Table of Contents

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form 10-Q
(Mark One)
 	 	 	
þ	 	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934	
For the Quarterly Period Ended June 30, 2010
or
 	 	 	
o	 	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934	
For the transition period from                      to                     
Commission File Number: 001-31240

NEWMONT MINING CORPORATION
(Exact name of registrant as specified in its charter)
 	 	 	
Delaware
(State or Other Jurisdiction of
Incorporation or Organization)	 	84-1611629
(I.R.S. Employer
Identification No.)	
 	 	 	
6363 South Fiddler’s Green Circle	 	 	
Greenwood Village, Colorado	 	80111	
(Address of Principal Executive Offices)	 	(Zip Code)	
Registrant’s telephone number, including area code (303) 863-7414
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. þ Yes o No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). þ Yes o No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “accelerated filer” and “large accelerated filer” in Rule 12-b2 of the Exchange Act. (Check one):
 	 	 	 	 	 	 	
Large accelerated filer þ	 	Accelerated filer o	 	Non-accelerated filer o	 	Smaller reporting company o	
 	 	 	 	(Do not check if a
smaller reporting company.)	 	 	
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12-b2 of the Exchange Act). o Yes þ No
There were 484,698,098 shares of common stock outstanding on July 21, 2010 (and 7,682,369 exchangeable shares).

 

 

TABLE OF CONTENTS
 	 	 	 	 	
 	 	Page	 	
PART I	
 	 	 	 	 	
ITEM 1. FINANCIAL STATEMENTS	 	 	1	 	
 	 	 	 	 	
Condensed Consolidated Statements of Income	 	 	1	 	
 	 	 	 	 	
Condensed Consolidated Statements of Cash Flows	 	 	2	 	
 	 	 	 	 	
Condensed Consolidated Balance Sheets	 	 	3	 	
 	 	 	 	 	
Notes to Condensed Consolidated Financial Statements	 	 	4	 	
 	 	 	 	 	
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION	 	 	42	 	
 	 	 	 	 	
Overview	 	 	42	 	
 	 	 	 	 	
Selected Financial and Operating Results	 	 	43	 	
 	 	 	 	 	
Consolidated Financial Results	 	 	43	 	
 	 	 	 	 	
Results of Consolidated Operations	 	 	50	 	
 	 	 	 	 	
Liquidity and Capital Resources	 	 	56	 	
 	 	 	 	 	
Environmental	 	 	58	 	
 	 	 	 	 	
Accounting Developments	 	 	59	 	
 	 	 	 	 	
Non-GAAP Financial Measures	 	 	59	 	
 	 	 	 	 	
Safe Harbor Statement	 	 	60	 	
 	 	 	 	 	
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	 	 	61	 	
 	 	 	 	 	
ITEM 4. CONTROLS AND PROCEDURES	 	 	63	 	
 	 	 	 	 	
PART II	
 	 	 	 	 	
ITEM 1. LEGAL PROCEEDINGS	 	 	64	 	
 	 	 	 	 	
ITEM 1A. RISK FACTORS	 	 	64	 	
 	 	 	 	 	
ITEM 2. ISSUER PURCHASES OF EQUITY SECURITIES	 	 	64	 	
 	 	 	 	 	
ITEM 3. DEFAULTS UPON SENIOR SECURITIES	 	 	64	 	
 	 	 	 	 	
ITEM 5. OTHER INFORMATION	 	 	64	 	
 	 	 	 	 	
ITEM 6. EXHIBITS	 	 	64	 	
 	 	 	 	 	
SIGNATURES	 	 	65	 	
 	 	 	 	 	
EXHIBIT INDEX	 	 	66	 	
 	 	 	 	 	
  Exhibit 10.1	
  Exhibit 10.2	
  Exhibit 10.3	
  Exhibit 10.4	
  Exhibit 12.1	
  Exhibit 31.1	
  Exhibit 31.2	
  Exhibit 32.1	
  Exhibit 32.2	
  EX-101 INSTANCE DOCUMENT	
  EX-101 SCHEMA DOCUMENT	
  EX-101 CALCULATION LINKBASE DOCUMENT	
  EX-101 LABELS LINKBASE DOCUMENT	
  EX-101 PRESENTATION LINKBASE DOCUMENT	
  EX-101 DEFINITION LINKBASE DOCUMENT	

Table of Contents
PART I—FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
NEWMONT MINING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 (unaudited, in millions except per share)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Six Months Ended	 	
	 	June 30,	 	 	June 30,	 	
	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
 	 		
Sales (Note 3)	 	$	2,153	 	 	$	1,602	 	 	$	4,395	 	 	$	3,138	 	
 	 		
Costs and expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs applicable to sales (1) (Note 3)	 	 	858	 	 	 	696	 	 	 	1,733	 	 	 	1,435	 	
Amortization (Note 3)	 	 	231	 	 	 	176	 	 	 	455	 	 	 	367	 	
Reclamation and remediation (Note 4)	 	 	13	 	 	 	12	 	 	 	26	 	 	 	24	 	
Exploration	 	 	53	 	 	 	51	 	 	 	96	 	 	 	92	 	
Advanced projects, research and development (Note 5)	 	 	57	 	 	 	42	 	 	 	103	 	 	 	73	 	
General and administrative	 	 	43	 	 	 	40	 	 	 	88	 	 	 	79	 	
Other expense, net (Note 6)	 	 	61	 	 	 	112	 	 	 	150	 	 	 	185	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	1,316	 	 	 	1,129	 	 	 	2,651	 	 	 	2,255	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Other income (expense)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other income, net (Note 7)	 	 	44	 	 	 	9	 	 	 	92	 	 	 	18	 	
Interest expense, net	 	 	(69	)	 	 	(23	)	 	 	(144	)	 	 	(55	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	(25	)	 	 	(14	)	 	 	(52	)	 	 	(37	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations before income tax and other items	 	 	812	 	 	 	459	 	 	 	1,692	 	 	 	846	 	
Income tax expense (Note 10)	 	 	(273	)	 	 	(136	)	 	 	(408	)	 	 	(241	)	
Equity income (loss) of affiliates	 	 	(2	)	 	 	(3	)	 	 	(4	)	 	 	(8	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations	 	 	537	 	 	 	320	 	 	 	1,280	 	 	 	597	 	
Income (loss) from discontinued operations (Note 11)	 	 	—	 	 	 	(14	)	 	 	—	 	 	 	(14	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	 	537	 	 	 	306	 	 	 	1,280	 	 	 	583	 	
Net income attributable to noncontrolling interests (Note 12)	 	 	(155	)	 	 	(144	)	 	 	(352	)	 	 	(232	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Newmont stockholders	 	$	382	 	 	$	162	 	 	$	928	 	 	$	351	 	

Net income attributable to Newmont stockholders:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Continuing operations	 	 	382	 	 	 	171	 	 	$	928	 	 	$	360	 	
Discontinued operations	 	 	—	 	 	 	(9	)	 	 	—	 	 	 	(9	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	382	 	 	 	162	 	 	$	928	 	 	$	351	 	

Income per common share (Note 13)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Continuing operations	 	$	0.78	 	 	$	0.35	 	 	$	1.89	 	 	$	0.75	 	
Discontinued operations	 	 	—	 	 	 	(0.02	)	 	 	—	 	 	 	(0.02	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	0.78	 	 	$	0.33	 	 	$	1.89	 	 	$	0.73	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Continuing operations	 	$	0.77	 	 	$	0.35	 	 	$	1.87	 	 	$	0.75	 	
Discontinued operations	 	 	—	 	 	 	(0.02	)	 	 	—	 	 	 	(0.02	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	0.77	 	 	$	0.33	 	 	$	1.87	 	 	$	0.73	 	

Cash dividends declared per common share	 	 	0.10	 	 	 	0.10	 	 	$	0.20	 	 	$	0.20	 	

 	 	 	
(1)	 	Exclusive of Amortization and Reclamation and remediation .	
The accompanying notes are an integral part of the condensed consolidated financial statements.
 
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NEWMONT MINING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 (unaudited, in millions)
 	 	 	 	 	 	 	 	 	
 	 	Six Months Ended	 	
 	 	June 30,	 	
 	 	2010	 	 	2009	 	
Operating activities:	 	 	 	 	 	 	 	 	
Net income	 	$	1,280	 	 	$	583	 	
Adjustments:	 	 	 	 	 	 	 	 	
Amortization	 	 	455	 	 	 	367	 	
Loss from discontinued operations (Note 11)	 	 	—	 	 	 	14	 	
Reclamation and remediation (Note 4)	 	 	26	 	 	 	24	 	
Deferred income taxes	 	 	(86	)	 	 	(13	)	
Stock based compensation and other benefits	 	 	39	 	 	 	30	 	
Other operating adjustments and write-downs	 	 	18	 	 	 	59	 	
Net change in operating assets and liabilities (Note 24)	 	 	(251	)	 	 	(178	)	

Net cash provided from continuing operations	 	 	1,481	 	 	 	886	 	
Net cash provided from (used in) discontinued operations (Note 11)	 	 	(13	)	 	 	8	 	

Net cash provided from operations	 	 	1,468	 	 	 	894	 	

Investing activities:	 	 	 	 	 	 	 	 	
Additions to property, plant and mine development	 	 	(628	)	 	 	(910	)	
Investments in marketable debt and equity securities	 	 	(7	)	 	 	—	 	
Acquisitions, net	 	 	—	 	 	 	(760	)	
Proceeds from sale of other assets	 	 	52	 	 	 	2	 	
Other	 	 	(22	)	 	 	(4	)	
 	 	 	 	 	 	 	
Net cash used in investing activities	 	 	(605	)	 	 	(1,672	)	

Financing activities:	 	 	 	 	 	 	 	 	
Proceeds from debt, net	 	 	—	 	 	 	1,494	 	
Repayment of debt	 	 	(263	)	 	 	(1,668	)	
Sale of subsidiary shares to noncontrolling interests	 	 	229	 	 	 	—	 	
Acquisition of subsidiary shares from noncontrolling interests	 	 	(109	)	 	 	—	 	
Dividends paid to common stockholders	 	 	(98	)	 	 	(98	)	
Dividends paid to noncontrolling interests	 	 	(307	)	 	 	(112	)	
Proceeds from stock issuance, net	 	 	30	 	 	 	1,247	 	
Change in restricted cash and other	 	 	48	 	 	 	5	 	

Net cash provided from (used in) financing activities of continuing operations	 	 	(470	)	 	 	868	 	
Net cash used in financing activities of discontinued operations (Note 11)	 	 	—	 	 	 	(2	)	

Net cash provided from (used in) financing activities	 	 	(470	)	 	 	866	 	

Effect of exchange rate changes on cash	 	 	(6	)	 	 	21	 	
 	 	 	 	 	 	 	
Net change in cash and cash equivalents	 	 	387	 	 	 	109	 	
Cash and cash equivalents at beginning of period	 	 	3,215	 	 	 	435	 	

Cash and cash equivalents at end of period	 	$	3,602	 	 	$	544	 	
 	 	 	 	 	 	 	
The accompanying notes are an integral part of the condensed consolidated financial statements.
 
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NEWMONT MINING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
 (unaudited, in millions)
 	 	 	 	 	 	 	 	 	
 	 	At June 30,	 	 	At December 31,	 	
 	 	2010	 	 	2009	 	
ASSETS	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	$	3,602	 	 	$	3,215	 	
Trade receivables	 	 	358	 	 	 	438	 	
Accounts receivable	 	 	106	 	 	 	102	 	
Investments (Note 18)	 	 	64	 	 	 	56	 	
Inventories (Note 19)	 	 	510	 	 	 	493	 	
Stockpiles and ore on leach pads (Note 20)	 	 	527	 	 	 	403	 	
Deferred income tax assets	 	 	202	 	 	 	215	 	
Other current assets (Note 21)	 	 	702	 	 	 	900	 	
 	 	 	 	 	 	 	
Current assets	 	 	6,071	 	 	 	5,822	 	
Property, plant and mine development, net	 	 	12,399	 	 	 	12,370	 	
Investments (Note 18)	 	 	1,146	 	 	 	1,186	 	
Stockpiles and ore on leach pads (Note 20)	 	 	1,607	 	 	 	1,502	 	
Deferred income tax assets	 	 	1,083	 	 	 	937	 	
Other long-term assets (Note 21)	 	 	463	 	 	 	482	 	
 	 	 	 	 	 	 	
Total assets	 	$	22,769	 	 	$	22,299	 	
 	 	 	 	 	 	 	
LIABILITIES	 	 	 	 	 	 	 	 	
Debt (Note 22)	 	$	295	 	 	$	157	 	
Accounts payable	 	 	366	 	 	 	396	 	
Employee-related benefits	 	 	194	 	 	 	250	 	
Income and mining taxes	 	 	197	 	 	 	200	 	
Other current liabilities (Note 23)	 	 	1,143	 	 	 	1,317	 	
 	 	 	 	 	 	 	
Current liabilities	 	 	2,195	 	 	 	2,320	 	
Debt (Note 22)	 	 	4,280	 	 	 	4,652	 	
Reclamation and remediation liabilities (Note 4)	 	 	810	 	 	 	805	 	
Deferred income tax liabilities	 	 	1,320	 	 	 	1,341	 	
Employee-related benefits	 	 	394	 	 	 	381	 	
Other long-term liabilities (Note 23)	 	 	215	 	 	 	174	 	
Liabilities of operations held for sale (Note 11)	 	 	—	 	 	 	13	 	
 	 	 	 	 	 	 	
Total liabilities	 	 	9,214	 	 	 	9,686	 	
 	 	 	 	 	 	 	
Commitments and contingencies (Note 26)	 	 	 	 	 	 	 	 	
EQUITY	 	 	 	 	 	 	 	 	
Common stock	 	 	775	 	 	 	770	 	
Additional paid-in capital	 	 	8,235	 	 	 	8,158	 	
Accumulated other comprehensive income	 	 	526	 	 	 	626	 	
Retained earnings	 	 	1,979	 	 	 	1,149	 	
 	 	 	 	 	 	 	
Newmont stockholders’ equity	 	 	11,515	 	 	 	10,703	 	
Noncontrolling interests	 	 	2,040	 	 	 	1,910	 	
 	 	 	 	 	 	 	
Total equity	 	 	13,555	 	 	 	12,613	 	
 	 	 	 	 	 	 	
Total liabilities and equity	 	$	22,769	 	 	$	22,299	 	
 	 	 	 	 	 	 	
The accompanying notes are an integral part of the condensed consolidated financial statements.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 1 BASIS OF PRESENTATION
The interim Condensed Consolidated Financial Statements (“interim statements”) of Newmont Mining Corporation and its subsidiaries (collectively, “Newmont” or the “Company”) are unaudited. In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these interim statements have been included. The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year. These interim statements should be read in conjunction with Newmont’s Consolidated Financial Statements for the year ended December 31, 2009 filed February 25, 2010. The year-end balance sheet data was derived from the audited financial statements, but does not include all disclosures required by U.S. generally accepted accounting principles (“GAAP”).
References to “A$” refer to Australian currency, “C$” to Canadian currency, “IDR” to Indonesian currency, “NZ$” to New Zealand currency and “$” to United States currency.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Recently Adopted Accounting Pronouncements
Variable Interest Entities
In June 2009, the Accounting Standards Codification (“ASC”) guidance for consolidation accounting was updated to require an entity to perform a qualitative analysis to determine whether the enterprise’s variable interest gives it a controlling financial interest in a Variable Interest Entity (“VIE”). This qualitative analysis identifies the primary beneficiary of a VIE as the entity that has both of the following characteristics: (i) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses or receive benefits from the entity that could potentially be significant to the VIE. The updated guidance also requires ongoing reassessments of the primary beneficiary of a VIE. Adoption of the updated guidance, effective for the Company’s fiscal year beginning January 1, 2010, had no impact on the Company’s condensed consolidated financial position, results of operations or cash flows.
The Company identified Nusa Tenggara Partnership (“NTP”), a partnership between Newmont and an affiliate of Sumitomo, that owns a 56% interest in PT Newmont Nusa Tenggara (“PTNNT” or “Batu Hijau”), as a VIE due to certain capital structures and contractual relationships. Newmont also identified P.T Pukuafu Indah (“PTPI”), and PT Indonesia Masbaga Investama (“PTIMI”), unrelated noncontrolling partners of PTNNT, as VIEs. Newmont entered into transactions with PTPI and PTIMI, whereby the Company agreed to advance certain funds in exchange for a pledge of the noncontrolling partners’ combined 20% share of PTNNT dividends, net of withholding tax. The agreements also provide Newmont with certain voting rights and obligations related to the noncontrolling partners’ combined 20% share of PTNNT and commitments from PTPI and PTIMI to support the application of Newmont’s standards to the operation of the Batu Hijau mine. The Company has determined itself to be the primary beneficiary of these entities and control the operations of Batu Hijau, and therefore consolidates PTNNT in the Company’s financial statements.
Fair Value Accounting
In January 2010, ASC guidance for fair value measurements and disclosure was updated to require additional disclosures related to transfers in and out of level 1 and 2 fair value measurements and enhanced detail in the level 3 reconciliation. The guidance was amended to clarify the level of disaggregation required for assets and liabilities and the disclosures required for inputs and valuation techniques used to measure the fair value of assets and liabilities that fall in either level 2 or level 3. The updated guidance was effective for the Company’s fiscal year beginning January 1, 2010, with the exception of the level 3 disaggregation which is effective for the Company’s fiscal year beginning January 1, 2011. The adoption had no impact on the Company’s condensed consolidated financial position, results of operations or cash flows. Refer to Note 16 for further details regarding the Company’s assets and liabilities measured at fair value.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 3 SEGMENT INFORMATION
The Company’s reportable segments are based upon the Company’s management organization structure that is focused on the geographic region for the Company’s operations. The financial information relating to Newmont’s segments is as follows:
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Costs	 	 	 	 	 	 	Advanced	 	 	 	 	
 	 	 	 	 	 	Applicable to	 	 	 	 	 	 	Projects and	 	 	Pre-Tax	 	
 	 	Sales	 	 	Sales	 	 	Amortization	 	 	Exploration	 	 	Income	 	
Three Months Ended June 30, 2010	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Nevada	 	$	505	 	 	$	252	 	 	$	64	 	 	$	20	 	 	$	158	 	
La Herradura	 	 	53	 	 	 	19	 	 	 	5	 	 	 	2	 	 	 	29	 	
Hope Bay	 	 	—	 	 	 	—	 	 	 	3	 	 	 	33	 	 	 	(36	)	
Other North America	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(1	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
North America	 	 	558	 	 	 	271	 	 	 	72	 	 	 	55	 	 	 	150	 	

Yanacocha	 	 	425	 	 	 	139	 	 	 	40	 	 	 	7	 	 	 	219	 	
Other South America	 	 	—	 	 	 	—	 	 	 	—	 	 	 	7	 	 	 	(6	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
South America	 	 	425	 	 	 	139	 	 	 	40	 	 	 	14	 	 	 	213	 	

Boddington:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gold	 	 	234	 	 	 	113	 	 	 	34	 	 	 	 	 	 	 	 	 	
Copper	 	 	40	 	 	 	25	 	 	 	6	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Boddington	 	 	274	 	 	 	138	 	 	 	40	 	 	 	3	 	 	 	92	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Batu Hijau:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gold	 	 	170	 	 	 	42	 	 	 	12	 	 	 	 	 	 	 	 	 	
Copper	 	 	258	 	 	 	73	 	 	 	19	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Batu Hijau	 	 	428	 	 	 	115	 	 	 	31	 	 	 	—	 	 	 	270	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Australia/New Zealand	 	 	308	 	 	 	140	 	 	 	24	 	 	 	7	 	 	 	138	 	
Other Asia Pacific	 	 	—	 	 	 	—	 	 	 	1	 	 	 	5	 	 	 	(9	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asia Pacific	 	 	1,010	 	 	 	393	 	 	 	96	 	 	 	15	 	 	 	491	 	

Africa	 	 	160	 	 	 	55	 	 	 	19	 	 	 	5	 	 	 	73	 	

Corporate and Other	 	 	—	 	 	 	—	 	 	 	4	 	 	 	21	 	 	 	(115	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated	 	$	2,153	 	 	$	858	 	 	$	231	 	 	$	110	 	 	$	812	 	

 5 

Table of Contents
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Costs	 	 	 	 	 	 	Advanced	 	 	 	 	
 	 	 	 	 	 	Applicable to	 	 	 	 	 	 	Projects and	 	 	Pre-Tax	 	
 	 	Sales	 	 	Sales	 	 	Amortization	 	 	Exploration	 	 	Income	 	
Three Months Ended June 30, 2009	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Nevada	 	$	372	 	 	$	228	 	 	$	53	 	 	$	13	 	 	$	70	 	
La Herradura	 	 	29	 	 	 	12	 	 	 	3	 	 	 	1	 	 	 	11	 	
Hope Bay	 	 	—	 	 	 	—	 	 	 	3	 	 	 	22	 	 	 	(23	)	
Other North America	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(1	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
North America	 	 	401	 	 	 	240	 	 	 	59	 	 	 	36	 	 	 	57	 	

Yanacocha	 	 	489	 	 	 	173	 	 	 	44	 	 	 	6	 	 	 	244	 	
Other South America	 	 	—	 	 	 	—	 	 	 	—	 	 	 	8	 	 	 	(7	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
South America	 	 	489	 	 	 	173	 	 	 	44	 	 	 	14	 	 	 	237	 	

Boddington	 	 	—	 	 	 	—	 	 	 	—	 	 	 	12	 	 	 	(69	)	
Batu Hijau:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gold	 	 	98	 	 	 	24	 	 	 	6	 	 	 	 	 	 	 	 	 	
Copper	 	 	229	 	 	 	61	 	 	 	16	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Batu Hijau	 	 	327	 	 	 	85	 	 	 	22	 	 	 	—	 	 	 	204	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Australia/New Zealand	 	 	263	 	 	 	141	 	 	 	30	 	 	 	6	 	 	 	89	 	
Other Asia Pacific	 	 	—	 	 	 	—	 	 	 	—	 	 	 	3	 	 	 	(7	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asia Pacific	 	 	590	 	 	 	226	 	 	 	52	 	 	 	21	 	 	 	217	 	

Africa	 	 	122	 	 	 	57	 	 	 	16	 	 	 	6	 	 	 	38	 	

Corporate and Other	 	 	—	 	 	 	—	 	 	 	5	 	 	 	16	 	 	 	(90	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated	 	$	1,602	 	 	$	696	 	 	$	176	 	 	$	93	 	 	$	459	 	

 6 

Table of Contents
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Costs	 	 	 	 	 	 	Advanced	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Applicable to	 	 	 	 	 	 	Projects and	 	 	Pre-Tax	 	 	Total	 	 	Capital	 	
 	 	Sales	 	 	Sales	 	 	Amortization	 	 	Exploration	 	 	Income	 	 	Assets	 	 	Expenditures (1)	 	
Six Months Ended June 30, 2010	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Nevada	 	$	972	 	 	$	509	 	 	$	126	 	 	$	37	 	 	$	279	 	 	$	3,309	 	 	$	117	 	
La Herradura	 	 	97	 	 	 	32	 	 	 	8	 	 	 	3	 	 	 	54	 	 	 	180	 	 	 	22	 	
Hope Bay	 	 	—	 	 	 	—	 	 	 	6	 	 	 	50	 	 	 	(57	)	 	 	1,938	 	 	 	48	 	
Other North America	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	(3	)	 	 	53	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
North America	 	 	1,069	 	 	 	541	 	 	 	140	 	 	 	91	 	 	 	273	 	 	 	5,480	 	 	 	187	 	

Yanacocha	 	 	885	 	 	 	293	 	 	 	77	 	 	 	14	 	 	 	461	 	 	 	2,698	 	 	 	111	 	
Other South America	 	 	—	 	 	 	—	 	 	 	—	 	 	 	12	 	 	 	(11	)	 	 	28	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
South America	 	 	885	 	 	 	293	 	 	 	77	 	 	 	26	 	 	 	450	 	 	 	2,726	 	 	 	111	 	

Boddington:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gold	 	 	401	 	 	 	193	 	 	 	56	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Copper	 	 	79	 	 	 	49	 	 	 	13	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Boddington	 	 	480	 	 	 	242	 	 	 	69	 	 	 	4	 	 	 	160	 	 	 	4,136	 	 	 	81	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Batu Hijau:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gold	 	 	335	 	 	 	76	 	 	 	22	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Copper	 	 	713	 	 	 	165	 	 	 	46	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Batu Hijau	 	 	1,048	 	 	 	241	 	 	 	68	 	 	 	—	 	 	 	677	 	 	 	2,911	 	 	 	33	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Australia/New Zealand	 	 	622	 	 	 	297	 	 	 	56	 	 	 	11	 	 	 	264	 	 	 	884	 	 	 	71	 	
Other Asia Pacific	 	 	—	 	 	 	—	 	 	 	1	 	 	 	10	 	 	 	9	 	 	 	183	 	 	 	3	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asia Pacific	 	 	2,150	 	 	 	780	 	 	 	194	 	 	 	25	 	 	 	1,110	 	 	 	8,114	 	 	 	188	 	

Africa	 	 	291	 	 	 	119	 	 	 	36	 	 	 	12	 	 	 	111	 	 	 	1,234	 	 	 	73	 	

Corporate and Other	 	 	—	 	 	 	—	 	 	 	8	 	 	 	45	 	 	 	(252	)	 	 	5,215	 	 	 	11	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated	 	$	4,395	 	 	$	1,733	 	 	$	455	 	 	$	199	 	 	$	1,692	 	 	$	22,769	 	 	$	570	 	

(1)	 	Accrual basis includes a decrease in accrued capital expenditures of $58; consolidated capital expenditures on a cash basis were $628.	
 
