Newmont Mining
Encyclopedia
Newmont Mining Corporation , based in Denver, Colorado
, USA, is one of the world's largest producers of gold
, with active mines in Nevada
, Indonesia
, Australia, New Zealand, Ghana
and Peru
. Holdings include Santa Fe Gold, Battle Mountain Gold, Normandy Mining, Franco-Nevada Corp and Fronteer Gold. Newmont also has many joint venture relationships.
As of December 31, 2010, Newmont produced approximately 5.4 million equity ounces of gold annually and held proven and probable reserves of about 93.5 million. Newmont employs approximately 34,000 employees and contractors worldwide. Other metals that the company mines include copper
and silver
.
Founded in 1916 by William Boyce Thompson
as a diversified holding company, today Newmont remains the only gold company in the Standard & Poor's 500 Index.
William Boyce Thompson
as a holding company to invest in worldwide mineral
, oil
, and related companies. According to company lore, the name "Newmont" is a portmanteau "New York" and "Montana", reflecting where Thompson made his fortune and where he grew up.
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.
The company acquired interests overseas. For decades around the middle of the 20th century, Newmont had a controlling interest in the Tsumeb
mine in Namibia
and in the O'Okiep Copper Company in Namaqualand
, South Africa
.
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 the world’s first submicroscopic or “invisible” gold at Carlin
, Nevada
in the early 1960s and began production on the first open pit gold mine in the world. The "Carlin Trend" or "Carlin Unconformity" is the largest gold discovery in North America during the 20th century. In 1971, Newmont began using the heap leaching
technology on sub-mill grade ores
there.
In the 1980s, Newmont thwarts five takeover bids – from Consolidated Gold Fields (ConsGold), T. Boone Pickens, Minorco, Hanson Industries
and Sir James Goldsmith – who sought to break Newmont apart and sell its assets to increase shareholder value.
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 1988. A decade later, 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 then merged with Santa Fe Pacific Gold Corporation (a former Atchison, Topeka and Santa Fe Railway
subsidiary, sold in preparation for the merger that produced the BNSF Railway
) to form North America's largest gold producer.
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. Newmont faced competition in its bit for Normandy from AngloGold
. By eventually outbiding the South African company, Newmont became the world's largest gold producer, with an annual production in excess of 8 million ounces.
In 2007, the company eliminates its 1.5 million ounce legacy hedge book to make Newmont the world’s largest unhedged gold producer.
The following year, Newmont acquired Miramar Mining Corporation and its Hope Bay deposit in the Canadian Arctic.
In 2009, Newmont purchased the remaining one-third interest in Boddington Gold Mine from AngloGold Ashanti, bringing its ownership to 100 percent.
In April 2011, the company acquired Canada's Fronteer Gold Inc. for Cdn $2.3 billion. This made the company the world's second-largest gold producer.
, located west of the city of Elko
on the geologic feature known as the Carlin Trend; the Phoenix gold/copper mine, located 10 miles south of Battle Mountain, the Twin Creeks mine, located approximately 15 miles (24.1 km) 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, which utilizes mill capacity at Twin Creeks.
With the acquisition of Fronteer Gold, three additional projects were added to the Newmont portfolio. The flagship property, Long Canyon, is located on a gold trend that is similar to the Carlin Trend in terms of its characteristics and poten¬tial.
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 three active open pit mines, Cerro Yanacocha, La Quinua and Chaquicocha. In addition, reclamation and/or backfilling activities at Carachugo, San Jose and Maqui Maqui are currently underway.
Yanacocha’s gold production for 2010 was 1.5 million ounces (750,000 attributable ounces). As of December 31, 2010, Newmont reported 5.0 million ounces of gold reserves.
In 2011, Newmont’s board of directors granted approval to develop the Conga Project, located in the provinces of Celendín, and Sorochuco Huasmín districts and Cajamarca district of Encañada. Newmont’s ownership interest is identical to Yanacocha. If all permits are secured, the commencement of production is expected in late 2014 or early 2015.
in 2002.
Boddington. Newmont’s newest Australian asset is Boddington
, which is now Australia's largest gold producer. It has been wholly owned since June 2009, when Newmont acquired the final 33.33% interest from AngloGold Ashanti Australia Limited (“AngloGold”). Boddington poured its first gold in September 2009 and commenced commercial production in November 2009. Boddington produced 728,000 ounces of gold and 58 million pounds of copper in 2010. As of year-end 2010, it reported 20.3 million ounces of gold reserves and 2,360 million pounds of copper reserves.
Jundee. Newmont began production at Jundee
operations in 1995. It is 100% owned and located approximately 435 miles (700 kilometers) northeast of Perth, Western Australia
.
Newmont mined ore at Jundee solely from underground sources in 2010, and produced 335,000 ounces of gold in 2010. As of December 31, 2010, Jundee had a reported 0.8 million ounces of gold reserves.
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) 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 Tanami operations have been wholly owned since April 2003, when Newmont acquired the minority interests. Operations today are predominantly focused on the Callie underground mine at Dead Bullock Soak and ore is processed through the Granites treatment plant. During 2010, the Tanami operations produced 250,000 ounces of gold. As of December 31, 2010, it had a reported 2.0 million ounces of gold reserves.
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.
During 2010, the Kalgoorlie operations produced 754,000 ounces of gold (377,000 attributable ounces). It reported 3.8 million ounces of gold reserves on December 31, 2010.
in 2002.
The Waihi operation produced 108,000 ounces of gold in 2010 and reported 0.5 million ounces of gold reserves at year-end.
Martha. The Martha Mine
operations (100% owned) are located within the town of Waihi
, located approximately 68 miles (110 kilometers) southeast of Auckland
, New Zealand. The open pit mine has operated over historic underground gold mine workings since 1988.
Favona. The Favona underground mine began extracting ore at the end of 2006.
on the island of Sumbawa
in the Indonesia
in the province of West Nusa Tenggara
through its subsidiary
company P.T. Newmont Nusa Tenggara which is a joint venture between Newmont, Sumitomo Corporation
and P.T. Pukuafu Indah.
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 2010, Batu Hijau produced 542 million pounds of copper (269 million attributable pounds) and 737,000 ounces of gold (364,000 attributable ounces). At December 31, 2010, it reported 3,760 million pounds of copper reserves and 3.7 million ounces of gold reserves.
In 2008, the Indonesian government threatened to terminate the contract of P.T. Newmont Nusa Tenggara after accusing it of failing to meet its divestment obligations. On April 1, 2009 international arbitrator
s and its partner sided with Newmont rejecting Jakarta
's request to have their contract revoked, which would have forced the company to walk away from the property without any compensation, instead Newmont is forced to sell a 17% stake in an Indonesian subsidiary within 180 days.
In 2011, subsidiaries of Newmont and Sumitomo Corporation divested a 7 percent investment in PTNNT. Pusat Investasi Pemerintah (PIP), designated as the buyer by the Indonesian Government, signed a sale and purchase agreement for the shares worth $246.8 million. Nusa Tenggara Partnership B.V., which holds Newmont’s shares in PTNNT – together with shares held by a subsidiary of Sumitomo Corporation of Japan – now owns 49 percent of PTNNT. Of that amount, Newmont will directly own 27.56 percent of PTNNT and has another 17 percent economic interest through financing arrangements with existing shareholders.
, approximately 180 miles (290 kilometers) northwest of Accra
. Ahafo poured its first gold on July 18, 2006 and commenced commercial production in August 2006. Newmont operates four open pits at Ahafo with reserves contained in 11 pits. Commercial production in the fourth pit, Amoma, began in October 2010.
Ahafo produced 545,000 ounces of gold in 2010 and at December 31, 2010, reported 10.0 million ounces of gold reserves.
