2023-05-15 22:02:00
With this possible takeover, the American mining giant is expanding its mining activities, not only in the field of gold, but also in that of copper, a strategic metal for the energy transition. The merger will thus allow Newmont to now be present on almost all continents: in North and South America, Africa, Australia and the Pacific.
The acquisition also allows the American company to become more competitive in an increasingly competitive sector by achieving economies of scale. Its management has also declared that it expects synergies of the order of 500 million dollars per year. ” Beyond cost control, there is also the need for the American Newmont to secure its gold and copper reserves in the face of ever-increasing demand. », estimates Jean-François Faure, expert in precious metals.
According to the expert, by buying the Australian company, the American group is getting its hands on mines already in operation to meet global demand, while new mining projects are rare and their achievements are complex and time-consuming”. For example: according to the world gold council, the demand for the yellow metal increased by 18% in 2022, it is the strongest increase for more than 10 years.
Another significant advantage for the American: the mines of the Australian Newcrest are in stable countries where the mining activity is not threatened by geopolitical risks. It remains to be seen whether the takeover will be approved by Newcrest shareholders and the competition authorities of Australia, Canada and Papua New Guinea, three countries where the Australian group is present.
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