Goldcorp sees $10mln via Placer mine

By Rachelle Younglai

NEW YORK (Reuters) - Goldcorp Inc. (G.TO: Quote, Profile, Research, Stock Buzz) has already realized $10 million of synergies by integrating some of Placer Dome's assets that it acquired earlier this year, the company's chief executive said on Tuesday.

Speaking at the Reuters Global Mining and Steel Summit in New York, Ian Telfer said that the $10 million "was just with the very easy melding of the two groups and ... job cuts."

"That was in the very first sweep," he said.

Goldcorp had coveted Placer's Campbell mine, which is adjacent to Goldcorp's Red Lake mine in Ontario. It has targeted between $30 million and $40 million in cost savings, with the bulk coming from the Red Lake area.

Telfer said that the fence that separated the two mines has come down, physically and in practice.

"(It's) been a positive surprise at how quickly the two groups, that had been on opposing teams for the last 30 years, quickly ... melded together," he said.

"Someone said he didn't think we could get rid of 30 years of competition so quickly, but we appear to have. So that has gone very, very well."

Goldcorp is building a tunnel that will run between the two mines. That will allow the company to take ore from the Red Lake side to the Campbell shaft, so the ore can be treated at the Campbell plant, which has excess capacity.  Continued...