Additionally, Newmont’s Akyem
project (100% owned) is located approximately 80 miles (125 kilometers) northwest of Accra. In January 2010, Newmont received the mining lease. Upon permit approval, production is slated to begin in late 2013 or early 2014. At December 31, 2010, Newmont reported 7.2 million ounces of gold reserves.
of Canada. Hope Bay is an 80 kilometer district in the Canadian arctic and is one of the last known undeveloped greenstone belts in the world.
In 2010, Newmont commenced an underground decline at the Doris North deposit. A construction decision should be made by the end of 2011. ref>http://newmont.com/sites/default/files/Hope_Bay_2011.pdf
(which owns the remaining 56% interest) and comprises an open pit operation with run-of-mine heap leach processing. La Herradura produced 174,000 attributable ounces of gold in 2010. As of December 31, 2010, it had 2.3 million ounces of gold reserves.
The company is a signatory participant of the Voluntary Principles on Security and Human Rights.
Some of its key social and environmental responsibility milestones include:
March 11, of 2011, "[i]n a swift move following an uncomfortable exchange with lawmakers over the state’s inability to audit the mining industry’s tax deductions, Gov. Brian Sandoval removed his director of taxation...",Dino DiCianno. Former Director DiCianno, who was consequentially replaced by Chris Nielsen,"...admitted to lawmakers that he has had no one trained to audit the mining industry’s net proceeds tax returns for at least two years."
However, on March 23, 2011, Republican Assembly Minority Floor Leader Pete Goicoechea of Erureka County in Nevada, the county where a majority of Newmont's Nevada operations are located, went on the record, stating that "'it looks like it’s been seven or eight years' since the Nevada Department of Taxation did field audits of Nevada mines that pay net proceeds taxes..."'. Goicoechea also went on to opine that “…the field audits probably won’t find that the mining companies did anything illegal because the companies have ‘the best audit teams in the world.'" However, despite some of the mines being audited by large accounting firms such as PricewaterhouseCoopers, Goicoechea may have put too much faith in the mining industry's "decision makers" and their auditors, as this inaction to hold the mining industry accountable may have resulted in lost revenues due to a number Counties in Nevada as well.
According to an April 14, 2011 letter from Nevada Mining Association President Tim Crowley, and statements made by Republican Assembly Minority Floor Leader Pete Goicoechea, it appears plausible that "...Nevada mines have routinely claimed illegal tax deductions..." The letter was directed to Chris Nielsen, and briefly summarized those deductions that the mining industry had been taking, despite not being expressly allowed to do so under the laws of Nevada.
As a response to the mining industry's decision-makers' risk-taking actions regarding disallowed tax deductions, State Senate Majority Leader Steven Horsford on March 21, 2011, "...called for the Nevada Tax Commission to issue emergency regulations that would narrow the deductions mining companies are allowed to take when calculating their tax bills.." but "...[n]either the governor nor legislators have accused mining companies of not paying all due taxes, but Democrats have said they don't pay enough taxes. In Nevada, mining companies pay in state taxes no more than 5 percent of 'net proceeds [as opposed to gross proceeds],' an amount that covers the value of minerals they take from the ground minus deductions for the cost of extraction, transportation, processing and other expenses.
Yet, despite the Tax Commission knowing they did not have anyone trained to audit them, despite the fact that the mining industry had not been audited in years, and despite the mines having competent directors and industry professionals who should have known better, and despite the mines having the "best auditors in the world," the Nevada Tax Commission nonetheless apparently allowed this behavior to go on for years, possibly due to what is known as "regulatory capture."
"The paper trail of commission meeting transcripts and amended regulations raises the question of whether Nevada’s mining regulators have fallen prey to what economists call 'regulatory capture' — the term used to describe an agency that acts in the interest of the industry it was established to regulate. For example, critics say the 2008 financial crisis was caused by banking regulators who were captured by the financial services industry and failed to spot trouble on the horizon...Regulatory capture is rarely the result of corruption. It is more commonly the outcome of relationship-building between regulators and industry employees...When that happens, regulators often start to trust information provided by the industry over that contributed by the public, Parker said."
The notion of "regulatory capture" seems to be a plausible theory as to why the mining industry was allowed to participate in this behavior for so long in light of the statements noted above by Goicoechea - which took place several weeks prior to the Nevada Mining Association's admission of taking tax deductions not allowed under Nevada's laws. Additionally, regulators apparently had close ties with industry employees as well. For instance, John Marvel, a lawyer in Elko, NV, represents mining clients, is a member of the Nevada Mining Association, receives income from Marvel Minerals (according to his financial disclosure report), and he is also on the Nevada Tax Commission, which is the head of the Nevada Department of Taxation - the regulatory agency that was supposed to be preventing the mining industry from participating in such unethical and arguably illegal behavior.
Additionally, Robert J Miller, who served as Nevada's Governor from Jan 4, 1989 until January 4, 1999, served as a Director of Newmont Mining Corp., from 1999 to April 23, 2010. Miller was later succeeded by the late Kenny Guinn
who proposed a tax restructuring during the 2003 legislative session that was met with opposition from anti-tax business groups and many anti-tax Republicans.
Although the Nevada Department of Taxation seemed to fail to regulate the mining industry, and despite the notion that Mining Oversight and Accountability Commission is supposed to to oversee regulations for mining safety and taxation, it appears too that the "world's best auditors" of the publicly traded mines may have also failed to disclose this questionably legal behavior to the Securities and Exchange Commission, as required by FIN 48. FIN 48 an interpretation of FASB 109 requires companies to analyze the technical merits of their tax positions and determine the likelihood that these positions will be sustained if they were ever examined by the taxing authorities (or litigation).
However, in the 76th Session of the Nevada Legislature (2011), despite opposition from the mining industry, Senate Bill 493 was passed, which was one of two controversial mining-related measures. Senate Bill 493 "...creates the Mining Oversight and Accountability Commission, a seven-member panel to oversee regulations for mining safety and taxation. An amendment to the measure also eliminates the major deductions mining companies may take when calculating net proceeds of minerals taxes." However, some representatives of the mining industry appeared reluctant to adhere to some of the measures: "'If you don’t let us deduct this, we’ll deduct something else.'" A Newmont Mining Corp. staffer used this argument to win the employee housing deduction, saying employee housing cut travel costs."
Regardless of the threatening statements made by Newmont's staffer, the mines in Nevada, including Newmont Mining Corporation, will have to report all of their deductions to the Mining Oversight and Accountability Commission, which was created under S.B. 493.
"S.B. 493 creates the Mining Oversight and Accountability Commission (“MOAC”) that will provide oversight relating to the NTC and the NDOT with respect to the “taxation of the net proceeds of minerals.” Members of MOAC will be appointed by the Governor.5 Effective January 1, 2012, S.B. 493 also makes various changes pertaining to the deductions available in calculating the Net Proceeds of Minerals Tax. For example, among various changes in this regard, the new law: (1) limits [sp]deductible mineral extraction costs to “direct costs for activities performed in the State of Nevada;” (2) excludes from deduction employee severance costs, employee housing costs, trade association dues, 'costs of mineral exploration,' and expenses for 'governmental relations' or to 'influence legislative decisions;' and (3) includes employee travel costs as an allowable deduction, but limits the [sp]deductible amount to those costs for travel within Nevada that is directly related to mining operations within the state.” S.B. 493 also specifies that the “manner prescribed” by NTC regulation for calculating the depreciation deduction (based on amortization of the original cost of specified assets) shall be subject to approval by the MOAC. Further, S.B. 493 requires the NDOT to report annually to the MOAC “the expenses and deductions of each mining operation in … Nevada.”
S.B. 493, on the surface, appears to help with transparency, accountability, and scaling back on regulatory capture, by expressly stating that the mines will have to report their deductions, and that they will be disallowed from being able to deduct "...expenses for 'governmental relations' or to 'influence legislative decisions." However, this apparently does not prevent the mines from continuing to spend shareholders investments "...for 'governmental relations' or to 'influence legislative decisions." Consequently, "influence monies" paid by the mines and mining industry to politicians to exert influence in their favor may even become more obscured than what was intended to be addressed by the legislation; such expenses may not be required to be disclosed on the annual report to the MOAC, as those deductions are expressly disallowed. Furthermore, those expenses relating to "influence monies," while they could be very large for the recipient politician, may never show up on Newmont's Form 10-K submitted to the Securities and Exchange Commission, so long as it does not trigger an amount that is considered to be "material."