 7 

Table of Contents
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Costs	 	 	 	 	 	 	Advanced	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Applicable to	 	 	 	 	 	 	Projects and	 	 	Pre-Tax	 	 	Total	 	 	Capital	 	
 	 	Sales	 	 	Sales	 	 	Amortization	 	 	Exploration	 	 	Income	 	 	Assets	 	 	Expenditures (1)	 	
Six Months Ended June 30, 2009	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Nevada	 	$	840	 	 	$	491	 	 	$	114	 	 	$	27	 	 	$	191	 	 	$	3,232	 	 	$	111	 	
La Herradura	 	 	52	 	 	 	22	 	 	 	5	 	 	 	1	 	 	 	24	 	 	 	106	 	 	 	19	 	
Hope Bay	 	 	—	 	 	 	—	 	 	 	6	 	 	 	36	 	 	 	(40	)	 	 	1,706	 	 	 	3	 	
Other North America	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	(4	)	 	 	52	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
North America	 	 	892	 	 	 	513	 	 	 	125	 	 	 	65	 	 	 	171	 	 	 	5,096	 	 	 	133	 	

Yanacocha	 	 	916	 	 	 	325	 	 	 	85	 	 	 	10	 	 	 	448	 	 	 	1,918	 	 	 	62	 	
Other South America	 	 	—	 	 	 	—	 	 	 	—	 	 	 	14	 	 	 	(11	)	 	 	29	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
South America	 	 	916	 	 	 	325	 	 	 	85	 	 	 	24	 	 	 	437	 	 	 	1,947	 	 	 	62	 	

Boddington	 	 	—	 	 	 	—	 	 	 	—	 	 	 	17	 	 	 	(76	)	 	 	3,490	 	 	 	684	 	
Batu Hijau:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gold	 	 	157	 	 	 	51	 	 	 	13	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Copper	 	 	390	 	 	 	146	 	 	 	37	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Batu Hijau	 	 	547	 	 	 	197	 	 	 	50	 	 	 	—	 	 	 	268	 	 	 	2,604	 	 	 	23	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Australia/New Zealand	 	 	532	 	 	 	286	 	 	 	62	 	 	 	12	 	 	 	166	 	 	 	837	 	 	 	47	 	
Other Asia Pacific	 	 	—	 	 	 	—	 	 	 	1	 	 	 	5	 	 	 	(15	)	 	 	142	 	 	 	1	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asia Pacific	 	 	1,079	 	 	 	483	 	 	 	113	 	 	 	34	 	 	 	343	 	 	 	7,073	 	 	 	755	 	

Africa	 	 	251	 	 	 	114	 	 	 	34	 	 	 	12	 	 	 	84	 	 	 	1,167	 	 	 	24	 	

Corporate and Other (2)	 	 	—	 	 	 	—	 	 	 	10	 	 	 	30	 	 	 	(189	)	 	 	2,828	 	 	 	8	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated	 	$	3,138	 	 	$	1,435	 	 	$	367	 	 	$	165	 	 	$	846	 	 	$	18,111	 	 	$	982	 	

(1)	 	Accrual basis includes an increase in accrued capital expenditures of $72; consolidated capital expenditures on a cash basis were $910.	
 		
(2)	 	Corporate and Other includes $69 of Assets held for sale.	
NOTE 4 RECLAMATION AND REMEDIATION
At June 30, 2010 and December 31, 2009, $714 and $698, respectively, were accrued for reclamation obligations relating to mineral properties. In addition, the Company is involved in several matters concerning environmental obligations associated with former, primarily historic, mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. At June 30, 2010 and December 31, 2009, $149 and $161, respectively, were accrued for such obligations.
The following is a reconciliation of reclamation and remediation liabilities:
 	 	 	 	 	 	 	 	 	
 	 	Six Months Ended June 30,	 	
 	 	2010	 	 	2009	 	
Balance at beginning of period	 	$	859	 	 	$	757	 	
Additions, changes in estimates and other	 	 	(4	)	 	 	17	 	
Liabilities settled	 	 	(18	)	 	 	(22	)	
Accretion expense	 	 	26	 	 	 	24	 	
 	 	 	 	 	 	 	
Balance at end of period	 	$	863	 	 	$	776	 	

 8 

Table of Contents
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
The current portion of Reclamation and remediation liabilities of $53 and $54 at June 30, 2010 and December 31, 2009, respectively, are included in Other current liabilities (see Note 23).
The Company’s reclamation and remediation expenses consisted of:
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended June 30,	 	 	Six Months Ended June 30,	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
Accretion — operating	 	$	11	 	 	$	9	 	 	$	22	 	 	$	18	 	
Accretion — non-operating	 	 	2	 	 	 	3	 	 	 	4	 	 	 	6	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	13	 	 	$	12	 	 	$	26	 	 	$	24	 	

Asset retirement cost amortization	 	$	7	 	 	$	7	 	 	$	14	 	 	$	14	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Asset retirement cost amortization is a component of Amortization .
NOTE 5 ADVANCED PROJECTS, RESEARCH AND DEVELOPMENT
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended June 30,	 	 	Six Months Ended June 30,	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
Major projects:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Hope Bay	 	$	25	 	 	$	11	 	 	$	35	 	 	$	16	 	
Akyem	 	 	1	 	 	 	2	 	 	 	4	 	 	 	3	 	
Conga	 	 	2	 	 	 	1	 	 	 	3	 	 	 	1	 	
Subika	 	 	2	 	 	 	—	 	 	 	2	 	 	 	—	 	
Boddington	 	 	—	 	 	 	10	 	 	 	—	 	 	 	13	 	
Other projects:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Technical and project services	 	 	11	 	 	 	7	 	 	 	23	 	 	 	12	 	
Corporate	 	 	9	 	 	 	3	 	 	 	21	 	 	 	7	 	
Nevada growth	 	 	3	 	 	 	5	 	 	 	6	 	 	 	11	 	
South America growth	 	 	2	 	 	 	1	 	 	 	4	 	 	 	2	 	
Other	 	 	2	 	 	 	2	 	 	 	5	 	 	 	8	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	57	 	 	$	42	 	 	$	103	 	 	$	73	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
NOTE 6 OTHER EXPENSE, NET
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended June 30,	 	 	Six Months Ended June 30,	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
Community development	 	$	12	 	 	$	11	 	 	$	60	 	 	$	21	 	
Regional administration	 	 	18	 	 	 	14	 	 	 	31	 	 	 	26	 	
Peruvian royalty	 	 	6	 	 	 	5	 	 	 	12	 	 	 	11	 	
Western Australia power plant	 	 	1	 	 	 	6	 	 	 	7	 	 	 	9	 	
World Gold Council dues	 	 	3	 	 	 	3	 	 	 	6	 	 	 	6	 	
Boddington acquisition costs	 	 	—	 	 	 	59	 	 	 	—	 	 	 	67	 	
Workforce reduction	 	 	—	 	 	 	1	 	 	 	—	 	 	 	15	 	
Batu Hijau divestiture	 	 	—	 	 	 	1	 	 	 	—	 	 	 	6	 	
Other	 	 	21	 	 	 	12	 	 	 	34	 	 	 	24	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	61	 	 	$	112	 	 	$	150	 	 	$	185	 	

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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 7 OTHER INCOME, NET
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended June 30,	 	 	Six Months Ended June 30,	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
Gain on asset sales, net	 	$	9	 	 	$	—	 	 	$	42	 	 	$	1	 	
Canadian Oil Sands Trust income	 	 	15	 	 	 	5	 	 	 	25	 	 	 	9	 	
Interest income	 	 	2	 	 	 	6	 	 	 	5	 	 	 	9	 	
Foreign currency gain (loss), net	 	 	5	 	 	 	1	 	 	 	(4	)	 	 	(2	)	
Other	 	 	13	 	 	 	(3	)	 	 	24	 	 	 	1	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	44	 	 	$	9	 	 	$	92	 	 	$	18	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
NOTE 8 EMPLOYEE PENSION AND OTHER BENEFIT PLANS
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended June 30,	 	 	Six Months Ended June 30,	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
Pension benefit costs, net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Service cost	 	$	6	 	 	$	4	 	 	$	11	 	 	$	9	 	
Interest cost	 	 	9	 	 	 	8	 	 	 	18	 	 	 	16	 	
Expected return on plan assets	 	 	(9	)	 	 	(7	)	 	 	(16	)	 	 	(14	)	
Amortization, net	 	 	5	 	 	 	5	 	 	 	9	 	 	 	8	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	11	 	 	$	10	 	 	$	22	 	 	$	19	 	

 	 	Three Months Ended June 30,	 	 	Six Months Ended June 30,	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
Other benefit costs, net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Service cost	 	$	—	 	 	$	—	 	 	$	1	 	 	$	1	 	
Interest cost	 	 	2	 	 	 	2	 	 	 	3	 	 	 	3	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	2	 	 	$	2	 	 	$	4	 	 	$	4	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
NOTE 9 STOCK BASED COMPENSATION
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended June 30,	 	 	Six Months Ended June 30,	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
Stock options	 	$	6	 	 	$	5	 	 	$	9	 	 	$	8	 	
Restricted stock units	 	 	4	 	 	 	2	 	 	 	8	 	 	 	3	 	
Performance leveraged stock units	 	 	1	 	 	 	—	 	 	 	4	 	 	 	—	 	
Common stock	 	 	1	 	 	 	—	 	 	 	2	 	 	 	1	 	
Restricted stock	 	 	—	 	 	 	1	 	 	 	1	 	 	 	2	 	
Deferred stock	 	 	3	 	 	 	5	 	 	 	5	 	 	 	8	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	15	 	 	$	13	 	 	$	29	 	 	$	22	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Employee Stock Options
For the three and six months ended June 30, 2010 and 2009, 918,343 and 1,157,825 stock option awards, respectively, were granted at a weighted average exercise price of $56 and $40, respectively, per underlying share of the Company’s common stock. At June 30, 2010, there was $28 of unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized on a weighted-average basis for a period of approximately 2 years.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Other Stock Based Compensation
For the three months ended June 30, 2010 and 2009, 149,235 and 198,057 restricted stock units, respectively, were granted, at a weighted-average fair market value of $56 and $40, respectively, per underlying share of the Company’s common stock. For the six months ended June 30, 2010 and 2009, 475,197 and 450,195 restricted stock units, respectively, were granted, at a weighted-average fair market value of $52 and $42, respectively, per underlying share of the Company’s common stock.
No shares of common stock were granted during the three months ended June 30, 2010 and 225 shares of common stock were granted at the weighted-average fair market value of $40 during the three months ended June 30, 2009 under the Company’s financial performance bonus plan. For the six months ended June 30, 2010 and 2009, 64,646 and 40,078 shares of common stock, respectively, were granted under this plan at a weighted-average fair market value of $50 and $43, respectively.
Beginning in 2010, the Company granted performance leveraged stock units (“PSUs”) to eligible executives. For the three and six months ended June 30, 2010, nil and 204,732 PSUs, respectively, were granted under the performance leveraged stock bonus plan. The actual number of PSUs earned will be determined at the end of a performance period (generally three years), based upon certain measures of shareholder return.
At June 30, 2010, there was $39 of unrecognized compensation costs related to unvested other stock based compensation awards. This cost is expected to be recognized over a weighted-average period of approximately 2 years.
NOTE 10 INCOME TAXES
During the second quarter of 2010, the Company recorded estimated income tax expense of $273 resulting in an effective tax rate of 33.6%. Estimated income tax expense during the second quarter of 2009 was $136 for an effective tax rate of 29.6%. The increase in the effective tax rate from 2009 to 2010 resulted from the change in the jurisdictional blend of the Company’s taxable income and the effect of percentage depletion. During the first half of 2010, estimated income tax expense was $408 resulting in an effective tax rate of 24.1%. Estimated income tax expense during the first half of 2009 was $241 for an effective tax rate of 28.5%. The decrease in the effective tax rate from 2009 to 2010 resulted from a tax benefit of $127 being recorded in the first quarter of 2010 from the conversion of non-US tax-paying entities to entities currently subject to U.S. income tax resulting in an increase in net deferred tax assets, partially offset by the change in the jurisdictional blend of the Company’s taxable income and the effect it has on the overall rate impact from percentage depletion. The effective tax rates in the second quarter of 2010 and 2009 are different from the United States statutory rate of 35% primarily due to U.S. percentage depletion and the effect of different income tax rates in countries where earnings are indefinitely reinvested.
The Company operates in numerous countries around the world and accordingly it is subject to, and pays annual income taxes under, the various income tax regimes in the countries in which it operates. Some of these tax regimes are defined by contractual agreements with the local government, and others are defined by the general corporate income tax laws of the country. The Company has historically filed, and continues to file, all required income tax returns and pay the income taxes reasonably determined to be due. The tax rules and regulations in many countries are highly complex and subject to interpretation. From time to time the Company is subject to a review of its historic income tax filings and in connection with such reviews, disputes can arise with the taxing authorities over the interpretation or application of certain rules to the Company’s business conducted within the country involved. The Company anticipates concluding a tax audit and receiving an assessment from the Indonesian Tax Office in July 2010. The Company intends to vigorously defend its positions through all processes available to it. The conclusion of on-going negotiations could have an impact on our unrecognized income tax benefit balances; however, the Company believes that the outcome will not have a material impact on the Company’s financial position. At June 30, 2010, the Company’s total unrecognized tax benefit was $133 for uncertain income tax positions taken or expected to be taken on income tax returns. Of this, $65 represents the amount of unrecognized tax benefits that, if recognized, would affect the Company’s effective income tax rate.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
As a result of (i) statute of limitations that expire in the next 12 months in various jurisdictions, and (ii) possible settlements of audit-related issues with taxing authorities in various jurisdictions with respect to which none of the issues are individually significant, the Company believes that it is reasonably possible that the total amount of its net unrecognized income tax benefits will decrease by approximately $15 to $30 in the next 12 months.
On January 1, 2010, various U.S. tax provisions expired, and as of June 30, 2010, the provisions have not been reinstated. These expired tax provisions do not have a material effect on the Company’s financial statements.
NOTE 11 DISCONTINUED OPERATIONS
Discontinued operations relate solely to the Kori Kollo operation in Bolivia, sold in July 2009.
The Company has reclassified the 2009 balance sheet amounts and income statement results from the historical presentation to Assets and Liabilities of operations held for sale on the Condensed Consolidated Balance Sheets and to Income (loss) from discontinued operations in the Condensed Consolidated Statements of Income. The Condensed Consolidated Statements of Cash Flows have been reclassified for assets held for sale and discontinued operations for all periods presented.
The following table details selected financial information included in the Income (loss) from discontinued operations in the consolidated statements of income:
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Six Months Ended	 	
 	 	June 30, 2009	 	 	June 30, 2009	 	
Sales	 	$	16	 	 	$	32	 	

Income from operations	 	$	1	 	 	$	1	 	
Loss on impairment	 	 	(44	)	 	 	(44	)	
 	 	 	 	 	 	 	
Pre-tax loss	 	 	(43	)	 	 	(43	)	
Income tax benefit	 	 	29	 	 	 	29	 	
 	 	 	 	 	 	 	
Income (loss) from discontinued operations	 	$	(14	)	 	$	(14	)	
 	 	 	 	 	 	 	
Liabilities of operations held for sale include Other liabilities of $13 at December 31, 2009.
Net operating cash provided from (used in) discontinued operations was $(13) and $8 in the first half of 2010 and 2009, respectively.
Net cash used in financing activities of discontinued operations was $2 in the first half of 2009 for repayment of debt.
NOTE 12 NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended June 30,	 	 	Six Months Ended June 30,	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
Batu Hijau	 	$	84	 	 	$	71	 	 	$	202	 	 	$	92	 	
Yanacocha	 	 	71	 	 	 	77	 	 	 	151	 	 	 	144	 	
Other	 	 	—	 	 	 	(4	)	 	 	(1	)	 	 	(4	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	155	 	 	$	144	 	 	$	352	 	 	$	232	 	

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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
In June 2010, PTPI completed the sale of an approximate 2.2% interest in PTNNT to PTIMI. To enable the transaction to proceed, the Company released its rights to the dividends payable on this 2.2% interest and released the security interest in the associated shares. The Company further agreed, however, to advance certain funds to PTIMI to enable it to purchase the interest in exchange for an assignment by PTIMI to the Company of the dividends payable on the 2.2% interest (net of withholding tax), a pledge of the shares as security on the advance, and certain voting rights and obligations. The funds that the Company advanced to PTIMI and which it paid to PTPI for the shares were used by PTPI to reduce its outstanding balance with the Company. Upon completion of this transaction, PTPI requested and was allowed to make additional draw downs under the agreement with PTPI. The Company’s economic interest in PTPI’s and PTIMI’s combined 20% interest in PTNNT remains at 17% and has not changed as a result of these transactions.
In March 2010, the Company (through NTP) completed the sale and transfer of shares for a 7% interest in PTNNT, the Indonesian subsidiary that operates Batu Hijau, to PT Multi Daerah Bersaing (“PTMDB”) in compliance with divestiture obligations under the Contract of Work, reducing NTP’s ownership interest to 56% from 63%. In 2009, the Company (through NTP) completed the sale and transfer of shares for a 17% interest in PTNNT to PTMDB in compliance with divestiture obligations under the Contract of Work, reducing NTP’s ownership interest to 63% from 80%. The 2010 and 2009 share transfers resulted in gains of approximately $16 (after tax of $33) and $63 (after tax of $115), respectively, that were recorded as Additional paid-in capital . For information on the Batu Hijau Contract of Work and divestiture requirements, see the discussion in Note 26 to the Condensed Consolidated Financial Statements.
In December 2009, the Company entered into a transaction with PTPI, whereby the Company agreed to advance certain funds to PTPI in exchange for a pledge of the noncontrolling partner’s 20% share of PTNNT dividends, net of withholding tax, and certain voting rights and obligations, and a commitment from PTPI to support the application of Newmont’s standards to the operation of the Batu Hijau mine. Based on the transaction with PTPI, the Company recognized an additional 17% effective economic interest in PTNNT.
At June 30, 2010, Newmont continued to have a 48.50% effective economic interest in PTNNT. Based on the accounting guidance for variable interest entities, Newmont continues to consolidate PTNNT in its Consolidated Financial Statements.
Newmont has a 51.35% ownership interest in Minera Yanacocha SR.L. (“Yanacocha”), with the remaining interests held by Compañia de Minas Buenaventura, S.A.A. (43.65%) and the International Finance Corporation (5%).
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 13 INCOME PER COMMON SHARE
Basic income per common share is computed by dividing income available to Newmont common stockholders by the weighted average number of common shares outstanding during the period. Diluted income per common share is computed similarly to basic income per common share except that weighted average common shares is increased to include the potential issuance of dilutive common shares.
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended June 30,	 	 	Six Months Ended June 30,	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Newmont stockholders	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Continuing operations	 	$	382	 	 	$	171	 	 	$	928	 	 	$	360	 	
Discontinued operations	 	 	—	 	 	 	(9	)	 	 	—	 	 	 	(9	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	382	 	 	$	162	 	 	$	928	 	 	$	351	 	

Weighted average common shares (millions):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	492	 	 	 	490	 	 	 	491	 	 	 	483	 	
Effect of employee stock-based awards	 	 	1	 	 	 	1	 	 	 	1	 	 	 	1	 	
Effect of convertible notes	 	 	6	 	 	 	—	 	 	 	4	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted	 	 	499	 	 	 	491	 	 	 	496	 	 	 	484	 	

Net income attributable to Newmont stockholders per common share	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Continuing operations	 	$	0.78	 	 	$	0.35	 	 	$	1.89	 	 	$	0.75	 	
Discontinued operations	 	 	—	 	 	 	(0.02	)	 	 	—	 	 	 	(0.02	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	0.78	 	 	$	0.33	 	 	$	1.89	 	 	$	0.73	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Continuing operations	 	$	0.77	 	 	$	0.35	 	 	$	1.87	 	 	$	0.75	 	
Discontinued operations	 	 	—	 	 	 	(0.02	)	 	 	—	 	 	 	(0.02	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	0.77	 	 	$	0.33	 	 	$	1.87	 	 	$	0.73	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Options to purchase 2 and 5 million shares of common stock at average exercise prices of $57 and $46 were outstanding at June 30, 2010 and 2009, respectively, but were not included in the computation of diluted weighted average number of common shares because their effect would have been anti-dilutive under the treasury stock method.
In February 2009 and July 2007, Newmont issued $518 and $1,150, respectively, of convertible notes that, if converted in the future, would have a potentially dilutive effect on the Company’s weighted average number of common shares. Under the indenture for the convertible notes, upon conversion Newmont is required to settle the principal amount of the convertible notes in cash and may elect to settle the remaining conversion obligation (stock price in excess of the conversion price) in cash, shares or a combination thereof. The effect of contingently convertible instruments on diluted earnings per share is calculated under the net share settlement method. Under the net share settlement method, the Company includes the amount of shares it would take to satisfy the conversion obligation, assuming that all of the convertible notes are surrendered. The average closing price of the Company’s common stock for each of the periods presented is used as the basis for determining dilution. The average price of the Company’s common stock for the three and six months ended June 30, 2010 exceeded the conversion price of $46.25 and $46.21 for the notes issued in 2009 and 2007, respectively, and therefore, 6 and 4 million additional shares were included in the computation of diluted weighted average common shares for the three and six months ended June 30, 2010, respectively.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
In connection with the 2007 convertible senior notes offering, the Company entered into Call Spread Transactions which included the purchase of call options and the sale of warrants. As a result of the Call Spread Transactions, the conversion price of $46.21 was effectively increased to $60.27. Should the warrant transactions become dilutive to the Company’s earnings per share (if Newmont’s average share price exceeds $60.27) the underlying shares will be included in the computation of diluted income per common share.
The Net income attributable to Newmont stockholders and transfers from noncontrolling interests was:
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended June 30,	 	 	Six Months Ended June 30,	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Newmont stockholders	 	$	382	 	 	$	162	 	 	$	928	 	 	$	351	 	
Transfers from noncontrolling interests:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Increase in Additional paid in capital from sale of PTNNT shares, net of tax of $33	 	 	1	 	 	 	—	 	 	 	16	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Newmont stockholders and transfers from noncontrolling interests	 	$	383	 	 	$	162	 	 	$	944	 	 	$	351	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
NOTE 14 COMPREHENSIVE INCOME
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended June 30,	 	 	Six Months Ended June 30,	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	$	537	 	 	$	306	 	 	$	1,280	 	 	$	583	 	
Other comprehensive income (loss), net of tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unrealized gain (loss) on marketable securities	 	 	(77	)	 	 	99	 	 	 	(28	)	 	 	192	 	
Foreign currency translation adjustments	 	 	(55	)	 	 	136	 	 	 	1	 	 	 	89	 	
Pension and other benefit liability adjustments	 	 	3	 	 	 	2	 	 	 	5	 	 	 	3	 	
Change in fair value of cash flow hedge instruments:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net change from periodic revaluations	 	 	(72	)	 	 	105	 	 	 	(43	)	 	 	86	 	
Net amount reclassified to income	 	 	(16	)	 	 	7	 	 	 	(35	)	 	 	24	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net unrecognized gain (loss) on derivatives	 	 	(88	)	 	 	112	 	 	 	(78	)	 	 	110	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	(217	)	 	 	349	 	 	 	(100	)	 	 	394	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Comprehensive income	 	$	320	 	 	$	655	 	 	$	1,180	 	 	$	977	 	

Comprehensive income attributable to:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Newmont stockholders	 	$	165	 	 	$	510	 	 	$	828	 	 	$	744	 	
Noncontrolling interests	 	 	155	 	 	 	145	 	 	 	352	 	 	 	233	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	320	 	 	$	655	 	 	$	1,180	 	 	$	977	 	

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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 15 CHANGES IN EQUITY
 	 	 	 	 	 	 	 	 	
 	 	Six Months Ended June 30,	 	
 	 	2010	 	 	2009	 	
Common stock:	 	 	 	 	 	 	 	 	
At beginning of period	 	$	770	 	 	$	709	 	
Common stock offering	 	 	—	 	 	 	55	 	
Stock based compensation	 	 	2	 	 	 	2	 	
Shares issued in exchange for exchangeable shares	 	 	3	 	 	 	2	 	
 	 	 	 	 	 	 	
At end of period	 	 	775	 	 	 	768	 	

Additional paid-in capital:	 	 	 	 	 	 	 	 	
At beginning of period	 	 	8,158	 	 	 	6,831	 	
Common stock offering	 	 	—	 	 	 	1,179	 	
Convertible debt issuance	 	 	—	 	 	 	46	 	
Common stock dividends	 	 	—	 	 	 	(45	)	
Stock based compensation	 	 	64	 	 	 	43	 	
Shares issued in exchange for exchangeable shares	 	 	(3	)	 	 	(2	)	
Sale of subsidiary shares to noncontrolling interests	 	 	16	 	 	 	—	 	
 	 	 	 	 	 	 	
At end of period	 	 	8,235	 	 	 	8,052	 	

Accumulated other comprehensive income:	 	 	 	 	 	 	 	 	
At beginning of period	 	 	626	 	 	 	(253	)	
Other comprehensive income (Note 14)	 	 	(100	)	 	 	394	 	
 	 	 	 	 	 	 	
At end of period	 	 	526	 	 	 	141	 	

Retained earnings:	 	 	 	 	 	 	 	 	
At beginning of period	 	 	1,149	 	 	 	4	 	
Net income attributable to Newmont stockholders	 	 	928	 	 	 	351	 	
Common stock dividends	 	 	(98	)	 	 	(53	)	
 	 	 	 	 	 	 	
At end of period	 	 	1,979	 	 	 	302	 	

Noncontrolling interests:	 	 	 	 	 	 	 	 	
At beginning of period	 	 	1,910	 	 	 	1,370	 	
Net income attributable to noncontrolling interests	 	 	352	 	 	 	232	 	
Dividends paid to noncontrolling interests	 	 	(320	)	 	 	(112	)	
Other comprehensive income	 	 	—	 	 	 	1	 	
Sale of subsidiary shares to noncontrolling interests, net	 	 	98	 	 	 	—	 	
 	 	 	 	 	 	 	
At end of period	 	 	2,040	 	 	 	1,491	 	
 	 	 	 	 	 	 	
Total equity	 	$	13,555	 	 	$	10,754	 	

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Table of Contents
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 16 FAIR VALUE ACCOUNTING
Fair value accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:

 	Level 1	 	Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;	

