(Adds details on increased costs, context, Yanacocha ownership)
Dec 13 Newmont Mining Corp said on
Tuesday it is likely it will record a non-cash impairment charge
of between $1 billion and $1.2 billion in the fourth quarter
related to an increase in the estimated cost of closing down its
Yanacocha gold mine in Peru.
Newmont, the biggest U.S.-based gold miner, said that after
reviewing Yanacocha's closure plan it now expects to record an
increase to the asset retirement obligation at the mine of
between $400 million and $500 million in fourth quarter.
The Yanacocha mine, which poured its first gold bar in 1993,
is nearing the end of its mine life. Denver-based Newmont is
required to submit an updated closure plan to Peruvian
authorities every five years.
The increase in the mine's asset retirement obligation is
mostly due to higher estimated future water treatment,
earthworks and demolition costs, Newmont said in a statement.
Because of changes to the closure plan and the higher
expected closure costs, Newmont said it was necessary to assess
the mine's assets for impairment.
Yanacocha is jointly owned by Newmont, with 51.35 percent,
Peruvian miner Minas Buenaventura with a 43.65 percent
stake, and the International Finance Corporation, which has a 5
(Reporting by Nicole Mordant in Vancouver; Editing by Bernard