US-based gold mining firm Newmont has signed a $48m deal to acquire the remaining 5% interest in Minera Yanacocha mine in Peru from Sumitomo.

The deal follows Newmont’s announcement in February 2022 to buy a 43.65% stake in the Minera Yanacocha mine from Compañia de Minas Buenaventura for $300m.

At the same time, Newmont agreed to transfer its 47% holding in the La Zanja gold and silver joint venture (JV) to its partner Buenaventura.

Newmont president and CEO Tom Palmer said: “This transaction gives Newmont full-equity ownership of the Yanacocha district where we are positioning the Sulphides project for profitable production and value generation for decades to come.

“We are committed to continuing to be a catalyst for sustainable development in Peru and look forward to continuing to work closely with communities in the Cajamarca region and the Peruvian Government.”

Newmont said that picking the stakes from Buenaventura and Sumitomo aligns with its district consolidation strategy.

Upon completion of the deal, which is expected in the second quarter, Newmont will become the exclusive owner-operator of the asset.

Newmont will also continue to progress with the feasibility study of the Yanacocha sulphides project, which aims to extend the operational life of the mine beyond 2040.

Operations of the Yanacocha mine, which is said to be the largest gold mine in South America, are located 3,500m to 4,100m above sea level.

It is a joint venture between Newmont (51.35%), Minas Buenaventura (43.65%) and Sumitomo Corporation (5%).