Two of the world's largest gold mining companies, Barrick and Newmont, have agreed to combine some of their biggest mines, clearing the way for one of the biggest mining IPOs of the year.

The two rivals, which already partner on the Nevada Gold Mines joint venture, had been locked in a dispute as Newmont tried to block Barrick's plans for a separate listing of its North American assets, including the JV.

Under the terms of the deal, Newmont has consented to the IPO, and Barrick is adding its Fourmile gold discovery into the joint venture. Newmont is also making a one-time payment to Barrick of about $2bn, reflecting the additional value of the Fourmile asset, which could produce up to 750,000 ounces of gold a year.

Earlier this year, Newmont alleged mismanagement of the Nevada assets by Barrick, including diversion of resources to Fourmile. "Newmont has consented to the IPO and the parties have agreed to expand NGM with the early vend-in of our excluded properties, as well as settling all disputes," said Barrick chief executive Mark Hill.

Barrick reported second-quarter net earnings of $1.2bn, up 50% on last year, though a lower gold price and higher costs resulted in a 24% fall compared to the first quarter.