Profile: Newmont Mining Corp (NEM)
9 Oct 2015
Newmont Mining Corporation (Newmont), incorporated on December 06, 2001, is a global mining company, which is focused on the production of and exploration for gold and copper. The Company is primarily a gold producer with operations and/or assets in the United States, Australia, Peru, Indonesia, Ghana and New Zealand. As of December 31, 2014, Newmont had attributable proven and probable gold reserves of approximately 82.2 million ounces and an aggregate land position of approximately 20,000 square miles (52,000 square kilometers). Newmont is also engaged in the production of copper, principally through Batu Hijau in Indonesia, Boddington in Australia and Phoenix in the United States. The Company’s business segments include North America, South America, Australia/New Zealand, Indonesia, Africa, and Corporate and Other. The Company’s North America segment consists primarily of Carlin, Phoenix and Twin Creeks in the state of Nevada in the United States. The Company’s South America segment consists primarily of Yanacocha in Peru. The Company’s Australia/New Zealand segment consists primarily of Boddington, Tanami and Kalgoorlie in Australia and Waihi in New Zealand. Its Indonesia segment consists primarily of Batu Hijau in Indonesia. The Company’s Africa segment consists primarily of Ahafo and Akyem in Ghana.
The Company had consolidated gold production of 5.2 million ounces (4.8 million attributable ounces) in the fiscal year ended December 31, 2014. The end product at the Company’s gold operations is generally dore bars. Dore is an alloy consisting primarily of gold but also containing silver and other metals. The Company had consolidated copper production of 271 million pounds (191 million attributable pounds) in 2014. Copper sales are in the form of concentrate that is sold to smelters for further treatment and refining, and cathode.
Carlin operations are located west of the city of Elko on the geologic feature known as the Carlin Trend. Carlin’s mining operations consist of four open pits and four underground mines. Carlin’s gold production for 2014 was 907,000 ounces and at December 31, 2014, reported 17.0 million ounces of gold reserves. Phoenix operations consists of the Phoenix mine, located 10 miles south of Battle Mountain and the Lone Tree mine, located 20 miles northwest of Battle Mountain. The Phoenix mine is an open pit mine. The Phoenix mill produces a gravity gold concentrate and a copper/gold flotation concentrate and recovers additional gold from cyanide leaching of the flotation tails. The Phoenix mine also has a copper leaching facility and a solvent extraction electrowinning facility to produce copper cathode. Lone Tree consists of residual leaching operations and ongoing reclamation activities. The Phoenix operations produced 211,000 ounces of gold and 46 million pounds of copper in 2014, and at December 31, 2014, reported 5.6 million ounces of gold reserves and 1,730 million pounds of copper reserves.
The Twin Creeks operations consists of the Twin Creeks mine located approximately 15 miles north of Golconda and the Turquoise Ridge underground mine located approximately 10 miles from the Twin Creeks mine. The Twin Creeks mine is an open pit mine. Higher-grade oxide ores are processed by conventional milling and cyanide leaching at the Juniper mill. The Company has a 25% interest in a joint venture with a subsidiary of Barrick Gold Corporation (Barrick) in the Turquoise Ridge mine. It has an agreement to provide up to 2,000 tons per day of milling capacity at Twin Creeks to the joint venture. Barrick is the operator of the joint venture.
The properties of Minera Yanacocha S.R.L. (MYSRL) include operations at Yanacocha and the Conga project. Newmont holds a 51.35% interest in MYSRL, with the remaining interests held by Compania de Minas Buenaventura, S.A.A. (Buenaventura) (43.65%) and the International Finance Corporation (5%). MYSRL and a related entity have mining concessions granted by the Peruvian mining authority. Mining concessions grant MYSRL an exclusive and irrevocable right to carry out exploration and exploitation activities within a specified area.
Yanacocha is located approximately 375 miles (604 kilometers) north of Lima and 30 miles (48 kilometers) north of the city of Cajamarca. Yanacocha has active open pit mines at Cerro Yanacocha, La Quinua Sur, Chaquicocha, Maqui Maqui, Tapado Oeste, Marleny and Cerro Negro. Yanacocha has four leach pads, three processing facilities and one mill. The material mined is from an epithermal type deposit of high sulfidation. Yanacocha’s gold production for 2014 was 970,000 ounces (498,000 attributable ounces) and at December 31, 2014, reported 2.5 million attributable ounces of gold reserves. The Conga project is located at Yanacocha. As of December 31, 2014, the Company reported 6.5 million attributable ounces of gold reserves and 1,690 million attributable pounds of copper reserves. The Company holds a 46.94% interest in La Zanja, a gold mine near the city of Cajamarca. The mine is operated by Buenaventura. The mine consists of two small open pits and one oxide leach pad. La Zanja produced 67,000 attributable gold ounces in 2014, and at December 31, 2014, the Company reported 120,000 attributable ounces of gold reserves.
The Merian project is located in East Suriname, approximately 40 miles (66 kilometers) south of the town of Moengo and 19 miles (30 kilometers) north of the Nassau Mountains. As of December 31, 2014, the Company held a 75% interest in this project, with the Government of Suriname holding the remaining 25% interest. As of December 31, 2014, the Company reported 3.6 million attributable ounces of gold reserves.
