Newmont Pressures Barrick to Enhance Nevada Operations Ahead of Planned 2026 IPO
Newmont Corp., a significant partner with Barrick Mining Corp. in its most crucial mining operations, is demanding that the Canadian company improve performance at their Nevada joint venture before proceeding with a planned initial public offering. According to sources familiar with the private discussions, Newmont believes it possesses the authority to potentially block the IPO if operational concerns are not adequately addressed.
Barrick's Strategic Reset Through Asset Spinoff
Barrick recently announced intentions to sell between 10% and 15% of its North American operations through a late-2026 IPO. This strategic move represents part of a broader reset following several years of operational challenges and management changes. The spinoff would include the flagship Nevada joint venture—where Barrick maintains a 61.5% stake compared to Newmont's 38.5%—along with the wholly owned Fourmile development project and a mine located in the Dominican Republic.
The planned IPO could value these North American assets at more than US$60 billion, marking a significant corporate restructuring for the mining giant. This initiative comes after Barrick posted its sixth consecutive year of declining production output in 2025, with production reaching the lowest levels in at least a quarter-century. Company projections indicate further volume decreases in 2026, including at the critical Nevada joint venture that forms the core of the new North American unit.
Operational Concerns and Partnership Dynamics
Newmont has expressed consistent criticism regarding Barrick's management of the Nevada project after multiple years of under-performance. The world's largest gold producer believes the IPO requires its formal approval under existing partnership agreements, giving it substantial leverage in negotiations. Sources indicate that Newmont is particularly concerned about operational improvements before any public offering proceeds.
During an investor call last week, Barrick executives notably declined to comment on whether discussions had occurred with Newmont regarding right-of-first-refusal provisions outlined in their 2019 joint-venture agreement. This strategic ambiguity highlights the complex partnership dynamics at play as both companies navigate the path toward potential public offering.
Management Changes and Industry Context
The planned IPO follows significant management restructuring at Barrick, beginning with the unexpected departure of chief executive Mark Bristow in September. These leadership changes reflect broader efforts to address operational setbacks and reposition the company for future growth in a challenging market environment.
Industry observers note that Newmont previously examined potential acquisition opportunities to gain control of Barrick's prized Nevada assets, as reported by Bloomberg News in October. This historical context adds another layer to the current negotiations, suggesting ongoing strategic considerations between the two mining giants regarding their valuable joint venture holdings.
Representatives from Newmont have declined to comment on the current situation, while Barrick's spokesperson was unavailable during Canadian business hours. The private nature of these discussions means both companies are proceeding cautiously as they work through operational improvements and partnership agreements ahead of the potential 2026 offering.
