Tuesday, 1st November 2005 (2723 views)

Barrick Gold Corporation has offered to buy Placer Dome for $9.2 billion in an arrangement that would create the world's biggest gold miner.

If the merger goes ahead, it is expected that the company would stand to gain from reduced costs as many of Barrick's and Placer Dome's mines are near to each other.

Barrick believes that the companies' improved purchasing power combined with pooled exploration facilities would result in annual savings of around $200 million.

Following the proposed acquisition, the company would have an annual output of 8.4 million ounces, making it the world's largest gold miner ahead of the world's current leading producer Newmont Mining Corporation.

Barrick Gold recently announced a 253 per cent increase in profits for the third quarter and has acquired several gold miners in the past few years.

 

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