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
(a Peruvian mining company), and Bureau de Recherches Géologiques et Minières (BRGM), a 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 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 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:
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".
from the company's Minahasa Raya mine 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 appealed, but on December 1, 2005, Environment Minister Rachmat Witoelar
said the government expected to reach an 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 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, FFI
's Citra Award. The company said that it interfered with Ness' ongoing trial.
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. 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.
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.
award for its Akyem project in Ghana. According to the jury it had destroyed unique natural habitats, carried out forced resettlement of local people and polluted soil and rivers. Newmont described the information as misleading and said the project had been extensively studied by international and national environmental experts, members of the local communities, and by the appropriate governmental agencies and departments.
In March 2010 Newmont admits to pay a compensation "in accordance with the law".
January 2010:Ghanaian authorities are ligitate Newmont Mining for millions of dollars (reportedly 4.9 ). Newmont is accused of negligently spilling cyanide at its Ahafo gold mine in October 2009, resulting in water contamination and fish kills.
Denver, Colorado
The City and County of Denver is the capital and the most populous city of the U.S. state of Colorado. Denver is a consolidated city-county, located in the South Platte River Valley on the western edge of the High Plains just east of the Front Range of the Rocky Mountains...
, USA, is one of the world's largest producers of gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
, with active mines in Nevada
Nevada
Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...
, Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
, Australia, New Zealand, Ghana
Ghana
Ghana , officially the Republic of Ghana, is a country located in West Africa. It is bordered by Côte d'Ivoire to the west, Burkina Faso to the north, Togo to the east, and the Gulf of Guinea to the south...
and Peru
Peru
Peru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....
. Holdings include Santa Fe Gold, Battle Mountain Gold, Normandy Mining, Franco-Nevada Corp and Fronteer Gold. Newmont also has many joint venture relationships.
As of December 31, 2010, Newmont produced approximately 5.4 million equity ounces of gold annually and held proven and probable reserves of about 93.5 million. Newmont employs approximately 34,000 employees and contractors worldwide. Other metals that the company mines include copper
Copper
Copper is a chemical element with the symbol Cu and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish...
and silver
Silver
Silver is a metallic chemical element with the chemical symbol Ag and atomic number 47. A soft, white, lustrous transition metal, it has the highest electrical conductivity of any element and the highest thermal conductivity of any metal...
.
Founded in 1916 by William Boyce Thompson
William Boyce Thompson
William Boyce Thompson, , was an American mining engineer, financier, promoter of Western support for the revolutionary Alexander Kerensky and Bolshevik governments of Russia, philanthropist, and founder of Newmont Mining....
as a diversified holding company, today Newmont remains the only gold company in the Standard & Poor's 500 Index.
Early years
Newmont Mining Corporation was founded in 1916 in New York by ColonelColonel
Colonel , abbreviated Col or COL, is a military rank of a senior commissioned officer. It or a corresponding rank exists in most armies and in many air forces; the naval equivalent rank is generally "Captain". It is also used in some police forces and other paramilitary rank structures...
William Boyce Thompson
William Boyce Thompson
William Boyce Thompson, , was an American mining engineer, financier, promoter of Western support for the revolutionary Alexander Kerensky and Bolshevik governments of Russia, philanthropist, and founder of Newmont Mining....
as a holding company to invest in worldwide mineral
Mineral
A mineral is a naturally occurring solid chemical substance formed through biogeochemical processes, having characteristic chemical composition, highly ordered atomic structure, and specific physical properties. By comparison, a rock is an aggregate of minerals and/or mineraloids and does not...
, oil
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
, and related companies. According to company lore, the name "Newmont" is a portmanteau "New York" and "Montana", reflecting where Thompson made his fortune and where he grew up.
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.
The company acquired interests overseas. For decades around the middle of the 20th century, Newmont had a controlling interest in the Tsumeb
Tsumeb
Tsumeb is a city of 15,000 inhabitants and the largest town in Oshikoto region in northern Namibia. Tsumeb is the home of the world-famous Tsumeb mine, and the "gateway to the north" of Namibia. It is the closest town to the Etosha National Park...
mine in Namibia
Namibia
Namibia, officially the Republic of Namibia , is a country in southern Africa whose western border is the Atlantic Ocean. It shares land borders with Angola and Zambia to the north, Botswana to the east and South Africa to the south and east. It gained independence from South Africa on 21 March...
and in the O'Okiep Copper Company in Namaqualand
Namaqualand
Namaqualand is an arid region of Namibia and South Africa, extending along the west coast over and covering a total area of 170,000 square miles/440,000 km². It is divided by the lower course of the Orange River into two portions - Little Namaqualand to the south and Great Namaqualand to the...
, South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
.
Beginning in 1925, Newmont acquired interests in a Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
oil field
Oil field
An oil field is a region with an abundance of oil wells extracting petroleum from below ground. Because the oil reservoirs typically extend over a large area, possibly several hundred kilometres across, full exploitation entails multiple wells scattered across the area...
. Eventually, Newmont's oil interests included more than 70 blocks in the Louisiana Gulf area and oil and gas production in the North Sea
North Sea oil
North Sea oil is a mixture of hydrocarbons, comprising liquid oil and natural gas, produced from oil reservoirs beneath the North Sea.In the oil industry, the term "North Sea" often includes areas such as the Norwegian Sea and the area known as "West of Shetland", "the Atlantic Frontier" or "the...
.
Newmont discovered the world’s first submicroscopic or “invisible” gold at Carlin
Carlin, Nevada
Carlin is a city located near the western border of Elko County in northeast Nevada, west of the city of Elko. It is part of the Elko Micropolitan Statistical Area. Carlin sits along Interstate 80 at an elevation of approximately . As of the 2000 census, its population was 2,161...
, Nevada
Nevada
Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...
in the early 1960s and began production on the first open pit gold mine in the world. The "Carlin Trend" or "Carlin Unconformity" is the largest gold discovery in North America during the 20th century. In 1971, Newmont began using the heap leaching
Heap leaching
Heap leaching is an industrial mining process to extract precious metals, copper, uranium, and other compounds from ore.The process has ancient origins; one of the classical methods for the manufacture of copperas was to heap up iron pyrite and collect the leachate from the heap, which was then...
technology on sub-mill grade ores
Orés
Orés is a municipality in the Cinco Villas, in the province of Zaragoza, in the autonomous community of Aragon, Spain. It belongs to the comarca of Cinco Villas. It is placed 104 km to the northwest of the provincial capital city, Zaragoza. Its coordinates are: 42° 17' N, 1° 00' W, and is...
there.
In the 1980s, Newmont thwarts five takeover bids – from Consolidated Gold Fields (ConsGold), T. Boone Pickens, Minorco, Hanson Industries
Hanson plc
Hanson plc is a British based international building materials company, headquartered in Maidenhead. Traded on the London Stock Exchange and a constituent of the FTSE 100 Index for many years, the company was acquired by a division of German rival Heidelberg Cement in August 2007.-History:Hanson...
and Sir James Goldsmith – who sought to break Newmont apart and sell its assets to increase shareholder value.
Major growth
After 1987, the company undertook major restructuring. This included the payment of a US$33 per share dividendDividend
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business , or it can be distributed to...
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
Divestment
In finance and economics, divestment or divestiture is the reduction of some kind of asset for either financial or ethical objectives or sale of an existing business by a firm...
program involving all of its copper, oil, gas, and coal
Coal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...
interests.