 	Level 2	 	Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and	

 	Level 3	 	Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).	
The following table sets forth the Company’s assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Fair Value at June 30, 2010	 	
 	 	Total	 	 	Level 1	 	 	Level 2	 	 	Level 3	 	
Assets:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash equivalents	 	$	1,911	 	 	$	1,911	 	 	$	—	 	 	$	—	 	
Marketable equity securities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Extractive industries	 	 	1,130	 	 	 	1,130	 	 	 	—	 	 	 	—	 	
Other	 	 	6	 	 	 	6	 	 	 	—	 	 	 	—	 	
Marketable debt securities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asset backed commercial paper	 	 	18	 	 	 	—	 	 	 	—	 	 	 	18	 	
Corporate	 	 	8	 	 	 	8	 	 	 	—	 	 	 	—	 	
Auction rate securities	 	 	5	 	 	 	—	 	 	 	—	 	 	 	5	 	
Trade receivable from provisional copper and gold concentrate sales, net	 	 	309	 	 	 	309	 	 	 	—	 	 	 	—	 	
Derivative instruments, net:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Foreign exchange forward contracts	 	 	29	 	 	 	—	 	 	 	29	 	 	 	—	 	
Interest rate swap contracts	 	 	5	 	 	 	—	 	 	 	5	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	3,421	 	 	$	3,364	 	 	$	34	 	 	$	23	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
8 5/8% debentures ($222 hedged portion)	 	$	236	 	 	$	—	 	 	$	236	 	 	$	—	 	
Boddington contingent consideration	 	 	85	 	 	 	—	 	 	 	—	 	 	 	85	 	
Derivative instruments, net:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diesel forward contracts	 	 	1	 	 	 	—	 	 	 	1	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	322	 	 	$	—	 	 	$	237	 	 	$	85	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
The Company’s cash equivalent instruments are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The cash equivalent instruments that are valued based on quoted market prices in active markets are primarily money market securities and U.S. Treasury securities.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
The Company’s marketable equity securities are valued using quoted market prices in active markets and as such are classified within Level 1 of the fair value hierarchy. The securities are segregated based on industry. The fair value of the marketable equity securities is calculated as the quoted market price of the marketable equity security multiplied by the quantity of shares held by the Company.
The Company’s marketable debt securities include investments in auction rate securities and asset backed commercial paper. The Company reviews the fair value for auction rate securities and asset backed commercial paper on at least a quarterly basis. The auction rate securities are traded in markets that are not active, trade infrequently and have little price transparency. The Company estimated the fair value of the auction rate securities based on weighted average risk calculations using probabilistic cash flow assumptions. In January 2009, the investments in the Company’s asset backed commercial paper were restructured by court order. The restructuring allowed an interest distribution to be made to investors. The Company estimated the fair value of the asset backed commercial paper using a probability of return to each class of notes reflective of information reviewed regarding the separate classes of securities. The auction rate securities and asset backed commercial paper are classified within Level 3 of the fair value hierarchy. The Company’s corporate marketable debt securities are valued using quoted market prices in active markets and as such are classified within Level 1 of the fair value hierarchy.
The Company’s net trade receivable from provisional copper and gold concentrate sales is valued using quoted market prices based on forward curves and, as such, is classified within Level 1 of the fair value hierarchy.
The Company’s derivative instruments are valued using pricing models and the Company generally uses similar models to value similar instruments. Where possible, the Company verifies the values produced by its pricing models to market prices. Valuation models require a variety of inputs, including contractual terms, market prices, yield curves, credit spreads, measures of volatility, and correlations of such inputs. The Company’s derivatives trade in liquid markets, and as such, model inputs can generally be verified and do not involve significant management judgment. Such instruments are classified within Level 2 of the fair value hierarchy.
The Company has fixed to floating swap contracts to hedge a portion of the interest rate risk exposure of its 8 5/8% debentures due May 2011. The hedged portion of the Company’s 8 5/8% debentures are valued using pricing models which require inputs, including risk-free interest rates and credit spreads. Because the inputs are derived from observable market data, the hedged portion of the 8 5/8% debentures is classified within Level 2 of the fair value hierarchy.
The Company has recorded a contingent consideration liability related to the 2009 acquisition of the final 33.33% interest in Boddington. The value of the contingent consideration was determined using a valuation model which simulates future gold and copper prices and costs applicable to sales to estimate fair value. The contingent consideration liability is classified within Level 3 of the fair value hierarchy.
The Company had no significant changes in the fair value of the Level 3 financial assets and liabilities for the six months ended June 30, 2010.
NOTE 17 DERIVATIVE INSTRUMENTS
The Company’s strategy is to provide shareholders with leverage to changes in gold and copper prices by selling its production at spot market prices. Consequently, the Company does not hedge its gold and copper sales. Newmont continues to manage risks associated with commodity input costs, interest rates and foreign currencies using the derivative market. All of the cash flow and fair value derivative instruments were transacted for risk management purposes and qualify as hedging instruments. The maximum period over which hedged transactions are expected to occur is three years.
Cash Flow Hedges
The foreign currency and diesel contracts are designated as cash flow hedges, and as such, the effective portion of unrealized changes in market value have been recorded in Accumulated other comprehensive income and are recorded in earnings during the period in which the hedged transaction affects earnings. Gains and losses from hedge ineffectiveness are recognized in current earnings .
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Foreign Currency Contracts
Newmont utilizes foreign currency contracts to reduce the variability of the US dollar amount of forecasted foreign currency expenditures caused by changes in exchange rates. Newmont hedges a portion of the Company’s A$, NZ$ and IDR denominated operating expenditures which results in a blended rate realized each period. The hedging instruments are fixed forward contracts with expiration dates ranging up to three years from the date of issue. The principal hedging objective is reduction in the volatility of realized period-on-period $/A$, $/NZ$ and IDR/$ rates, respectively.
Newmont had the following foreign currency derivative contracts outstanding at June 30, 2010:
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Expected Maturity Date	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total/	 	
 	 	2010	 	 	2011	 	 	2012	 	 	2013	 	 	Average	 	
A$ Fixed Forward Contracts:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
$ (millions)	 	$	373	 	 	$	558	 	 	$	280	 	 	$	44	 	 	$	1,255	 	
Average rate ($/A$)	 	 	0.80	 	 	 	0.78	 	 	 	0.80	 	 	 	0.80	 	 	 	0.79	 	
A$ notional (millions)	 	 	465	 	 	 	713	 	 	 	350	 	 	 	55	 	 	 	1,583	 	
Expected hedge ratio	 	 	70	%	 	 	54	%	 	 	27	%	 	 	8	%	 	 	39	%	
NZ$ Fixed Forward Contracts:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
$ (millions)	 	$	22	 	 	$	31	 	 	$	4	 	 	$	—	 	 	$	57	 	
Average rate ($/NZ$)	 	 	0.65	 	 	 	0.67	 	 	 	0.66	 	 	 	—	 	 	 	0.67	 	
NZ$ notional (millions)	 	 	34	 	 	 	46	 	 	 	7	 	 	 	—	 	 	 	87	 	
Expected hedge ratio	 	 	62	%	 	 	38	%	 	 	12	%	 	 	—	%	 	 	37	%	
IDR Fixed Forward Contracts:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
$ (millions)	 	$	14	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	14	 	
Average rate (IDR/$)	 	 	10,024	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	10,024	 	
IDR notional (millions)	 	 	140,337	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	140,337	 	
Expected hedge ratio	 	 	30	%	 	 	—	%	 	 	—	%	 	 	—	%	 	 	30	%	
Diesel Fixed Forward Contracts
Newmont hedges a portion of its operating cost exposure related to diesel consumed at its Nevada operations to reduce the variability in realized diesel prices. The hedging instruments consist of a series of financially settled fixed forward contracts with expiration dates ranging up to two years from the date of issue.
Newmont had the following diesel derivative contracts outstanding at June 30, 2010:
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Expected Maturity Date	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total/	 	
 	 	2010	 	 	2011	 	 	2012	 	 	Average	 	
Diesel Fixed Forward Contracts:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
$ (millions)	 	$	24	 	 	$	31	 	 	$	4	 	 	$	59	 	
Average rate ($/gallon)	 	 	2.08	 	 	 	2.25	 	 	 	2.43	 	 	 	2.19	 	
Diesel gallons (millions)	 	 	12	 	 	 	14	 	 	 	2	 	 	 	28	 	
Expected Nevada hedge ratio	 	 	57	%	 	 	32	%	 	 	8	%	 	 	32	%	
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Fair Value Hedges
Interest Rate Swap Contracts
At June 30, 2010, Newmont had $222 fixed to floating swap contracts designated as a hedge against its 8 5/8% debentures due 2011. The interest rate swap contracts assist in managing the Company’s targeted mix of fixed and floating rate debt. Under the hedge contract terms, Newmont receives fixed-rate interest payments at 8.63% and pays floating-rate interest amounts based on periodic London Interbank Offered Rate (“LIBOR”) settings plus a spread, ranging from 2.60% to 7.63%. The interest rate swap contracts were designated as fair value hedges and changes in fair value have been recorded in income in each period, consistent with recording changes to the mark-to-market value of the underlying hedged liability in income.
Derivative Instrument Fair Values
Newmont had the following derivative instruments designated as hedges with fair values at June 30, 2010 and December 31, 2009:
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Fair Values of Derivative Instruments	 	
 	 	At June 30, 2010	 	
 	 	Other Current	 	 	Other Long-Term	 	 	Other Current	 	 	Other Long-Term	 	
 	 	Assets	 	 	Assets	 	 	Liabilities	 	 	Liabilities	 	
Foreign currency exchange contracts:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
A$ fixed forward contracts	 	$	44	 	 	$	20	 	 	$	17	 	 	$	20	 	
NZ$ fixed forward contracts	 	 	2	 	 	 	—	 	 	 	1	 	 	 	—	 	
IDR fixed forward contracts	 	 	1	 	 	 	—	 	 	 	—	 	 	 	—	 	
Diesel fixed forward contracts	 	 	2	 	 	 	—	 	 	 	2	 	 	 	1	 	
Interest rate swap contracts	 	 	5	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total derivative instruments (Notes 21 and 23)	 	$	54	 	 	$	20	 	 	$	20	 	 	$	21	 	

 	 	Fair Values of Derivative Instruments	 	
 	 	At December 31, 2009	 	
 	 	Other Current	 	 	Other Long-Term	 	 	Other Current	 	 	Other Long-Term	 	
 	 	Assets	 	 	Assets	 	 	Liabilities	 	 	Liabilities	 	
Foreign currency exchange contracts:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
A$ fixed forward contracts	 	$	78	 	 	$	53	 	 	$	—	 	 	$	1	 	
NZ$ fixed forward contracts	 	 	5	 	 	 	1	 	 	 	—	 	 	 	—	 	
IDR fixed forward contracts	 	 	1	 	 	 	—	 	 	 	—	 	 	 	—	 	
Diesel fixed forward contracts	 	 	5	 	 	 	1	 	 	 	—	 	 	 	—	 	
Interest rate swap contracts	 	 	3	 	 	 	4	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total derivative instruments(Notes 21 and 23)	 	$	92	 	 	$	59	 	 	$	—	 	 	$	1	 	

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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
The following tables show the location and amount of gains (losses) reported in the Company’s Condensed Consolidated Financial Statements related to the Company’s cash flow and fair value hedges and the gains (losses) recorded for the hedged item related to the fair value hedges.
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Foreign Currency	 	 	 	 	
 	 	Exchange Contracts	 	 	Diesel Forward Contracts	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
For the three months ended June 30,	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash flow hedging relationships:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 		
Gain (loss) recognized in other comprehensive income (effective portion)	 	$	(99	)	 	$	142	 	 	$	(6	)	 	$	7	 	
 		
Gain (loss) reclassified from Accumulated other comprehensive income into income (effective portion) (1)	 	 	21	 	 	 	(9	)	 	 	1	 	 	 	(4	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
For the six months ended June 30,	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash flow hedging relationships:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 		
Gain (loss) recognized in other comprehensive income (effective portion)	 	$	(58	)	 	$	118	 	 	$	(5	)	 	$	4	 	
 		
Gain (loss) reclassified from Accumulated other comprehensive income into income (effective portion) (1)	 	 	45	 	 	 	(30	)	 	 	2	 	 	 	(11	)	
 	 	 	
(1)	 	The gain (loss) for the effective portion of foreign exchange and diesel cash flow hedges reclassified from Accumulated other comprehensive income is included in Costs applicable to sales .	
The amount to be reclassified from Accumulated other comprehensive income , net of tax to income for derivative instruments during the next 12 months is a gain of approximately $24.
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  	 	Interest Rate	 	 	8 5/8% Debentures	 	
 	 	Swap Contracts	 	 	(Hedged Portion)	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
For the three months ended June 30,	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fair value hedging relationships:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gain (loss) recognized in income (effective portion) (1)	 	$	1	 	 	$	1	 	 	$	2	 	 	$	—	 	
Gain (loss) recognized in income (ineffective portion) (2)	 	 	(2	)	 	 	(1	)	 	 	1	 	 	 	(2	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
For the six months ended June 30,	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fair value hedging relationships:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gain (loss) recognized in income (effective portion) (1)	 	$	3	 	 	$	2	 	 	$	2	 	 	$	(1	)	
Gain (loss) recognized in income (ineffective portion) (2)	 	 	(2	)	 	 	(1	)	 	 	1	 	 	 	(3	)	
 	 	 	
(1)	 	The gain (loss) recognized for the effective portion of fair value hedges and the underlying hedged debt is included in Interest expense, net .	
 		
(2)	 	The ineffective portion recognized for fair value hedges and the underlying hedged debt is included in Other income, net.	
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Provisional Copper and Gold Sales
The Company’s provisional copper and gold sales contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the gold and copper concentrates at the prevailing indices’ prices at the time of sale. The embedded derivative, which does not qualify for hedge accounting, is marked to market through earnings each period prior to final settlement.
LME copper prices averaged $3.19 per pound during the three months ended June 30, 2010, compared with the Company’s recorded average provisional price of $3.13 per pound before mark-to-market gains and treatment and refining charges. LME copper prices averaged $3.24 per pound during the six months ended June 30, 2010, consistent with the Company’s recorded average provisional price per pound before mark-to-market gains and treatment and refining charges. The applicable forward copper price at the end of the second quarter was $2.96 per pound. During the three months ended June 30, 2010, changes in copper prices resulted in a provisional pricing mark-to-market loss of $79 ($0.62 per pound). During the six months ended June 30, 2010, changes in copper prices resulted in a provisional pricing mark-to-market loss of $48 ($0.17 per pound). At June 30, 2010, Newmont had copper sales of 137 million pounds priced at an average of $2.96 per pound, subject to final pricing over the next several months.
The average London P.M. fix for gold was $1,197 per ounce during the three months ended June 30, 2010, compared with the Company’s recorded average provisional price of $1,192 per ounce before mark-to-market gains and treatment and refining charges. The average London P.M. fix for gold was $1,152 per ounce during the six months ended June 30, 2010, compared with the Company’s recorded average provisional price of $1,151 per ounce before mark-to-market gains and treatment and refining charges. The applicable forward gold price at the end of the second quarter was $1,245 per ounce. During the three months ended June 30, 2010, changes in gold prices resulted in a provisional pricing mark-to-market gain of $20 ($13 per ounce). During the six months ended June 30, 2010, changes in gold prices resulted in a provisional pricing mark-to-market gain of $22 ($7 per ounce). At June 30, 2010, Newmont had gold sales of 180,000 ounces priced at an average of $1,245 per ounce, subject to final pricing over the next several months.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 18 INVESTMENTS
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	At June 30, 2010	 	
 	 	Cost/Equity	 	 	Unrealized	 	 	Fair/Equity	 	
 	 	Basis	 	 	Gain	 	 	Loss	 	 	Basis	 	
Current:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketable Equity Securities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regis Resources	 	$	5	 	 	$	38	 	 	$	—	 	 	$	43	 	
Other	 	 	9	 	 	 	12	 	 	 	—	 	 	 	21	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	14	 	 	$	50	 	 	$	—	 	 	$	64	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Long-term:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketable Debt Securities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asset backed commercial paper	 	$	24	 	 	$	—	 	 	$	(6	)	 	$	18	 	
Auction rate securities	 	 	7	 	 	 	—	 	 	 	(2	)	 	 	5	 	
Corporate	 	 	6	 	 	 	2	 	 	 	—	 	 	 	8	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	37	 	 	 	2	 	 	 	(8	)	 	 	31	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketable Equity Securities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Canadian Oil Sands Trust	 	 	294	 	 	 	500	 	 	 	—	 	 	 	794	 	
Gabriel Resources Ltd.	 	 	74	 	 	 	159	 	 	 	—	 	 	 	233	 	
Shore Gold Inc.	 	 	4	 	 	 	7	 	 	 	—	 	 	 	11	 	
Other	 	 	25	 	 	 	11	 	 	 	(2	)	 	 	34	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	397	 	 	 	677	 	 	 	(2	)	 	 	1,072	 	

Other investments, at cost	 	 	10	 	 	 	—	 	 	 	—	 	 	 	10	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Investment in Affiliates:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
La Zanja	 	 	33	 	 	 	—	 	 	 	—	 	 	 	33	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	477	 	 	$	679	 	 	$	(10	)	 	$	1,146	 	

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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	At December 31, 2009	 	
 	 	Cost/Equity	 	 	Unrealized	 	 	Fair/Equity	 	
 	 	Basis	 	 	Gain	 	 	Loss	 	 	Basis	 	
Current:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketable Equity Securities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regis Resources	 	$	5	 	 	$	29	 	 	$	—	 	 	$	34	 	
Other	 	 	10	 	 	 	12	 	 	 	—	 	 	 	22	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	15	 	 	$	41	 	 	$	—	 	 	$	56	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Long-term:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketable Debt Securities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asset backed commercial paper	 	$	24	 	 	$	—	 	 	$	(6	)	 	$	18	 	
Auction rate securities	 	 	7	 	 	 	—	 	 	 	(2	)	 	 	5	 	
Corporate	 	 	8	 	 	 	2	 	 	 	—	 	 	 	10	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	39	 	 	 	2	 	 	 	(8	)	 	 	33	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketable Equity Securities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Canadian Oil Sands Trust	 	 	292	 	 	 	584	 	 	 	—	 	 	 	876	 	
Gabriel Resources Ltd.	 	 	74	 	 	 	136	 	 	 	—	 	 	 	210	 	
Shore Gold Inc.	 	 	4	 	 	 	11	 	 	 	—	 	 	 	15	 	
Other	 	 	11	 	 	 	7	 	 	 	—	 	 	 	18	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	381	 	 	 	738	 	 	 	—	 	 	 	1,119	 	

Other investments, at cost	 	 	6	 	 	 	—	 	 	 	—	 	 	 	6	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Investment in Affiliates:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
AGR Matthey Joint Venture	 	 	20	 	 	 	—	 	 	 	—	 	 	 	20	 	
La Zanja	 	 	8	 	 	 	—	 	 	 	—	 	 	 	8	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	454	 	 	$	740	 	 	$	(8	)	 	$	1,186	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
The AGR Matthey Joint Venture (“AGR”), in which the Company held a 40% equity interest, was dissolved on March 30, 2010. The remaining interests were held by West Australian Mint (“WAM”) (40%) and Johnson Matthey Australia (“JMA”) (20%). The Company received consideration of $14 from the dissolution and recorded a gain of $6 in the first half of 2010.
Included in Investments at June 30, 2010 and December 31, 2009 are $8 and $10, respectively, of long-term marketable debt securities and $6 and $5 of long-term marketable equity securities, respectively, that are legally pledged for purposes of settling asset retirement obligations related to the San Jose Reservoir at Yanacocha.
During the first half of 2009, the Company recognized impairments for other-than temporary declines in value of $2 for Shore Gold Inc. and $4 for other marketable equity securities.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
The following tables present the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by length of time that the individual securities have been in a continuous unrealized loss position:
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Less than 12 Months	 	 	12 Months or Greater	 	 	Total	 	
 	 	 	 	 	 	Unrealized	 	 	 	 	 	 	Unrealized	 	 	 	 	 	 	Unrealized	 	
At June 30, 2010	 	Fair Value	 	 	Losses	 	 	Fair Value	 	 	Losses	 	 	Fair Value	 	 	Losses	 	
Asset backed commercial paper	 	$	—	 	 	$	—	 	 	$	18	 	 	$	6	 	 	$	18	 	 	$	6	 	
Auction rate securities	 	 	—	 	 	 	—	 	 	 	5	 	 	 	2	 	 	 	5	 	 	 	2	 	
Marketable equity securities	 	 	5	 	 	 	2	 	 	 	—	 	 	 	—	 	 	 	5	 	 	 	2	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	5	 	 	$	2	 	 	$	23	 	 	$	8	 	 	$	28	 	 	$	10	 	

 	 	Less than 12 Months	 	 	12 Months or Greater	 	 	Total	 	
 	 	 	 	 	 	Unrealized	 	 	 	 	 	 	Unrealized	 	 	 	 	 	 	Unrealized	 	
At December 31, 2009	 	Fair Value	 	 	Losses	 	 	Fair Value	 	 	Losses	 	 	Fair Value	 	 	Losses	 	
Asset backed commercial paper	 	$	—	 	 	$	—	 	 	$	18	 	 	$	6	 	 	$	18	 	 	$	6	 	
Auction rate securities	 	 	—	 	 	 	—	 	 	 	5	 	 	 	2	 	 	 	5	 	 	 	2	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	—	 	 	$	—	 	 	$	23	 	 	$	8	 	 	$	23	 	 	$	8	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
The unrealized loss of $10 and $8 at June 30, 2010 and December 31, 2009, respectively, relate to the Company’s investments in asset backed commercial paper, auction rate securities and marketable equity securities as listed in the tables above. While the fair values of these investments are below their respective cost, the Company views these declines as temporary. The Company intends to hold its investment in auction rate securities and asset backed commercial paper until maturity or such time that the market recovers and therefore considers these losses temporary.
NOTE 19 INVENTORIES
 	 	 	 	 	 	 	 	 	
 	 	At June 30,	 	 	At December 31,	 	
 	 	2010	 	 	2009	 	
In-process	 	$	79	 	 	$	80	 	
Concentrate	 	 	32	 	 	 	10	 	
Precious metals	 	 	9	 	 	 	9	 	
Materials, supplies and other	 	 	390	 	 	 	394	 	
 	 	 	 	 	 	 	
 	 	$	510	 	 	$	493	 	
 	 	 	 	 	 	 	
NOTE 20 STOCKPILES AND ORE ON LEACH PADS
 	 	 	 	 	 	 	 	 	
 	 	At June 30,	 	 	At December 31,	 	
 	 	2010	 	 	2009	 	
Current:	 	 	 	 	 	 	 	 	
Stockpiles	 	$	303	 	 	$	206	 	
Ore on leach pads	 	 	224	 	 	 	197	 	
 	 	 	 	 	 	 	
 	 	$	527	 	 	$	403	 	
 	 	 	 	 	 	 	
Long-term:	 	 	 	 	 	 	 	 	
Stockpiles	 	$	1,272	 	 	$	1,181	 	
Ore on leach pads	 	 	335	 	 	 	321	 	
 	 	 	 	 	 	 	
 	 	$	1,607	 	 	$	1,502	 	

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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
At June 30, 2010, stockpiles were primarily located at Batu Hijau ($841), Nevada ($328), Other Australia/New Zealand ($114), Boddington ($140) and Ahafo ($88), while ore on leach pads were primarily located at Yanacocha ($388) and Nevada ($164).
NOTE 21 OTHER ASSETS
 	 	 	 	 	 	 	 	 	
 	 	At June 30,	 	 	At December 31,	 	
 	 	2010	 	 	2009	 	
Other current assets:	 	 	 	 	 	 	 	 	
Refinery metal inventory and receivable	 	$	504	 	 	$	671	 	
Prepaid assets	 	 	89	 	 	 	70	 	
Derivative instruments	 	 	54	 	 	 	92	 	
Other	 	 	55	 	 	 	67	 	
 	 	 	 	 	 	 	
 	 	$	702	 	 	$	900	 	

Other long-term assets:	 	 	 	 	 	 	 	 	
Goodwill	 	$	188	 	 	$	188	 	
Intangible assets	 	 	91	 	 	 	29	 	
Debt issuance costs	 	 	43	 	 	 	50	 	
Restricted cash	 	 	23	 	 	 	70	 	
Other receivables	 	 	23	 	 	 	16	 	
Derivative instruments	 	 	20	 	 	 	59	 	
Other	 	 	75	 	 	 	70	 	
 	 	 	 	 	 	 	
 	 	$	463	 	 	$	482	 	
 	 	 	 	 	 	 	
NOTE 22 DEBT
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	At June 30, 2010	 	 	At December 31, 2009	 	
 	 	Current	 	 	Non-Current	 	 	Current	 	 	Non-Current	 	
Sale-leaseback of refractory ore treatment plant	 	$	30	 	 	$	134	 	 	$	24	 	 	$	164	 	
8 5/8% debentures, net of discount (due 2011)	 	 	216	 	 	 	—	 	 	 	—	 	 	 	218	 	
2012 convertible senior notes, net of discount	 	 	—	 	 	 	475	 	 	 	—	 	 	 	463	 	
2014 convertible senior notes, net of discount	 	 	—	 	 	 	478	 	 	 	—	 	 	 	468	 	
2017 convertible senior notes, net of discount	 	 	—	 	 	 	425	 	 	 	—	 	 	 	417	 	
5 1/8% senior notes, net of discount (due 2019)	 	 	—	 	 	 	896	 	 	 	—	 	 	 	896	 	
5 7/8% senior notes, net of discount (due 2035)	 	 	—	 	 	 	598	 	 	 	—	 	 	 	597	 	
6 1/4% senior notes, net of discount (due 2039)	 	 	—	 	 	 	1,087	 	 	 	—	 	 	 	1,087	 	
PTNNT project financing facility	 	 	—	 	 	 	—	 	 	 	87	 	 	 	133	 	
Yanacocha credit facility	 	 	14	 	 	 	41	 	 	 	14	 	 	 	48	 	
Yanacocha senior notes	 	 	16	 	 	 	84	 	 	 	8	 	 	 	92	 	
Ahafo project facility	 	 	10	 	 	 	60	 	 	 	10	 	 	 	65	 	
Other project financings and capital leases	 	 	9	 	 	 	2	 	 	 	14	 	 	 	4	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	295	 	 	$	4,280	 	 	$	157	 	 	$	4,652	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
On February 23, 2010, PTNNT repaid the $220 remaining balance under the PTNNT project financing facility. As a result, the Company is no longer required to maintain letters of credit to secure 56.25% of the PTNNT project financing facility and PTNNT’s assets are no longer pledged as collateral.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Scheduled minimum debt repayments are $27 for the remainder of 2010, $287 in 2011, $576 in 2012, $72 in 2013, $545 in 2014 and $3,068 thereafter.
NOTE 23 OTHER LIABILITIES
 	 	 	 	 	 	 	 	 	
 	 	At June 30,	 	 	At December 31,	 	
 	 	2010	 	 	2009	 	
Other current liabilities:	 	 	 	 	 	 	 	 	
Refinery metal payable	 	$	504	 	 	$	671	 	
Accrued operating costs	 	 	205	 	 	 	131	 	
Interest	 	 	65	 	 	 	72	 	
Accrued capital expenditures	 	 	56	 	 	 	115	 	
Reclamation and remediation costs	 	 	53	 	 	 	54	 	
Boddington acquisition costs	 	 	52	 	 	 	52	 	
Royalties	 	 	45	 	 	 	58	 	
Taxes other than income and mining	 	 	31	 	 	 	21	 	
Boddington contingent consideration	 	 	27	 	 	 	16	 	
Derivative instruments	 	 	20	 	 	 	—	 	
Other	 	 	85	 	 	 	127	 	
 	 	 	 	 	 	 	
