Full Description

Newmont Mining Corporation (Newmont) is primarily a gold producer with significant assets or operations in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand and Mexico. As of December 31, 2008, Newmont had proven and probable gold reserves of 85 million equity ounces and an aggregate land position of approximately 38,840 square miles (100,600 square kilometers). Newmont is also engaged in the production of copper, principally through its Batu Hijau operation in Indonesia. The Company has operating segments of Nevada, Yanacocha in Peru, Australia/New Zealand, Batu Hijau in Indonesia, Africa and Other Operations comprising smaller operations in Bolivia and Mexico. It also has Hope Bay segment in Canada. As of December 31, 2008, the Company had proven and probable gold reserves of 85 million equity ounces. During the year ended December 31, 2008, the Company acquired the remaining interest in Miramar Mining Corporation.

Newmont had consolidated sales of 6.3 million ounces of gold (5.2 million equity ounces) during 2008. During 2008, 88% of the Company’s net revenues were attributable to gold sales. Of its 2008, gold sales, approximately 35% came from Nevada, 30% from Yanacocha, 19% from Australia/New Zealand, 5% from Batu Hijau and 8% from Africa. Most of its revenue comes from the sale of refined gold in the international market. The end product at its gold operations, however, is generally dore bars. Dore is an alloy consisting mostly of gold but also containing silver, copper and other metals. Under the terms of the Company’s refining agreements, the dore bars are refined for a fee, and the Company’s share of the refined gold and the separately-recovered silver are credited to its account or delivered to buyers. Gold sold from Batu Hijau, and a portion of the gold from Phoenix in Nevada, is contained in a concentrate.

The Company had consolidated sales of 290 million pounds of copper (130 million equity pounds) in 2008. For 2008, 12% of its net revenues were attributable to copper. As of December 31, 2008, the Company had a 45% ownership interest in the Batu Hijau operation in Indonesia. Production at Batu Hijau is in the form of a copper/gold concentrate that is sold to smelters for further treatment and refining.

Nevada operations include Carlin, located west of the city of Elko on the geologic feature known as the Carlin Trend, the Twin Creeks mine, located approximately 15 miles north of Golconda, the Lone Tree Complex near the town of Valmy and the Midas mine near the town of the same name. The Company also participates in the Turquoise Ridge joint venture with a subsidiary of Barrick Gold Corp. (Barrick), which utilizes mill capacity at Twin Creeks. The Phoenix mine is located 10 miles south of Battle Mountain. The Leeville underground mine is located on the Carlin Trend northwest of the Carlin East underground mine. Gold sales from Nevada totaled approximately 2.2 million ounces for 2008, with ore mined from nine open pit and five underground mines. At 2008, the Company reported 28.1 million equity ounces of gold reserves in Nevada, with 81% in open pit mines and 19% in underground mines. Refractory ore treatment facilities generated 72% of Nevada’s gold production in 2008.

The properties of Minera Yanacocha S.R.L. (Yanacocha) are located approximately 375 miles (604 kilometers) north of Lima and 30 miles (48 kilometers) north of the city of Cajamarca, in Peru. Newmont holds a 51.35% interest in Yanacocha with the remaining interests held by Compania de Minas Buenaventura, S.A.A. (43.65%) and the International Finance Corporation (5%). Yanacocha has three active open pit mines: Cerro Yanacocha, La Quinua and Chaquicocha. Yanacocha has four leach pads, three processing facilities, and a mill, which achieved commercial production during 2008. Yanacocha’s gold sales for 2008, totaled 1.8 million ounces (0.9 million equity ounces). In 2008, the Company reported 12.8 million equity ounces of gold reserves at Yanacocha, including 6.1 million equity ounces at Conga.