As a further step in the restructuring, the company moved its headquarters from New York City to Denver in 1988. A decade later, 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 then merged with Santa Fe Pacific Gold Corporation (a former Atchison, Topeka and Santa Fe Railway
Atchison, Topeka and Santa Fe Railway
The Atchison, Topeka and Santa Fe Railway , often abbreviated as Santa Fe, was one of the larger railroads in the United States. The company was first chartered in February 1859...
subsidiary, sold in preparation for the merger that produced the BNSF Railway
BNSF Railway
The BNSF Railway is a wholly owned subsidiary of Berkshire Hathaway Inc., and is headquartered in Fort Worth, Texas. It is one of seven North American Class I railroads and the second largest freight railroad network in North America, second only to the Union Pacific Railroad, its primary...
) to form North America's largest gold producer.
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
Franco-Nevada
Franco-Nevada Corporation is a Canadian company that owns royalties in gold mining and other commodity and natural resource investments. It is traded on the Toronto Stock Exchange and NYSE Arca stock exchange....
Limited. Newmont faced competition in its bit for Normandy from AngloGold
AngloGold
AngloGold was a gold mining company based in South Africa and majority-owned by the Anglo American group. In 2004 it merged with the Ashanti Goldfields Corporation to create the world's second-largest gold producer, AngloGold Ashanti. It's a big company....
. By eventually outbiding the South African company, Newmont became the world's largest gold producer, with an annual production in excess of 8 million ounces.
In 2007, the company eliminates its 1.5 million ounce legacy hedge book to make Newmont the world’s largest unhedged gold producer.
The following year, Newmont acquired Miramar Mining Corporation and its Hope Bay deposit in the Canadian Arctic.
In 2009, Newmont purchased the remaining one-third interest in Boddington Gold Mine from AngloGold Ashanti, bringing its ownership to 100 percent.
In April 2011, the company acquired Canada's Fronteer Gold Inc. for Cdn $2.3 billion. This made the company the world's second-largest gold producer.
Nevada
As of 2011,, Newmont’s Nevada 14 open-pit and four underground operations include CarlinCarlin, Nevada
Carlin is a city located near the western border of Elko County in northeast Nevada, west of the city of Elko. It is part of the Elko Micropolitan Statistical Area. Carlin sits along Interstate 80 at an elevation of approximately . As of the 2000 census, its population was 2,161...
, located west of the city of Elko
Elko, Nevada
Elko is a city in Elko County, Nevada, United States. The population was 18,297 at the 2010 census. It is the county seat of Elko County. The city straddles the Humboldt River....
on the geologic feature known as the Carlin Trend; the Phoenix gold/copper mine, located 10 miles south of Battle Mountain, the Twin Creeks mine, located approximately 15 miles (24.1 km) north of Golconda
Golconda, Nevada
Golconda is an unincorporated community in Humboldt County, Nevada, United States. Located along Interstate 80 in the northwestern part of the state, it is named for the ancient diamond mining center of Golkonda in India. The community lies east of the city of Winnemucca and the Golconda Summit,...
; 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, which utilizes mill capacity at Twin Creeks.
With the acquisition of Fronteer Gold, three additional projects were added to the Newmont portfolio. The flagship property, Long Canyon, is located on a gold trend that is similar to the Carlin Trend in terms of its characteristics and poten¬tial.
Yanacocha, Peru
The properties of Minera Yanacocha S.R.L. (“Yanacocha”) are located approximately 375 miles (604 kilometers) north of LimaLima
Lima is the capital and the largest city of Peru. It is located in the valleys of the Chillón, Rímac and Lurín rivers, in the central part of the country, on a desert coast overlooking the Pacific Ocean. Together with the seaport of Callao, it forms a contiguous urban area known as the Lima...
and 30 miles (48 kilometers) north of Cajamarca
Cajamarca
Cajamarca may refer to:Colombia*Cajamarca, Tolima a town and municipality in Tolima DepartmentPeru* Cajamarca, city in Peru.* Cajamarca District, district in the Cajamarca province.* Cajamarca Province, province in the Cajamarca region....
, in Peru
Peru
Peru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....
. 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
International Finance Corporation
The International Finance Corporation promotes sustainable private sector investment in developing countries.IFC is a member of the World Bank Group and is headquartered in Washington, D.C., United States....
(5%).
Yanacocha’s mining rights consist of concessions granted by the Peruvian government to Yanacocha and a related entity. Yanacocha currently has three active open pit mines, Cerro Yanacocha, La Quinua and Chaquicocha. In addition, reclamation and/or backfilling activities at Carachugo, San Jose and Maqui Maqui are currently underway.
Yanacocha’s gold production for 2010 was 1.5 million ounces (750,000 attributable ounces). As of December 31, 2010, Newmont reported 5.0 million ounces of gold reserves.
In 2011, Newmont’s board of directors granted approval to develop the Conga Project, located in the provinces of Celendín, and Sorochuco Huasmín districts and Cajamarca district of Encañada. Newmont’s ownership interest is identical to Yanacocha. If all permits are secured, the commencement of production is expected in late 2014 or early 2015.
Australia
Newmont acquired its Australian assets as part of the with the acquisition of Normandy MiningNormandy Mining
Normandy Mining was an Australian mining company which predominantly mined gold. Normandy was, during much of the late 20th century, Australia's largest gold miner....
in 2002.
Boddington. Newmont’s newest Australian asset is Boddington
Boddington Gold Mine
The Boddington Gold Mine is a gold and copper mine located 17 km northwest of Boddington, Western Australia.Officially reopened on 3 February 2010, the mine is expected to become Australia's largest gold mine once it reaches full production.-History:...
, which is now Australia's largest gold producer. It has been wholly owned since June 2009, when Newmont acquired the final 33.33% interest from AngloGold Ashanti Australia Limited (“AngloGold”). Boddington poured its first gold in September 2009 and commenced commercial production in November 2009. Boddington produced 728,000 ounces of gold and 58 million pounds of copper in 2010. As of year-end 2010, it reported 20.3 million ounces of gold reserves and 2,360 million pounds of copper reserves.
Jundee. Newmont began production at Jundee
Jundee Gold Mine
The Jundee Gold Mine is an active gold mine in Western Australia, approximately 55 km north east of the town of Wiluna, owned by Newmont Mining.-History:...
operations in 1995. It is 100% owned and located approximately 435 miles (700 kilometers) northeast of Perth, Western Australia
Perth, Western Australia
Perth is the capital and largest city of the Australian state of Western Australia and the fourth most populous city in Australia. The Perth metropolitan area has an estimated population of almost 1,700,000....
.
Newmont mined ore at Jundee solely from underground sources in 2010, and produced 335,000 ounces of gold in 2010. As of December 31, 2010, Jundee had a reported 0.8 million ounces of gold reserves.
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) 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 Tanami operations have been wholly owned since April 2003, when Newmont acquired the minority interests. Operations today are predominantly focused on the Callie underground mine at Dead Bullock Soak and ore is processed through the Granites treatment plant. During 2010, the Tanami operations produced 250,000 ounces of gold. As of December 31, 2010, it had a reported 2.0 million ounces of gold reserves.
Kalgoorlie. The Kalgoorlie
Super Pit gold mine
The Fimiston Open Pit, colloquially known as the Super Pit, is Australia's largest open cut gold mine. The Super Pit is located off the Goldfields Highway on the south-east edge of Kalgoorlie-Boulder, Western Australia. The pit is oblong in shape and is approximately 3.5 kilometres long, 1.5...
operations comprise the Fimiston open pit (commonly referred to as the Super Pit
Super Pit gold mine
The Fimiston Open Pit, colloquially known as the Super Pit, is Australia's largest open cut gold mine. The Super Pit is located off the Goldfields Highway on the south-east edge of Kalgoorlie-Boulder, Western Australia. The pit is oblong in shape and is approximately 3.5 kilometres long, 1.5...
) 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.
