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Dado Galdieri | Bloomberg | Getty Images
The operations in Yanacocha, South America's largest gold mine, are a joint venture between Newmont Mining Corp., Minas Buenaventura and International Finance Corp.
Canadian company Barrick Gold is considering a hostile bid on Newmont Mining for about $ 19 billion in shares, as part of what could be one of the largest mining deals of all time, reported the Globe and Mail newspaper of the country.
The paper, which also said Barrick would transfer some of Newmont's assets to the Australian company Newcrest Mining, quoted industry sources as the situation.
According to the terms, Barrick would retain the Nevada and Newmont African mines, while Newcrest was planning to resume operations in Australia, according to the report.
Barrick, which spent $ 6.1 billion to buy rival Randgold Resources last month, set up new management teams and reduced administrative costs as part of CEO Mark Bristow's plan to differentiate company resulting from the merger.
Bristow had said during a post-profit call that Barrick Gold would continue to look for merger or acquisition opportunities.
Barrick and the American company Newmont have long been considered a potential partner, as their activities overlap much around their operations in North America, said a banker based in Australia.
"(But) there is a risk that Barrick will bite more than he can chew (by making another major acquisition)," he said, refusing to be identified because of the sensitivity of the problem.
Without such an agreement, Barrick could cede its largest gold producer crown in the world to Newmont, which should result in the closing of the buyout of its smaller rival, Goldcorp, with a $ 10 billion capital.
If Barrick were to succeed, the merger between Newmont and Goldcorp would not materialize and Barrick would owe $ 650 million in idle fees, according to the newspaper.
Bloomberg announced Thursday that Barrick had considered a purchase offer for Newmont, looking for ways to increase production, citing sources familiar with the matter.
Newmont declined a request for comment from Reuters, while Barrick did not immediately respond to the comment request.
A spokesman for Newcrest said the company had not commented on speculation on mergers and acquisitions. Goldcorp was not immediately available for comment.
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