Newmont buys Goldcorp for USD 10 billion, becomes world’s biggest gold producer

Anca Alexe 15/01/2019 | 08:03

Newmont Mining Corp announced on Monday that it would buy smaller rival Goldcorp for USD 10 billion, which will lead it to become the world’s biggest gold produce as easily accessible reserves of the metal are getting harder to find, Reuters reports.

“Combining forces will give us the sector’s best project pipeline and exploration portfolio,” Newmont Chief Executive Gary Goldberg said on a conference call with analysts. “These prospects translate to the gold sector’s largest reserve and resource base.”

In recent years, investor criticism over inadequate management of capital had largely kept gold companies focused on costs while dampening enthusiasm for acquisitions. But the need to bolster shrinking reserves and production and a rising gold price are now serving as catalysts for increased dealmaking.

Gold prices are up 11.3 percent since an August trough, when they had declined 15 percent from a January 2018 peak.

The new company will be called Newmont Goldcorp and it is expected to produce 6-7 million ounces of gold annually over the next 10 years.

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