Valcambi loses its agreement to refine the gold of Newmont – sources

LONDON, April 10 (Reuters) – Swiss gold refiner Valcambi has lost a contract to refine about 4 million ounces of gold a year from Newmont Mining Corp. of the world's largest producers, told Reuters five sources close to the case.

The US-based US group Newmont issued a call for tenders last year and split the business between three rivals from Valcambi – Asahi in the US and Argor-Heraeus and PAMP in Switzerland, said these same sources.

"Calls for tenders have been launched and different refineries have won different pieces (of the contract)," said a source.

Valcambi, Argor-Heraeus, PAMP, Asahi and Newmont all declined to comment.

Valcambi is the largest gold refinery in the world and has handled almost all of Newmont's gold production for about 15 years, the sources said. Newmont held a majority stake in Valcambi until 2015, when it sold the shares to India, Rajesh Exports.

The sources said Newmont would send gold from its mines in the United States to Asahi and equipment from mines in Peru and Ghana to PAMP or Argor-Heraeus.

Newmont also operates mines in Suriname and Australia and produces a total of approximately 5 million ounces, or 155 tonnes of gold per year, or more than 4% of world mine production and sufficient to cover it only the capacity of a medium-sized refinery. .

Competition has resulted in a sharp decline in refining prices in recent years. According to some sources, contract rates with Newmont could range from $ 0.30 to $ 0.05 an ounce, or an annual business figure of between $ 200,000 and $ 1.2 million for $ 4 million. d & # 39; ounces.

To increase their revenues, refiners earn more and more money from products such as coins and jewelery for which they can charge more.

Newmont is expected to replace Barrick Gold Corp as the world's largest gold producer this year with the acquisition of rival Goldcorp Inc. (Peter Hobson Report, Veronica Brown and Mark Potter edition)