Canada’s influence on the global mining industry appears to be shrinking by the day. Perhaps stung by the nationalistic backlash against Barrick Gold Corp.’s merger with Randgold Resources Ltd., Newmont Mining Corp. devoted a big chunk of its news release Monday explaining how its $10 billion offer for Vancouver-based Goldcorp Inc. will help Canada.
But there’s no hiding the fact that the global head office of the world’s largest gold miner will be in Greenwood Village, Colorado, where Newmont is based. Like “New Barrick,” which no longer has its top executives in Canada, Newmont Goldcorp’s incoming chief executive officer and current chairwoman are expected to remain in the U.S.
While some jobs will flow from Nevada to the miner’s new regional base for North America in Vancouver, it’s hard to imagine the influence of that city not waning as a result of the deal.
“Anytime you lose a head office, I think that’s probably a negative but we know the Newmont senior team well, they’re smart people, they’ve built a good business, a big part of Goldcorp’s business is their Canadian production,” said Sean Boyd, chief executive officer of Agnico Eagle Mines Ltd., a Toronto-based gold miner.
Typically, foreign takeovers of Canadian companies have bled strategic vision, high-paying jobs, management expertise and a host of ancillary services from finance and human resources to accounting. Like Falconbridge Ltd., Inco Ltd, and Alcan before, this latest deal in the mining sector will see Goldcorp’s Canadian head office disappear.
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