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US: Newmont to buy Goldcorp in US$10B deal to create world’s largest gold producer

 |  January 14, 2019

Newmont Mining announced on Monday, January 14, that it would buy smaller rival Goldcorp in a deal valued at US$10 billion, creating the world’s biggest gold producer by output.

The deal is the second high-profile merger in the mining industry since Barrick Gold agreed to buy Randgold Resources in September last year to cut costs.

The gold mining industry has come under fire from investors in recent months for poor management of capital. This, combined with falling gold reserves and higher extraction costs, has prompted miners to look for cost efficiencies.

“The strategic rationale for combining Goldcorp with Newmont is powerfully compelling on many levels,” Goldcorp CEO David Garofalo said in a statement.

The combined company is expected to produce 6 million to 7 million ounces of gold over the next 10 years. In 2017, Newmont produced 5.3 million ounces of gold, while Goldcorp mined 2.6 million ounces.

Full Content: Wall Street Journal

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