Profile: Newmont Mining Corp (NEM)
22 Aug 2014
Newmont Mining Corporation, incorporated on June 12, 2001, is primarily a gold producer with operations and/or assets in the United States, Australia, Peru, Indonesia, Ghana, New Zealand and Mexico. As of December 31, 2012, Newmont had attributable and probable gold reserves of 99.2 million ounces and an aggregate land position of approximately 29,000 square miles (75,000 square kilometers). Newmont is also engaged in the production of copper, principally through Batu Hijau in Indonesia and Boddington in Australia. Its operating segments include North America, South America, Asia Pacific and Africa. In February 2014, Klondex Mines Ltd closed the acquisition of the Midas mine and related ore milling facility located in the State of Nevada from a subsidiary of Newmont Mining Corp. In May 2014, the Company sold its 5.4% holding in Paladin. In July 2014, Northern Star Resources Limited completed the acquisition of the Jundee Gold Mine from Newmont Mining Corporation.
Its North America segment consists primarily of Nevada in the United States and La Herradura in Mexico. Its South America segment consists primarily of Yanacocha and Conga in Peru. Its Asia Pacific segment consists primarily of Boddington in Australia, Batu Hijau in Indonesia and other smaller operations in Australia and New Zealand. Its Africa segment consists primarily of Ahafo and Akyem in Ghana.
Nevada operations include Carlin, located west of the city of Elko on the geologic feature known as the Carlin Trend, the Phoenix mine, located 10 miles south of Battle Mountain, the Twin Creeks mine, located approximately 15 miles north of Golconda, and the Midas mine near the town of the same name. It also participates in the Turquoise Ridge joint venture with a subsidiary of Barrick Gold Corporation (Barrick), which utilizes mill capacity at Twin
Creeks. Gold production from Nevada was approximately 1.748 million ounces for 2012 with ore mined from nine open pit and seven underground mines. At December 31, 2012, it reported 35.1 million ounces of gold reserves in Nevada, with 77% of those ounces in open pit mines and 23% in underground mines.
The Nevada operations produce gold from a variety of ore types requiring different processing techniques depending on economic and metallurgical characteristics. The Company owns, or controls through long-term mining leases and unpatented mining claims, all of the minerals and surface area within the boundaries of the present Nevada mining operations (except for the Turquoise Ridge joint venture described below). The long-term leases extend for at least the anticipated mine life of those deposits. With respect to a portion of the Gold Quarry mine at Carlin. It wholly-own or control the remainder of the Gold Quarry mineral rights, in some cases subject to additional royalties.
The Company had a 44% interest in the La Herradura joint venture and related gold properties (Herradura, Soledad-Dipolos and Noche Buena), which are located in the Sonora desert. La Herradura is operated by Fresnillo PLC (which owns the remaining 56% interest) and comprises open pit operations with run-of-mine heap leach processing. Herradura has been in operation since 1998. Soledad-Dipolos is located 9 kilometers northwest of Herradura and commenced operations in January 2010. Noche Buena is located 23 kilometers northwest of Herradura and operations commenced in 2012. La Herradura produced 212,000 attributable ounces of gold in 2012, and at December 31, 2012,it reported 2.6 million attributable ounces of gold reserves.
The properties of Minera Yanacocha S.R.L. (MYSRL) include operations at Yanacocha and the Conga project. It 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%).
Yanacocha is located approximately 375 miles (604 kilometers) north of Lima and 30 miles (48 kilometers) north of the city of Cajamarca. Yanacocha’s gold production for 2012 was 1.346 million ounces (691,000 attributable ounces) and at December 31, 2012, it reported 3.0 million attributable ounces of gold reserves. At December 31, 2012, it 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. La Zanja produced 53,000 attributable gold ounces in 2012 and at December 31, 2012, it reported 0.2 million attributable ounces of gold reserves.
It completed a positive feasibility study in 2012, and owns 80% interest in the Merian project through a joint venture with a subsidiary of Alcoa. As of December 31, 2012, it reported 2.9 million attributable ounces of gold reserves.
Boddington (100% owned) is located 81 miles (130 kilometers) southeast of Perth in Western Australia. Boddington produced 724,000 ounces of gold and 67 million pounds of copper in 2012, and at December 31, 2012, it reported 18.6 million ounces of gold reserves and 2,180 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. During the year ended December 31, 2012, Kalgoorlie produced 341,000 attributable ounces, and at December 31, 2012, it reported 4.2 million attributable ounces of gold reserves.
Jundee (100% owned) is situated approximately 435 miles (700 kilometers) northeast of Perth in Western Australia. Jundee produced 333,000 ounces of gold in 2012, and at December 31, 2012, it reported 0.5 million 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. During the year ended December 31, 2012,the Tanami operations produced 183,000 ounces, and at December 31, 2012, it reported 2.2 million ounces of gold reserves.
Waihi (100% owned) is located within the town of Waihi, approximately 94 miles (150 kilometers) southeast of Auckland and consists of the Trio underground deposit and the Martha open pit mine. The Waihi operation produced 67,000 ounces of gold in 2012, and at December 31, 2012,
it reported 0.3 million ounces of gold reserves.
It has a 19.75% interest in Regis Resources Ltd. (Regis), which owns 100% of the Duketon gold project, located approximately 200 miles (320 kilometers) northeast of Kalgoorlie. In 2012, it produced 31,000 attributable ounces of gold in 2012, and at December 31, 2012, it reported 0.6 million attributable ounces of gold reserves.
Batu Hijau is located on the island of Sumbawa, approximately 950 miles (1,529 kilometers) east of Jakarta. In 2012, Batu Hijau produced 157 million pounds of copper (76 million attributable pounds) and 68,000 ounces of gold (33,000 attributable ounces). At December 31, 2012, it reported 3,500 million attributable pounds of copper reserves and 3.5 million attributable ounces of gold reserves.
It owns 31.50% of Batu Hijau through Nusa Tenggara Partnership B.V. (NTPBV), which it owns with an affiliate of Sumitomo Corporation of Japan. It 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. The remaining 44% interest in PTNNT is owned by PT Multi Daerah Bersaing (PTMDB), 24%; P.T. Pukuafu Indah (PTPI), 17.8%; and PT Indonesia Masbaga Investama (PTIMI), 2.2%.
Ahafo (100% owned) is located in the Brong-Ahafo Region of Ghana, approximately 180 miles (290 kilometers) northwest of Accra. It operates four open pits at Ahafo with reserves contained in 11 pits and an underground mine presently in development. Ahafo produced 561,000 ounces of gold in 2012, and at December 31, 2012, it reported 11.6 million ounces of gold reserves.
Akyem (100% owned) is located approximately 80 miles (125 kilometers) northwest of Accra. At December 31, 2012, it reported 7.4 million ounces of gold reserves.
Newmont Mining Corp
6363 SOUTH FIDDLERS, GREEN CIRCL
GREENWOOD VILLAGE CO 80111
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