 	 	$	1,143	 	 	$	1,317	 	

Other long-term liabilities:	 	 	 	 	 	 	 	 	
Boddington contingent consideration	 	$	58	 	 	$	69	 	
Income and mining taxes	 	 	51	 	 	 	38	 	
Power supply agreements	 	 	38	 	 	 	—	 	
Derivative instruments	 	 	21	 	 	 	1	 	
Other	 	 	47	 	 	 	66	 	
 	 	 	 	 	 	 	
 	 	$	215	 	 	$	174	 	
 	 	 	 	 	 	 	
NOTE 24 NET CHANGE IN OPERATING ASSETS AND LIABILITIES
Net cash provided from operations attributable to the net change in operating assets and liabilities is composed of the following:
 	 	 	 	 	 	 	 	 	
 	 	Six Months Ended June 30,	 	
 	 	2010	 	 	2009	 	
Decrease (increase) in operating assets:	 	 	 	 	 	 	 	 	
Trade and accounts receivable	 	$	74	 	 	$	68	 	
Inventories, stockpiles and ore on leach pads	 	 	(187	)	 	 	(155	)	
EGR refinery assets	 	 	138	 	 	 	(70	)	
Other assets	 	 	(30	)	 	 	5	 	
Increase (decrease) in operating liabilities:	 	 	 	 	 	 	 	 	
Accounts payable and other accrued liabilities	 	 	(90	)	 	 	(74	)	
EGR refinery liabilities	 	 	(138	)	 	 	70	 	
Reclamation liabilities	 	 	(18	)	 	 	(22	)	
 	 	 	 	 	 	 	
 	 	$	(251	)	 	$	(178	)	

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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 25 CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
Newmont USA, a 100% owned subsidiary of Newmont Mining Corporation, has fully and unconditionally guaranteed the 5 7/8%, 5 1/8% and 6 1/4% publicly traded notes and the 2012, 2014 and 2017 convertible senior notes. The following consolidating financial statements are provided for Newmont USA, as guarantor, and for Newmont Mining Corporation, as issuer, as an alternative to providing separate financial statements for the guarantor. The accounts of Newmont Mining Corporation are presented using the equity method of accounting for investments in subsidiaries.
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended June 30, 2010	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Newmont	 	
 	 	Newmont	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Mining	 	
 	 	Mining	 	 	Newmont	 	 	Other	 	 	 	 	 	 	Corporation	 	
Condensed Consolidating Statement of Income	 	Corporation	 	 	USA	 	 	Subsidiaries	 	 	Eliminations	 	 	Consolidated	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Sales	 	$	—	 	 	$	1,410	 	 	$	743	 	 	$	—	 	 	$	2,153	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs and expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs applicable to sales (1)	 	 	—	 	 	 	525	 	 	 	339	 	 	 	(6	)	 	 	858	 	
Amortization	 	 	—	 	 	 	143	 	 	 	89	 	 	 	(1	)	 	 	231	 	
Reclamation and remediation	 	 	—	 	 	 	10	 	 	 	3	 	 	 	—	 	 	 	13	 	
Exploration	 	 	—	 	 	 	32	 	 	 	21	 	 	 	—	 	 	 	53	 	
Advanced projects, research and development	 	 	—	 	 	 	25	 	 	 	32	 	 	 	—	 	 	 	57	 	
General and administrative	 	 	—	 	 	 	37	 	 	 	—	 	 	 	6	 	 	 	43	 	
Other expense, net	 	 	—	 	 	 	39	 	 	 	21	 	 	 	1	 	 	 	61	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	—	 	 	 	811	 	 	 	505	 	 	 	—	 	 	 	1,316	 	

Other income (expense)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other income, net	 	 	—	 	 	 	13	 	 	 	31	 	 	 	—	 	 	 	44	 	
Interest income — intercompany	 	 	35	 	 	 	2	 	 	 	1	 	 	 	(38	)	 	 	—	 	
Interest expense — intercompany	 	 	(3	)	 	 	—	 	 	 	(35	)	 	 	38	 	 	 	—	 	
Interest expense, net	 	 	(64	)	 	 	(4	)	 	 	(1	)	 	 	—	 	 	 	(69	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	(32	)	 	 	11	 	 	 	(4	)	 	 	—	 	 	 	(25	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) before income tax and other items	 	 	(32	)	 	 	610	 	 	 	234	 	 	 	—	 	 	 	812	 	
Income tax expense	 	 	9	 	 	 	(221	)	 	 	(61	)	 	 	—	 	 	 	(273	)	
Equity income (loss) of affiliates	 	 	405	 	 	 	1	 	 	 	63	 	 	 	(471	)	 	 	(2	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	 	 	382	 	 	 	390	 	 	 	236	 	 	 	(471	)	 	 	537	 	
Net loss (income) attributable to noncontrolling interests	 	 	—	 	 	 	(185	)	 	 	(10	)	 	 	40	 	 	 	(155	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) attributable to Newmont stockholders	 	$	382	 	 	$	205	 	 	$	226	 	 	$	(431	)	 	$	382	 	

(1)	 	Exclusive of Amortization and Reclamation and remediation.	
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended June 30, 2009	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Newmont	 	
 	 	Newmont	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Mining	 	
 	 	Mining	 	 	Newmont	 	 	Other	 	 	 	 	 	 	Corporation	 	
Condensed Consolidating Statement of Income	 	Corporation	 	 	USA	 	 	Subsidiaries	 	 	Eliminations	 	 	Consolidated	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Sales	 	$	—	 	 	$	1,217	 	 	$	385	 	 	$	—	 	 	$	1,602	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs and expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs applicable to sales (1)	 	 	—	 	 	 	499	 	 	 	203	 	 	 	(6	)	 	 	696	 	
Amortization	 	 	—	 	 	 	125	 	 	 	51	 	 	 	—	 	 	 	176	 	
Reclamation and remediation	 	 	—	 	 	 	8	 	 	 	4	 	 	 	—	 	 	 	12	 	
Exploration	 	 	—	 	 	 	26	 	 	 	25	 	 	 	—	 	 	 	51	 	
Advanced projects, research and development	 	 	—	 	 	 	17	 	 	 	26	 	 	 	(1	)	 	 	42	 	
General and administrative	 	 	—	 	 	 	33	 	 	 	—	 	 	 	7	 	 	 	40	 	
Other expense, net	 	 	8	 	 	 	26	 	 	 	78	 	 	 	—	 	 	 	112	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	8	 	 	 	734	 	 	 	387	 	 	 	—	 	 	 	1,129	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other income (expense)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other income, net	 	 	(6	)	 	 	(6	)	 	 	21	 	 	 	—	 	 	 	9	 	
Interest income — intercompany	 	 	28	 	 	 	2	 	 	 	1	 	 	 	(31	)	 	 	—	 	
Interest expense — intercompany	 	 	(3	)	 	 	—	 	 	 	(28	)	 	 	31	 	 	 	—	 	
Interest expense, net	 	 	(9	)	 	 	(12	)	 	 	(2	)	 	 	—	 	 	 	(23	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	10	 	 	 	(16	)	 	 	(8	)	 	 	—	 	 	 	(14	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before income tax and other items	 	 	2	 	 	 	467	 	 	 	(10	)	 	 	—	 	 	 	459	 	
Income tax expense	 	 	(3	)	 	 	(160	)	 	 	27	 	 	 	—	 	 	 	(136	)	
Equity income (loss) of affiliates	 	 	177	 	 	 	2	 	 	 	28	 	 	 	(210	)	 	 	(3	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations	 	 	176	 	 	 	309	 	 	 	45	 	 	 	(210	)	 	 	320	 	
Income (loss) from discontinued operations	 	 	(14	)	 	 	(14	)	 	 	—	 	 	 	14	 	 	 	(14	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	 	 	162	 	 	 	295	 	 	 	45	 	 	 	(196	)	 	 	306	 	
Net loss (income) attributable to noncontrolling interests	 	 	—	 	 	 	(144	)	 	 	(15	)	 	 	15	 	 	 	(144	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) attributable to Newmont stockholders	 	$	162	 	 	$	151	 	 	$	30	 	 	$	(181	)	 	$	162	 	

(1)	 	Exclusive of Amortization and Reclamation and remediation.	
 
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Table of Contents
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Six Months Ended June 30, 2010	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Newmont	 	
 	 	Newmont	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Mining	 	
 	 	Mining	 	 	Newmont	 	 	Other	 	 	 	 	 	 	Corporation	 	
Condensed Consolidating Statement of Income	 	Corporation	 	 	USA	 	 	Subsidiaries	 	 	Eliminations	 	 	Consolidated	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Sales	 	$	—	 	 	$	3,002	 	 	$	1,393	 	 	$	—	 	 	$	4,395	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs and expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs applicable to sales (1)	 	 	—	 	 	 	1,076	 	 	 	668	 	 	 	(11	)	 	 	1,733	 	
Amortization	 	 	—	 	 	 	286	 	 	 	170	 	 	 	(1	)	 	 	455	 	
Reclamation and remediation	 	 	—	 	 	 	19	 	 	 	7	 	 	 	—	 	 	 	26	 	
Exploration	 	 	—	 	 	 	56	 	 	 	40	 	 	 	—	 	 	 	96	 	
Advanced projects, research and development	 	 	—	 	 	 	54	 	 	 	49	 	 	 	—	 	 	 	103	 	
General and administrative	 	 	—	 	 	 	75	 	 	 	1	 	 	 	12	 	 	 	88	 	
Other expense, net	 	 	—	 	 	 	115	 	 	 	35	 	 	 	—	 	 	 	150	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	—	 	 	 	1,681	 	 	 	970	 	 	 	—	 	 	 	2,651	 	

Other income (expense)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other income, net	 	 	—	 	 	 	14	 	 	 	78	 	 	 	—	 	 	 	92	 	
Interest income — intercompany	 	 	71	 	 	 	4	 	 	 	2	 	 	 	(77	)	 	 	—	 	
Interest expense — intercompany	 	 	(5	)	 	 	—	 	 	 	(72	)	 	 	77	 	 	 	—	 	
Interest expense, net	 	 	(126	)	 	 	(16	)	 	 	(2	)	 	 	—	 	 	 	(144	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	(60	)	 	 	2	 	 	 	6	 	 	 	—	 	 	 	(52	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) before income tax and other items	 	 	(60	)	 	 	1,323	 	 	 	429	 	 	 	—	 	 	 	1,692	 	
Income tax expense	 	 	150	 	 	 	(454	)	 	 	(104	)	 	 	—	 	 	 	(408	)	
Equity income (loss) of affiliates	 	 	838	 	 	 	1	 	 	 	130	 	 	 	(973	)	 	 	(4	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	 	 	928	 	 	 	870	 	 	 	455	 	 	 	(973	)	 	 	1,280	 	
Net loss (income) attributable to noncontrolling interests	 	 	—	 	 	 	(428	)	 	 	(5	)	 	 	81	 	 	 	(352	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) attributable to Newmont stockholders	 	$	928	 	 	$	442	 	 	$	450	 	 	$	(892	)	 	$	928	 	

(1)	 	Exclusive of Amortization and Reclamation and remediation.	
 
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Table of Contents
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Six Months Ended June 30, 2009	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Newmont	 	
 	 	Newmont	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Mining	 	
 	 	Mining	 	 	Newmont	 	 	Other	 	 	 	 	 	 	Corporation	 	
Condensed Consolidating Statement of Income	 	Corporation	 	 	USA	 	 	Subsidiaries	 	 	Eliminations	 	 	Consolidated	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Sales	 	$	—	 	 	$	2,355	 	 	$	783	 	 	$	—	 	 	$	3,138	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs and expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs applicable to sales (1)	 	 	—	 	 	 	1,036	 	 	 	411	 	 	 	(12	)	 	 	1,435	 	
Amortization	 	 	—	 	 	 	262	 	 	 	105	 	 	 	—	 	 	 	367	 	
Reclamation and remediation	 	 	—	 	 	 	17	 	 	 	7	 	 	 	—	 	 	 	24	 	
Exploration	 	 	—	 	 	 	48	 	 	 	44	 	 	 	—	 	 	 	92	 	
Advanced projects, research and development	 	 	—	 	 	 	35	 	 	 	40	 	 	 	(2	)	 	 	73	 	
General and administrative	 	 	—	 	 	 	63	 	 	 	2	 	 	 	14	 	 	 	79	 	
Other expense, net	 	 	8	 	 	 	84	 	 	 	93	 	 	 	—	 	 	 	185	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	8	 	 	 	1,545	 	 	 	702	 	 	 	—	 	 	 	2,255	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other income (expense)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other income, net	 	 	(10	)	 	 	—	 	 	 	28	 	 	 	—	 	 	 	18	 	
Interest income — intercompany	 	 	60	 	 	 	4	 	 	 	1	 	 	 	(65	)	 	 	—	 	
Interest expense — intercompany	 	 	(5	)	 	 	—	 	 	 	(60	)	 	 	65	 	 	 	—	 	
Interest expense, net	 	 	(27	)	 	 	(25	)	 	 	(3	)	 	 	—	 	 	 	(55	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	18	 	 	 	(21	)	 	 	(34	)	 	 	—	 	 	 	(37	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before income tax and other items	 	 	10	 	 	 	789	 	 	 	47	 	 	 	—	 	 	 	846	 	
Income tax expense	 	 	(13	)	 	 	(243	)	 	 	15	 	 	 	—	 	 	 	(241	)	
Equity income (loss) of affiliates	 	 	368	 	 	 	3	 	 	 	54	 	 	 	(433	)	 	 	(8	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations	 	 	365	 	 	 	549	 	 	 	116	 	 	 	(433	)	 	 	597	 	
Income (loss) from discontinued operations	 	 	(14	)	 	 	(14	)	 	 	—	 	 	 	14	 	 	 	(14	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	 	 	351	 	 	 	535	 	 	 	116	 	 	 	(419	)	 	 	583	 	
Net loss (income) attributable to noncontrolling interests	 	 	—	 	 	 	(234	)	 	 	(28	)	 	 	30	 	 	 	(232	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) attributable to Newmont stockholders	 	$	351	 	 	$	301	 	 	$	88	 	 	$	(389	)	 	$	351	 	

(1)	 	Exclusive of Amortization and Reclamation and remediation.	
 
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Table of Contents
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Six Months Ended June 30, 2010	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Newmont	 	
 	 	Newmont	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Mining	 	
 	 	Mining	 	 	Newmont	 	 	Other	 	 	 	 	 	 	Corporation	 	
Condensed Consolidating Statement of Cash Flows	 	Corporation	 	 	USA	 	 	Subsidiaries	 	 	Eliminations	 	 	Consolidated	 	
Operating activities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	 	$	928	 	 	$	870	 	 	$	455	 	 	$	(973	)	 	$	1,280	 	
Adjustments	 	 	(115	)	 	 	319	 	 	 	(725	)	 	 	973	 	 	 	452	 	
Net change in operating assets and liabilities	 	 	(2	)	 	 	(160	)	 	 	(89	)	 	 	—	 	 	 	(251	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided from (used in) continuing operations	 	 	811	 	 	 	1,029	 	 	 	(359	)	 	 	—	 	 	 	1,481	 	
Net cash used in discontinued operations	 	 	—	 	 	 	(13	)	 	 	—	 	 	 	—	 	 	 	(13	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided from (used in) operations	 	 	811	 	 	 	1,016	 	 	 	(359	)	 	 	—	 	 	 	1,468	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Investing activities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Additions to property, plant and mine development	 	 	—	 	 	 	(283	)	 	 	(345	)	 	 	—	 	 	 	(628	)	
Investment in marketable debt and equity securities	 	 	—	 	 	 	—	 	 	 	(7	)	 	 	—	 	 	 	(7	)	
Proceeds from sale of other assets	 	 	—	 	 	 	8	 	 	 	44	 	 	 	—	 	 	 	52	 	
Other	 	 	—	 	 	 	—	 	 	 	(22	)	 	 	—	 	 	 	(22	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash used in investing activities	 	 	—	 	 	 	(275	)	 	 	(330	)	 	 	—	 	 	 	(605	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Financing activities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net repayments	 	 	—	 	 	 	(257	)	 	 	(6	)	 	 	—	 	 	 	(263	)	
Net intercompany borrowings (repayments)	 	 	(751	)	 	 	(23	)	 	 	855	 	 	 	(81	)	 	 	—	 	
Sale of subsidiary shares to noncontrolling interests	 	 	—	 	 	 	229	 	 	 	—	 	 	 	—	 	 	 	229	 	
Acquisition of subsidiary shares from noncontrolling interests	 	 	—	 	 	 	—	 	 	 	(109	)	 	 	—	 	 	 	(109	)	
Dividends paid to common stockholders	 	 	(98	)	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(98	)	
Dividends paid to noncontrolling interests	 	 	—	 	 	 	(388	)	 	 	—	 	 	 	81	 	 	 	(307	)	
Proceeds from stock issuance, net	 	 	30	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	30	 	
Change in restricted cash and other	 	 	—	 	 	 	48	 	 	 	—	 	 	 	—	 	 	 	48	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided from (used in) financing activities	 	 	(819	)	 	 	(391	)	 	 	740	 	 	 	—	 	 	 	(470	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Effect of exchange rate changes on cash	 	 	—	 	 	 	—	 	 	 	(6	)	 	 	—	 	 	 	(6	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net change in cash and cash equivalents	 	 	(8	)	 	 	350	 	 	 	45	 	 	 	—	 	 	 	387	 	
Cash and cash equivalents at beginning of period	 	 	8	 	 	 	3,067	 	 	 	140	 	 	 	—	 	 	 	3,215	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents at end of period	 	$	—	 	 	$	3,417	 	 	$	185	 	 	$	—	 	 	$	3,602	 	

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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Six Months Ended June 30, 2009	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Newmont	 	
 	 	Newmont	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Mining	 	
 	 	Mining	 	 	Newmont	 	 	Other	 	 	 	 	 	 	Corporation	 	
Condensed Consolidating Statement of Cash Flows	 	Corporation	 	 	USA	 	 	Subsidiaries	 	 	Eliminations	 	 	Consolidated	 	
Operating activities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	 	$	351	 	 	$	535	 	 	$	116	 	 	$	(419	)	 	$	583	 	
Adjustments	 	 	49	 	 	 	343	 	 	 	(330	)	 	 	419	 	 	 	481	 	
Net change in operating assets and liabilities	 	 	1	 	 	 	(220	)	 	 	41	 	 	 	—	 	 	 	(178	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided from (used in) continuing operations	 	 	401	 	 	 	658	 	 	 	(173	)	 	 	—	 	 	 	886	 	
Net cash provided from discontinued operations	 	 	—	 	 	 	8	 	 	 	—	 	 	 	—	 	 	 	8	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided from (used in) operations	 	 	401	 	 	 	666	 	 	 	(173	)	 	 	—	 	 	 	894	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Investing activities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Additions to property, plant and mine development	 	 	—	 	 	 	(234	)	 	 	(676	)	 	 	—	 	 	 	(910	)	
Acquisitions, net	 	 	(8	)	 	 	(11	)	 	 	(741	)	 	 	—	 	 	 	(760	)	
Proceeds from sale of other assets	 	 	—	 	 	 	—	 	 	 	2	 	 	 	—	 	 	 	2	 	
Other	 	 	—	 	 	 	1	 	 	 	(5	)	 	 	—	 	 	 	(4	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash used in investing activities	 	 	(8	)	 	 	(244	)	 	 	(1,420	)	 	 	—	 	 	 	(1,672	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Financing activities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net borrowings (repayments)	 	 	(154	)	 	 	(26	)	 	 	6	 	 	 	—	 	 	 	(174	)	
Net intercompany borrowings (repayments)	 	 	(1,381	)	 	 	(207	)	 	 	1,588	 	 	 	—	 	 	 	—	 	
Dividends paid to common stockholders	 	 	(98	)	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(98	)	
Dividends paid to noncontrolling interests	 	 	—	 	 	 	(112	)	 	 	—	 	 	 	—	 	 	 	(112	)	
Proceeds from stock issuance	 	 	1,247	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1,247	 	
Change in restricted cash and other	 	 	(7	)	 	 	—	 	 	 	12	 	 	 	—	 	 	 	5	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided from (used in) financing activities of continuing operations	 	 	(393	)	 	 	(345	)	 	 	1,606	 	 	 	—	 	 	 	868	 	
Net cash used in financing activities of discontinued operations	 	 	—	 	 	 	(2	)	 	 	—	 	 	 	—	 	 	 	(2	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided from (used in) financing activities	 	 	(393	)	 	 	(347	)	 	 	1,606	 	 	 	—	 	 	 	866	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Effect of exchange rate changes on cash	 	 	—	 	 	 	—	 	 	 	21	 	 	 	—	 	 	 	21	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net change in cash and cash equivalents	 	 	—	 	 	 	75	 	 	 	34	 	 	 	—	 	 	 	109	 	
Cash and cash equivalents at beginning of period	 	 	—	 	 	 	310	 	 	 	125	 	 	 	—	 	 	 	435	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents at end of period	 	$	—	 	 	$	385	 	 	$	159	 	 	$	—	 	 	$	544	 	

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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	At June 30, 2010	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Newmont	 	
 	 	Newmont	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Mining	 	
 	 	Mining	 	 	Newmont	 	 	Other	 	 	 	 	 	 	Corporation	 	
Condensed Consolidating Balance Sheet	 	Corporation	 	 	USA	 	 	Subsidiaries	 	 	Eliminations	 	 	Consolidated	 	
Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	$	—	 	 	$	3,417	 	 	$	185	 	 	$	—	 	 	$	3,602	 	
Trade receivables	 	 	—	 	 	 	278	 	 	 	80	 	 	 	—	 	 	 	358	 	
Accounts receivable	 	 	2,277	 	 	 	764	 	 	 	384	 	 	 	(3,319	)	 	 	106	 	
Investments	 	 	—	 	 	 	5	 	 	 	59	 	 	 	—	 	 	 	64	 	
Inventories	 	 	—	 	 	 	327	 	 	 	183	 	 	 	—	 	 	 	510	 	
Stockpiles and ore on leach pads	 	 	—	 	 	 	448	 	 	 	79	 	 	 	—	 	 	 	527	 	
Deferred income tax assets	 	 	—	 	 	 	171	 	 	 	31	 	 	 	—	 	 	 	202	 	
Other current assets	 	 	—	 	 	 	105	 	 	 	597	 	 	 	—	 	 	 	702	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Current assets	 	 	2,277	 	 	 	5,515	 	 	 	1,598	 	 	 	(3,319	)	 	 	6,071	 	
Property, plant and mine development, net	 	 	—	 	 	 	5,165	 	 	 	7,252	 	 	 	(18	)	 	 	12,399	 	
Investments	 	 	—	 	 	 	29	 	 	 	796	 	 	 	321	 	 	 	1,146	 	
Investments in subsidiaries	 	 	10,630	 	 	 	32	 	 	 	1,615	 	 	 	(12,277	)	 	 	—	 	
Stockpiles and ore on leach pads	 	 	—	 	 	 	1,344	 	 	 	263	 	 	 	—	 	 	 	1,607	 	
Deferred income tax assets	 	 	116	 	 	 	891	 	 	 	76	 	 	 	—	 	 	 	1,083	 	
Other long-term assets	 	 	2,552	 	 	 	313	 	 	 	454	 	 	 	(2,856	)	 	 	463	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	 	$	15,575	 	 	$	13,289	 	 	$	12,054	 	 	$	(18,149	)	 	$	22,769	 	

Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Debt	 	$	—	 	 	$	285	 	 	$	10	 	 	$	—	 	 	$	295	 	
Accounts payable	 	 	32	 	 	 	1,253	 	 	 	2,391	 	 	 	(3,310	)	 	 	366	 	
Employee-related benefits	 	 	—	 	 	 	151	 	 	 	43	 	 	 	—	 	 	 	194	 	
Income and mining taxes	 	 	—	 	 	 	191	 	 	 	6	 	 	 	—	 	 	 	197	 	
Other current liabilities	 	 	56	 	 	 	307	 	 	 	2,751	 	 	 	(1,971	)	 	 	1,143	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Current liabilities	 	 	88	 	 	 	2,187	 	 	 	5,201	 	 	 	(5,281	)	 	 	2,195	 	
Debt	 	 	3,959	 	 	 	261	 	 	 	60	 	 	 	—	 	 	 	4,280	 	
Reclamation and remediation liabilities	 	 	—	 	 	 	574	 	 	 	236	 	 	 	—	 	 	 	810	 	
Deferred income tax liabilities	 	 	—	 	 	 	516	 	 	 	804	 	 	 	—	 	 	 	1,320	 	
Employee-related benefits	 	 	5	 	 	 	334	 	 	 	55	 	 	 	—	 	 	 	394	 	
Other long-term liabilities	 	 	343	 	 	 	76	 	 	 	2,670	 	 	 	(2,874	)	 	 	215	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	 	 	4,395	 	 	 	3,948	 	 	 	9,026	 	 	 	(8,155	)	 	 	9,214	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Preferred stock	 	 	—	 	 	 	—	 	 	 	61	 	 	 	(61	)	 	 	—	 	
Common stock	 	 	775	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	775	 	
Additional paid-in capital	 	 	7,900	 	 	 	2,722	 	 	 	3,885	 	 	 	(6,272	)	 	 	8,235	 	
Accumulated other comprehensive income (loss)	 	 	526	 	 	 	(121	)	 	 	629	 	 	 	(508	)	 	 	526	 	
Retained earnings (deficit)	 	 	1,979	 	 	 	4,244	 	 	 	(1,633	)	 	 	(2,611	)	 	 	1,979	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Newmont stockholders’ equity	 	 	11,180	 	 	 	6,845	 	 	 	2,942	 	 	 	(9,452	)	 	 	11,515	 	
Noncontrolling interests	 	 	—	 	 	 	2,496	 	 	 	86	 	 	 	(542	)	 	 	2,040	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total equity	 	 	11,180	 	 	 	9,341	 	 	 	3,028	 	 	 	(9,994	)	 	 	13,555	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities and equity	 	$	15,575	 	 	$	13,289	 	 	$	12,054	 	 	$	(18,149	)	 	$	22,769	 	

