Newmont, Barrick reach dewatering deal

A dispute over water disposal on Nevada’s Carlin trend has been settled by Newmont Gold (NGC-N) and Barrick Gold (ABX-T).

The legal action stemmed from an injunction issued in April barring Barrick from disposing groundwater in a ranch reservoir.

Barrick will build a water treatment facility and conveyance system across Newmont’s property in Boulder Valley, south of the Betze-Post open-pit gold mine. The project, which has received necessary environmental approvals, allows for the discharge of treated water into the Humboldt River. Barrick will use the facility to dewater its newly opened Meikle underground gold mine.

In exchange for payment of designated capital and operating costs, Newmont has the right to use up to half of the discharge system’s capacity after 1999.

As a result of the agreement, litigation between the two companies has been dropped, and Barrick will reimburse Newmont’s legal costs and convey to Newmont a property contiguous to its Deep Star underground gold mine. That property is estimated to contain 150,000 oz. gold.