The Tanami operations (100% owned) include The Granites treatment plant and associated mining operations, which are located in the Northern Territory approximately 342 miles (550 kilometers) northwest of Alice Springs, adjacent to the Tanami highway, and the Dead Bullock Soak mining operations, approximately 25 miles (40 kilometers) west of The Granites. The Kalgoorlie operations comprise the Fimiston open pit (Super Pit) and Mt. Charlotte underground mine at Kalgoorlie-Boulder, 373 miles (600 kilometers) east of Perth. The mines are managed by Kalgoorlie Consolidated Gold Mines Pty Ltd for the joint venture owners, Newmont and Barrick, each of which holds a 50% interest. During 2008, the Kalgoorlie operations sold 304,400 equity ounces of gold. In 2008, the Company reported 4.4 million equity ounces of gold reserves at Kalgoorlie. The Jundee operation (100% owned) is situated approximately 435 miles (700 kilometers) northeast of Perth in Western Australia. Jundee sold 376,900ounces of gold in 2008. In 2007, the Company reported 1.3 million equity ounces of gold reserves at Jundee.

The Waihi operations (100% owned) are located within the town of Waihi, located approximately 68 miles (110 kilometers) southeast of Auckland, New Zealand and consist of the Favona underground deposit and the Martha open pit. The Waihi operation sold 141,000 ounces of gold during 2008. In 2008, the Company reported 0.4 million equity ounces of gold reserves at Waihi. Boddington is a development project located 81 miles (130 kilometers) southeast of Perth in Western Australia. At December 31, 2008, Boddington was owned by Newmont (66.67%) and AngloGold Ashanti Limited (AngloGold) (33.33%). In 2008, the Company reported 13.4 million equity ounces of gold reserves at Boddington.

The Batu Hijau mine is located on the island of Sumbawa, approximately 950 miles (1,529 kilometers) east of Jakarta. Batu Hijau is a porphyry copper/gold deposit. In 2008, copper sales were 289.7 million pounds (130.4 million equity pounds), while gold sales were 298,900 ounces (134,500 equity ounces). At December 31, 2008, it reported 3,950 million equity pounds of copper reserves and 4.1 million equity ounces of gold reserves at Batu Hijau. The Company own 45% of the Batu Hijau mine through the Nusa Tenggara Partnership (NTP) with an affiliate of Sumitomo Corporation of Japan. The Company has a 56.25% interest in NTP and the Sumitomo affiliate holds the remaining 43.75%. NTP in turn owns 80% of P.T. Newmont Nusa Tenggara (PTNNT), the Indonesian subsidiary that owns Batu Hijau. The remaining 20% interest in PTNNT is owned by P.T. Pukuafu Indah (PTPI). Newmont is the operator of the Batu Hijau mine.

The Ahafo operation (100% owned) is located in the Brong-Ahafo Region of Ghana, approximately 180 miles (290 kilometers) northwest of Accra. The Company operates three open pits at Ahafo with reserves contained in 17 pits. The process plant consists of a conventional mill and carbon-in-leach circuit. Ahafo reserves as of December 31, 2008, were 9.3 million equity ounces.

The Kori Kollo open pit mine is on a high plain in northwestern Bolivia near Oruro, on government mining concessions issued to a Bolivian corporation, Empresa Minera Inti Raymi S.A. (Inti Raymi), in which the Company has an 88% interest. Inti Raymi owns and operates the mine. In 2008, Inti Raymi sold 75,300 equity ounces of gold. As of December 31, 2008, the Company reported 0.2 million equity ounces of gold reserves at Inti Raymi.

The Company has a 44% interest in La Herradura, which is located in Mexico’s Sonora desert. La Herradura is operated by Fresnillo PLC (which owns the remaining 56% interest) and comprises an open pit operation with run-of-mine heap leach processing. La Herradura sold 95,200 equity ounces of gold in 2008. As of December 31, 2008, the Company reported 1.9 million equity ounces of gold reserves at La Herradura. The Company owns 100% of the Hope Bay project, a undeveloped gold project in the Nunavut Territory of Canada.