New Zealand
Newmont acquired its Waihi assets as part of the with the acquisition of Normandy MiningNormandy Mining
Normandy Mining was an Australian mining company which predominantly mined gold. Normandy was, during much of the late 20th century, Australia's largest gold miner....
in 2002.
The Waihi operation produced 108,000 ounces of gold in 2010 and reported 0.5 million ounces of gold reserves at year-end.
Martha. The Martha Mine
Martha Mine
The Martha Mine is a gold mine owned by the Newmont Mining Corporation in the New Zealand town of Waihi.-History:William Nicholl marked out a claim, calling it "Martha" after a family member. Several smaller claims were later merged to form the Martha Company. By 1882 the first battery to break...
operations (100% owned) are located within the town of Waihi
Waihi
Waihi is a town in Hauraki District in the North Island of New Zealand, especially notable for its history as a gold mine town. It had a population of 4,503 at the 2006 census....
, located approximately 68 miles (110 kilometers) southeast of Auckland
Auckland
The Auckland metropolitan area , in the North Island of New Zealand, is the largest and most populous urban area in the country with residents, percent of the country's population. Auckland also has the largest Polynesian population of any city in the world...
, New Zealand. The open pit mine has operated over historic underground gold mine workings since 1988.
Favona. The Favona underground mine began extracting ore at the end of 2006.
Batu Hijau, Sumbawa, Indonesia
Newmont operates the Batu Hijau mineBatu Hijau mine
The Batu Hijau mine is an open pit copper-gold mine operated by Newmont Mining Corporation's subsidiary company PT Newmont Nusa Tenggara . The mine is located east of the Indonesian capital Jakarta on Sumbawa, in southern Taliwang Regency, an island in West Nusa Tenggara...
on the island of Sumbawa
Sumbawa
Sumbawa is an Indonesian island, located in the middle of the Lesser Sunda Islands chain, with Lombok to the west, Flores to the east, and Sumba further to the southeast. It is in the province of West Nusa Tenggara....
in the Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
in the province of West Nusa Tenggara
West Nusa Tenggara
West Nusa Tenggara is a province in south-central Indonesia. The province encompasses the western portion of the Lesser Sunda Islands, except for Bali as the Wallace line running the length of the Lombok Strait forms the western boundary of the province....
through its subsidiary
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...
company P.T. Newmont Nusa Tenggara which is a joint venture between Newmont, Sumitomo Corporation
Sumitomo Corporation
Sumitomo Corporation is one of the largest worldwide trading company , and is a diversified corporation. Sumitomo is headquartered in the Harumi Island Triton Square Office Tower Y in Chūō, Tokyo, Japan...
and P.T. Pukuafu Indah.
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 2010, Batu Hijau produced 542 million pounds of copper (269 million attributable pounds) and 737,000 ounces of gold (364,000 attributable ounces). At December 31, 2010, it reported 3,760 million pounds of copper reserves and 3.7 million ounces of gold reserves.
In 2008, the Indonesian government threatened to terminate the contract of P.T. Newmont Nusa Tenggara after accusing it of failing to meet its divestment obligations. On April 1, 2009 international arbitrator
Arbitral tribunal
An arbitral tribunal is a panel of one or more adjudicators which is convened and sits to resolve a dispute by way of arbitration. The tribunal may consist of a sole arbitrator, or there may be two or more arbitrators, which might include either a chairman or an umpire...
s and its partner sided with Newmont rejecting Jakarta
Jakarta
Jakarta is the capital and largest city of Indonesia. Officially known as the Special Capital Territory of Jakarta, it is located on the northwest coast of Java, has an area of , and a population of 9,580,000. Jakarta is the country's economic, cultural and political centre...
's request to have their contract revoked, which would have forced the company to walk away from the property without any compensation, instead Newmont is forced to sell a 17% stake in an Indonesian subsidiary within 180 days.
In 2011, subsidiaries of Newmont and Sumitomo Corporation divested a 7 percent investment in PTNNT. Pusat Investasi Pemerintah (PIP), designated as the buyer by the Indonesian Government, signed a sale and purchase agreement for the shares worth $246.8 million. Nusa Tenggara Partnership B.V., which holds Newmont’s shares in PTNNT – together with shares held by a subsidiary of Sumitomo Corporation of Japan – now owns 49 percent of PTNNT. Of that amount, Newmont will directly own 27.56 percent of PTNNT and has another 17 percent economic interest through financing arrangements with existing shareholders.
Ghana
The Ahafo operation (100% owned) is located in the Brong Ahafo Region of GhanaGhana
Ghana , officially the Republic of Ghana, is a country located in West Africa. It is bordered by Côte d'Ivoire to the west, Burkina Faso to the north, Togo to the east, and the Gulf of Guinea to the south...
, approximately 180 miles (290 kilometers) northwest of Accra
Accra
Accra is the capital and largest city of Ghana, with an urban population of 1,658,937 according to the 2000 census. Accra is also the capital of the Greater Accra Region and of the Accra Metropolitan District, with which it is coterminous...
. Ahafo poured its first gold on July 18, 2006 and commenced commercial production in August 2006. Newmont operates four open pits at Ahafo with reserves contained in 11 pits. Commercial production in the fourth pit, Amoma, began in October 2010.
Ahafo produced 545,000 ounces of gold in 2010 and at December 31, 2010, reported 10.0 million ounces of gold reserves.
Additionally, Newmont’s Akyem
Akyem
The Akyem are an Akan people. The term Akyem is used to describe a group of three states: Akyem Abuakwa, Akyem Kotoku and Akyem Bosome. These nations are located primarily in the eastern regions of modern-day Ghana. The term is also used to describe the general area where the Akyem ethnic group...
project (100% owned) is located approximately 80 miles (125 kilometers) northwest of Accra. In January 2010, Newmont received the mining lease. Upon permit approval, production is slated to begin in late 2013 or early 2014. At December 31, 2010, Newmont reported 7.2 million ounces of gold reserves.
Canada
Newmont owns 100% of the Hope Bay project, a large undeveloped gold project in the Kitikmeot RegionKitikmeot Region, Nunavut
Kitikmeot Region is an administrative region of Nunavut, Canada. It consists of the southern and eastern parts of Victoria Island with the adjacent part of the mainland as far as the Boothia Peninsula, together with King William Island and the southern portion of Prince of Wales Island...
of Canada. Hope Bay is an 80 kilometer district in the Canadian arctic and is one of the last known undeveloped greenstone belts in the world.
In 2010, Newmont commenced an underground decline at the Doris North deposit. A construction decision should be made by the end of 2011. ref>http://newmont.com/sites/default/files/Hope_Bay_2011.pdf
Mexico
Newmont has a 44% interest in La Herradura, which is located in Mexico’s Sonora desert. La Herradura is operated by Fresnillo PLCFresnillo plc
Fresnillo plc is a Mexican-based precious metals mining company incorporated in the United Kingdom and headquartered in Mexico City in Polanco, next door to the Palacio de Hierro department store. Fresnillo is the world's largest producer of silver from ore and Mexico's second-largest gold miner...
(which owns the remaining 56% interest) and comprises an open pit operation with run-of-mine heap leach processing. La Herradura produced 174,000 attributable ounces of gold in 2010. As of December 31, 2010, it had 2.3 million ounces of gold reserves.
Former operations
Newmont has purchased and sold a number of operations in recent years:- Golden Grove MineGolden Grove MineThe Golden Grove Mine is a copper, lead, silver, zinc and gold mine located 52 km south-south-east of Yalgoo, Western Australia.It is operated by Minerals and Metals Group, which was formed after its parent company, China Minmetals, bought the mine from OZ Minerals in June 2009...
: Owned by Normandy Mining Limited since 1991, Golden Grove was acquired by Newmont Australia Ltd in February 2002 when Newmont took over Normandy. Newmont sold on the mine to Oxiana LimitedOxiana LimitedOxiana Limited was an Australia-based copper and gold miner and exploration company. The company's operations were located in Laos, Australia, Cyprus and the Philippines...
in June 2005 for A$ 265 million.
