Newmont Mining Corporation 1100754 move=:edit= 225931918 2008-07-16T02:08:04Z Seidenstud 203758 Disambiguation link repair ([[Carlin]] → [[Carlin, Nevada]]) - [[Wikipedia:Disambiguation pages with links|You can help!]] {{needinfobox}} '''Newmont Mining Corporation''' {{nyse|NEM}}, based in [[Denver, Colorado]], [[United States|USA]], is one of the world's largest producers of [[gold]], with active mines in, [[Nevada]], [[Indonesia]], [[Australia]], [[New Zealand]], [[Ghana]], and [[Peru]]. Some smaller operations include [[Bolivia]], [[Mexico]], and [[Canada]]. Holdings include Battle Mountain Gold, Normandy Mining, and Franco-Nevada Corp. Newmont also has many joint venture relationships. As of [[December 31]], [[2006]], Newmont produced approximately 5.9 million equity ounces of gold annually and held reserves of about 94 million of those equity ounces. Production in the [[Americas]] accounts for about 70% of the company's equity ounces, but even so, Newmont is the largest gold mining company in Australia. Newmont employs approximately 15,000 people worldwide and the company says it is committed to the highest standards for environmental protection, worker health and safety, and benefiting host communities. Other metals that the company mines include [[copper]] and [[silver]]. == History == ===Early years=== Newmont Mining Corporation was founded in 1921 in [[New York]] by [[Colonel]] [[William Boyce Thompson]] as a holding company to invest in worldwide [[mineral]], [[Petroleum|oil]], and relations companies. The name Newmont was chosen by Thompson as a contraction of [[New York]], and [[Montana]], because, as one biographer put it, "he grew up in the latter and made his money in the former." In 1929, Newmont became a mining company with its first gold product in by acquiring [[California's]] [[Empire Star Mine]]. By 1939, Newmont was operating 12 gold mines in [[North America]]. Beginning in 1925, Newmont acquired interests in a [[Texas]] [[oil field]]. Eventually, Newmont's [[oil]] interests included more than 70 blocks in the [[Louisiana Gulf]] area and oil and [[gas]] production in the [[North Sea]]. Newmont discovered dispersed gold at [[Carlin, Nevada]] in 1962 and began operating its first [[mill]] there in 1965 under the name [[Carlin Gold Mining Company]]. The "Carlin Trend" is the largest gold discovery in North America this century. In 1971, Newmont began using the [[heap leaching]] technology on sub-mill grade [[ores]] at Carlin. It was one of the first in the gold industry to use heap leaching. In 1986, the company's name was changed to Newmont Gold Company, and five million shares were sold publicly for [[US$]]47.5 million. Newmont Mining held a 90 percent interest. A decade later, Newmont's assets were over US$1.9 billion and income from continuing operations reached US$338 million. In August 1987, Newmont became the target of a failed, unsolicited tender offer for control and dismemberment of the company. ===Major Growth=== After 1987, the company undertook major restructuring. This included the payment of a US$33 per share [[dividend]] to all [[shareholders]] for a total of US$2.2 billion, of which US$1.75 billion was borrowed. To reduce this debt the company undertook a [[divestment]] program involving all of its copper, oil, gas, and [[coal]] interests. As a further step in the restructuring, the company moved its headquarters from [[New York City]] to [[Denver]] in February 1989. On [[January 1]], [[1994]], Newmont Mining Corporation, and Newmont Gold Company combined assets to form a unified worldwide gold company. Shareholders of both companies had identical interests in the reserves, production, and earnings of Newmont Gold's operations. Newmont merged with [[Santa Fe Pacific Gold Corporation]] to form North America's largest gold producer. And, in October of 1998, Newmont Mining and Newmont Gold that were outstanding at that time. On [[June 21]], [[2000]], Newmont announced a merger with [[Battle Mountain Gold Company]]. The merger was completed in January 2001. In February 2002, Newmont completed the acquisition of [[Normandy Mining Limited]] and [[Franco-Nevada Mining Corporation]] Limited, making it the world's largest gold producer, at that time. Today, Newmont remains the only gold company in the Standard & Poor's 500 Index. ==Operations== ''For complete operation information please visit:'' [http://ir.newmont.com/phoenix.zhtml?c=66018&p=IROL-secToc&TOC=aHR0cDovL2NjYm4uMTBrd2l6YXJkLmNvbS94bWwvY29udGVudHMueG1sP2lwYWdlPTQ2OTk4OTQmcmVwbz10ZW5r 2007 Newmont 10K report] ===Nevada=== Newmont has been mining gold in [[Nevada]] since 1965. Nevada operations include [[Carlin, Nevada|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. Newmont also participates in the [[Turquoise Ridge]] [[joint venture]] with [[Barrick]], which utilizes mill capacity at Twin Creeks. The Phoenix gold/copper project, located 10 miles south of [[Battle Mountain]], commenced commercial production in the fourth quarter of 2006. The [[Leeville]] underground mine, located on the Carlin Trend northwest of the Carlin East underground mine, also commenced commercial production in the fourth quarter of 2006. ===Yanacocha, Peru=== 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 [[Cajamarca]], in [[Peru]]. Yanacocha began production in 1993. Newmont holds a 51.35% interest in Yanacocha with the remaining interest held by [[Compañia de Minas Buenaventura, S.A.A.]] (43.65%) and the [[International Finance Corporation]] (5%). Yanacocha’s mining rights consist of concessions granted by the [[Peruvian government]] to Yanacocha and a related entity. Yanacocha currently has two active open pit mines, [[Cerro Yanacocha]] and [[La Quinua]]. In addition, reclamation and/or backfilling activities at [[Carachugo]], [[San José Sur|San Jose]] and [[Maqui Maqui]] are currently underway. Yanacocha has four leach pads and three processing facilities. Yanacocha’s gold sales for 2006 totaled 2.6 million ounces (1.3 million equity ounces). ===Australia/New Zealand=== ''Pajingo.'' [[Pajingo]] (100% owned) is an underground mine located approximately 93 miles (150 kilometers) southwest of [[Townsville, Queensland]] and 45 miles (72 kilometers) south of the local township of [[Charters Towers]]. In 2006, Pajingo sold 174,600 ounces of gold. The mine was sold off in late 2007. ''Jundee.'' The [[Jundee]] operations (100% owned) is situated approximately 435 miles (700 kilometers) northeast of [[Perth, Western Australia|Perth]] in [[Western Australia]]. Jundee sold 305,400 ounces of gold in 2006. ''Tanami.'' 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) northeast 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 Tanami operations have been wholly-owned since April 2003, when Newmont acquired the minority interests. ''Kalgoorlie.'' The [[Kalgoorlie]] operations comprise 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. 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. The Super Pit is Australia’s largest gold mine in terms of gold production and annual mining volume. During 2006, the Kalgoorlie operations sold 332,200 equity ounces of gold. ''Martha.'' The [[Martha]] operations (100% owned) are located within the town of [[Waihi]], located approximately 68 miles (110 kilometers) southeast of [[Auckland]], [[New Zealand]]. During 2006, production commenced at the Favona underground deposit. Production at the Martha open pit will cease in 2007. The operation sold 120,300 ounces of gold during 2006. The Martha mine does not currently pay royalties. Under new [[royalty]] arrangements, however, Newmont will pay 1% of gross revenues from gold and silver sales, or 5% of accounting profit, whichever is greater, at [[Favona]]. ''Boddington.'' [[Boddington]] is a development project located 81 miles (130 kilometers) southeast of Perth in Western Australia. As of [[December 31]], [[2006]] Boddington was owned by Newmont (66.67%) and [[AngloGold Ashanti Limited]] (33.33%). In March 2006, Newmont acquired [[Newcrest Mining Limited]]’s 22.22% interest in Boddington for $173. ===Batu Hijau, Indonesia=== [[Batu Hijau]], is located on the island of [[Sumbawa]], approximately 950 miles (1,529 kilometers) east of [[Jakarta]]. Batu Hijau is a large porphyry copper/gold deposit which Newmont discovered in 1990. Development and construction activities began in 1997 and start-up occurred in late 1999. In 2006, copper sales were 434.7 million pounds (229.9 million equity pounds), while gold sales were 435,300 ounces (230,200 equity ounces). Newmont operates Batu Hijau, a producer of copper/gold concentrates, and has a 45% ownership interest therein, held through a partnership with an affiliate of [[Sumitomo Corporation]]. Newmont has a 56.25% interest in the partnership and the Sumitomo affiliate holds the remaining 43.75%. The partnership, in turn, owns 80% of [[P.T. Newmont Nusa Tenggara]] (“PTNNT”), the subsidiary that owns Batu Hijau. The remaining 20% interest in PTNNT is a carried interest held by P.T. [[Pukuafu Indah]], an unrelated [[Indonesia]]n company. Through [[September 30]], [[2004]], PTNNT recorded cumulative losses and therefore Newmont historically reported a 56.25% economic interest in Batu Hijau. As a result of higher metal prices, improved operating and financial results, and increased life of mine expectations regarding production, costs and