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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	At December 31, 2009	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Newmont	 	
 	 	Newmont	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Mining	 	
 	 	Mining	 	 	Newmont	 	 	Other	 	 	 	 	 	 	Corporation	 	
Condensed Consolidating Balance Sheet	 	Corporation	 	 	USA	 	 	Subsidiaries	 	 	Eliminations	 	 	Consolidated	 	
Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	$	8	 	 	$	3,067	 	 	$	140	 	 	$	—	 	 	$	3,215	 	
Trade receivables	 	 	—	 	 	 	417	 	 	 	21	 	 	 	—	 	 	 	438	 	
Accounts receivable	 	 	2,338	 	 	 	673	 	 	 	363	 	 	 	(3,272	)	 	 	102	 	
Investments	 	 	—	 	 	 	4	 	 	 	52	 	 	 	—	 	 	 	56	 	
Inventories	 	 	—	 	 	 	307	 	 	 	186	 	 	 	—	 	 	 	493	 	
Stockpiles and ore on leach pads	 	 	—	 	 	 	331	 	 	 	72	 	 	 	—	 	 	 	403	 	
Deferred income tax assets	 	 	—	 	 	 	157	 	 	 	58	 	 	 	—	 	 	 	215	 	
Other current assets	 	 	—	 	 	 	78	 	 	 	822	 	 	 	—	 	 	 	900	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Current assets	 	 	2,346	 	 	 	5,034	 	 	 	1,714	 	 	 	(3,272	)	 	 	5,822	 	
Property, plant and mine development, net	 	 	—	 	 	 	5,195	 	 	 	7,193	 	 	 	(18	)	 	 	12,370	 	
Investments	 	 	—	 	 	 	26	 	 	 	1,160	 	 	 	—	 	 	 	1,186	 	
Investments in subsidiaries	 	 	9,842	 	 	 	31	 	 	 	1,089	 	 	 	(10,962	)	 	 	—	 	
Stockpiles and ore on leach pads	 	 	—	 	 	 	1,323	 	 	 	179	 	 	 	—	 	 	 	1,502	 	
Deferred income tax assets	 	 	—	 	 	 	844	 	 	 	93	 	 	 	—	 	 	 	937	 	
Other long-term assets	 	 	2,551	 	 	 	357	 	 	 	419	 	 	 	(2,845	)	 	 	482	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	 	$	14,739	 	 	$	12,810	 	 	$	11,847	 	 	$	(17,097	)	 	$	22,299	 	

Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Debt	 	$	—	 	 	$	147	 	 	$	10	 	 	$	—	 	 	$	157	 	
Accounts payable	 	 	46	 	 	 	1,201	 	 	 	2,413	 	 	 	(3,264	)	 	 	396	 	
Employee-related benefits	 	 	—	 	 	 	202	 	 	 	48	 	 	 	—	 	 	 	250	 	
Income and mining taxes	 	 	—	 	 	 	192	 	 	 	8	 	 	 	—	 	 	 	200	 	
Other current liabilities	 	 	58	 	 	 	281	 	 	 	2,949	 	 	 	(1,971	)	 	 	1,317	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Current liabilities	 	 	104	 	 	 	2,023	 	 	 	5,428	 	 	 	(5,235	)	 	 	2,320	 	
Debt	 	 	3,928	 	 	 	659	 	 	 	65	 	 	 	—	 	 	 	4,652	 	
Reclamation and remediation liabilities	 	 	—	 	 	 	565	 	 	 	240	 	 	 	—	 	 	 	805	 	
Deferred income tax liabilities	 	 	31	 	 	 	494	 	 	 	816	 	 	 	—	 	 	 	1,341	 	
Employee-related benefits	 	 	4	 	 	 	324	 	 	 	53	 	 	 	—	 	 	 	381	 	
Other long-term liabilities	 	 	338	 	 	 	62	 	 	 	2,637	 	 	 	(2,863	)	 	 	174	 	
Liabilities of operations held for sale	 	 	—	 	 	 	13	 	 	 	—	 	 	 	—	 	 	 	13	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	 	 	4,405	 	 	 	4,140	 	 	 	9,239	 	 	 	(8,098	)	 	 	9,686	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Preferred stock	 	 	—	 	 	 	—	 	 	 	61	 	 	 	(61	)	 	 	—	 	
Common stock	 	 	770	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	770	 	
Additional paid-in capital	 	 	7,789	 	 	 	2,709	 	 	 	3,874	 	 	 	(6,214	)	 	 	8,158	 	
Accumulated other comprehensive income (loss)	 	 	626	 	 	 	(125	)	 	 	738	 	 	 	(613	)	 	 	626	 	
Retained earnings (deficit)	 	 	1,149	 	 	 	3,801	 	 	 	(2,080	)	 	 	(1,721	)	 	 	1,149	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Newmont stockholders’ equity	 	 	10,334	 	 	 	6,385	 	 	 	2,593	 	 	 	(8,609	)	 	 	10,703	 	
Noncontrolling interests	 	 	—	 	 	 	2,285	 	 	 	15	 	 	 	(390	)	 	 	1,910	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total equity	 	 	10,334	 	 	 	8,670	 	 	 	2,608	 	 	 	(8,999	)	 	 	12,613	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities and equity	 	$	14,739	 	 	$	12,810	 	 	$	11,847	 	 	$	(17,097	)	 	$	22,299	 	

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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 26 COMMITMENTS AND CONTINGENCIES
General
The Company follows ASC guidance in determining its accruals and disclosures with respect to loss contingencies. Accordingly, estimated losses from loss contingencies are accrued by a charge to income when information available prior to issuance of the financial statements indicates that it is probable (greater than a 75% probability) that a liability could be incurred and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred.
Operating Segments
The Company’s operating segments are identified in Note 3. Except as noted in this paragraph, all of the Company’s commitments and contingencies specifically described in this Note 26 relate to the Corporate and Other reportable segment. The Nevada Operations matters under Newmont USA Limited relate to the North America reportable segment. The PT Newmont Minahasa Raya matters relate to the Asia Pacific reportable segment. The Yanacocha matters relate to the South America reportable segment. The PTNNT matters relate to the Asia Pacific reportable segment.
Environmental Matters
The Company’s mining and exploration activities are subject to various laws and regulations governing the protection of the environment. These laws and regulations are continually changing and are generally becoming more restrictive. The Company conducts its operations so as to protect the public health and environment and believes its operations are in compliance with applicable laws and regulations in all material respects. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures.
Estimated future reclamation costs are based principally on legal and regulatory requirements. At June 30, 2010 and December 31, 2009, $714 and $698, respectively, were accrued for reclamation costs relating to currently producing mineral properties in accordance with asset retirement obligation guidance. The current portions of $33 and $36 at June 30, 2010 and December 31, 2009, respectively, are included in Other current liabilities .
In addition, the Company is involved in several matters concerning environmental obligations associated with former mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. The Company believes that the related environmental obligations associated with these sites are similar in nature with respect to the development of remediation plans, their risk profile and the compliance required to meet general environmental standards. Based upon the Company’s best estimate of its liability for these matters, $149 and $161 were accrued for such obligations at June 30, 2010 and December 31, 2009, respectively. These amounts are included in Other current liabilities and Reclamation and remediation liabilities . Depending upon the ultimate resolution of these matters, the Company believes that it is reasonably possible that the liability for these matters could be as much as 158% greater or 3% lower than the amount accrued at June 30, 2010. The amounts accrued for these matters are reviewed periodically based upon facts and circumstances available at the time. Changes in estimates are recorded in Reclamation and remediation in the period estimates are revised.
Details about certain of the more significant matters involved are discussed below.
Dawn Mining Company LLC (“Dawn”) — 51% Newmont Owned
Midnite Mine Site. Dawn previously leased an open pit uranium mine, currently inactive, on the Spokane Indian Reservation in the State of Washington. The mine site is subject to regulation by agencies of the U.S. Department of Interior (the Bureau of Indian Affairs and the Bureau of Land Management), as well as the United States Environmental Protection Agency (“EPA”).
 
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Table of Contents
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
In 1991, Dawn’s mining lease at the mine was terminated. As a result, Dawn was required to file a formal mine closure and reclamation plan. The Department of Interior commenced an analysis of Dawn’s proposed plan and alternate closure and reclamation plans for the mine. Work on this analysis has been suspended indefinitely. In mid-2000, the mine was included on the National Priorities List under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”). In March 2003, the EPA notified Dawn and Newmont that it had thus far expended $12 on the Remedial Investigation/Feasibility Study (“RI/FS”) under CERCLA. In October 2005, the EPA issued the RI/FS on this property in which it indicated a preferred remedy that it estimated to cost approximately $150. Newmont and Dawn filed comments on the RI/FS with the EPA in January 2006. On October 3, 2006, the EPA issued a final Record of Decision in which it formally selected the preferred remedy identified in the RI/FS.
On January 28, 2005, the EPA filed a lawsuit against Dawn and Newmont under CERCLA in the U.S. District Court for the Eastern District of Washington. The EPA has asserted that Dawn and Newmont are liable for reclamation or remediation work and costs at the mine. Dawn does not have sufficient funds to pay for the reclamation plan it proposed or for any alternate plan, or for any additional remediation work or costs at the mine.
On July 14, 2008, after a bench trial, the Court held Newmont liable under CERCLA as an “operator” of the Midnite Mine. The Court previously ruled on summary judgment that both the U.S. Government and Dawn were liable under CERCLA. On October 17, 2008 the Court issued its written decision in the bench trial. The Court found Dawn and Newmont jointly and severally liable under CERCLA for past and future response costs, and ruled that each of Dawn and Newmont are responsible to pay one-third of such costs. The Court also found the U.S. Government liable on Dawn’s and Newmont’s contribution claim, and ruled that the U.S. Government is responsible to pay one-third of all past and future response costs. In November 2008, all parties appealed the Court’s ruling. Also in November 2008, the EPA issued an Administrative Order pursuant to Section 106 of CERCLA ordering Dawn and Newmont to conduct water treatment, testing and other preliminary remedial actions. Newmont has initiated those preliminary remedial actions.
Newmont intends to continue to vigorously defend this matter and cannot reasonably predict the outcome of this lawsuit or the likelihood of any other action against Dawn or Newmont arising from this matter.
Dawn Mill Site. Dawn also owns a uranium mill site facility, located on private land near Ford, Washington, which is subject to state and federal regulation. In late 1999, Dawn sought and later received approval from the State of Washington for a revised closure plan that expedites the reclamation process at the site. The currently approved plan for the site is guaranteed by Newmont.
Newmont Canada Limited (“Newmont Canada”) — 100% Newmont Owned
On November 11, 2008, St. Andrew Goldfields Ltd. (“St. Andrew”) filed an Application in the Superior Court of Justice in Ontario, Canada, seeking a declaration to clarify St. Andrew’s royalty obligations regarding certain mineral rights and property formerly owned by Newmont Canada and now owned by St. Andrew.
Newmont Canada purchased the property, called the Holt-McDermott property (“Holt Property”), from Barrick Gold Corporation (“Barrick”) in October 2004. At that time, Newmont Canada entered into a royalty agreement with Barrick (the “Barrick Royalty”), allowing Barrick to retain a royalty on the Holt Property. In August 2006, Newmont Canada sold all of its interests in the Holt Property to Holloway Mining Company (“Holloway”) in exchange for common stock issued by Holloway. In September 2006, Newmont Canada entered into a purchase and sale agreement with St. Andrew (the “2006 Agreement”), under which St. Andrew acquired all the common stock of Holloway. In 2008, Barrick sold its Barrick Royalty to Royal Gold, Inc. (“Royal Gold”).
In the court proceedings, St. Andrew alleged that in the 2006 Agreement it only agreed to assume royalty obligations equal to 0.013% of net smelter returns from operations on the Holt Property. Such an interpretation of the 2006 Agreement would make Newmont responsible for any royalties exceeding that amount payable to Royal Gold pursuant to the Barrick Royalty. On July 23, 2009, the Court issued a decision finding in favor of St. Andrews’ interpretation. On August 21, 2009, Newmont Canada appealed the decision. Newmont Canada intends to continue to vigorously defend this matter but cannot reasonably predict the outcome.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Newmont USA Limited — 100% Newmont Owned
Grey Eagle Mine Site . By letter dated September 3, 2002, the EPA notified Newmont that the EPA had expended $3 in response costs to address environmental conditions associated with a historic tailings pile located at the Grey Eagle Mine site near Happy Camp, California, and requested that Newmont pay those costs. The EPA has identified four potentially responsible parties, including Newmont. Newmont does not believe it has any liability for environmental conditions at the Grey Eagle Mine site, and intends to vigorously defend any formal claims by the EPA. Newmont cannot reasonably predict the likelihood or outcome of any future action against it arising from this matter.
Ross-Adams Mine Site. By letter dated June 5, 2007, the U.S. Forest Service notified Newmont that it had expended approximately $0.3 in response costs to address environmental conditions at the Ross-Adams mine in Prince of Wales, Alaska, and requested Newmont USA Limited pay those costs and perform an Engineering Evaluation/Cost Analysis (“EE/CA”) to assess what future response activities might need to be completed at the site. Newmont intends to vigorously defend any formal claims by the EPA. Newmont has agreed to perform the EE/CA. Newmont cannot reasonably predict the likelihood or outcome of any future action against it arising from this matter.
PT Newmont Minahasa Raya (“PTNMR”) — 80% Newmont Owned
On March 22, 2007, an Indonesian non-governmental organization named Wahana Lingkungan Hidup Indonesia (“WALHI”) filed a civil suit against PTNMR, the Newmont subsidiary that operated the Minahasa mine in Indonesia, and Indonesia’s Ministry of Energy and Mineral Resources and Ministry for the Environment, alleging pollution from the disposal of mine tailings into Buyat Bay, and seeking a court order requiring PTNMR to fund a 25-year monitoring program in relation to Buyat Bay. In December 2007, the court ruled in PTNMR’s favor and found that WALHI’s allegations of pollution in Buyat Bay were without merit. In March 2008, WALHI appealed this decision to the Indonesian High Court. On January 27, 2010, the Indonesian High Court upheld the December 2007 ruling in favor of PTNMR. On May 17, 2010, WALHI filed an appeal of the January 27, 2010 Indonesian High Court ruling seeking review from the Indonesian Supreme Court. The appeal by WALHI is still being processed by the district court of South Jakarta before being reviewed by the Indonesian Supreme Court. Independent sampling and testing of Buyat Bay water and fish, as well as area residents, conducted by the World Health Organization and the Australian Commonwealth Scientific and Industrial Research Organization, confirm that PTNMR has not polluted the Buyat Bay environment, and, therefore, has not adversely affected the fish in Buyat Bay or the health of nearby residents. The Company remains steadfast that it has not caused pollution or health problems.
Other Legal Matters
Minera Yanacocha S.R.L. (“Yanacocha”) — 51.35% Newmont Owned
Choropampa . In June 2000, a transport contractor of Yanacocha spilled approximately 151 kilograms of elemental mercury near the town of Choropampa, Peru, which is located 53 miles (85 kilometers) southwest of the Yanacocha mine. Elemental mercury is not used in Yanacocha’s operations but is a by-product of gold mining and was sold to a Lima firm for use in medical instruments and industrial applications. A comprehensive health and environmental remediation program was undertaken by Yanacocha in response to the incident. In August 2000, Yanacocha paid under protest a fine of 1,740,000 Peruvian soles (approximately $0.5) to the Peruvian government. Yanacocha has entered into settlement agreements with a number of individuals impacted by the incident. As compensation for the disruption and inconvenience caused by the incident, Yanacocha entered into agreements with and provided a variety of public works in the three communities impacted by this incident. Yanacocha cannot predict the likelihood of additional expenditures related to this matter.
Additional lawsuits relating to the Choropampa incident were filed against Yanacocha in the local courts of Cajamarca, Peru, in May 2002 by over 900 Peruvian citizens. A significant number of the plaintiffs in these lawsuits entered into settlement agreements with Yanacocha prior to filing such claims. In April 2008, the Peruvian Supreme Court upheld the validity of these settlement agreements, which should result in the dismissal of all claims brought by previously settled plaintiffs. Yanacocha has also entered into settlement agreements with approximately 350 additional plaintiffs. The claims asserted by approximately 200 plaintiffs remain. Neither Newmont nor Yanacocha can reasonably estimate the ultimate loss relating to such claims.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
PT Newmont Nusa Tenggara (“PTNNT”) — 31.5% Newmont Direct Ownership
Under the Batu Hijau Contract of Work, beginning in 2006 and continuing through 2010, a portion of PTNNT’s shares were required to be offered for sale, first, to the Indonesian government or, second, to Indonesian nationals, equal to the difference between the following percentages and the percentage of shares already owned by the Indonesian government or Indonesian nationals (if such number is positive): 23% by March 31, 2006; 30% by March 31, 2007; 37% by March 31, 2008; 44% by March 31, 2009; and 51% by March 31, 2010. As PT Pukuafu Indah (“PTPI”), an Indonesian national, has owned a 20% interest in PTNNT at all relevant times, in 2006, a 3% interest was required to be offered for sale and, in each of 2007 through 2010, an additional 7% interest was required to be offered (for an aggregate 31% interest). The price at which such interests were to be offered for sale to the Indonesian parties is the highest of the then-current replacement cost, the price at which shares would be accepted for listing on the Indonesian Stock Exchange, or the fair market value of such interest as a going concern, as agreed with the Indonesian government.
In accordance with the Contract of Work, an offer to sell a 3% interest was made to the Indonesian government in 2006 and an offer for an additional 7% interest was made in each of 2007, 2008 and 2009, and the offer for the final 7% interest was made in March 2010. While the central government declined to participate in the 2006 and 2007 offers, local governments in the area in which the Batu Hijau mine is located expressed interest in acquiring shares, as did various Indonesian nationals. After disagreement with the government over whether the government’s first right to purchase had expired and receipt of Notices of Default from the government claiming breach and threatening termination of the Contract of Work, on March 3, 2008, the Indonesian government filed for international arbitration as provided under the Contract of Work, as did PTNNT. In the arbitration proceeding, PTNNT sought a declaration that the Indonesian government was not entitled to terminate the Contract of Work and additional declarations pertaining to the procedures for divesting the shares. For its part, the Indonesian government sought declarations that PTNNT was in default of its divestiture obligations, that the government may terminate the Contract of Work and recover damages for breach of the Contract of Work, and that PTNNT must cause shares subject to divestiture to be sold to certain local governments.
An international arbitration panel (the “Panel”) was appointed to resolve these claims and other claims that had arisen in relation to divestment and a hearing was held in Jakarta in December 2008. On March 31, 2009, the Panel issued its final award and decision on the matter. In its decision, the Panel determined that PTNNT’s foreign shareholders had not complied with the divestiture procedure required by the Contract of Work in 2006 and 2007, but the Panel ruled that the Indonesian government was not entitled to immediately terminate the Contract of Work and rejected the Indonesian government’s claim for damages. The Panel granted PTNNT 180 days from the date of notification of the final award to transfer the 2006 3% interest and the 2007 7% interest in PTNNT to the local governments or their respective nominees. The Panel also applied a 180-day cure period to the 2008 7% interest, requiring that PTNNT offer the 2008 7% interest to the Indonesian government or its nominee within such 180-day period, and transfer such shares if, after agreement on the transfer price, the Indonesian government invoked its right of first refusal under the Contract of Work. The Panel ruled that shares offered to the Indonesian government pursuant to the Contract of Work must be offered free of any pledge or obligation to re-pledge the shares to the Senior Lenders to PTNNT. Finally, the Panel directed PTNNT to pay to the Indonesian government an allocated portion of certain legal fees and costs of the arbitration. PTNNT submitted payment of $2 for legal fees and costs. The Company also entered a formal agreement with the Senior Lenders under which the Senior Lenders released the pledge on the aggregate 31% of shares in PTNNT that were subject to divestiture requirements in exchange for the Company and Sumitomo agreeing to provide joint and several guarantees, thus allowing the Company to transfer these shares free of any pledge or obligation to re-pledge the shares to the lenders. The Company subsequently replaced this joint and several guarantee in October 2009 with letters of credit supporting 56.25% of the obligations under the PTNNT project financing facility. In February 2010, PTNNT repaid the Senior Lenders in full and the Company’s letter of credit was terminated. On July 14, 2009, the Company reached agreement with the Indonesian government on the price of the 2008 7% interest and the 2009 7% interest. PTNNT reoffered the 2008 7% interest and the 2009 7% interest to the Indonesian government at this newly agreed price. In November and December 2009, sale agreements were concluded pursuant to which the 2006, 2007 and 2008 shares were transferred to PTMDB, the nominee of the local governments, and the 2009 shares were transferred to PTMDB in February 2010, resulting in PTMDB owning a 24% interest in PTNNT. Although the Indonesian government has acknowledged that PTNNT is no longer in breach of the Contract of Work, future disputes may arise as to the final divestiture of the 2010 shares. It is uncertain who will acquire the divestiture shares in the future, and the nature of our relationship with the new owners of the 2010 shares and any future owners of the divested shares remain uncertain.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
As part of the negotiation of the sale agreements with PTMDB, the parties executed an operating agreement (the “Operating Agreement”) under which each recognizes the rights of the Company and Sumitomo to apply their operating standards to the management of PTNNT’s operations, including standards for safety, environmental stewardship and community responsibility. The Operating Agreement became effective upon the completion of the sale of the 2009 shares in February 2010 and will continue for so long as the Company and Sumitomo own more shares of PTNNT than PTMDB. If the Operating Agreement terminates, then the Company may lose control over the applicable operating standards for Batu Hijau and will be at risk for operations conducted in a manner that either detracts from value or results in safety, environmental or social standards below those adhered to by the Company and Sumitomo.
In the event of any future disputes under the Contract of Work or Operating Agreement, there can be no assurance that the Company would prevail in any such dispute and any termination of such contracts could result in substantial diminution in the value of the Company’s interests in PTNNT.
Additionally, in February 2010, PTNNT was notified by the tax authorities of the Indonesian government, that PTNNT may be obligated to pay value added taxes on certain goods imported after the year 2000. PTNNT believes that, pursuant to the terms of its Contract of Work, it is only required to pay value added taxes on these types of goods imported after February 28, 2010. The Company and PTNNT are working cooperatively with the applicable government authorities to resolve this matter.
Other Commitments and Contingencies
Tax contingencies are provided for in accordance with ASC income tax guidance (see Note 10).
In a 1993 asset exchange, a wholly-owned subsidiary transferred a coal lease under which the subsidiary had collected advance royalty payments totaling $484. From 1994 to 2018, remaining advance payments under the lease to the transferee total $390. In the event of title failure as stated in the lease, this subsidiary has a primary obligation to refund previously collected payments and has a secondary obligation to refund any of the $390 collected by the transferee, if the transferee fails to meet its refund obligation. The subsidiary has title insurance on the leased coal deposits of $240 covering the secondary obligation. The Company and the subsidiary regard the circumstances entitling the lessee to a refund as remote.
The Company has minimum royalty obligations on one of its producing mines in Nevada for the life of the mine. Amounts paid as a minimum royalty (where production royalties are less than the minimum obligation) in any year are recoverable in future years when the minimum royalty obligation is exceeded. Although the minimum royalty requirement may not be met in a particular year, the Company expects that over the mine life, gold production will be sufficient to meet the minimum royalty requirements. Minimum royalty payments payable are $40 in 2010, $28 in 2011 through 2014 and $266 thereafter.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
As part of its ongoing business and operations, the Company and its affiliates are required to provide surety bonds, bank letters of credit and bank guarantees as financial support for various purposes, including environmental reclamation, exploration permitting, workers compensation programs and other general corporate purposes. At June 30, 2010 and December 31, 2009, there were $982 and $1,073, respectively, of outstanding letters of credit, surety bonds and bank guarantees. The surety bonds, letters of credit and bank guarantees reflect fair value as a condition of their underlying purpose and are subject to fees competitively determined in the market place. The obligations associated with these instruments are generally related to performance requirements that the Company addresses through its ongoing operations. As the specific requirements are met, the beneficiary of the associated instrument cancels and/or returns the instrument to the issuing entity. Certain of these instruments are associated with operating sites with long-lived assets and will remain outstanding until closure. Generally, bonding requirements associated with environmental regulation are becoming more restrictive. In addition, the surety markets for certain types of environmental bonding used by the Company have become increasingly constrained. The Company, however, believes it is in compliance with all applicable bonding obligations and will be able to satisfy future bonding requirements, through existing or alternative means, as they arise.
Newmont is from time to time involved in various legal proceedings related to its business. Except in the above-described proceedings, management does not believe that adverse decisions in any pending or threatened proceeding or that amounts that may be required to be paid by reason thereof will have a material adverse effect on the Company’s financial condition or results of operations.
NOTE 27 SUPPLEMENTARY DATA
Ratio of Earnings to Fixed Charges
The ratio of earnings to fixed charges for the six months ended June 30, 2010 was 11.8. The ratio of earnings to fixed charges represents income before income tax expense, equity loss of affiliates and noncontrolling interests in subsidiaries, divided by interest expense. Interest expense includes amortization of capitalized interest and the portion of rent expense representative of interest. Interest expense does not include interest on income tax liabilities. The computation of the ratio of earnings to fixed charges can be found in Exhibit 12.1.
 
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ITEM 2.	 	MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION (dollars in millions, except per share, per ounce and per pound amounts)	
The following discussion provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations of Newmont Mining Corporation and its subsidiaries (collectively, “Newmont,” the “Company,” “our” and “we”). We use certain non-GAAP financial performance measures in our MD&A. For a detailed description of each of the non-GAAP financial measures used in this MD&A, please see the discussion under “Non-GAAP Financial Performance Measures” beginning on page 59. References to “A$” refer to Australian currency, “C$” to Canadian currency, “IDR” to Indonesian currency, “NZ$” to New Zealand currency and “$” to United States currency.
This item should be read in conjunction with our interim unaudited Condensed Consolidated Financial Statements and the notes thereto included in this quarterly report. Additionally, the following discussion and analysis should be read in conjunction with Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations and the consolidated financial statements included in Part II of our Annual Report on Form 10-K for the year ended December 31, 2009.
Overview
Newmont is one of the world’s largest gold producers and is the only gold company included in the S&P 500 Index and Fortune 500, and was the first gold company included in the Dow Jones Sustainability Index-World. We are also engaged in the exploration for and acquisition of gold and gold/copper properties. We have significant assets or operations in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand and Mexico. Our vision is to be the most valued and respected mining company through industry leading performance.
On balance, our portfolio continues to perform as anticipated in 2010, with favorable operating performance in Ghana, coupled with higher metal prices, offsetting cost pressures relating to adverse foreign exchange movements, higher royalties and lower than anticipated gold ore grades experienced thus far during Boddington’s ramp-up.

