Newmont Mining is buying smaller rival Goldcorp for $10 billion, paying an 18 percent premium.

The deal creates the world's biggest gold producer just as easy-to-find gold reserves decline.

Newmont's shares fell on the news.

Goldcorp skyrocketed.

Reuters correspondent Liana Baker is covering the story: (SOUNDBITE) REUTERS CORRESPONDENT LIANA BAKER, SAYING: "There's just fewer and fewer places in the world to mine for very valuable gold.

So, by having a bigger company, they a better chance getting access to the right deposits, keeping costs down.

This this could be the future for mining companies, to just be part of a bigger and bigger companies.

But there is also antitrust risk to getting bigger.

So, we'll see what the authorities say about this one." The deal is the second high-profile merger in the mining industry since Barrick Gold agreed to buy Randgold Resources in September last year.

It's expected to close in the second quarter and generate up to $100 million in savings.