(Adds details on Barrick's position, analyst comment,
MELBOURNE Aug 7 Newmont Mining Corp
Chief Executive Gary Goldberg said on Thursday he was open to
resuming discussions about a potential merger with Barrick Gold
Corp but had not heard from the company since April.
Merger talks between the No. 1 and No. 3 global gold miners
descended into acrimony in April, with Barrick and Newmont
publicly accusing each other of scuppering a deal favoured by
In July, Barrick Chairman John Thornton said the miner
remained open to a tie-up with Newmont but made it clear that a
deal was not his current focus. On Thursday a source familiar
with the company said Barrick's view had not changed since then.
This year's talks were the third time in a seven-year period
that Barrick and Newmont seriously contemplated a merger. The
companies have large and overlapping operations in Nevada.
Cowen and Co analyst Adam Graf said there could be some cost
savings if Barrick and Newmont combine, but a big, flashy deal
could leave investors worse off.
"I believe there are some synergies to be harvested in
Nevada, but I think a mega-merger is not the best way to go
about it," he said. Graf said the companies could form a joint
venture, or Barrick could sell its Goldstrike complex to
Separately, Newmont is embroiled in a major dispute with the
government of Indonesia, and said on Thursday it is applying for
an injunction to get workers back to its Batu Hijau mine as it
fights a controversial tax on copper exports that led the
company to halt shipments from the country earlier this year.
Barrick closed up 0.7 percent at C$20.18 on the Toronto
Stock Exchange on Thursday. Newmont rose 0.4 percent to $26.18
on the New York Stock Exchange.
(Reporting by Sonali Paul in Melbourne; Additional reporting by
Allison Martell in Toronto; Editing by Michael Urquhart and