- Pajingo: Pajingo (100% owned) is an underground mine located approximately 93 miles (150 kilometers) southwest of Townsville, QueenslandTownsville, QueenslandTownsville is a city on the north-eastern coast of Australia, in the state of Queensland. Adjacent to the central section of the Great Barrier Reef, it is in the dry tropics region of Queensland. Townsville is Australia's largest urban centre north of the Sunshine Coast, with a 2006 census...
and 45 miles (72 kilometers) south of the local township of Charters Towers. Newmont sold the mine in late 2007; it is now owned by Conquest MiningConquest MiningConquest Mining is a mining company based in Australia. In September 2010, it bought a 40% stake in the Pajingo mine in northern Queensland. Conquest is also developing a silver-gold-copper resource at Silver Hill and is involved in a number of other goldmining projects...
.
- Bronzewing Gold MineBronzewing Gold MineThe Bronzewing Gold Mine is a gold mine located approximately 83 km north-east of Leinster, Western Australia. The mine, owned by Navigator Resources Limited, was, until early 2010, in care and maintenance after its previous owner, View Resources Limited went into administration.The mine is...
: View Resources purchased the mine in July 2004 from Newmont for A$9.0 million, a package that also included the McClure mining operation, 8 km west of Bronzewing.
- Wiluna Gold MineWiluna Gold MineThe Wiluna Gold Mine is an active gold mine in Western Australia near the town of Wiluna. The mine was active from 1984 till its closure in 2007; when it was put into care and maintenance; and again since late 2008....
: Also part of the Normandy acquisition, Gowit Limited, later Agincourt Resources, purchased the mine on 10 December 2003 from Newmont for shares and $3.65 million in cash.
- ZarafshanZarafshanZarafshan is a city of over 65,000 inhabitants in the center of Uzbekistan's Navoiy Province. Located in the Kyzylkum desert, it receives water from the Amudarya by a 220-km pipeline....
: Newmont was part of a joint venture gold project in Uzbekistan, the first major Western investment in the region since the breakup of the Soviet Union. A difficult place to operate, Uzbekistan expropriates the company’s assets in 2006.
- Kori Kollo: The Kori Kollo open pit mine is on a high plain in northwestern BoliviaBoliviaBolivia officially known as Plurinational State of Bolivia , is a landlocked country in central South America. It is the poorest country in South America...
near OruroOruro, BoliviaOruro is a city in Bolivia with a population of 235,393 , located about equidistant between La Paz and Sucre at approximately 3710 meters above sea level. It is the capital of the department of Oruro....
, on government mining concessions issued to a Bolivian corporation, Empresa Minera Inti Raymi S.A. (“Inti Raymi”), in which Newmont had an 88% interest. The remaining 12% was owned by Mrs. Beatriz Rocabado. Inti RaymiInti RaymiDuring the Inca Empire, the Inti Raymi was the most important of four ceremonies celebrated in Cusco, as related by Inca Garcilaso de la Vega. The celebration took place in the Haukaypata or the main plaza in the city....
owned and operated the mine. On July 23, 2009, Newmont announced the transfer of its interest in Empresa Minera Inti Raymi S.A., which owned the Kori Kollo gold mine and Kori Chaca gold mine, to Compania Procesadora de Minerales S.A. ("CPM"), a company controlled by Newmont's long-time Bolivian partner Jose Mercado.
- MinahasaMinahasaThe Minahasa are an ethnic group located in the North Sulawesi province of Indonesia, formerly known as North Celebes...
: Newmont owns 80% of MinahasaMinahasaThe Minahasa are an ethnic group located in the North Sulawesi province of Indonesia, formerly known as North Celebes...
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 SulawesiSulawesiSulawesi is one of the four larger Sunda Islands of Indonesia and is situated between Borneo and the Maluku Islands. In Indonesia, only Sumatra, Borneo, and Papua are larger in territory, and only Java and Sumatra have larger Indonesian populations.- Etymology :The Portuguese were the first to...
, approximately 1,500 miles (2,414 kilometers) northeast of Jakarta. Mining was completed in late 2001 and gold production was completed in 2004.
- Golden Giant: Newmont's Canadian operations previously included two underground mines. Golden Giant (100% owned) was located approximately 25 miles (40 kilometers) east of Marathon, OntarioMarathon, OntarioMarathon is a town in the Canadian province of Ontario, located in Thunder Bay District, on the north shore of Lake Superior north of Pukaskwa National Park, in the heart of the Canadian Shield.- History :...
, Canada, and had 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.
- HollowayHolloway-Place names:United Kingdom*Holloway, London, inner-city district in the London Borough of Islington**Holloway , originally a mixed population prison, but now a female-only prison...
: Holloway was located approximately 35 miles (56 kilometers) east of Matheson, Ontario, and about 400 miles (644 kilometers) northeast of Golden Giant. It was in production since 1996. On November 6, 2006, Newmont completed the sale of the Holloway mine to St. Andrews Goldfields Ltd. resulting in a $13 pre-tax gain.
Sustainability
Newmont’s sustainability programs and performance can be found at Beyond the MineThe company is a signatory participant of the Voluntary Principles on Security and Human Rights.
Some of its key social and environmental responsibility milestones include:
- 1999: Became a founder of the Global Mining Initiative to create a practical strategy for sustainable development.
- 2001: Became a founding member of the International Council on Mining and Metals to strengthen the contribution of mining, minerals and metals to sustainable development.
- 2002: Became a member of the Extractive Industries Transparency Initiative, designed to reduce bribery and corruption by disclosing revenue and payments, and to drive sustainable development.
- 2004: Committed to aligning operations and strategies with 10 universally accepted principles in the areas of human rights, labor, environment and anti-corruption as a member of the United Nations Global Compact.
- 2004: Helped launch the World Economic Forum’s Partnering Against Corruption Initiative to fight global corruption in business.
- 2005: Became a signatory to the International Cyanide Management CodeInternational Cyanide Management CodeThe International Cyanide Management Code is voluntary code of industry practices for cyanide handing in metal mining and processing. Through a process started in 2000, it was jointly promulgated in 2002 by the United Nations Environment Program and the predecessor to the International Council on...
, an industry-controlled code for management of cyanide in mining.
- 2007: Became the first gold company to be included in the Dow Jones Sustainability World Index, which independently evaluates companies' long-term economic, environmental and social performance, publicly identifying the top 10 percent of performers in areas of sustainability.
- 2008: Named to the Carbon Disclosure Project’s Leadership Index for displaying the most professional approach to climate change disclosure practices.
- 2009: Completed a Community Relationships Review, an in-depth detailed analysis of the state of local community relationships that has been completed in the industry.
- 2010: Newmont was:
- Recognized by Corporate Responsibility magazine on its annual list of 100 Best Corporate Citizens.
- Honored by The Climate Registry for achieving "Climate Registered" status.
- Featured in the Carbon Disclosure Project's "Carbon Disclosure Leadership Index."
- Received the 2010 Secretary of Defense Employer Support Freedom Award.
Years of Taking Questionably Legal Tax Deductions in Nevada
Despite an outdated tax structure built into the Nevada Constitution in the 1800s, which significantly favors only the mining industry by allowing mines to pay tax on net proceeds, as opposed to gross proceeds, the mining industry may have further been engaged in depriving the State of Nevada of money by taking questionably legal tax deductions.March 11, of 2011, "[i]n a swift move following an uncomfortable exchange with lawmakers over the state’s inability to audit the mining industry’s tax deductions, Gov. Brian Sandoval removed his director of taxation...",Dino DiCianno. Former Director DiCianno, who was consequentially replaced by Chris Nielsen,"...admitted to lawmakers that he has had no one trained to audit the mining industry’s net proceeds tax returns for at least two years."
