TORONTO/VANCOUVER (Reuters) – Goldcorp G.TO, the world’s biggest gold producer by market value, will increasingly have to look for large gold deposits outside the Americas as these are scarcer than “hen teeth,” the miner’s incoming chief executive said on Monday.
David Garofalo, who will become CEO after Goldcorp’s annual meeting in April, said countries in Europe and Africa could possibly meet the miner’s criteria, which include low political risk and the existence of a mining code.
Until now, Goldcorp’s operations have been exclusively in the Americas, where it has invested in countries with relatively low political risks, including Canada and Mexico. But the need to replace the nearly 4 million ounces of gold it mines a year, and a growing shortage of big deposits, will force it to look further afield.
“There are a number of countries in Africa and Europe that obviously would fit from a political risk perspective,” Garofalo said in an interview. “But there are no obvious acquisition opportunities in these jurisdictions currently.”
Garofalo, who will replace CEO Chuck Jeannes when he retires, joined Vancouver-based Goldcorp on Jan. 1. He was most recently CEO of Canadian base metals miner HudBay Minerals HBM.TO.
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