Barrick Gold Faces Partnership Dispute at Key Nevada Venture

Newmont alleges Barrick mismanaged the Nevada Gold Mines JV, diverting resources. The dispute threatens Barrick's planned spin-off of key North American assets.

A significant operational dispute has emerged at one of Barrick Gold's most crucial assets, casting a shadow over the company's strategic plans. Newmont Corporation, Barrick's partner in the Nevada Gold Mines (NGM) joint venture, has issued a formal "Notice of Default," alleging mismanagement by Barrick. This development arrives at an inopportune moment for the mining giant, which is preparing to spin off its North American assets and pursue a partial public listing later this year.

Allegations Center on Resource Allocation

According to a filing in its annual 10-K report, Newmont states it first alerted Barrick to indications of mismanagement at NGM in late January. The core allegation is that Barrick diverted resources from the jointly-owned venture to advance its wholly-owned Fourmile project, a high-grade deposit located adjacent to NGM's operations.

The formal default notice was delivered in early February. Under the terms of the 2019 joint venture agreement, this action triggers a 30-day period for Barrick to remedy the cited issues. Should the disagreement remain unresolved, it could escalate to courts in Nevada.

In response, Barrick CEO Mark Bristow has denied the accusations. Speaking to Bloomberg, Bristow emphasized a desire to work "constructively" with Newmont, though he noted that communication is limited by the existing JV framework.

Strategic Spin-Off Plans Now in Question

This conflict introduces potential complications for Barrick's corporate strategy. The company intends to separate its North American holdings, which include its 61.5% stake in NGM, the Fourmile project, and the Pueblo Viejo mine in the Dominican Republic—another joint venture with Newmont. The plan is to subsequently list 10% to 15% of this new entity on public markets later in the year.

The importance of NGM to Barrick's overall valuation is underscored by analysis from RBC's Josh Wolfson, who estimates the venture contributes approximately 60% of Barrick's total market value.

During a recent analyst conference, Newmont CEO Tom Palmer noted that discussions with Barrick had been focused on improving the performance of the Nevada assets. Palmer stated Newmont's priority is to collaborate with the managing partner to turn development around and generate long-term value.

Operational Challenges and a West African Resolution

The partnership dispute coincides with a period of operational pressure for Barrick. The company reported its sixth consecutive annual production decline in 2025, with output, according to Mining.com, reaching its lowest level in at least 25 years. For 2026, Barrick anticipates further production decreases, including at NGM.

A positive development has emerged from West Africa, however. Barrick recently secured a ten-year extension to its Loulo mining license in Mali, resolving a protracted dispute with the government. As part of the settlement, Barrick agreed to withdraw an international arbitration proceeding. In return, it received the license renewal and regained full operational control over the Loulo-Gounkoto complex.

Market reaction to the JV dispute was negative. Barrick's shares declined by 1.8% following the news. Citi analyst Alexander Hacking observed that while the joint venture agreement contains clear dispute-resolution mechanisms, investors are likely interpreting this move as part of ongoing negotiations concerning NGM's future.

The coming weeks will be critical in determining whether Barrick and Newmont can contain the conflict within the 30-day window or if it progresses to formal proceedings, thereby further complicating the preparatory work for the planned initial public offering.