The Globe and Mail reports in its Friday edition that the shift of power away from Barrick's Canadian head office has moved into high gear, just days after it closed its deal with African miner Randgold Resources.
The Globe's Niall McGee and Rachelle Younglai write that the $6-billion (U.S.) acquisition, which was announced in September and completed Tuesday, has left Barrick with a hollowed-out head office, almost no Canadian representation on the board and few Canadians in top management.
Barrick's retreat in Canada reflects a broader downsizing of Toronto as a mining capital, with fewer global players headquartered in the city and dramatically less mining capital being raised on the Toronto Stock Exchange. Barrick had been one of the last great Canadian corporate mining champions left standing after a wave of foreign takeovers of metals giants such as Inco and Falconbridge. Pierre Lassonde, whose Franco Nevada has owned a royalty on Barrick's Goldstrike mine in Nevada since 1985, believes that Peter Munk, Barrick's late founder, would be aghast at seeing the company's fast-shrinking presence in Canada.
"I think Mr. Munk is going to roll over in his grave 10 times," Mr. Lassonde said. "Peter was Mr. Canada."
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