Barrick’s Munk Says Spinoff in Any Newmont Deal Cuts Risk

Barrick Gold Corp. Chairman Peter Munk said spinning off assets as part of a proposed merger with Newmont Mining Corp. would help reduce risk at a time when investors have become increasingly concerned about the hazards of operating in politically volatile countries.

The spinoff of some mines outside of North America would improve profitability and make a Barrick-Newmont combination more attractive, Munk said. A merger also would reduce costs in Nevada, where the companies operate “cheek by jowl,” he said.