economics, PTNNT’s cumulative losses had been recovered by the fourth quarter of 2004, thereby allowing for the payment of dividends. Under existing shareholder agreements, the Indonesian shareholder will be entitled to receive 6% of any [[dividends]] paid by PTNNT until such time as a loan to the Indonesian shareholder is fully repaid (including accrued interest). Newmont, therefore, decreased its economic interest in Batu Hijau to 52.875%, effective [[October 1]], [[2004]], reflecting 56.25% of the 94% of PTNNT’s dividends payable to the Newmont/Sumitomo partnership. ===Ghana=== The [[Ahafo]] operation (100% owned) is located in the [[Brong Ahafo Region]] of [[Ghana]], approximately 180 miles (290 kilometers) northwest of [[Accra]]. Ahafo poured its first gold on [[July 18]], [[2006]] and commenced commercial production in August 2006. Ahafo sold 202,000 ounces of gold in 2006. Newmont currently operates two open pits at Ahafo with total reserves contained in 15 pits. The process plant consists of a conventional mill and [[carbon-in-leach]] circuit. Ahafo reserves as of [[December 31]], [[2006]], were 12.6 million equity ounces. Newmont has one development project in Ghana, currently the subject of further optimization studies. The [[Akyem]] project is approximately 80 miles (125 kilometers) northwest of Accra. As of [[December 31]], [[2005]], Newmont held an 85% interest in the Akyem project. The remaining 15% was held by [[Kenbert Mines Limited]]. In January 2006, Newmont acquired the remaining 15% interest, bringing its ownership to 100% of the Akyem project. In the second half of 2006, the Company deferred further development of Akyem, pending completion of permitting, resolution of country-wide power shortages and further engineering and optimization. ===Other Operations=== ''Canada.'' During 2006, Newmont’s Canadian operations included two underground mines. [[Golden Giant]] (100% owned) is located approximately 25 miles (40 kilometers) east of [[Marathon]] in [[Ontario]], [[Canada]], and has been in production since 1985. Mining operations at Golden Giant were completed in December 2005 with remnant mining and milling production continuing throughout most of 2006. In 2006, Golden Giant sold 59,300 ounces of gold. [[Holloway]] is located approximately 35 miles (56 kilometers) east of [[Matheson]] in Ontario, and about 400 miles (644 kilometers) northeast of Golden Giant, and has been in production since 1996. In 2006, Holloway sold 26,000 ounces of gold. On [[November 6]], [[2006]], Newmont completed the sale of the Holloway mine to [[St. Andrews Goldfields Ltd.]] resulting in a $13 pre-tax gain. ''Mexico.'' Newmont has a 44% interest in [[La Herradura]], which is located in [[Mexico]]’s [[Sonora desert]]. La Herradura is operated by [[Industriales Peñoles]] (which owns the remaining 56% interest) and comprises an open pit operation with run-of-mine heap leach processing. La Herradura sold 79,200 equity ounces of gold in 2006. ''Bolivia.'' 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 Newmont has an 88% interest. The remaining 12% is owned by [[Mrs. Beatriz Rocabado]]. [[Inti Raymi]] owns and operates the mine. The mill was closed in October 2003 and production continued from residual leaching. In 2005, additional material from the stockpiles and Lla Llagua pit were placed on the existing leach pad and ore from the [[Kori Chaca]] pit was processed on a new leach pad. In 2006, the mine sold 113,300 equity ounces of gold. ''Minahasa, Indonesia.'' Newmont owns 80% of [[Minahasa]] and the remaining 20% interest is a carried interest held by [[P.T. Tanjung Serapung]], an unrelated Indonesian company. Minahasa is located on the island of [[Sulawesi]], approximately 1,500 miles (2,414 kilometers) northeast of Jakarta. Mining was completed in late 2001 and gold production was completed in 2004. ==Controversies== ===Twin Creeks mine=== The Twin Creeks mine in Golconda, NV is ranked as of 2002 by the EPA as the second highest environmental polluter in the United States.