DOW JONES NEWSWIRES
Newmont Mining Corp. (NEM) said a media report that its chief
executive told investors Wednesday that he is open to a merger with
Barrick Gold Corp. (ABX) was inaccurate.
The story said Newmont's chief executive, Richard O'Brien, made
the comments about a merger at an investor briefing Wednesday in
New York.
Newmont's senior director of communications, Omar Jabara, told
Dow Jones Newswires Thursday that the Sydney Morning Herald had
misinterpreted O'Brien's comments.
Jabara said that during the briefing, an analyst asked O'Brien
if Newmont was looking to find additional synergies with Barrick in
Nevada, since both companies have infrastructure there.
According to Jabara, O'Brien responded that Newmont is certainly
always looking for additional operational synergies in that region,
where both companies currently operate a venture at the Turquoise
Ridge mining complex.
"We believe the Sydney Morning Herald story misrepresented the
context and the spirit in which our CEO responded to a question
from an analyst regarding exploring possible additional operational
synergies between Barrick and Newmont, specifically in Nevada,"
Jabara said, adding that the idea of the companies looking for
synergies in Nevada is nothing new.
Jabara said it is company policy not to comment on mergers and
acquisitions, so he couldn't respond to the question if Newmont is
seeking a merger with Barrick. However, he stressed that O'Brien's
comments were taken out of context.
That view was echoed by Barnard Jacobs Mellet analyst Patrick
Chidley, who attended the investor briefing and said O'Brien
"categorically did not say he was considering a merger with
Barrick."
-By Jennifer Hoyt, Dow Jones Newswires; 201-938-2474;
jennifer.hoyt@dowjones.com