By Rhiannon Hoyle

Northern Star Resources Ltd. said it will buy a power business from Newmont Corp. for $95 million, giving the Australian miner greater control over its power supply in a remote part of the country's west.

Northern Star on Tuesday said it has entered a binding sale agreement to acquire all of Newmont's shares in GMK Investments Pty. Ltd., which owns a 50% interest in the Parkeston Power Station at Kalgoorlie in Western Australia state.

Northern Star already paid $25 million for an option to buy the Newmont power unit in its purchase of the Colorado-based miner's 50% stake in Kalgoorlie Consolidated Gold Mines Pty. Ltd. The company will pay the $70 million balance when the deal completes, which is expected to happen next month, Northern Star said.

The Parkeston Power Station provides electricity to Kalgoorlie Consolidated Gold Mines and the Kalgoorlie area.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

November 22, 2021 16:55 ET (21:55 GMT)

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