Barrick-Newmont Nevada joint venture to produce 1.8-1.9 million ounces of gold in second half of 2019

(Reuters) - Barrick Gold Corp ABX.TO said on Monday its Nevada joint venture with Newmont Goldcorp NEM.N is expected to produce 1.8 million ounces to 1.9 million ounces of gold in the second half of 2019.

The operations, which include 10 underground and 12 open pit mines in the southwestern U.S. state and rank as the largest global gold producing complex, had produced a total of 4.1 million ounces of gold in 2018.

Barrick and Newmont agreed to form the joint venture in Nevada in March after Barrick withdrew its $18 billion offer for its rival, ending a hostile takeover bid that sought to unite the world’s two largest gold producers.

Barrick and Newmont Goldcorp have 61.5% and 38.5% stakes, respectively, in the joint venture, which was officially launched on Monday.

Barrick, which also operates the joint venture, Nevada Gold Mines LLC, estimates cost of sales there in the range of $940 to $970 per ounce, while all in sustaining costs are expected to be $920 to $950 per ounce for the second half of the year.

By combining their operations, Barrick and Newmont had hoped to save more than $5 billion over the next 20 years, at a time when gold miners have struggled with a loss of investor confidence and constraints on funding projects.

Barrick said on Monday that it expected to deliver cost savings of up to $500 million per year over the first five years from 2020, which will fall thereafter.

Reporting by Arathy S Nair in Bengaluru; Editing by James Emmanuel