acquire Barrick Gold Corp.’s stake in its Kalgoorlie Super Pit mine in Australia because of recent tightened controls in China on outbound investment.
Toronto-based Barrick began the process to sell its stake in the mine, a 50-50 joint venture with Newmont Mining Corp., last year. Talks between Barrick and Minjar Gold Pty, a Shandong Tyan subsidiary, stalled in February after the buyer faced delays securing financing for a $1.3 billion bid, people with knowledge of the matter said at the time.
“The company is no longer pursuing this project,” Shandong Tyan said in an exchange filing, citing both the tightened controls on outbound investment and foreign exchange.
Shares in Barrick fell 4.4 percent in New York Wednesday to $18.85 as of 2:15 p.m.
Barrick President Kelvin Dushnisky said in a Bloomberg TV interview in February the world’s largest gold miner would likely pause the sale of the stake if the talks with one remaining bidder broke off, declining to say whether it was Minjar.
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