 	•	 	Consolidated gold production of approximately 1.6 million and 3.2 million ounces for the second quarter and first half of 2010, respectively, up from 1.5 million and 3.0 million ounces for the same periods in 2009;	

 	•	 	Consolidated copper production of approximately 148 million and 307 million pounds for the second quarter and first half of 2010, respectively, up from 114 million and 195 million pounds for the same periods in 2009;	

 	•	 	Sales of $2,153 and $4,395 for the second quarter and first half of 2010, respectively, an increase of 34% and 40% over the same periods in 2009;	

 	•	 	Average realized gold price of $1,200 and $1,152 per ounce for the second quarter and first half of 2010, respectively, compared to $915 and $911 per ounce for the same periods in 2009;	

 	•	 	Average realized copper price of $2.33 and $2.87 per pound for the second quarter and first half of 2010, respectively, compared to $2.17 and $1.94 per pound for the same periods in 2009;	

 	•	 	Costs applicable to sales of $492 and $486 per ounce of gold for the second quarter and first half of 2010, respectively, compared to $423 and $427 per ounce for the same periods in 2009;	

 	•	 	Costs applicable to sales of $0.77 and $0.78 per pound of copper for the second quarter and first half of 2010, respectively, compared to $0.58 and $0.73 per pound for the same periods in 2009;	

 	•	 	Net income attributable to Newmont stockholders of $0.78 and $1.89 per share for the second quarter and first half of 2010, respectively, compared to $0.33 and $0.73 per share for the same periods in 2009;	

 	•	 	Net cash provided from continuing operations of $1,481, an increase of 67% from the first half of 2009; and	

 	•	 	Adjusted net income of $377 ($0.77 per share) and $786 ($1.60 per share) for the second quarter and first half of 2010, respectively, up from $211 ($0.43 per share) and $409 ($0.85 per share) for the same periods in 2009 (See “Non-GAAP Financial Measures” on page 59).	
 
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Selected Financial and Operating Results
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended June 30,	 	 	Six Months Ended June 30,	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
Sales	 	$	2,153	 	 	$	1,602	 	 	$	4,395	 	 	$	3,138	 	
Income from continuing operations	 	$	537	 	 	$	320	 	 	$	1,280	 	 	$	597	 	
Net income	 	$	537	 	 	$	306	 	 	$	1,280	 	 	$	583	 	
Net income attributable to Newmont stockholders	 	$	382	 	 	$	162	 	 	$	928	 	 	$	351	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Per common share, basic:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations attributable to Newmont stockholders	 	$	0.78	 	 	$	0.35	 	 	$	1.89	 	 	$	0.75	 	
Net income attributable to Newmont stockholders	 	$	0.78	 	 	$	0.33	 	 	$	1.89	 	 	$	0.73	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted net income (1)	 	$	377	 	 	$	211	 	 	$	786	 	 	$	409	 	
Adjusted net income per share (1)	 	$	0.77	 	 	$	0.43	 	 	$	1.60	 	 	$	0.85	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated gold ounces (thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Produced	 	 	1,557	 	 	 	1,481	 	 	 	3,173	 	 	 	3,018	 	
Sold	 	 	1,546	 	 	 	1,502	 	 	 	3,127	 	 	 	3,019	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated copper pounds (millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Produced	 	 	148	 	 	 	114	 	 	 	307	 	 	 	195	 	
Sold	 	 	128	 	 	 	105	 	 	 	275	 	 	 	201	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Average price received, net:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gold (per ounce)	 	$	1,200	 	 	$	915	 	 	$	1,152	 	 	$	911	 	
Copper (per pound)	 	$	2.33	 	 	$	2.17	 	 	$	2.87	 	 	$	1.94	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs applicable to sales:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gold (per ounce)	 	$	492	 	 	$	423	 	 	$	486	 	 	$	427	 	
Copper (per pound)	 	$	0.77	 	 	$	0.58	 	 	$	0.78	 	 	$	0.73	 	
 	 	 	
(1)	 	See “Non-GAAP Financial Measures” on page 59.	
Consolidated Financial Results
Net income attributable to Newmont stockholders for the second quarter of 2010 was $382, or $0.78 per share, compared to $162, or $0.33 per share, for the second quarter of 2009. Results for the second quarter of 2010 compared to the second quarter of 2009 were impacted by higher realized gold prices combined with higher gold and copper sales volumes. Net income attributable to Newmont stockholders for the first half of 2010 was $928, or $1.89 per share, compared to $351, or $0.73 per share, for the first half of 2009. Results for the first half of 2010 compared to the first half of 2009 were impacted by higher realized gold and copper prices, higher sales volumes, a $127 tax benefit related to the conversion of non-U.S. entities for income tax purposes in the first quarter of 2010 and $67 million of acquisition expenses related to Boddington in 2009.
 
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Sales — gold, net for the second quarter of 2010 increased 35% compared to the second quarter of 2009 due to higher realized prices and increased sales volume. Sales — gold, net for the first half of 2010 increased 31% compared to the first half of 2009 due to higher realized prices and increased sales volume, partially offset by an increase in treatment and refining charges. The following analysis summarizes the change in consolidated gold sales revenue:
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended June 30,	 	 	Six Months Ended June 30,	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
Consolidated gold sales:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross before provisional pricing	 	$	1,845	 	 	$	1,383	 	 	$	3,604	 	 	$	2,761	 	
Provisional pricing mark-to-market gain	 	 	20	 	 	 	—	 	 	 	22	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross after provisional pricing	 	 	1,865	 	 	 	1,383	 	 	 	3,626	 	 	 	2,761	 	
Less: Treatment and refining charges	 	 	(10	)	 	 	(10	)	 	 	(23	)	 	 	(13	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net	 	$	1,855	 	 	$	1,373	 	 	$	3,603	 	 	$	2,748	 	

Average realized gold price (per ounce):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross before provisional pricing	 	$	1,193	 	 	$	922	 	 	$	1,152	 	 	$	915	 	
Provisional pricing mark-to-market gain	 	 	13	 	 	 	—	 	 	 	7	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross after provisional pricing	 	 	1,206	 	 	 	922	 	 	 	1,159	 	 	 	915	 	
Less: Treatment and refining charges	 	 	(6	)	 	 	(7	)	 	 	(7	)	 	 	(4	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net	 	$	1,200	 	 	$	915	 	 	$	1,152	 	 	$	911	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
The change in consolidated gold sales is due to:
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Six Months Ended	 	
 	 	June 30,	 	 	June 30,	 	
 	 	2010 vs. 2009	 	 	2010 vs. 2009	 	
Increase in consolidated ounces sold	 	$	42	 	 	$	100	 	
Increase in average realized gold price	 	 	440	 	 	 	765	 	
Increase in treatment and refining charges	 	 	—	 	 	 	(10	)	
 	 	 	 	 	 	 	
 	 	$	482	 	 	$	855	 	

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Sales — copper, net for the second quarter of 2010 increased 30% compared to the second quarter of 2009 primarily due to higher sales volume. Sales — copper, net for the first half of 2010 more than doubled from the first half of 2009 due to higher realized prices and sales volume. The following analysis summarizes the change in consolidated copper sales revenue:
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended June 30,	 	 	Six Months Ended June 30,	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
Consolidated copper sales:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross before provisional pricing	 	$	401	 	 	$	223	 	 	$	894	 	 	$	377	 	
Provisional pricing mark-to-market gain (loss)	 	 	(79	)	 	 	35	 	 	 	(48	)	 	 	64	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross after provisional pricing	 	 	322	 	 	 	258	 	 	 	846	 	 	 	441	 	
Less: Treatment and refining charges	 	 	(24	)	 	 	(29	)	 	 	(54	)	 	 	(51	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net	 	$	298	 	 	$	229	 	 	$	792	 	 	$	390	 	

Average realized copper price (per pound):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross before provisional pricing	 	$	3.13	 	 	$	2.12	 	 	$	3.24	 	 	$	1.88	 	
Provisional pricing mark-to-market gain (loss)	 	 	(0.62	)	 	 	0.33	 	 	 	(0.17	)	 	 	0.32	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross after provisional pricing	 	 	2.51	 	 	 	2.45	 	 	 	3.07	 	 	 	2.20	 	
Less: Treatment and refining charges	 	 	(0.18	)	 	 	(0.28	)	 	 	(0.20	)	 	 	(0.26	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net	 	$	2.33	 	 	$	2.17	 	 	$	2.87	 	 	$	1.94	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
The change in consolidated copper sales is due to:
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Six Months Ended	 	
 	 	June 30,	 	 	June 30,	 	
 	 	2010 vs. 2009	 	 	2010 vs. 2009	 	
Increase in consolidated pounds sold	 	$	55	 	 	$	165	 	
Increase in average realized copper price	 	 	9	 	 	 	240	 	
Decrease (increase) in treatment and refining charges	 	 	5	 	 	 	(3	)	
 	 	 	 	 	 	 	
 	 	$	69	 	 	$	402	 	

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The following is a summary of consolidated gold and copper sales, net:
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended June 30,	 	 	Six Months Ended June 30,	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
Gold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
North America:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Nevada	 	$	505	 	 	$	372	 	 	$	972	 	 	$	840	 	
La Herradura	 	 	53	 	 	 	29	 	 	 	97	 	 	 	52	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	558	 	 	 	401	 	 	 	1,069	 	 	 	892	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
South America:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Yanacocha	 	 	425	 	 	 	489	 	 	 	885	 	 	 	916	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asia Pacific:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Boddington	 	 	234	 	 	 	—	 	 	 	401	 	 	 	—	 	
Batu Hijau	 	 	170	 	 	 	98	 	 	 	335	 	 	 	157	 	
Jundee	 	 	106	 	 	 	102	 	 	 	211	 	 	 	190	 	
Kalgoorlie	 	 	99	 	 	 	66	 	 	 	218	 	 	 	132	 	
Tanami	 	 	73	 	 	 	81	 	 	 	133	 	 	 	159	 	
Waihi	 	 	30	 	 	 	14	 	 	 	60	 	 	 	51	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	712	 	 	 	361	 	 	 	1,358	 	 	 	689	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Africa:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ahafo	 	 	160	 	 	 	122	 	 	 	291	 	 	 	251	 	

 	 	 	1,855	 	 	 	1,373	 	 	 	3,603	 	 	 	2,748	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Copper	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asia Pacific:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Batu Hijau	 	 	258	 	 	 	229	 	 	 	713	 	 	 	390	 	
Boddington	 	 	40	 	 	 	—	 	 	 	79	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	298	 	 	 	229	 	 	 	792	 	 	 	390	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	2,153	 	 	$	1,602	 	 	$	4,395	 	 	$	3,138	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs applicable to sales increased in the second quarter of 2010 compared to the second quarter of 2009, as detailed in the table below. The increase in Costs applicable to sales for gold is due to the addition of Boddington production as of November 2009, higher production at Batu Hijau and La Herradura and higher mining costs in Nevada related to the December 2009 geotechnical event at Gold Quarry. The increase in Costs applicable to sales for copper is due to the addition of Boddington production and higher production at Batu Hijau. Similarly, Costs applicable to sales increased in the first half of 2010 compared to the first half of 2009. The increase in Costs applicable to sales for gold is due to the addition of Boddington production, higher production at Batu Hijau, Kalgoorlie and La Herradura and higher mining costs in Nevada related to the geotechnical event at Gold Quarry. The increase in Costs applicable to sales for copper is due to the addition of Boddington production and higher production at Batu Hijau. For a complete discussion regarding variations in operations, see Results of Consolidated Operations below.
Amortization increased in the second quarter of 2010 compared to the second quarter of 2009, as detailed in the table below. The increase in Amortization is due to the commencement of commercial production at Boddington in November 2009 and higher capitalized mine development in Nevada. Amortization increased in the first half of 2010 compared to the first half of 2009, as detailed in the table below. The increase in Amortization is due to the commencement of commercial production at Boddington and higher capitalized mine development in Nevada. We expect 2010 Amortization to be approximately $970 to $1,000.
 
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The following is a summary of Costs applicable to sales and Amortization :
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Costs Applicable	 	 	 	 	 	 	 	 	 	 	Costs Applicable	 	 	 	 	
 	 	to Sales	 	 	Amortization	 	 	to Sales	 	 	Amortization	 	
 	 	Three Months Ended	 	 	Three Months Ended	 	 	Six Months Ended	 	 	Six Months Ended	 	
 	 	June 30,	 	 	June 30,	 	 	June 30,	 	 	June 30,	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
Gold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
North America:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Nevada	 	$	252	 	 	$	228	 	 	$	64	 	 	$	53	 	 	$	509	 	 	$	491	 	 	$	126	 	 	$	114	 	
La Herradura	 	 	19	 	 	 	12	 	 	 	5	 	 	 	3	 	 	 	32	 	 	 	22	 	 	 	8	 	 	 	5	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	271	 	 	 	240	 	 	 	69	 	 	 	56	 	 	 	541	 	 	 	513	 	 	 	134	 	 	 	119	 	
South America:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Yanacocha	 	 	139	 	 	 	173	 	 	 	40	 	 	 	44	 	 	 	293	 	 	 	325	 	 	 	77	 	 	 	85	 	
Asia Pacific:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Boddington	 	 	113	 	 	 	—	 	 	 	34	 	 	 	—	 	 	 	193	 	 	 	—	 	 	 	56	 	 	 	—	 	
Batu Hijau	 	 	42	 	 	 	24	 	 	 	12	 	 	 	6	 	 	 	76	 	 	 	51	 	 	 	22	 	 	 	13	 	
Jundee	 	 	35	 	 	 	36	 	 	 	7	 	 	 	12	 	 	 	70	 	 	 	70	 	 	 	18	 	 	 	21	 	
Kalgoorlie	 	 	45	 	 	 	43	 	 	 	3	 	 	 	3	 	 	 	103	 	 	 	91	 	 	 	7	 	 	 	6	 	
Tanami	 	 	44	 	 	 	53	 	 	 	10	 	 	 	11	 	 	 	90	 	 	 	101	 	 	 	21	 	 	 	22	 	
Waihi	 	 	16	 	 	 	9	 	 	 	4	 	 	 	4	 	 	 	34	 	 	 	24	 	 	 	10	 	 	 	13	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	295	 	 	 	165	 	 	 	70	 	 	 	36	 	 	 	566	 	 	 	337	 	 	 	134	 	 	 	75	 	
Africa:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ahafo	 	 	55	 	 	 	57	 	 	 	19	 	 	 	16	 	 	 	119	 	 	 	114	 	 	 	36	 	 	 	34	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	760	 	 	 	635	 	 	 	198	 	 	 	152	 	 	 	1,519	 	 	 	1,289	 	 	 	381	 	 	 	313	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Copper	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asia Pacific:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Batu Hijau	 	 	73	 	 	 	61	 	 	 	19	 	 	 	16	 	 	 	165	 	 	 	146	 	 	 	46	 	 	 	37	 	
Boddington	 	 	25	 	 	 	—	 	 	 	6	 	 	 	—	 	 	 	49	 	 	 	—	 	 	 	13	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	98	 	 	 	61	 	 	 	25	 	 	 	16	 	 	 	214	 	 	 	146	 	 	 	59	 	 	 	37	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Hope Bay	 	 	—	 	 	 	—	 	 	 	3	 	 	 	3	 	 	 	—	 	 	 	—	 	 	 	6	 	 	 	6	 	
Asia Pacific	 	 	—	 	 	 	—	 	 	 	1	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	1	 	
Corporate and other	 	 	—	 	 	 	—	 	 	 	4	 	 	 	5	 	 	 	—	 	 	 	—	 	 	 	8	 	 	 	10	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	—	 	 	 	—	 	 	 	8	 	 	 	8	 	 	 	—	 	 	 	—	 	 	 	15	 	 	 	17	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	858	 	 	$	696	 	 	$	231	 	 	$	176	 	 	$	1,733	 	 	$	1,435	 	 	$	455	 	 	$	367	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Exploration expense increased $2 in the second quarter of 2010 compared to the second quarter of 2009 due to additional expenditures in the North America region. Exploration expense increased $4 in the first half of 2010 compared to the first half of 2009 due to additional expenditures in the North America and Asia Pacific regions. Due to additional exploration at Leeville/Turf, we now expect 2010 Exploration expense to increase to approximately $220 to $245 from our previous guidance of $190 to $220.
Advanced projects, research and development expense increased $15 in the second quarter of 2010 compared to the second quarter of 2009 primarily due to additional expenditures at Hope Bay as we evaluate a small underground operation to advance into production. Advanced projects, research and development expense increased $30 in the first half of 2010 compared to the first half of 2009 due to additional expenditures for Hope Bay, corporate projects and discovery and development.
 
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The following is a summary of Advanced projects, research and development:
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended June 30,	 	 	Six Months Ended June 30,	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
Major projects:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Hope Bay	 	$	25	 	 	$	11	 	 	$	35	 	 	$	16	 	
Akyem	 	 	1	 	 	 	2	 	 	 	4	 	 	 	3	 	
Conga	 	 	2	 	 	 	1	 	 	 	3	 	 	 	1	 	
Subika	 	 	2	 	 	 	—	 	 	 	2	 	 	 	—	 	
Boddington	 	 	—	 	 	 	10	 	 	 	—	 	 	 	13	 	
Other projects:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Technical and project services	 	 	11	 	 	 	7	 	 	 	23	 	 	 	12	 	
Corporate	 	 	9	 	 	 	3	 	 	 	21	 	 	 	7	 	
Nevada growth	 	 	3	 	 	 	5	 	 	 	6	 	 	 	11	 	
South America growth	 	 	2	 	 	 	1	 	 	 	4	 	 	 	2	 	
Other	 	 	2	 	 	 	2	 	 	 	5	 	 	 	8	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	57	 	 	$	42	 	 	$	103	 	 	$	73	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
We continue to expect Advanced projects, research and development expenses to be approximately $230 to $250 in 2010.
General and administrative expenses increased by $3 in the second quarter of 2010 compared to the second quarter of 2009 due to higher compensation costs. General and administrative expenses increased by $9 in the first half of 2010 compared to the first half of 2009 due to higher compensation and benefit costs. We expect 2010 General and administrative expenses to be approximately $160 to $170.
Other expense, net was $61 and $112 for the three months ended June 30, 2010 and 2009, respectively. The decrease is due to $59 of Boddington acquisition costs incurred during the second quarter of 2009. Other expense, net was $150 and $185 for the six months ended June 30, 2010 and 2009, respectively. The decrease is due to Boddington acquisition costs incurred during 2009, partially offset by additional community development at PTNNT during the first quarter 2010.
Other income, net was $44 and $9 for the three months ended June 30, 2010 and 2009, respectively. The increase is primarily related to an increase in Canadian Oil Sands Trust income due to a higher declared dividend in 2010 and the sale of non-core assets. Other income, net was $92 and $18 for the six months ended June 30, 2010 and 2009, respectively. The increase is primarily related to the sale of non-core assets and an increase in Canadian Oil Sands Trust income due to a higher declared dividend in 2010.
Interest expense, net increased by $46 in the second quarter of 2010 compared to the second quarter of 2009 and increased by $89 in the first half of 2010 compared to the first half of 2009 due to additional interest related to the 2019 and 2039 senior notes issued during the third quarter of 2009 and lower capitalized interest. Capitalized interest decreased $23 to $4 in the second quarter of 2010 compared to the second quarter of 2009 and decreased $36 to $6 in the first half of 2010 compared to the first half of 2009 due to completion of Boddington construction in November 2009. We expect 2010 Interest expense, net to be approximately $270 to $290.
 
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Income tax expense during the second quarter of 2010 was $273 resulting in an effective tax rate of 33.6%. Income tax expense during the second quarter of 2009 was $136 for an effective tax rate of 29.6%. The increase in the effective tax rate from 2009 to 2010 resulted from the change in the jurisdictional blend of our taxable income and the effect it has on the overall rate impact from percentage depletion and non-reoccurring discrete items in the prior quarter. Income tax expense during the first half of 2010 was $408 resulting in an effective tax rate of 24.1%. Income tax expense during the first half of 2009 was $241 for an effective tax rate of 28.5%. The decrease in the effective tax rate from 2009 to 2010 resulted from a tax benefit of $127 being recorded in the first quarter of 2010 from the conversion of non-US tax-paying entities to entities currently subject to U.S. income tax resulting in an increase in net deferred tax assets, partially offset by the change in the jurisdictional blend of the our taxable income and the effect it has on the overall rate impact from percentage depletion. The effective tax rates in the second quarter of 2010 and 2009 are different from the United States statutory rate of 35% primarily due to the above mentioned tax benefit in 2010, U.S. percentage depletion and the effect of different income tax rates in countries where earnings are indefinitely reinvested. For a complete discussion of the factors that influence our effective tax rate, see Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations in Newmont’s Annual Report on Form 10-K for the year ended December 31, 2009 filed February 25, 2010. We expect the 2010 full year tax rate to be approximately 24% to 28%, assuming an average gold price of $1,100 per ounce.
Net income attributable to noncontrolling interests increased to $155 in the second quarter of 2010 compared to $144 in the second quarter of 2009 as a result of increased earnings at Batu Hijau, partially offset by lower earnings at Yanacocha. Net income attributable to noncontrolling interests increased to $352 in the first half of 2010 compared to $232 in the first half of 2009 as a result of increased earnings at Batu Hijau and Yanacocha.
Income (loss) from discontinued operations was as follows:
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Six Months Ended	 	
 	 	June 30, 2009	 	 	June 30, 2009	 	
Sales	 	$	16	 	 	$	32	 	

Income from operations	 	$	1	 	 	$	1	 	
Loss on impairment	 	 	(44	)	 	 	(44	)	
 	 	 	 	 	 	 	
Pre-tax loss	 	 	(43	)	 	 	(43	)	
Income tax benefit	 	 	29	 	 	 	29	 	
 	 	 	 	 	 	 	
Income (loss) from discontinued operations	 	$	(14	)	 	$	(14	)	
 	 	 	 	 	 	 	
Discontinued operations relate solely to the Kori Kollo operation in Bolivia, sold in July 2009.
 
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Results of Consolidated Operations
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Gold Ounces or	 	 	 	 	 	 	 	
 	 	Copper Pounds Produced	 	 	Costs Applicable to Sales (1)	 	 	Amortization	 	
Three Months Ended June 30,	 	2010	 	 	2009	 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
 	 	(in thousands)	 	 	($ per ounce)	 	 	($ per ounce)	 	
Gold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
North America	 	 	463	 	 	 	447	 	 	$	585	 	 	$	538	 	 	$	149	 	 	$	124	 	
South America (2)	 	 	353	 	 	 	517	 	 	 	389	 	 	 	323	 	 	 	113	 	 	 	82	 	
Asia Pacific (2)	 	 	609	 	 	 	383	 	 	 	498	 	 	 	426	 	 	 	119	 	 	 	95	 	
Africa	 	 	132	 	 	 	134	 	 	 	416	 	 	 	428	 	 	 	147	 	 	 	119	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total/Weighted-Average	 	 	1,557	 	 	 	1,481	 	 	$	492	 	 	$	423	 	 	$	129	 	 	$	101	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity	 	 	1,298	 	 	 	1,179	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

 	 	(in millions)	 	 	($ per pound)	 	 	($ per pound)	 	
Copper	 	 	 	 	 	 	 	 	 	
Asia Pacific (2)	 	 	148	 	 	 	114	 	 	$	0.77	 	 	$	0.58	 	 	$	0.20	 	 	$	0.15	 	
Equity	 	 	80	 	 	 	51	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Gold Ounces or	 	 	 	 	 	 	 	
 	 	Copper Pounds Produced	 	 	Costs Applicable to Sales (1)	 	 	Amortization	 	
Six Months Ended June 30,	 	2010	 	 	2009	 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
 	 	(in thousands)	 	 	($ per ounce)	 	 	($ per ounce)	 	
Gold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
North America	 	 	936	 	 	 	990	 	 	$	586	 	 	$	519	 	 	$	145	 	 	$	120	 	
South America (2)	 	 	776	 	 	 	1,016	 	 	 	380	 	 	 	324	 	 	 	100	 	 	 	84	 	
Asia Pacific (2)	 	 	1,209	 	 	 	748	 	 	 	479	 	 	 	450	 	 	 	113	 	 	 	101	 	
Africa	 	 	252	 	 	 	264	 	 	 	475	 	 	 	413	 	 	 	146	 	 	 	123	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total/Weighted-Average	 	 	3,173	 	 	 	3,018	 	 	$	486	 	 	$	427	 	 	$	122	 	 	$	104	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity	 	 	2,630	 	 	 	2,455	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

 	 	(in millions)	 	 	($ per pound)	 	 	($ per pound)	 	
Copper	 	 	 	 	 	 	 	 	 	
Asia Pacific (2)	 	 	307	 	 	 	195	 	 	$	0.78	 	 	$	0.73	 	 	$	0.21	 	 	$	0.19	 	
Equity	 	 	170	 	 	 	88	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	
(1)	 	Excludes Amortization and Reclamation and remediation .	
 		
(2)	 	Consolidated gold ounces or copper pounds produced includes noncontrolling interests’ share at Yanacocha and Batu Hijau.	
Consolidated gold ounces produced increased 5% in the second quarter of 2010 from 2009 due to the start-up of Boddington and higher production in North America, partially offset by lower production in South America. Consolidated copper pounds produced increased 30% in the second quarter of 2010 from 2009 due to higher grade and throughput at Batu Hijau combined with the start-up of Boddington.
Costs applicable to sales per consolidated gold ounce sold increased 16% in the second quarter of 2010 from 2009 due to higher royalties, production taxes, a higher proportion of costs allocated to gold than copper driven by higher gold prices, lower production at existing operations, combined with a stronger Australian dollar. Costs applicable to sales per consolidated copper pound sold increased 33% in the second quarter of 2010 from 2009 due to higher milling costs at Batu Hijau and the addition of higher cost production from Boddington.
Consolidated gold ounces produced increased 5% in the first half of 2010 from 2009 due to the start-up of Boddington and higher production at Batu Hijau, partially offset by lower production in North America, South America and Africa. Consolidated copper pounds produced increased 57% in the first half of 2010 from 2009 due to higher grade and throughput at Batu Hijau combined with the start-up of Boddington.
 