[http://www.scorecard.org/env-releases/facility.tcl?tri_id=89414NWMNT35MIL#data_summary] ===Lone Tree mine=== The Lone Tree mine in Valmy, NV is ranked as of 2002 by the EPA as the sixth highest environmental polluter in the United States. [http://www.scorecard.org/env-releases/facility.tcl?tri_id=89438NWMNTSTONE#major_chemical_releases] ===Carlin South Area mine=== The Carlin South Area mine in Carlin, NV is ranked as of 2002 as the seventh highest environmental polluter in the United States. [http://www.scorecard.org/env-releases/facility.tcl?tri_id=89822NWMNT6MAIL#major_chemical_releases] ===Yanacocha mine=== The [[Yanacocha]] gold mine in northern [[Peru]] is considered one of the largest and most profitable in the world, producing over US$7 billion worth of gold to date. Before 1994 the mine was co-owned by Newmont, [[Buenaventura (mining company)|Buenaventura]] (a Peruvian mining company), and [[Bureau de Recherches Géologiques et Minières]] (BRGM), a [[France|French]] government-owned company. This partnership collapsed in 1994 after BRGM tried to sell part of its shares in the company to an Australian company which was a rival of Newmont. Newmont and Buenaventura would both go to court to challenge the trade. [[Larry Kurlander]], then a senior executive at Newmont, claimed the French President [[Jacques Chirac]] had sent a letter to then Peruvian President [[Alberto Fujimori]] asking him to intervene in the court case in favor of the French owned company. Kurlander had been sent by Newmont to Peru in order to try and get a favorable outcome for Newmont in the dispute. The legal battle would eventually make it all the way up to the [[Peruvian Supreme Court]]. During this period Kurlander acknowledges having met with [[Vladimiro Montesinos]], the Peruvian intelligence chief who has since been found guilty of [[embezzlement]], illegally assuming his post as intelligence chief, abuse of power, [[influence peddling]] and [[bribery|bribing]] TV stations. [http://www.pbs.org/frontlineworld/stories/peru404/thestory.html] [http://www.npr.org/templates/story/story.php?storyId=4973736] However, Kurlander claims that he did nothing illegal and that the French government were taking similar steps in trying to contact Montesinos. The French ambassador to Peru Antoine Blanca denies this, pointing to the fact that Montesinos was on the [[CIA]] payroll and thus would naturally side with the U.S-based company. After the fall of Fujimori in 2000 a number of videos Montesinos had taped of himself meeting with several domestic and foreign leaders and offering bribes and accepting them had emerged. In October 2005 ''[[Frontline (PBS)|Frontline]]'' in co-production with ''[[The New York Times]]'' found a February 1998 recording of a telephone conversation between Montesinos and Kurlander. The following is an excerpt from the tape: :''Kurlander:...we have a very serious problem in Peru with our company (Newmont) and Minera Buenaventura so I have enlisted the support of some of my friends from a variety of intelligence communities. I need it especially because the other side (the French government) has been acting quite strangely. :''Montesinos (to interpreter): Tell him that I am perfectly aware of the problem he has and the people he represents have with the French, as well as the problem he has with the judiciary.'' :''Kurlander:<link rel="stylesheet" type="text/css" href="http://en.wikipedia.org/w/index.php?title=User:Lupin/navpop.css&action=raw&ctype=text/css&dontcountme=s"> So now you have a friend for life. I want a friend for life.'' :''Montesinos (to interpreter): I thank you very much for what you have just told me and well you already have a friend. Tell him I'm going to help him with the voting. I would like to know the tricky practices of the French. The French Connection!'' :''Kurlander: The French Connection!'' :''(laughter)'' [http://www.pbs.org/frontlineworld/stories/peru404/web.html#] Along with this telephone conversation, ''Frontline'' and ''The New York Times'' also re-broadcast three other videos. One was filmed in April 1998 and shows Montesinos talking to "Don Arabian", the CIA station chief in Peru, in an attempt to get CIA to pressure the U.S. to back Newmont in the case. In the video Montesinos claims to have found e-mails from Paris to Peru of French officials trying to influence the court to get a decision favorable to France. Another video recorded in May 1998 shows Montesinos meeting with Peruvian Supreme Court Justice, and former classmate, [[Jaime Beltran Quiroga]]. In it Montesinos states that state interests are at stake in the case between Newmont and BRGM. He tells Quiroga that if the decision goes to Newmont that the United States will back Peru in its boarder dispute with [[Ecuador]] which had a few years ago exploded into the [[Cenepa War]]. He also tells Quiroga to deny any connection with him to the press. Quiroga would later play a crucial role in the case, his vote would be the deciding vote in the Newmont victory. After the video was first broadcast in Peru in 2001, on a Peruvian local television station the French Ambassador Antoine Blanca was quoted as saying "Now I know why Newmont won". In the final July 1999 video, Montesinos is again seen with the now departing CIA station chief "Don Arabian" giving him a gift and thanking him for