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Mergers to pick up in mining sector

Merger and acquisition in the Canadian mining sector is expected to increase this year with big deals and bolt-on acquisitions, a report by accounting and consulting firm Ernst and Young says.

VANCOUVER — Merger and acquisition in the Canadian mining sector is expected to increase this year with big deals and bolt-on acquisitions, a report by accounting and consulting firm Ernst and Young says.

Tom Whelan, head of the firm’s national mining practice, said deals in Canada rebounded last year as companies were flush with cash from high commodity prices.

“In 2010, a third of all global gold deals took place in Canada, with over half of all deals conducted by Canadian companies,” Whelan said in a statement Wednesday.

The largest Canadian deal was Kinross Gold’s (TSX:K) acquisition of Red Back Mining, valued at US$7.4 billion.