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Costs applicable to sales per consolidated gold ounce sold increased 14% in the first half of 2010 from 2009 due to lower production and higher mining costs in North America, lower production and higher mining and maintenance costs in South America, higher mining costs and a stronger Australian dollar in Asia Pacific and lower production and higher diesel costs in Africa. Costs applicable to sales per consolidated copper pound sold increased 7% in the first half of 2010 from 2009 due to addition of higher cost production from Boddington, partially offset by higher production at Batu Hijau.
Our 2010 guidance for consolidated gold production remains approximately 6.3 to 6.8 million ounces at a slightly narrower range of Costs applicable to sales per ounce of approximately $460 to $480 (from previous guidance of $450 to $480 per ounce). Our Costs applicable to sales guidance for 2010 assumes an oil price of $80 per barrel and an A$ exchange rate of 0.90 for the remainder of the year. Our Costs applicable to sales per ounce for the remainder of the year are expected to change by approximately $3 for every $10 change in the oil price and by approximately $3 for every $0.10 change in the A$ exchange rate, net of existing hedges. In the event that adverse foreign exchange movements, higher gold royalties and increasing energy prices continue throughout the remainder of the year, Costs applicable to sales per ounce could be near or exceed the top end of our current 2010 guidance.
Our 2010 guidance for consolidated copper production is approximately 610 to 670 million pounds at Costs applicable to sales per pound of approximately $0.85 to $0.95.
North America Operations
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Gold Ounces Produced	 	 	Costs Applicable to Sales (1)	 	 	Amortization	 	
Three Months Ended June 30,	 	2010	 	 	2009	 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
 	 	(in thousands)	 	 	($ per ounce)	 	 	($ per ounce)	 	
Nevada	 	 	420	 	 	 	417	 	 	$	601	 	 	$	549	 	 	$	153	 	 	$	126	 	
La Herradura (44% owned)	 	 	43	 	 	 	30	 	 	 	431	 	 	 	398	 	 	 	109	 	 	 	91	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total/Weighted-Average	 	 	463	 	 	 	447	 	 	$	585	 	 	$	538	 	 	$	149	 	 	$	124	 	

 	 	Gold Ounces Produced	 	 	Costs Applicable to Sales (1)	 	 	Amortization	 	
Six Months Ended June 30,	 	2010	 	 	2009	 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
 	 	(in thousands)	 	 	($ per ounce)	 	 	($ per ounce)	 	
Nevada	 	 	853	 	 	 	935	 	 	$	605	 	 	$	527	 	 	$	150	 	 	$	122	 	
La Herradura (44% owned)	 	 	83	 	 	 	55	 	 	 	389	 	 	 	393	 	 	 	102	 	 	 	90	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total/Weighted-Average	 	 	936	 	 	 	990	 	 	$	586	 	 	$	519	 	 	$	145	 	 	$	120	 	

(1)	 	Excludes Amortization and Reclamation and remediation .	
Second quarter 2010 compared to 2009
Nevada, USA. Gold ounces produced were slightly higher as higher Midas and Leeville underground production was offset by the completion of mining activity at Deep Post in 2009 combined with lower mill throughput and leach tons placed. Mill throughput and leach tons placed were impacted by the December 2009 geotechnical event at Gold Quarry and harder ore at Phoenix. Costs applicable to sales per ounce increased 9% due to higher surface mining costs related to the geotechnical event at Gold Quarry. Amortization per ounce increased 21% due to higher capitalized mine development.
La Herradura, Mexico. Gold ounces produced increased 43% due to the commencement of production from the Soledad and Dipolos pits in January 2010. Costs applicable to sales per ounce increased 8% due to higher waste mining costs. Amortization per ounce increased 20% due to the use of additional mining equipment and leach pads.
First half 2010 compared to 2009
Nevada, USA. Gold ounces produced decreased 9% due to the completion of mining activity at Deep Post in 2009 combined with lower throughput and leach tons placed. Throughput and leach tons placed were impacted by the December 2009 geotechnical event at Gold Quarry and harder ore at Phoenix. Costs applicable to sales per ounce increased 15% due to lower production and the geotechnical event at Gold Quarry. Amortization per ounce increased 23% due to lower production and higher capitalized mine development.
 
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La Herradura, Mexico. Gold ounces produced increased 51% due to the commencement of production from the Soledad and Dipolos pits in January 2010. Costs applicable to sales per ounce decreased slightly due to higher production, partially offset by higher waste mining costs. Amortization per ounce increased 13% due to the use of additional mining equipment and leach pads.
We expect gold production in North America of approximately 1.7 to 1.9 million ounces at Costs applicable to sales per ounce of approximately $575 to $615 in 2010.
South America Operations
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Gold Ounces Produced	 	 	Costs Applicable to Sales (1)	 	 	Amortization	 	
Three Months Ended June 30,	 	2010	 	 	2009	 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
 	 	(in thousands)	 	 	($ per ounce)	 	 	($ per ounce)	 	
Yanacocha	 	 	353	 	 	 	517	 	 	$	389	 	 	$	323	 	 	$	113	 	 	$	82	 	
Equity (2)	 	 	181	 	 	 	265	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Gold Ounces Produced	 	 	Costs Applicable to Sales (1)	 	 	Amortization	 	
Six Months Ended June 30,	 	2010	 	 	2009	 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
 	 	(in thousands)	 	 	($ per ounce)	 	 	($ per ounce)	 	
Yanacocha	 	 	776	 	 	 	1,016	 	 	$	380	 	 	$	324	 	 	$	100	 	 	$	84	 	
Equity (2)	 	 	398	 	 	 	521	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	
(1)	 	Excludes Amortization and Reclamation and remediation .	
 		
(2)	 	Consolidated gold ounces produced includes noncontrolling interests’ share (51.35% owned).	
Second quarter 2010 compared to 2009
Yanacocha, Peru. Gold ounces produced decreased 32% due to lower leach tons placed related to mine sequencing and transitional ore stockpiling combined with lower mill ore grade. Costs applicable to sales per ounce increased 20% due to lower production, higher waste mining and maintenance costs, partially offset by higher by-product credits. Amortization per ounce increased 38% due to lower production.
First half 2010 compared to 2009
Yanacocha, Peru. Gold ounces produced decreased 24% due to higher waste mining combined with lower leach tons placed and lower mill ore grade. Costs applicable to sales per ounce increased 17% due to lower production, higher waste mining, maintenance and workers’ participation costs, partially offset by higher by-product credits. Amortization per ounce increased 19% due to lower production.
We expect consolidated gold production in South America of approximately 1.5 to 1.6 million ounces at Costs applicable to sales per ounce of approximately $360 to $400 in 2010.
 
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Asia Pacific Operations
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Gold Ounces or	 	 	 	 	 	 	 	
 	 	Copper Pounds Produced	 	 	Costs Applicable to Sales (1)	 	 	Amortization	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
 	 	(in thousands)	 	 	($ per ounce)	 	 	($ per ounce)	 	
Three Months Ended June 30,	 	 	 	 	 	 	 	 	 	
Gold	 	 	 	 	 	 	 	 	 	
Boddington	 	 	184	 	 	 	—	 	 	$	582	 	 	$	—	 	 	$	177	 	 	$	—	 	
Batu Hijau (2)(3)	 	 	169	 	 	 	120	 	 	 	294	 	 	 	229	 	 	 	81	 	 	 	62	 	
Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Jundee	 	 	88	 	 	 	99	 	 	 	397	 	 	 	338	 	 	 	83	 	 	 	110	 	
Kalgoorlie (50% owned)	 	 	82	 	 	 	70	 	 	 	539	 	 	 	607	 	 	 	37	 	 	 	39	 	
Tanami	 	 	61	 	 	 	82	 	 	 	733	 	 	 	599	 	 	 	168	 	 	 	127	 	
Waihi	 	 	25	 	 	 	12	 	 	 	666	 	 	 	582	 	 	 	162	 	 	 	287	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	256	 	 	 	263	 	 	 	549	 	 	 	500	 	 	 	96	 	 	 	107	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total/Weighted-Average	 	 	609	 	 	 	383	 	 	$	498	 	 	$	426	 	 	$	119	 	 	$	95	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity (4)	 	 	522	 	 	 	318	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

 	 	(in millions)	 	 	($ per pound)	 	 	($ per pound)	 	
Three Months Ended June 30,	 	 	 	 	 	 	 	 	 	
Copper	 	 	 	 	 	 	 	 	 	
Boddington	 	 	15	 	 	 	—	 	 	$	1.55	 	 	$	—	 	 	$	0.40	 	 	$	—	 	
Batu Hijau (2)(3)	 	 	133	 	 	 	114	 	 	 	0.66	 	 	 	0.58	 	 	 	0.17	 	 	 	0.15	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total/Weighted-Average	 	 	148	 	 	 	114	 	 	$	0.77	 	 	$	0.58	 	 	$	0.20	 	 	$	0.15	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity (4)	 	 	80	 	 	 	51	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

 	 	Gold Ounces or	 	 	 	 	 	 	 	
 	 	Copper Pounds Produced	 	 	Costs Applicable to Sales (1)	 	 	Amortization	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
 	 	(in thousands)	 	 	($ per ounce)	 	 	($ per ounce)	 	
Six Months Ended June 30,	 	 	 	 	 	 	 	 	 	
Gold	 	 	 	 	 	 	 	 	 	
Boddington	 	 	342	 	 	 	—	 	 	$	560	 	 	$	—	 	 	$	163	 	 	$	—	 	
Batu Hijau (2)(3)	 	 	335	 	 	 	179	 	 	 	253	 	 	 	297	 	 	 	71	 	 	 	78	 	
Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Jundee	 	 	180	 	 	 	201	 	 	 	391	 	 	 	345	 	 	 	99	 	 	 	104	 	
Kalgoorlie (50% owned)	 	 	186	 	 	 	146	 	 	 	539	 	 	 	625	 	 	 	38	 	 	 	43	 	
Tanami	 	 	114	 	 	 	171	 	 	 	786	 	 	 	586	 	 	 	184	 	 	 	125	 	
Waihi	 	 	52	 	 	 	51	 	 	 	660	 	 	 	426	 	 	 	187	 	 	 	241	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	532	 	 	 	569	 	 	 	554	 	 	 	496	 	 	 	104	 	 	 	108	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total/Weighted-Average	 	 	1,209	 	 	 	748	 	 	$	479	 	 	$	450	 	 	$	113	 	 	$	101	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity (4)	 	 	1,044	 	 	 	650	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

 	 	(in millions)	 	 	($ per pound)	 	 	($ per pound)	 	
Six Months Ended June 30,	 	 	 	 	 	 	 	 	 	
Copper	 	 	 	 	 	 	 	 	 	
Boddington	 	 	29	 	 	 	—	 	 	$	1.80	 	 	$	—	 	 	$	0.47	 	 	$	—	 	
Batu Hijau (2)(3)	 	 	278	 	 	 	195	 	 	 	0.66	 	 	 	0.73	 	 	 	0.19	 	 	 	0.19	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total/Weighted-Average	 	 	307	 	 	 	195	 	 	$	0.78	 	 	$	0.73	 	 	$	0.21	 	 	$	0.19	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity (4)	 	 	170	 	 	 	88	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

(1)	 	Excludes Amortization and Reclamation and remediation .	
 		
(2)	 	Consolidated gold ounces or copper pounds produced includes noncontrolling interests’ share.	
 
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(3)	 	Our economic interest in Batu Hijau was 45% in the first half of 2009. As a result of transactions with noncontrolling partners, our economic interest in Batu Hijau was 52.44% in the first quarter of 2010 and 48.50% in the second quarter of 2010. See Note 12 to the Condensed Consolidated Financial Statements for a discussion of the changes in our ownership and economic interest in Batu Hijau.	
 		
(4)	 	Gold ounces and copper pounds produced attributable to Newmont after noncontrolling interests.	
Boddington, Australia. Gold and copper produced in the second quarter of 2010 were 184 thousand ounces and 15 million pounds, respectively, as Boddington continues to experience lower than anticipated gold ore grades during ramp-up to full production. Costs applicable to sales were $582 per ounce ($503 per ounce on a by-product basis; see “Non-GAAP Financial Measures” on page 59) and $1.55 per pound, respectively. Amortization was $177 per ounce and $0.40 per pound, respectively. Compared to the first quarter of 2010, gold and copper production increased 16% and 13%, respectively.
The processing plant continues to perform in line with expectations, recovery has been exceeding Feasibility Study expectations, and the high pressure grinding rolls and wet plants are performing better than anticipated. However, production has been lower than expected as the Company has encountered approximately 12% less contained gold and 23% more contained copper than originally modeled. As a result of lower gold production to date, higher direct mining costs and a stronger Australian dollar, gold production for 2010 at Boddington is now expected to be between 750,000 and 825,000 ounces at Costs applicable to sales of $475 to $550 per ounce (compared with an original outlook of 800,000 to 875,000 ounces at Costs applicable to sales of $375 to $395 per ounce). A stronger Australian dollar accounts for approximately 25% of the expected increase in 2010 gold operating costs, while increased mining costs account for approximately 50% and lower volume and other factors account for the remaining approximately 25%. Copper production for 2010 is expected to be between 65 and 75 million pounds at Costs applicable to sales of between $1.55 and $1.75 per pound (compared with an original outlook of between $1.30 and $1.45 per pound).
For 2011, we expect gold production at Boddington to be between 850,000 and 925,000 ounces at Costs applicable to sales of between $475 and $525 per ounce as the mine begins its first year of steady-state production. It is still too early in the ramp-up process to conclusively determine any longer-term impacts of the lower gold ore grades experienced to date (less than 2% of total reserves have been mined to date).
Second quarter 2010 compared to 2009
Batu Hijau, Indonesia. Copper and gold produced increased 17% and 41%, respectively, due to higher grade and throughput as a result of mining in the bottom of Phase 5, partially offset by lower recovery. However, mining in the bottom of Phase 5 was less than expected due to abnormally high rainfall restricting access to the mine, resulting in a higher proportion of waste mining and processing more stockpiled ore. Costs applicable to sales increased to $0.66 per pound and $294 per ounce, from $0.58 and $229, respectively, due to higher waste mining and milling costs, partially offset by higher production. A higher allocation of costs was applied to gold due to higher realized gold prices. Amortization increased 13% per pound and 31% per ounce due to equipment additions, partially offset by higher production.
Other Australia/New Zealand . Gold ounces produced decreased 3% due to lower grade as a result of ore dilution and lower mill throughput as a result of maintenance at Tanami combined with lower ore grade at Jundee, partially offset by higher ore grade at Kalgoorlie and higher mill throughput at Waihi. Costs applicable to sales per ounce increased 10% due to lower production and the stronger Australian dollar. Amortization per ounce decreased 10% due to higher production at Kalgoorlie and lower deferred mine development, partially offset by lower production at Jundee and Tanami.
First half 2010 compared to 2009
Batu Hijau, Indonesia. Copper and gold produced increased 43% and 87%, respectively, due to higher grade and throughput as a result of mining in the bottom of Phase 5. Costs applicable to sales decreased to $0.66 per pound and $253 per ounce, from $0.73 and $297, respectively, due to higher production and lower mining costs. Amortization per pound was consistent, while Amortization per ounce decreased 9% due to higher production, partially offset by equipment additions. In late 2010 or in 2011, we expect to complete mining the bottom of Phase 5. In 2011, we anticipate processing ore from stockpiles as mining will be primarily for waste removal in Phase 6.
 
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Other Australia/New Zealand. Gold ounces produced decreased 7% due to lower ore grade and mill throughput at Tanami and lower ore grade at Jundee, partially offset by higher ore grade at Kalgoorlie. Costs applicable to sales per ounce increased 12% due to lower production and the stronger Australian dollar. Amortization per ounce decreased 4% due to higher production at Kalgoorlie and lower deferred mine development, partially offset by lower production at Jundee and Tanami.
We expect 2010 consolidated gold production for Asia Pacific of approximately 2.6 to 2.8 million ounces at increased Costs applicable to sales of approximately $440 to $480 per ounce (from previous guidance of $400 to $440 per ounce). We continue to expect consolidated copper production for Asia Pacific to be approximately 610 to 670 million pounds of copper at Costs applicable to sales of approximately $0.85 to $0.95 per pound in 2010.
Africa Operations
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Gold Ounces Produced	 	 	Costs Applicable to Sales (1)	 	 	Amortization	 	
Three Months Ended June 30,	 	2010	 	 	2009	 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
 	 	(in thousands)	 	 	($ per ounce)	 	 	($ per ounce)	 	
Ahafo	 	 	132	 	 	 	134	 	 	$	416	 	 	$	428	 	 	$	147	 	 	$	119	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Gold Ounces Produced	 	 	Costs Applicable to Sales (1)	 	 	Amortization	 	
Six Months Ended June 30,	 	2010	 	 	2009	 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
 	 	(in thousands)	 	 	($ per ounce)	 	 	($ per ounce)	 	
Ahafo	 	 	252	 	 	 	264	 	 	$	475	 	 	$	413	 	 	$	146	 	 	$	123	 	
 	 	 	
(1)	 	Excludes Amortization and Reclamation and remediation .	
Second quarter 2010 compared to 2009
Ahafo, Ghana. Gold ounces produced were slightly lower as lower ore grade and recovery were offset by higher mill throughput. Costs applicable to sales per ounce decreased 3% due to lower milling costs resulting from softer ore, partially offset by higher diesel costs. Amortization per ounce increased 24% due to equipment additions.
First half 2010 compared to 2009
Ahafo, Ghana. Gold ounces produced decreased 5% due to lower grade and recovery, partially offset by higher throughput. Costs applicable to sales per ounce increased 15% due to lower production and higher diesel costs, partially offset by lower milling costs. Amortization per ounce increased 19% due to lower production and equipment additions.
Due to higher than projected production in the first half of 2010, the Company now expects 2010 gold production at Ahafo of between 500,000 and 530,000 ounces (up from between 460,000 and 500,000 ounces) at Costs applicable to sales between $475 and $515 per ounce (lower than our original outlook of between $515 to $555 per ounce), based on higher volumes.
Foreign Currency Exchange Rates
Our foreign operations sell their gold and copper production based on U.S. dollar metal prices. Approximately 36% and 23% of our Costs applicable to sales were paid in local currencies during the second quarter of 2010 and 2009, respectively. Approximately 35% and 22% of our Costs applicable to sales were paid in local currencies during the first half of 2010 and 2009, respectively. Variations in the local currency exchange rates in relation to the U.S. dollar at our foreign mining operations increased consolidated Costs applicable to sales per ounce by approximately $12, net of hedging gains and losses, during the second quarter of 2010 as compared to the second quarter of 2009 and by approximately $20 during the first half of 2010 compared to the first half of 2009.
 
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Liquidity and Capital Resources
Cash Provided from Operating Activities
Net cash provided from continuing operations increased to $1,481 for the first half of 2010 from $886 for the first half of 2009 due to higher realized gold and copper prices and higher sales volumes, as discussed above in Consolidated Financial Results .
Investing Activities
Net cash used in investing activities was $605 during the first half of 2010 compared to $1,672 during the same period of 2009, driven largely by the 2009 Boddington acquisition and completion of the Boddington construction in the fourth quarter of 2009. Additions to property, plant and mine development were as follows:
 	 	 	 	 	 	 	 	 	
 	 	Six Months Ended June 30,	 	
 	 	2010	 	 	2009	 	
North America:	 	 	 	 	 	 	 	 	
Nevada	 	$	117	 	 	$	111	 	
Hope Bay	 	 	48	 	 	 	3	 	
La Herradura	 	 	22	 	 	 	19	 	
 	 	 	 	 	 	 	
 	 	 	187	 	 	 	133	 	
 	 	 	 	 	 	 	
South America:	 	 	 	 	 	 	 	 	
Yanacocha	 	 	68	 	 	 	51	 	
Conga	 	 	43	 	 	 	11	 	
 	 	 	 	 	 	 	
 	 	 	111	 	 	 	62	 	
 	 	 	 	 	 	 	
Asia Pacific:	 	 	 	 	 	 	 	 	
Boddington	 	 	81	 	 	 	684	 	
Jundee	 	 	21	 	 	 	14	 	
Tanami	 	 	38	 	 	 	28	 	
Kalgoorlie	 	 	7	 	 	 	2	 	
Waihi	 	 	5	 	 	 	3	 	
Batu Hijau	 	 	33	 	 	 	23	 	
Other	 	 	3	 	 	 	1	 	
 	 	 	 	 	 	 	
 	 	 	188	 	 	 	755	 	
 	 	 	 	 	 	 	
Africa:	 	 	 	 	 	 	 	 	
Ahafo	 	 	51	 	 	 	23	 	
Akyem	 	 	22	 	 	 	1	 	
 	 	 	 	 	 	 	
 	 	 	73	 	 	 	24	 	
 	 		
Corporate and Other	 	 	11	 	 	 	8	 	
 	 	 	 	 	 	 	
Accrual basis	 	 	570	 	 	 	982	 	
Decrease (increase) in accrued capital expenditures	 	 	58	 	 	 	(72	)	
 	 	 	 	 	 	 	
Cash basis	 	$	628	 	 	$	910	 	
 	 	 	 	 	 	 	
Capital expenditures in North America are primarily related to the Hope Bay Project, the Turf/Leeville underground project, and sustaining mine development. Capital expenditures in South America are primarily related to the Conga project and leach pad development and equipment purchases at Yanacocha. The majority of capital expenditures in Asia Pacific are for surface and underground development, mining equipment, and infrastructure improvements. Capital expenditures in Africa are primarily related to the development of the Akyem, Amoma, and Subika Expansion projects, tailings dam construction and sustaining mine development at Ahafo. We expect 2010 capital expenditures to be approximately $1,400 to $1,600.
 
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Capital expenditures in North America during the first half of 2009 were primarily related to sustaining mine development at Nevada and the Hope Bay Project. Capital expenditures in South America primarily related to the Conga project, dewatering projects and leach pad development at Yanacocha. The vast majority of capital expenditures in Asia Pacific were for the Boddington project, (which includes 100% of expenditures for 2009) with other sustaining capital expenditures for mine development at Australia and equipment purchases at Batu Hijau. Capital expenditures in Africa primarily related to sustaining mine development at Ahafo.
Acquisitions, net. During the first half of 2009 we paid $741 (net of $1 cash acquired) and paid $8 in acquisition costs to acquire the remaining 33.33% interest in Boddington. Consideration for the acquisition also includes $240 paid in cash in December 2009 and a contingent royalty capped at $100, equal to 50% of the average realized operating margin (Revenue less Costs applicable to sales on a by-product basis), if any, exceeding $600 per ounce, payable on one-third of gold sales from Boddington beginning in the second quarter of 2010. The completion of the acquisition in June 2009 brought Newmont’s interest in Boddington to 100%. Additionally, we paid $11 for a mining property near the La Herradura, Mexico operation in the first half of 2009.
Proceeds from sale of other assets. During the first half of 2010 we received $13 from the sale of our 40% interest in AGR Matthey Joint Venture (“AGR”) and $5 for the sale of our joint venture exploration property in Armenia. We also received $34 from the sale of other assets including non-core assets held at Tanami.
Financing Activities
Net cash provided from (used in) financing activities of continuing operations was $(470) and $868 during the first half of 2010 and 2009, respectively.
Proceeds from and repayment of debt, net. During the first half of 2010, we repaid $263 of debt, including pre-payment of the $220 balance under the PTNNT project financing facility, scheduled debt repayments of $24 related to the sale-leaseback of the refractory ore treatment plant (classified as a capital lease) and $19 on other credit facilities and capital leases. At June 30, 2010, $277 of the $2,000 revolving credit facility is currently used to secure the issuance of letters of credit, primarily supporting reclamation obligations (see “Off-Balance Sheet Arrangements” below).
During the first half of 2009, we received proceeds from debt of $1,494, including $504 net proceeds from the issuance of convertible senior notes due in 2012, $926 under our revolving credit facility and $64 million from other credit facilities. In addition, we repaid $1,668 of debt, including $1,583 under the revolving credit facility, $43 million for the Batu Hijau project financing facility, $24 related to the sale-leaseback of the refractory ore treatment plant (classified as a capital lease) and $18 on other credit facilities and capital leases.
Scheduled minimum debt repayments are $27 for the remainder of 2010, $287 in 2011, $576 in 2012, $72 in 2013, $545 in 2014, and $3,068 thereafter. We expect to be able to fund maturities of debt from Net cash provided by operating activities , short-term investments, existing cash balances and available credit facilities.
At June 30, 2010, we were in compliance with all required debt covenants and other restrictions related to debt agreements.
Sale of subsidiary shares to noncontrolling interests. In March 2010, Nusa Tenggara Partnership (“NTP”) completed the sale of 7% of shares in PTNNT to a third party buyer. This transaction reduced our direct ownership interest in PTNNT to 31.5%. Cash proceeds from the sale were $229, with our 56.25% share being $129 and the balance of $100 was paid to our NTP partner.
Acquisition of subsidiary shares from noncontrolling interests. On June 25, 2010, P.T. Pukuafu Indah (“PTPI”), an unrelated noncontrolling partner of PTNNT, completed the sale of an approximately 2.2% interest in PTNNT to PT Indonesia Masbaga Investama (“PTIMI”). To enable the transaction to proceed, we released our rights to the dividends payable on this 2.2% interest and released our security interest in the associated shares. We further agreed, however, to advance certain funds to PTIMI to enable it to purchase the interest in exchange for an assignment by PTIMI to us of the dividends payable on the 2.2% interest (net of withholding tax), a pledge of the shares as security for the loan, and certain voting rights and obligations. The funds that we advanced to PTIMI and which it paid to PTPI for the shares were used by PTPI to reduce its outstanding loan balance with us. Upon completion of this transaction, PTPI requested and was allowed to make additional draw downs under our agreement with PTPI. Our economic interest in PTPI’s and PTIMI’s combined 20% interest in PTNNT remains at 17% and has not changed as a result of these transactions.
 