However, on March 23, 2011, Republican Assembly Minority Floor Leader Pete Goicoechea of Erureka County in Nevada, the county where a majority of Newmont's Nevada operations are located, went on the record, stating that "'it looks like it’s been seven or eight years' since the Nevada Department of Taxation did field audits of Nevada mines that pay net proceeds taxes..."'. Goicoechea also went on to opine that “…the field audits probably won’t find that the mining companies did anything illegal because the companies have ‘the best audit teams in the world.'" However, despite some of the mines being audited by large accounting firms such as PricewaterhouseCoopers, Goicoechea may have put too much faith in the mining industry's "decision makers" and their auditors, as this inaction to hold the mining industry accountable may have resulted in lost revenues due to a number Counties in Nevada as well.
According to an April 14, 2011 letter from Nevada Mining Association President Tim Crowley, and statements made by Republican Assembly Minority Floor Leader Pete Goicoechea, it appears plausible that "...Nevada mines have routinely claimed illegal tax deductions..." The letter was directed to Chris Nielsen, and briefly summarized those deductions that the mining industry had been taking, despite not being expressly allowed to do so under the laws of Nevada.
As a response to the mining industry's decision-makers' risk-taking actions regarding disallowed tax deductions, State Senate Majority Leader Steven Horsford on March 21, 2011, "...called for the Nevada Tax Commission to issue emergency regulations that would narrow the deductions mining companies are allowed to take when calculating their tax bills.." but "...[n]either the governor nor legislators have accused mining companies of not paying all due taxes, but Democrats have said they don't pay enough taxes. In Nevada, mining companies pay in state taxes no more than 5 percent of 'net proceeds [as opposed to gross proceeds],' an amount that covers the value of minerals they take from the ground minus deductions for the cost of extraction, transportation, processing and other expenses.
Yet, despite the Tax Commission knowing they did not have anyone trained to audit them, despite the fact that the mining industry had not been audited in years, and despite the mines having competent directors and industry professionals who should have known better, and despite the mines having the "best auditors in the world," the Nevada Tax Commission nonetheless apparently allowed this behavior to go on for years, possibly due to what is known as "regulatory capture."
"The paper trail of commission meeting transcripts and amended regulations raises the question of whether Nevada’s mining regulators have fallen prey to what economists call 'regulatory capture' — the term used to describe an agency that acts in the interest of the industry it was established to regulate. For example, critics say the 2008 financial crisis was caused by banking regulators who were captured by the financial services industry and failed to spot trouble on the horizon...Regulatory capture is rarely the result of corruption. It is more commonly the outcome of relationship-building between regulators and industry employees...When that happens, regulators often start to trust information provided by the industry over that contributed by the public, Parker said."
The notion of "regulatory capture" seems to be a plausible theory as to why the mining industry was allowed to participate in this behavior for so long in light of the statements noted above by Goicoechea - which took place several weeks prior to the Nevada Mining Association's admission of taking tax deductions not allowed under Nevada's laws. Additionally, regulators apparently had close ties with industry employees as well. For instance, John Marvel, a lawyer in Elko, NV, represents mining clients, is a member of the Nevada Mining Association, receives income from Marvel Minerals (according to his financial disclosure report), and he is also on the Nevada Tax Commission, which is the head of the Nevada Department of Taxation - the regulatory agency that was supposed to be preventing the mining industry from participating in such unethical and arguably illegal behavior.
Additionally, Robert J Miller, who served as Nevada's Governor from Jan 4, 1989 until January 4, 1999, served as a Director of Newmont Mining Corp., from 1999 to April 23, 2010. Miller was later succeeded by the late Kenny Guinn
Kenny Guinn
Kenneth Carroll "Kenny" Guinn was an American businessman, educator and politician. He was the 27th Governor of Nevada from 1999 to 2007. He was a member of the Republican Party and a former member of the Democratic Party....
who proposed a tax restructuring during the 2003 legislative session that was met with opposition from anti-tax business groups and many anti-tax Republicans.
Although the Nevada Department of Taxation seemed to fail to regulate the mining industry, and despite the notion that Mining Oversight and Accountability Commission is supposed to to oversee regulations for mining safety and taxation, it appears too that the "world's best auditors" of the publicly traded mines may have also failed to disclose this questionably legal behavior to the Securities and Exchange Commission, as required by FIN 48. FIN 48 an interpretation of FASB 109 requires companies to analyze the technical merits of their tax positions and determine the likelihood that these positions will be sustained if they were ever examined by the taxing authorities (or litigation).
However, in the 76th Session of the Nevada Legislature (2011), despite opposition from the mining industry, Senate Bill 493 was passed, which was one of two controversial mining-related measures. Senate Bill 493 "...creates the Mining Oversight and Accountability Commission, a seven-member panel to oversee regulations for mining safety and taxation. An amendment to the measure also eliminates the major deductions mining companies may take when calculating net proceeds of minerals taxes." However, some representatives of the mining industry appeared reluctant to adhere to some of the measures: "'If you don’t let us deduct this, we’ll deduct something else.'" A Newmont Mining Corp. staffer used this argument to win the employee housing deduction, saying employee housing cut travel costs."
Regardless of the threatening statements made by Newmont's staffer, the mines in Nevada, including Newmont Mining Corporation, will have to report all of their deductions to the Mining Oversight and Accountability Commission, which was created under S.B. 493.
S.B. 493; Nevada's Response to the Mining Industry's Behavior
According to memo issued by Deloitte, an independent accounting firm with offices in Nevada,"S.B. 493 creates the Mining Oversight and Accountability Commission (“MOAC”) that will provide oversight relating to the NTC and the NDOT with respect to the “taxation of the net proceeds of minerals.” Members of MOAC will be appointed by the Governor.5 Effective January 1, 2012, S.B. 493 also makes various changes pertaining to the deductions available in calculating the Net Proceeds of Minerals Tax. For example, among various changes in this regard, the new law: (1) limits [sp]deductible mineral extraction costs to “direct costs for activities performed in the State of Nevada;” (2) excludes from deduction employee severance costs, employee housing costs, trade association dues, 'costs of mineral exploration,' and expenses for 'governmental relations' or to 'influence legislative decisions;' and (3) includes employee travel costs as an allowable deduction, but limits the [sp]deductible amount to those costs for travel within Nevada that is directly related to mining operations within the state.” S.B. 493 also specifies that the “manner prescribed” by NTC regulation for calculating the depreciation deduction (based on amortization of the original cost of specified assets) shall be subject to approval by the MOAC. Further, S.B. 493 requires the NDOT to report annually to the MOAC “the expenses and deductions of each mining operation in … Nevada.”
S.B. 493, on the surface, appears to help with transparency, accountability, and scaling back on regulatory capture, by expressly stating that the mines will have to report their deductions, and that they will be disallowed from being able to deduct "...expenses for 'governmental relations' or to 'influence legislative decisions." However, this apparently does not prevent the mines from continuing to spend shareholders investments "...for 'governmental relations' or to 'influence legislative decisions." Consequently, "influence monies" paid by the mines and mining industry to politicians to exert influence in their favor may even become more obscured than what was intended to be addressed by the legislation; such expenses may not be required to be disclosed on the annual report to the MOAC, as those deductions are expressly disallowed. Furthermore, those expenses relating to "influence monies," while they could be very large for the recipient politician, may never show up on Newmont's Form 10-K submitted to the Securities and Exchange Commission, so long as it does not trigger an amount that is considered to be "material."
