The Globe and Mail reports in its Saturday edition that Barrick Gold and takeover target Randgold have offered more details on their plans once the $6-billion (U.S.) combination becomes official. The Globe's Niall McGee writes that during a webcast, Randgold executive Willem Jacobs, who is slated to take over responsibility for Barrick's Africa and Middle Eastern portfolio, said that a large copper acquisition in the Democratic Republic of the Congo (DRC) is a possibility.
"Exploiting an already substantial footprint and presence in the DRC to acquire a world class copper deposit is certainly an opportunity which we will pursue," he said.
Unlike a lot of Western miners, Randgold, which operates exclusively in Africa, is comfortable operating in geopolitical hotspots such as the DRC. One of its largest gold mines, Kibali, is located in the central African country.
Haywood Securities analyst Kerry Smith said that one potential world-class copper acquisition for the company is Ivanhoe Mines' Kamoa-Kakula project in the DRC, one of the world's largest undeveloped copper assets. Earlier this year, the DRC government abruptly increased taxes on miners, which is putting pressure on margins for companies.
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