Second merger hits Nevada gold mining industry

Wednesday, June 21, 2000 | 11:17 a.m.

Nevada's gold mining industry, the largest in the nation, is undergoing rapid consolidation with today's announcement that Newmont Mining Corp. of Denver is buying Battle Mountain Gold Co. of Houston for about $920 million in stock, debt and other assumed liabilities.

Just last week, Franco-Nevada Mining and Gold Fields agreed to merge in a $3.4 billion deal that included Nevada's Goldstrike mine.

Today's merger gives Newmont the coveted Battle Mountain Phoenix gold and copper mine under development south of the Northern Nevada town of Battle Mountain. It has reserves of 5.7 million ounces of gold and 430 million pounds of copper.

Newmont already has three operations in Carlin, about 25 miles west of Elko; the Lone Tree complex about 25 miles east of Winnemucca; and Twin Creeks, about 50 miles north of Winnemucca. It employs some 2,750 people in Northern Nevada.

"This (Phoenix) is one of the best undeveloped gold properties in Nevada, and our Lone Tree mine is about 30 miles away, so that gives us a good fit to develop this project," Newmont spokesman Doug Hock said.