The sale of Barrick Gold’s half of the Kalgoorlie Super Pit has fallen through, with Barrick and China’s Shandong Tyan Home, parent of local producer Minjar Gold, reportedly walking away from talks over a $1.3 billion acquisition.

Tyan Home told the Shanghai exchange yesterday that it had ended talks to buy Barrick’s stake in the iconic Kalgoorlie mine, citing Chinese moves to tighten regulatory control over outbound investment.

The acquisition was planned by Shandong Tianye Group, the parent of the listed Shanghai entity, in a top-of-the-market offer that came in well ahead of rival bids.

The company, through Australian subsidiary Minjar Gold, is understood to be close to closing out the acquisition of China Hanking Holding’s Southern Cross gold mining hub for $330 million.

Tyan Home suspended trading in its stock on the Shanghai market in November, as it tried to restructure to make mining its primary business and satisfy new Chinese investment rules through an asset swap between Tyan Home — billed primarily as a department store and commercial property operator — and Shandong Tianye Group.

A translation of its release to the Shanghai exchange says the company could not reach formal agreement with Barrick to progress the sale.

Barrick is yet to respond to the announcement, and it is unclear whether the North American gold major will continue to pursue the sale of its half of the mine.

Image: Kalgoorlie Super Pit. The West Australian.