Boddington (100% owned) is located 81 miles (130 kilometers) southeast of Perth in Western Australia. Boddington consists of greenstone diorite hosted mineralization and activities continue to develop the known resource. Mining operations consist of two open pit ore bodies located adjacent to each other. Boddington produced 696,000 ounces of gold and 69 million pounds of copper in 2014, and at December 31, 2014, reported 12.2 million ounces of gold reserves and 1,360 million pounds of copper reserves.
Kalgoorlie (50% owned) comprises the Fimiston open pit (commonly referred to as the Super Pit) and Mt. Charlotte underground mine at Kalgoorlie-Boulder, 373 miles (600 kilometers) east of Perth in Western Australia. The mines are managed by Kalgoorlie Consolidated Gold Mines Pty Ltd for the joint venture owners, Newmont and Barrick. Kalgoorlie consists of greenstone dolerite hosted mineralization. Processing consists of two SAG and associated ball mills, followed by gravity and a floatation circuit where the majority of gold reports to a pyrite concentrate, which is treated by conventional roasting and two ultra-fine grinding mills. During 2014, Kalgoorlie produced 329,000 attributable ounces of gold, and at December 31, 2014, reported 3.5 million attributable ounces of gold reserves.
Tanami (100% owned) includes the Granites treatment plant and associated mining operations, which are located in the Northern Territory approximately 342 miles (550 kilometers) northwest of Alice Springs and the Dead Bullock Soak mining operations, approximately 25 miles (40 kilometers) west of the Granites. Mining operations are focused on the Callie and Auron ore bodies at the underground mine at Dead Bullock Soak. Tanami consists of sediment hosted sheeted quartz vein mineralization. It consists of a crushing section followed by grinding, gravity carbon in pulp and conventional tailings disposal. During 2014, the Tanami operations produced 345,000 ounces of gold, and at December 31, 2014 reported 3.3 million ounces of gold reserves.
Waihi (100% owned) is located within the town of Waihi, approximately 94 miles (150 kilometers) southeast of Auckland. The operations consist of the Trio underground deposit and the Martha open pit mine. Waihi consists of epithermal quartz vein mineralization in andesite. The Waihi operation produced 132,000 ounces of gold in 2014, and at December 31, 2014, reported 0.4 million ounces of gold reserves. The Company has a 19.45% interest in Regis Resources Ltd. (Regis), which owns 100% of the Duketon gold project, located approximately 200 miles (320 kilometers) northeast of Kalgoorlie. Duketon produced 58,000 attributable ounces of gold in 2014. At December 31, 2014, the Company reported 0.5 million attributable ounces of gold reserves.
Batu Hijau is located on the island of Sumbawa, , approximately 950 miles (1,529 kilometers), toward the east of Jakarta. Batu Hijau is an open pit porphyry copper/gold deposit mined using traditional truck and shovel techniques. The deposit is hosted by a central stock of multiple tonalite porphyries intruded into older diorite and andesite volcanic wallrocks In 2014, Batu Hijau produced 156 million pounds of copper (76 million attributable pounds) and 76,000 ounces of gold (37,000 attributable ounces). As of December 31, 2014, the Company reported 3,150 million attributable pounds of copper reserves and 3.3 million attributable ounces of gold reserves. The Company owns 31.50% of Batu Hijau through Nusa Tenggara Partnership B.V. (NTPBV), which the Company owns with an affiliate of Sumitomo Corporation of Japan. Newmont has a 56.25% interest in NTPBV and the Sumitomo affiliate holds the remaining 43.75%. NTPBV in turn owns 56% of PT Newmont Nusa Tenggara (PTNNT), the Indonesian subsidiary that owns the Batu Hijau copper and gold mine.
Ahafo (100% owned) is located in the Brong-Ahafo Region of Ghana, approximately 180 miles (290 kilometers) northwest of Accra. The Company operates four open pits at Ahafo with reserves contained in 10 pits and an underground mine, which is under study. The material mined, consists of steep dipping shear hosted quartz dominant veins and alteration zones within intrusive and metasedimentary rocks overlain by soft saprolitic material. The process plant consists of a conventional mill and standard carbon-in-leach circuit for processing oxide ore. Ahafo produced 442,000 ounces of gold in 2014, and at December 31, 2014, reported 9.9 million ounces of gold reserves.
Akyem (100% owned) is located approximately 80 miles (125 kilometers) northwest of Accra. The Company operates one open pit mine at Akyem. Material mined typically consists of steep dipping brecciated and altered zones within metasedimentary rocks overlain by soft saprolitic material. It consists of a conventional mill and standard carbon-in-leach circuit for processing oxide ore. Akyem produced 472,000 ounces of gold in 2014, and at December 31, 2014, reported 6.7 million ounces of gold reserves.
Newmont Mining Corp
6363 S Fiddlers Green Cir
GREENWOOD VILLAGE CO 80111-5011
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