the help he has given Peru stating "[W]e hope that when you're back their [in Washington] you'll remember your friends". ===Buyat Bay, Indonesia=== In August 2004, the [[Indonesia]]n Ministry of Environment filed a US$133.6 million civil [[lawsuit]] against Newmont, claiming [[tailings]] from the company's Minahasa Raya [[mining|mine]] [[water pollution|polluted]] [[Buyat Bay]] in the North [[Sulawesi]] province, contaminating local [[fish]] stocks and causing nearby villagers to become seriously ill. Newmont denied the allegations, arguing that the illnesses had more to do with poor [[hygiene]] and [[poverty]]. On [[November 15]], [[2005]], a [[South Jakarta]] [[court]] dismissed the suit on technical grounds, saying the government had breached the terms of its [[contract]] with Newmont when it took legal action before seeking [[arbitration]]. [[Environmentalists]] urged for the suit to be [[appeal]]ed, but on [[December 1]], [[2005]], Environment Minister [[Rachmat Witoelar]] said the government expected to reach an [[Settlement (law)|out-of-court settlement]] with Newmont's local [[subsidiary]]. "By negotiating a settlement, we hope to be able to quickly compensate people living near the mine," he said. The government [[negotiation|negotiating]] team was led by chief Economics Minister [[Aburizal Bakrie]]. On [[February 16]], [[2006]], the Indonesian government announced it would settle the civil suit for US$30 million to be paid over the next 10 years. The agreement also includes increased scientific monitoring and enhanced community development programs for the North Sulawesi province. With the civil lawsuit settled, attention focused on the criminal charges against President Director [[Richard Ness]]. In December 2006, Newmont Mining Corp. objected to a documentary entitled "[[Bye Bye Buyat]]" being nominated for Indonesia's top film award, [[Indonesian Film Festival|FFI]]'s Citra Award. The company said that it interfered with Ness' ongoing trial.<ref>{{cite news|url=http://sg.news.yahoo.com/061220/1/45khc.html|title=Mining firm objects to pollution film up for Indonesian award|date=December 20, 2006|publisher=[[Agence France-Presse]]}}</ref> After a 21-month trial—one of the longest proceedings in Indonesian history—Ness was found innocent of the pollution charges on [[April 24]], [[2007]].<ref name=reuters>{{cite news|url=http://in.today.reuters.com/news/newsArticle.aspx?type=worldNews&storyID=2007-06-28T125847Z_01_NOOTR_RTRMDNC_0_India-282158-1.xml&archived=False|title=Newmont responds to prosecutor in Indonesia case|date=June 28, 2007|publisher=[[Reuters]]}}</ref> The court found that the company was in compliance with all regulations and permits during its operations at the site, and failed to find evidence beyond a reasonable doubt that Nemont's subsidiary had polluted Buyat Bay. At the end of May, the prosecution appealed to the Supreme Court to overturn the ruling.<ref name=reuters /> A week after being found not guilty of criminal charges, [[Richard Ness]] sued the [[New York Times]] in Indonesian court for libel. The lawsuit asks for nearly US$65 million in damages, and that the [[New York Times]] print a page-one retraction of previously published articles.<ref>Steve Fisor, ''An exonerated Ness files lawsuit against the New York Times'', Engineering and Mining Journal, June 2007, p.2.</ref> ==References== <references/> ==External links== {{wikinews|Peruvians sue Newmont Mining Company over mercury poisoning}} *[http://www.newmont.com Official site] *[http://buyatbayfacts.com/ BuyatBayFacts.com] maintained by Newmont Mining Corporation *[http://www.beyondthemine.com/ Beyond the Mine - Newmont's Environmental Social Responsibility] *[http://www.trustingold.com/ Trust In Gold] *[http://www.icmm.com/ International Council on Mining & Metals] *[http://www.pbs.org/frontlineworld/stories/peru404/ "The Curse of Inca Gold"], ''[[Frontline (PBS)|Frontline/World]]'', October 2005 *[http://www.nytimes.com/packages/html/international/20051025_PERU_FEATURE/blocker.html "The *[http://www.corpwatch.org/article.php?id=11686 INDONESIA: Report Heightens Pollution Dispute with Newmont Mining] from ''The New York Times'', reprinted by [[CorpWatch]] *[http://www.moles.org/ProjectUnderground/reports/newmont00.html Project Underground report] *[http://www.minesandcommunities.org/Action/press591.htm SEC allows Newmont Mining to Block NYC Pension Funds' Environmental Resolution] [[Category:Mining companies of the United States]] [[Category:Gold mining companies]] [[Category:Companies based in Denver, Colorado]] [[Category:Companies established in 1921]] [[de:Newmont Mining]] [[fr:Newmont Mining]] [[id:Newmont Mining Corporation]]