In a scene resembling the Stanley Cup finals or the World Series, Newmont Gold (NGC-N) has nudged out Paris-based Bureau de Recherches Geologiques Minieres (BRGM) in a best-of-seven series in the Peruvian courts.
The dispute centered on ownership of the Yanacocha gold mine in Peru. On May 19, the Supreme Court of Peru upheld an earlier ruling declaring that BRGM had wrongfully attempted to sell its 24.7% stake in the operation to Australian-based Normandy Mining (NDY-T).
The ruling affirms the right of Newmont and its partner in the suit, Peru-based Buenaventura (BVN-N), to acquire BRGM’s interest for US$109 million.
After BRGM appealed the original decision, the case wound up in Peru’s Supreme Court. But, with four votes required for a decision, the five-member panel issued a split decision (three votes for Newmont and two votes for BRGM).
A sixth judge brought in to review the case evened the score, setting the scene for a seventh judge to break the deadlock by favoring Newmont.
The decision raises Newmont’s share of Yanacocha to 51.35% from 38%, whereas Buenaventura’s share increases to 43.65%.
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