Low gold prices have some mining companies aiming to lower costs per ounce of gold through mergers. A recent acquisition of Homestake Mining Co. by Barrick Gold Corp. boosted their position in the marketplace, making them the second-largest gold producer in the world.
Barrick Gold Corp. made the announcement of the Barrick-Homestake merger in June. Officials with the company say the acquisition allows them to control a major portion of production in order to bring stability to the price of gold.
Companies that can dominate the majority of the world's market can set the price. Creating a large company with a sufficient capital base will attract the investment dollars of mutual funds.
