Newmont to buy Goldcorp for $10 billion to create world's largest gold producer

FILE PHOTO: The portal is seen at Goldcorp Inc's Borden all-electric underground gold mine near Chapleau, Ontario, Canada, June 13, 2018.

(Reuters) - Newmont Mining Corp said on Monday that it would buy smaller rival Goldcorp Inc in a deal valued at $10 billion, creating the world’s biggest gold producer by output.

The deal is the second high-profile merger in the mining industry since Barrick Gold Corp agreed to buy Randgold Resources Ltd in September last year to cut costs.

The gold mining industry has come under fire from investors in recent months for poor management of capital.

The combined company is expected to produce 6-7 million ounces of gold over the next ten years.

Reporting by John Benny in Bengaluru; Editing by Shailesh Kuber

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