The Newmont gold quarry pit in Battle Mountain, Nev. is pictured April 4, 2012. THE CANADIAN PRESS/AP, The Reno Gazette-Journal, David B. Parker
April 24, 2014 - 6:03 AM
TORONTO - Barrick Gold Corp. (TSX:ABX) has renewed its overtures to Newmont Mining Corp. to resume merger talks, the Globe and Mail reports.
Citing an unidentified person familiar with the situation, the Globe says Barrick has formally proposed reopening talks that broke down last week.
Analysts have suggested a merger of two of the largest gold producers in the world makes sense on paper because of the cost savings they would be able to achieve by combining their operations.
Each company has large operations in Nevada and a merger would allow them to cut staffing, reduce overhead costs and obtain better prices from suppliers.
A combined company would produce nearly 11 million ounces of gold a year.
Toronto-based Barrick is expected to hold its annual meeting next week, when company founder Peter Munk is set to retire as chairman.
News from © The Canadian Press, 2014