Vancouver-based Newmont Mining has completed its acquisition of Canada’s Goldcorp for $10 billion, creating the world’s single largest gold producer by market value, output and reserves. The new mining powerhouse, with mining assets in the Americas, Australia and Ghana, is projected at producing between 6- and 7 million ounces of gold annually for the next decade and more.
Newmont’s acquisition of Goldcorp was interrupted recently when rival Barrick Gold launched a hostile takeover bid for Newmont in February this year. The attempted takeover, aimed at creating synergies between the two firms’ adjacent mining operations in Nevada would have made Barrick the world’s single largest gold producer.
The bid was, however withdrawn and Barrick and Newmont signed a joint-venture agreement in March to create synergies for their Nevada operations. With the Goldcorp takeover now completed, Newmont will implement strategies to generate an expected $365 million in pre-tax synergies, supply chain efficiencies and other operating improvements.
Newmont now also plans to sell between $1- and $1.5 billion in assets over the next two years as part of rationalising its own business. Newmont CEO Gary Goldberg will head the newly created gold behemoth till the end of the year, when former COO Tom Palmer will take over as CEO.