The world’s largest gold miner by output Barrick Gold Corp.ABX.T...

The world’s largest gold miner by output Barrick Gold Corp.ABX.T +1.38% has hired UBS AGUBSN.VX 0.00% and Bank of America Merrill LynchBAC -0.35% to sell two Australian mines, as it continues to shed its higher-cost, shorter-life assets, people familiar with the matter said Wednesday.

The two mines for sale are Kanowna Belle and Plutonic in Western Australia state, the people said. Barrick values Kanowna at around US$55 million in its accounts, which don’t specify a value for the smaller Plutonic mine. Deutsche Bank AG analysts said in a note last month that Plutonic may fetch between US$45 million and US$77 million.



Kanowna and Plutonic’s proven gold reserves as at Dec 31 were 632,000 and 206,000 ounces, respectively, according to filings. Kanowna produced 110,000 ounces of the yellow metal in the first half of 2013 at a cost of US$890 per ounce, while Plutonic produced 60,000 ounces at a cost of US$1,134 an ounce. The price of gold has fallen around 20% in the year-to-date to US$1,325 per ounce.

Barrick Gold’s founder and chairman Peter Munk speaks during an annual general meeting in Toronto in May 2012 —Reuters
Last month, Barrick sold three Australian mines to South African miner Gold Fields Ltd.GFI.JO -2.00% for about US$300 million. The Darlot, Granny Smith and Lawlers mines, also in Western Australia, accounted for nearly a third of the Canadian gold miner’s output in the country, and produced around 450,000 troy ounces last year. UBS and Bank of America Merrill Lynch advised Barrick on that process.

The sale of Kanowna and Plutonic would leave the company with just two mines in Australia–-Cowal in New South Wales state and a half-stake in Western Australian operation Kalgoorlie, which it owns alongside Newmont Mining Corp.. Barrick’s stakes in those two mines gives it ownership of 7 million ounces of gold reserves.