Newmont Mining Corporation has announced today it is intending to sell its mining operations in Waihi.

Newmont has entered into a non-binding ‘Letter of Intent' to sell its operations to OceanaGold Corporation which will acquire the business by purchasing Waihi Gold Mining Company Limited.

Newmont Mining Corporation has announced it is intending to sell its mining operations in Waihi. Photo: File

WGMCL is the New Zealand holding company for Newmont's Waihi operations and the sale will be subject to approval under the Overseas Investment Act 2005.

This is expected to take between 60 and 90 days and once approval is obtained, completion of the sale will most likely occur after July 2015.

Newmont Waihi Gold general manager Glen Grindlay says until that time it will be 'business as usual following the current operating plans” at Waihi.

'We want this transition to be as smooth as possible,” says Grindlay. 'Newmont Waihi Gold employees will continue to be employed by the same company, Waihi Gold Company Ltd, but with new owners.

'All of our current existing New Zealand contracts will be transferred directly to the new owners of the company.

'This includes the smaller contracts we have with local businesses and the large contracts we have with companies such as Macmahon, Leighton and Boart Longyear.”

All consent conditions would remain the same, while closure bonds and conditions set by local regulators would also remain in place.

Glen says: 'Operating Consent Conditions for the Martha open pit, the Correnso underground, and the site will remain unchanged.”

'This includes vibration and noise limits, and hours of work. All other consent conditions will remain the same.

'For example, the Investment Review Panel and Waihi Community Forum funding, and Amenity Effects Programme payments.”

Newmont's Denver Corporate Communications group executive Omar Jabara says OceanaGold approached Newmont with an interest in acquiring Waihi which has led to the recent negotiations.

'The company has 24 years' experience in New Zealand,” says Omar. 'They have a reputation for developing and maintaining strong positive relationships with communities.

'We believe they will be a good strategic, practical, and philosophical ‘fit' for Waihi.”