Denver-based Newmont Mining Corp. will be “opportunistic” in buying smaller rivals and will look for targets among companies struggling with tighter credit conditions, chief executive Richard T. O’Brien said Monday.
Acquisitions are one part of a three-pronged growth strategy that includes exploration and development of new mines, O’Brien said. Newmont, the largest U.S. gold producer, will consider its expertise in mining in difficult situations when it chooses companies to acquire, he said.
“We’re going to look opportunistically to the M&A market,” O’Brien, 54, said. One option is “growing the business in more challenging places.”
O’Brien, who took the post in July 2007, has sold Newmont’s royalty unit, closed its merchant-banking business and canceled gold-sales contracts to focus on mining. Like Canadian competitor Goldcorp, Newmont turned to the acquisition of smaller competitors to bolster reserves and ensure future production.