Batu Hijau Mine - Employees Walk Out for Overtime Pay
"A strike...ended on Friday, 6 August, after some 1,500 miners of the PT NNT labour union, affiliated to the Chemical, Energy, Mine Workers’ Union of the Indonesia Workers’ Union, agreed to await an overtime pay judgment from a provincial government. The strike started on 1 August and completely shut US-based Newmont Mining Corp.’s rich Batu Hijau mines and operations on Sumbawa Island. The dispute started some three weeks after the Manpower and Transmigration Ministry of West Nusa Tenggara Province issued an order that management was in arrears on Rp 126 billion (US$13.8 million) in overtime wages to some 1,919 workers dating back to 2008."Nevada Operations - Mine Managers Fined for Death in Nevada Mine
"The Mine Safety and Health Administration also announced Tuesday that four supervisors for the Denver-based mining company have agreed to pay a combined $60,000 in individual penalties for their role in the accident at the Midas Mine north of Elko in June 2007. The agency said managers "showed a disregard for the miners' welfare" and acted with "more than ordinary negligence" before the victim fell through a sinkhole while operating a large loader about 200 feet below the entrance of the mine."Yanacocha mine
Yanacocha
Yanacocha is a gold mine in northern Peru, considered to be the second largest gold mine in the world, producing over US$7 billion worth of gold to date...
gold mine in northern Peru
Peru
Peru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....
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
Buenaventura (Mining company)
Buenaventura is the largest owner of mining rights in Peru among precious metals companies. The Company is engaged in the mining, processing, development and exploration of gold, silver, coal, lead, molybdenum and zinc via wholly owned mines, as well as through its participation in joint...
(a Peruvian mining company), and Bureau de Recherches Géologiques et Minières (BRGM), a 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
Jacques Chirac
Jacques René Chirac is a French politician who served as President of France from 1995 to 2007. He previously served as Prime Minister of France from 1974 to 1976 and from 1986 to 1988 , and as Mayor of Paris from 1977 to 1995.After completing his studies of the DEA's degree at the...
had sent a letter to then Peruvian President Alberto Fujimori
Alberto Fujimori
Alberto Fujimori Fujimori served as President of Peru from 28 July 1990 to 17 November 2000. A controversial figure, Fujimori has been credited with the creation of Fujimorism, uprooting terrorism in Peru and restoring its macroeconomic stability, though his methods have drawn charges of...
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
Vladimiro Montesinos
Vladimiro Ilyich Montesinos Torres was the long-standing head of Peru's intelligence service, Servicio de Inteligencia Nacional , under President Alberto Fujimori. In 2000, secret videos, which he had recorded, were televised that showed his bribing an elected congressman to leave the opposition...
, the Peruvian intelligence chief who has since been found guilty of embezzlement
Embezzlement
Embezzlement is the act of dishonestly appropriating or secreting assets by one or more individuals to whom such assets have been entrusted....
, illegally assuming his post as intelligence chief, abuse of power, influence peddling
Influence peddling
Influence peddling is the illegal practice of using one's influence in government or connections with persons in authority to obtain favors or preferential treatment for another, usually in return for payment. Also called traffic of influence or trading in influence ...
and bribing
Bribery
Bribery, a form of corruption, is an act implying money or gift giving that alters the behavior of the recipient. Bribery constitutes a crime and is defined by Black's Law Dictionary as the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or...
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 in co-production with The New York Times
The New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...
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: 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!
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
Ecuador
Ecuador , officially the Republic of Ecuador is a representative democratic republic in South America, bordered by Colombia on the north, Peru on the east and south, and by the Pacific Ocean to the west. It is one of only two countries in South America, along with Chile, that do not have a border...
which had a few years ago exploded into the Cenepa War
Cenepa War
The Cenepa War , also known as the Alto Cenepa War, was a brief and localized military conflict between Ecuador and Peru, fought over control of a disputed area on the border between the two countries...
. 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, Sulawesi, Indonesia
In August 2004, the Indonesian Ministry of Environment filed a US$133.6 million civil lawsuit against Newmont, claiming tailingsTailings
Tailings, also called mine dumps, slimes, tails, leach residue, or slickens, are the materials left over after the process of separating the valuable fraction from the uneconomic fraction of an ore...
from the company's Minahasa Raya mine polluted
Water pollution
Water pollution is the contamination of water bodies . Water pollution occurs when pollutants are discharged directly or indirectly into water bodies without adequate treatment to remove harmful compounds....
Buyat Bay
Buyat Bay
Buyat Bay is small bay on the south coast of Minahassa Peninsula on the north of Sulawesi island of Indonesia. Since 1996, Newmont Mining Corporation under its subsidiary company, PT Newmont Minahasa Raya, has been using the bay as the tailing dumping ground for its gold mining activities...
in the North Sulawesi
Sulawesi
Sulawesi is one of the four larger Sunda Islands of Indonesia and is situated between Borneo and the Maluku Islands. In Indonesia, only Sumatra, Borneo, and Papua are larger in territory, and only Java and Sumatra have larger Indonesian populations.- Etymology :The Portuguese were the first to...
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
South Jakarta
South Jakarta is a city within Jakarta Special District, Indonesia. It had a population of 2,057,080 at the 2010 Census, and is the third most populous among the five cities of Jakarta, after East Jakarta and West 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
Arbitration
Arbitration, a form of alternative dispute resolution , is a legal technique for the resolution of disputes outside the courts, where the parties to a dispute refer it to one or more persons , by whose decision they agree to be bound...
. Environmentalists urged for the suit to be appealed, but on December 1, 2005, Environment Minister Rachmat Witoelar
Rachmat Witoelar
Rachmat Nadi Witoelar Kartaadipoetra or Rachmat Witoelar was the State Minister of Environment of Indonesia in 2004-2009....
said the government expected to reach an out-of-court settlement
Settlement (law)
In law, a settlement is a resolution between disputing parties about a legal case, reached either before or after court action begins. The term "settlement" also has other meanings in the context of law.-Basis:...
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 negotiating team was led by chief Economics Minister Aburizal Bakrie
Aburizal Bakrie
In this Indonesian name, the name "Bakrie" is a family name, and the person should be referred to by the family name "Bakrie".Aburizal Bakrie is an Indonesian entrepreneur and politician.- Family business :...
. 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, FFI
Indonesian Film Festival
Festival Film Indonesia or known as FFI is an annual film festival organised by Indonesian Film Festival Committee...
's Citra Award. The company said that it interfered with Ness' ongoing trial.
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. 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.
A week after being found not guilty of criminal charges, Richard Ness sued The New York Times
The New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...
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.
Akyem, Ghana: Hall of Shame 'winner' 2009 of the Public Eye award
Newmont received the 2009 Public EyePublic Eye Awards
The Public Eye, held every year since 2000, is a counter-event to the annual meeting of the World Economic Forum in Davos. The Public Eye celebrated its ten-year anniversary on 28 January 2009....
award for its Akyem project in Ghana. According to the jury it had destroyed unique natural habitats, carried out forced resettlement of local people and polluted soil and rivers. Newmont described the information as misleading and said the project had been extensively studied by international and national environmental experts, members of the local communities, and by the appropriate governmental agencies and departments.
In March 2010 Newmont admits to pay a compensation "in accordance with the law".
January 2010:Ghanaian authorities are ligitate Newmont Mining for millions of dollars (reportedly 4.9 ). Newmont is accused of negligently spilling cyanide at its Ahafo gold mine in October 2009, resulting in water contamination and fish kills.
External links
- Newmont Mining Corporation
- BuyatBayFacts.com maintained by Newmont Mining Corporation
- Beyond the Mine - Newmont's Environmental Social Responsibility
- Trust In Gold
- International Council on Mining & Metals
- "The Curse of Inca Gold", Frontline/World, October 2005
- "The
- INDONESIA: Report Heightens Pollution Dispute with Newmont Mining from The New York Times, reprinted by CorpWatchCorpWatchCorpWatch is a research group based in San Francisco, California, USA. The group's mission is non-profit investigative research and journalism to expose corporate malfeasance and to advocate for multinational corporate accountability and transparency...
- Project Underground report
- SEC allows Newmont Mining to Block NYC Pension Funds' Environmental Resolution
- PublicEye
- http://nenevadaregional.com/pdf/economy_Newmont.pdf Newmont public statement about Newmont's North American Regional Office and their Nevada Operations.