The Financial Post reports in its Tuesday, March 12, edition that Newcrest Mining, the third-biggest gold producer by market value, agreed on an $806.5-million (U.S.) deal to control an Imperial Metals mine in Canada.
A Bloomberg dispatch to the Post reports that Melbourne-based Newcrest, with assets in Australia, Indonesia and Papua New Guinea, will acquire a 70-per-cent joint-venture interest in the Red Chris copper and gold mine in British Columbia and become the operator of the site, the producer said Monday.
Newcrest's move into Canada comes amid a bout of consolidation in the gold industry, as the largest producers seek to increase the quality of their portfolios, boost reserves or win operational savings.
Newcrest remains in a strong position to complete further deals and will continue to review opportunities, chief executive officer Sandeep Biswas said.
Red Chris gives Newcrest a producing asset in North America and significant underground development opportunities.
Mr. Biswas said: "It's a modest operating asset at the moment -- the real attraction for us is the size of ore body. It's a multi-decade life potential mine. ... It's got the potential of significant size."
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