By Fawad Mir

(SNL News) Barrick Gold Corp. Chairman John Thornton said the company is still open to a sale of its 50% stake in the Kalgoorlie Super Pit joint venture as the Western Australian gold project does not meet its criteria of a tier-one asset, The West Australian reported on August 15.

The company's 2017 attempt at a US$1.3 billion sale to China's Shandong Tyan Home failed due to the introduction of new capital and acquisition rules in China.

The Hemlo mine in Canada and the Lagunas Norte project in Peru are also examples of assets that Barrick does not classify as tier-one.

Super Pit joint venture partner Newmont Mining Corp. has also shown interest in acquiring Barrick's stake, and President and CEO Gary Goldberg said in September 2015 that the company would consider buying the remaining half of the gold mine at the "right value."

Thornton said Barrick plans to sell both mines under the Kalgoorlie Consolidated Gold Mines Pty. Ltd. joint venture: Super Pit and the Mount Charlotte underground mine.

"The likelihood of us continuing to own those over time is zero," Thornton said.

"There are other assets like that in our portfolio right now and we are constantly assessing this exact question with respect to those assets," Thornton was quoted as saying.

The Kalgoorlie Super Pit mine reduced its full-year gold output guidance in late July to between 550,000 and 660,000 ounces at all-in sustaining costs of between US$825/oz and US$875/oz in the wake of rock falls in May that suspended operations.

The mine had been targeting gold production of between 700,000 and 800,000 ounces at all-in sustaining costs between US$750/oz and US$800/oz for the full year.

(Source: www.snl.com)