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On December 22, 2009, we entered into a transaction with PTPI whereby we agreed to advance certain funds to PTPI in exchange for a pledge of the noncontrolling partner’s 20% share of PTNNT dividends, net of withholding tax, certain voting rights and obligations, and a commitment from PTPI to support the application of our standards to the operation of the Batu Hijau mine. As a result, our effective economic interest in PTNNT increased by 17%. In connection with the above transaction, we advanced additional funds to PTPI during the first half of 2010.
Dividends paid to common stockholders. We declared regular quarterly dividends totaling $0.20 per common share for the six months ended June 30, 2010 and June 30, 2009. Additionally, Newmont Mining Corporation of Canada Limited, a subsidiary of the Company, declared regular quarterly dividends on its exchangeable shares totaling C$0.2058 per share through June 30, 2010 and C$0.2461 through June 30, 2009. We paid dividends of $98 to common stockholders in the first half of 2010 and 2009.
Dividends paid to noncontrolling interest. We paid dividends of $307 and $112 to noncontrolling interests during the first half of 2010 and 2009, respectively. The dividends paid during the first half of 2010 included $100 for our NTP partner’s share of the sale of the 7% interest in Batu Hijau and $205 for our partners’ share of $476 in PTNNT dividends declared to date.
Proceeds from stock issuance. We received proceeds of $30 and $1,247 during the first half of 2010 and 2009, respectively, from the issuance of common stock. In February 2009 we completed a public offering of 34,500,000 shares of common stock at $37.00 per share, for net proceeds of $1,236.
Discontinued Operations
Net operating cash provided from (used in) discontinued operations was $(13) and $8 in the first half of 2010 and 2009, respectively, related to the Kori Kollo operation in Bolivia, sold in 2009.
Net cash used in financing activities of discontinued operations was $2 in the first half of 2009 for repayment of debt at Kori Kollo.
Off-Balance Sheet Arrangements
We have the following off-balance sheet arrangements: operating leases (as discussed in Note 30 to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2009, filed on February 25, 2010), $982 of outstanding letters of credit, surety bonds and bank guarantees (see Note 26 to the Condensed Consolidated Financial Statements) and sales agreements to sell copper and gold concentrates at market prices as follows, in thousands of tons:
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	2010	 	 	2011	 	 	2012	 	 	2013	 	 	2014	 	 	Thereafter	 	
Batu Hijau	 	 	446	 	 	 	617	 	 	 	440	 	 	 	430	 	 	 	518	 	 	 	—	 	
Boddington	 	 	193	 	 	 	237	 	 	 	248	 	 	 	243	 	 	 	254	 	 	 	904	 	
Nevada	 	 	50	 	 	 	46	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	689	 	 	 	900	 	 	 	688	 	 	 	673	 	 	 	772	 	 	 	904	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Environmental
Our mining and exploration activities are subject to various federal and state laws and regulations governing the protection of the environment. These laws and regulations are continually changing and are generally becoming more restrictive. We conduct our operations so as to protect the public health and environment and believe our operations are in compliance with applicable laws and regulations in all material respects. We have made, and expect to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures. Estimated future reclamation costs are based principally on legal and regulatory requirements. At June 30, 2010 and December 31, 2009, $714 and $698, respectively, were accrued for reclamation costs relating to currently producing mineral properties.
In addition, we are involved in several matters concerning environmental obligations associated with former mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. We believe that the related environmental obligations associated with these sites are similar in nature with respect to the development of remediation plans, their risk profile and the compliance required to meet general environmental standards. Based upon our best estimate of our liability for these matters, $149 and $161 were accrued for such obligations at June 30, 2010 and December 31, 2009, respectively. Depending upon the ultimate resolution of these matters, we believe that it is reasonably possible that the liability for these matters could be as much as 158% greater or 3% lower than the amount accrued at June 30, 2010. The amounts accrued for these matters are reviewed periodically based upon facts and circumstances available at the time. Changes in estimates are charged to Reclamation and remediation in the period estimates are revised.
 
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For more information on the Company’s reclamation and remediation liabilities, see Notes 4 and 26 to the Consolidated Financial Statements.
During the first half of 2010 and 2009, capital expenditures were approximately $36 and $78, respectively, to comply with environmental regulations. Ongoing costs to comply with environmental regulations have not been a significant component of operating costs.
Newmont spent $8, during the first half of 2010 and 2009, respectively, for environmental obligations related to the former, primarily historic, mining activities discussed in Note 4 to the Consolidated Financial Statements.
Accounting Developments
For a discussion of Recently Adopted Accounting Pronouncements, see Note 2 to the Condensed Consolidated Financial Statements.
Non-GAAP Financial Measures
Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles (“GAAP”). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.
Adjusted net income
Management of the Company uses Adjusted net income to evaluate the Company’s operating performance, and for planning and forecasting future business operations. The Company believes the use of Adjusted net income allows investors and analysts to compare results of the continuing operations of the Company and its direct and indirect subsidiaries relating to the production and sale of minerals to similar operating results of other mining companies, by excluding exceptional or unusual items, income or loss from discontinued operations and the permanent impairment of assets, including marketable securities and goodwill. Management’s determination of the components of Adjusted net income are evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts. Net income attributable to Newmont stockholders is reconciled to Adjusted net income as follows:
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended June 30,	 	 	Six Months Ended June 30,	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
Net income attributable to Newmont stockholders	 	$	382	 	 	$	162	 	 	$	928	 	 	$	351	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income tax benefit from internal restructuring	 	 	—	 	 	 	—	 	 	 	(127	)	 	 	—	 	
Net gain on asset sales	 	 	(7	)	 	 	—	 	 	 	(31	)	 	 	—	 	
PTNNT community contribution	 	 	—	 	 	 	—	 	 	 	13	 	 	 	—	 	
Impairment of assets	 	 	2	 	 	 	1	 	 	 	3	 	 	 	5	 	
Boddington acquisition costs	 	 	—	 	 	 	39	 	 	 	—	 	 	 	44	 	
Discontinued operations loss	 	 	—	 	 	 	9	 	 	 	—	 	 	 	9	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted net income	 	$	377	 	 	$	211	 	 	$	786	 	 	$	409	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted net income per share (1)	 	$	0.77	 	 	$	0.43	 	 	$	1.60	 	 	$	0.85	 	
 	 	 	
(1)	 	Calculated using weighted average number of shares outstanding, basic.	
 
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By-product costs applicable to sales
Sales and Costs applicable to sales for Boddington are presented in the Condensed Consolidated Financial Statements for both gold and copper due to the significant portion of copper production (approximately 15-20% of total sales based on the latest life-of-mine plan and metal price assumptions). The co-product method allocates costs applicable to sales to each metal based on specifically identifiable costs where applicable and on a relative proportion of sales values for other costs. Management also assesses the performance of the Boddington mine on a by-product basis due to the majority of sales being derived from gold and to determine contingent consideration payments to AngloGold. The by-product method deducts copper sales margin from costs applicable to sales as shown in the following table:
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Six Months Ended	 	
 	 	June 30, 2010	 	 	June 30, 2010	 	
 	 	 	 	 	 	 	 	 	
Co-product costs applicable to sales — gold	 	$	113	 	 	$	193	 	
Less copper margin:	 	 	 	 	 	 	 	 	
Sales — copper	 	 	40	 	 	 	79	 	
Costs applicable to sales — copper	 	 	(25	)	 	 	(49	)	
 	 	 	 	 	 	 	
 	 	 	15	 	 	 	30	 	
 	 	 	 	 	 	 	
By-product costs applicable to sales — gold	 	$	98	 	 	$	163	 	

Costs applicable to sales — gold ($  per ounce)	 	 	 	 	 	 	 	 	
Co-product	 	$	582	 	 	$	560	 	
By-product	 	$	503	 	 	$	474	 	
 	 	 	 	 	 	 	 	 	
Gold ounces sold (in thousands)	 	 	194	 	 	 	344	 	
Safe Harbor Statement
Certain statements contained in this report (including information incorporated by reference) are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provided for under these sections. Our forward-looking statements include, without limitation: (a) statements regarding future earnings, and the sensitivity of earnings to gold and other metal prices; (b) estimates of future mineral production and sales for specific operations and on a consolidated basis; (c) estimates of future production costs and other expenses, for specific operations and on a consolidated basis; (d) estimates of future cash flows and the sensitivity of cash flows to gold and other metal prices; (e) estimates of future capital expenditures and other cash needs for specific operations and on a consolidated basis and expectations as to the funding thereof; (f) statements as to the projected development of certain ore deposits, including estimates of development and other capital costs, financing plans for these deposits, and expected production commencement dates; (g) estimates of future costs and other liabilities for certain environmental matters; (h) estimates of reserves, and statements regarding future exploration results and reserve replacement; (i) statements regarding modifications to Newmont’s hedge positions; (j) statements regarding future transactions relating to portfolio management or rationalization efforts; and (k) projected synergies and costs associated with acquisitions and related matters.
Where we express an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected, or implied by those forward-looking statements. Important factors that could cause actual results to differ materially from such forward-looking statements (“cautionary statements”) are disclosed under “Risk Factors” in the Newmont Annual Report on Form 10-K for the year ended December 31, 2009, as well as in other filings with the Securities and Exchange Commission. Many of these factors are beyond Newmont’s ability to control or predict. Given these uncertainties, readers are cautioned not to place undue reliance on our forward-looking statements.
All subsequent written and oral forward-looking statements attributable to Newmont or to persons acting on its behalf are expressly qualified in their entirety by the cautionary statements. Newmont disclaims any intention or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
 
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ITEM 3.	 	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
(dollars in millions, except per ounce and per pound amounts).	
Metal Prices
Changes in the market price of gold significantly affect our profitability and cash flow. Gold prices can fluctuate widely due to numerous factors, such as demand; forward selling by producers; central bank sales, purchases and lending; investor sentiment; the strength of the U.S. dollar; inflation, deflation, or other general price instability; and global mine production levels. Changes in the market price of copper also affect our profitability and cash flow. Copper is traded on established international exchanges and copper prices generally reflect market supply and demand, but can also be influenced by speculative trading in the commodity or by currency exchange rates.
Hedging
Our strategy is to provide shareholders with leverage to changes in gold and copper prices by selling our production at spot market prices. Consequently, we do not hedge our gold and copper sales. We continue to manage risks associated with commodity input costs, interest rates and foreign currencies using the derivative market.
By using derivatives, we are affected by credit risk, market risk and market liquidity risk. Credit risk is the risk that a third party might fail to fulfill its performance obligations under the terms of a financial instrument. We mitigate credit risk by entering into derivatives with high credit quality counterparties, limiting the amount of exposure to each counterparty, and monitoring the financial condition of the counterparties. Market risk is the risk that the fair value of a derivative might be adversely affected by a change in underlying commodity prices, interest rates, or currency exchange rates, and that this in turn affects our financial condition. We manage market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. We mitigate this risk by establishing trading agreements with counterparties under which we are not required to post any collateral or make any margin calls on our derivatives. Our counterparties cannot require settlement solely because of an adverse change in the fair value of a derivative. Market liquidity risk is the risk that a derivative cannot be eliminated quickly, by either liquidating it or by establishing an offsetting position. Under the terms of our trading agreements, counterparties cannot require us to immediately settle outstanding derivatives, except upon the occurrence of customary events of default such as covenant breeches, including financial covenants, insolvency or bankruptcy. We generally mitigate market liquidity risk by spreading out the maturity of our derivatives over time.
Cash Flow Hedges
We utilize foreign currency contracts to reduce the variability of the US dollar amount of forecasted foreign currency expenditures caused by changes in exchange rates. We hedge a portion of our A$, NZ$ and IDR denominated operating expenditures which results in a blended rate realized each period. The hedging instruments are fixed forward contracts with expiration dates ranging up to three years from the date of issue. The principal hedging objective is reduction in the volatility of realized period-on-period $/A$, $/NZ$ and IDR/$ rates, respectively. We use diesel contracts to reduce the variability of our operating cost exposure related to diesel prices of fuel consumed at our Nevada operations. All of the currency and diesel contracts have been designated as cash flow hedges of future expenditures, and as such, changes in the market value have been recorded in Accumulated other comprehensive income . Gains and losses from hedge ineffectiveness are recognized in current earnings .
 
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Foreign Currency Exchange Risk
We had the following derivative instruments designated as hedges with fair values at June 30, 2010 and December 31, 2009:
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Expected Maturity Date	 	 	Fair Value, Net	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	 	At June 30,	 	 	At December 31,	 	
 	 	2010	 	 	2011	 	 	2012	 	 	2013	 	 	Average	 	 	2010	 	 	2009	 	
A$ Fixed Forward Contracts:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
$(millions)	 	$	373	 	 	$	558	 	 	$	280	 	 	$	44	 	 	$	1,255	 	 	$	27	 	 	$	130	 	
Average rate ($/A$)	 	 	0.80	 	 	 	0.78	 	 	 	0.80	 	 	 	0.80	 	 	 	0.79	 	 	 	 	 	 	 	 	 	
A$ notional (millions)	 	 	465	 	 	 	713	 	 	 	350	 	 	 	55	 	 	 	1,583	 	 	 	 	 	 	 	 	 	
Expected hedge ratio	 	 	70	%	 	 	54	%	 	 	27	%	 	 	8	%	 	 	39	%	 	 	 	 	 	 	 	 	
NZ$ Fixed Forward Contracts:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
$(millions)	 	$	22	 	 	$	31	 	 	$	4	 	 	$	—	 	 	$	57	 	 	$	1	 	 	$	6	 	
Average rate ($/NZ$)	 	 	0.65	 	 	 	0.67	 	 	 	0.66	 	 	 	—	 	 	 	0.67	 	 	 	 	 	 	 	 	 	
NZ$ notional (millions)	 	 	34	 	 	 	46	 	 	 	7	 	 	 	—	 	 	 	87	 	 	 	 	 	 	 	 	 	
Expected hedge ratio	 	 	62	%	 	 	38	%	 	 	12	%	 	 	—	 	 	 	37	%	 	 	 	 	 	 	 	 	
IDR Fixed Forward Contracts:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
$(millions)	 	$	14	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	14	 	 	$	1	 	 	$	1	 	
Average rate (IDR/$)	 	 	10,024	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	10,024	 	 	 	 	 	 	 	 	 	
IDR notional (millions)	 	 	140,337	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	140,337	 	 	 	 	 	 	 	 	 	
Expected hedge ratio	 	 	30	%	 	 	—	 	 	 	—	 	 	 	—	 	 	 	30	%	 	 	 	 	 	 	 	 	
Diesel Price Risk
We had the following diesel derivative contracts with fair values at June 30, 2010 and December 31, 2009:
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Expected Maturity Date	 	 	Fair Value, Net	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	 	At June 30,	 	 	At December 31,	 	
 	 	2010	 	 	2011	 	 	2012	 	 	Average	 	 	2010	 	 	2009	 	
Diesel Fixed Forward Contracts:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
$(millions)	 	$	24	 	 	$	31	 	 	$	4	 	 	$	59	 	$	 	(1	)	 	$	6	 	
Average rate ($/gallon)	 	 	2.08	 	 	 	2.25	 	 	 	2.43	 	 	 	2.19	 	 	 	 	 	 	 	 	 	
Diesel gallons (millions)	 	 	12	 	 	 	14	 	 	 	2	 	 	 	28	 	 	 	 	 	 	 	 	 	
Expected Nevada hedge ratio	 	 	57	%	 	 	32	%	 	 	8	%	 	 	32	%	 	 	 	 	 	 	 	 	
Fair Value Hedges
Interest Rate Risk
At June 30, 2010, we had $222 fixed to floating swap contracts designated as a hedge against our 8 5/8% debentures due 2011. The interest rate swap contracts assist in managing our targeted mix of fixed and floating rate debt. Under the hedge contract terms, we receive fixed-rate interest payments at 8.63% and pay floating-rate interest amounts based on periodic London Interbank Offered Rate (“LIBOR”) settings plus a spread, ranging from 2.60% to 7.63%. The interest rate swap contracts were designated as fair value hedges and changes in fair value have been recorded in income in each period, consistent with recording changes to the mark-to-market value of the underlying hedged liability in income. The fair value of the interest rate swaps was $5 and $7 at June 30, 2010 and December 31, 2009, respectively.
 
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Commodity Price Risk
Our provisional copper and gold sales contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the gold and copper concentrates at the prevailing indices’ prices at the time of sale. The embedded derivative, which does not qualify for hedge accounting, is marked to market through earnings each period prior to final settlement.
LME copper prices averaged $3.19 per pound during the three months ended June 30, 2010, compared with our recorded average provisional price of $3.13 per pound before mark-to-market gains and treatment and refining charges. LME copper prices averaged $3.24 per pound during the six months ended June 30, 2010, consistent with our recorded average provisional price per pound before mark-to-market gains and treatment and refining charges. The applicable forward copper price at the end of the second quarter was $2.96 per pound. During the three months ended June 30, 2010, changes in copper prices resulted in a provisional pricing mark-to-market loss of $79 ($0.62 per pound). During the six months ended June 30, 2010, changes in copper prices resulted in a provisional pricing mark-to-market loss of $48 ($0.17 per pound). At June 30, 2010, we had copper sales of 137 million pounds priced at an average of $2.96 per pound, subject to final pricing over the next several months.
The average London P.M. fix for gold was $1,197 per ounce during the three months ended June 30, 2010, compared with our recorded average provisional price of $1,192 per ounce before mark-to-market gains and treatment and refining charges. The average London P.M. fix for gold was $1,152 per ounce during the six months ended June 30, 2010, compared with our recorded average provisional price of $1,151 per ounce before mark-to-market gains and treatment and refining charges. The applicable forward gold price at the end of the second quarter was $1,245 per ounce. During the three months ended June 30, 2010, changes in gold prices resulted in a provisional pricing mark-to-market gain of $20 ($13 per ounce). During the six months ended June 30, 2010, changes in gold prices resulted in a provisional pricing mark-to-market gain of $22 ($7 per ounce). At June 30, 2010, we had gold sales of 180,000 ounces priced at an average of $1,245 per ounce, subject to final pricing over the next several months.

ITEM 4.	 	CONTROLS AND PROCEDURES.	
During the fiscal period covered by this report, the Company’s management, with the participation of the Chief Executive Officer and Chief Financial Officer of the Company, carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based on such evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the required time periods and are designed to ensure that information required to be disclosed in its reports is accumulated and communicated to the Company’s management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
 
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PART II — OTHER INFORMATION

ITEM 1.	 	LEGAL PROCEEDINGS.	
Information regarding legal proceedings is contained in Note 26 to the Condensed Consolidated Financial Statements contained in this Report and is incorporated herein by reference.

ITEM 1A.	 	RISK FACTORS.	
There were no material changes to the risk factors disclosed in Item 1A of Part 1 in our Annual Report on Form 10-K for the year ended December 31, 2009, as filed with the SEC on February 25, 2010.

ITEM 2.	 	ISSUER PURCHASES OF EQUITY SECURITIES.	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	(a)	 	 	(b)	 	 	(c)	 	 	(d)	 	
 	 	 	 	 	 	 	 	 	 	Total Number of	 	 	Maximum Number (or	 	
 	 	 	 	 	 	 	 	 	 	Shares Purchased	 	 	Approximate Dollar Value)	 	
 	 	Total Number	 	 	Average	 	 	as Part of Publicly	 	 	of Shares that may yet be	 	
 	 	of Shares	 	 	Price Paid	 	 	Announced Plans	 	 	Purchased under the	 	
Period	 	Purchased	 	 	Per Share	 	 	or Programs	 	 	Plans or Programs	 	
April 1, 2010 through April 30, 2010	 	 	—	 	 	 	—	 	 	 	—	 	 	 	N/A	 	
May 1, 2010 through May 31, 2010	 	 	—	 	 	 	—	 	 	 	—	 	 	 	N/A	 	
June 1, 2010 through June 30, 2010	 	 	—	 	 	 	—	 	 	 	—	 	 	 	N/A	 	

ITEM 3.	 	DEFAULTS UPON SENIOR SECURITIES.	
None.

ITEM 5.	 	OTHER INFORMATION.	
None.

ITEM 6.	 	EXHIBITS.	
(a) The exhibits to this report are listed in the Exhibit Index.
 
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 	 	 	 	 	
 	 	NEWMONT MINING CORPORATION	 	 	
 	 	(Registrant)	 	 	
 	 	 	 	 	
Date: July 28, 2010	 	/s/ RUSSELL BALL
 
Russell Ball	 	 	
 	 	Executive Vice President and Chief Financial Officer	 	 	
 	 	(Principal Financial Officer)	 	 	
 	 	 	 	 	
Date: July 28, 2010	 	/s/ ROGER P. JOHNSON
 
Roger P. Johnson	 	 	
 	 	Vice President and Chief Accounting Officer	 	 	
 	 	(Principal Accounting Officer)	 	 	
 
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NEWMONT MINING CORPORATION
 EXHIBIT INDEX 

Exhibit
Number	 	Description	
10.1	 	Letter Agreement dated May 3, 2010 between Newmont Mining Corporation and Robert J. Miller, filed herewith.	
10.2	 	Transition Agreement dated May 5, 2010 between Newmont International Services Limited and Alan Blank, filed herewith.	
10.3	 	Annual Incentive Compensation Program of Newmont Mining Corporation, as Amended and Restated Effective January 1, 2010, filed herewith.	
10.4	 	Employee Performance Incentive Compensation Program, Effective and Restated January 1, 2010, filed herewith.	
12.1	 	Computation of Ratio of Earnings to Fixed Charges, filed herewith	
31.1	 	Certification Pursuant to Rule 13A-14 or 15-D-14 of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 signed by the Principal Executive Officer, filed herewith.	
31.2	 	Certification Pursuant to Rule 13A-14 or 15-D-14 of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 signed by the Chief Financial Officer, filed herewith.	
32.1	 	Statement Required by 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 signed by Principal Executive Officer, filed herewith. (1)	
32.2	 	Statement Required by 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 signed by Chief Financial Officer, filed herewith. (1)	
101	 	The following materials are filed herewith: (i) XBRL Instance, (ii) XBRL Taxonomy Extension Schema, (iii) XBRL Taxonomy Extension Calculation, (iv) XBRL Taxonomy Extension Labels, (v) XBRL Taxonomy Extension Presentation, and (vi) XBRL Taxonomy Extension Definition. In accordance with Rule 406T of Regulation S-T, the information in these exhibits is furnished and deemed not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Exchange Act of 1934, and otherwise is not subject to liability under these sections and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, except as expressly set forth by the specific reference in such filing.	

(1)	 	This document is being furnished in accordance with SEC Release Nos. 33-8212 and 34-47551.	

Exhibit 10.1
Newmont Mining Corporation
6363 South Fiddlers Green Circle
Greenwood Village, CO 80111
May 3, 2010
Robert J. Miller
[address]
Dear Bob:
I am pleased to invite you to become the Chairman of a Nevada Advisory Panel for Newmont Mining Corporation. The panel will provide high-level strategic advice on Nevada political and operational issues. Over the coming months, I will be outlining the composition, operating model and budget for the Advisory Panel, and will look forward to your input and advice on these issues.
For your services of Chairman, Newmont will pay you an annual retainer of $215,000 for a two-year term from April 23, 2010 through April 22, 2012. We may renew this agreement for additional annual terms upon mutual agreement. I anticipate that your services as Chairman would require a time commitment of no more than 275 hours per year. In the event of a change of control, the surviving entity would be responsible to determine the continued structure of an Advisory Panel and would determine whether to assume the obligations under this letter. If the surviving entity does not elect to assume the obligations, neither you nor Newmont will have any further obligations. This puts you in essentially the same situation as the other directors of Newmont after any such change of control.
If the foregoing is acceptable to you, please sign and return to me a copy of this letter. I look forward to working with you on Nevada issues.
Best regards,
/s/ Richard T. O’Brien
Richard T. O’Brien
President and Chief Executive Officer
ACCEPTED AND AGREED:
 	 	 	
/s/ Robert J. Miller
 
Robert J. Miller	 	 	
Date: 5-6-2010	 	 	

Exhibit 10.2
TRANSITION AGREEMENT
RELEASE AND WAIVER
I. RECITALS
A. This AGREEMENT , which is effective on the EFFECTIVE DATE , is by and between Newmont International Services Limited and Alan Blank (hereinafter “ EMPLOYEE ”).
B. In consideration of the promises contained in this AGREEMENT , NEWMONT and EMPLOYEE agree as follows:
II. DEFINITIONS
The following definitions shall be applicable for the purposes of only this AGREEMENT :
A. “ AGREEMENT ” means this Release and Waiver.
B. “ CLAIMS ” means any debt, obligation, demand, application for attorneys’ fees and/or dispute resolution costs, cause of action, judgment, controversy or claim of any kind whatsoever between EMPLOYEE and NEWMONT , whether arising under common law or statute, including but not limited to claims for breach of contract (express or implied), quasi-contract, promissory estoppel, tort, fraud, misrepresentation, discrimination or any other legal theory; disputes relating to the employment relationship between the parties, termination thereof, or the interpretation of this AGREEMENT ; any and all debts, obligations, claims, demands, compensation, or rights under the company’s employee benefit plans; claims under Title VII of the Civil Rights Act of 1964, as amended; claims under the Civil Rights Act of 1991; claims under the Family and Medical Leave Act of 1993; claims under the Age Discrimination in Employment Act of 1967, as amended; claims under 42 U.S.C. § 1981, § 1981a, § 1983, § 1985, or § 1988; claims under the Americans with Disabilities Act of 1990, as amended; claims under the Employee Retirement Income Security Act of 1974, as amended; claims under the Worker Adjustment and Retraining Notification Act; or any other applicable federal, state, or local statute or ordinance, excluding claims for workers’ compensation benefits and claims under the Fair Labor Standards Act of 1938, as amended.

 

C. “ COMPANY INFORMATION ” means any confidential legal, financial, marketing, business, technical, or other information, including specifically but not exclusively, information which EMPLOYEE prepared, caused to be prepared, or received in connection with EMPLOYEE’s employment with NEWMONT , such as management and business plans, business strategies, software, software evaluations, trade secrets, personnel information, marketing methods and techniques, and any of the above-recited information as it relates to NEWMONT . COMPANY INFORMATION does not include: (a) information or knowledge which may subsequently come into the public domain after the termination of EMPLOYEE’s employment other than by way of unauthorized disclosure by EMPLOYEE ; or (b) information or knowledge which EMPLOYEE is required to disclose by order of a governmental agency or court after timely notice has been provided to NEWMONT of such order.
D. “ CAUSE ” means the EMPLOYEE engaged in illegal, dishonest or fraudulent conduct in the course of his employment at any time between June 16, 2008 and the Effective Date, regardless of when such conduct is discovered by Newmont.
E. “ EFFECTIVE DATE ” means the first date upon which all of the following have occurred: (1) EMPLOYEE has executed this AGREEMENT ; (2) the revocation period, if any, has expired without revocation by EMPLOYEE ; (3) the executed agreement has been timely returned to Executive Vice President of Human Resources, Newmont, 6363 South Fiddlers Green Circle, Greenwood Village, CO 80111; and (4) any CLAIMS by EMPLOYEE have been withdrawn and dismissed with prejudice.
F. “ EMPLOYEE ” means Alan Blank .
G. “Initial Date” means June 30, 2010.
H.  “NEWMONT ” means Newmont International Services Limited and any predecessor or current or former subsidiary, parent, affiliated company, or successor of any of them, or benefit plan maintained or participated in by any of them, and the current and former directors, officers, employees, shareholders and agents of any or all of them, unless otherwise specifically stated in this AGREEMENT .
I. “ NEWMONT PROPERTY ” shall include, but not be limited to, keys, access cards, files, memoranda, reports, software, credit cards, computer disks, instructional and management manuals, books, cellular phones, blackberries and computer equipment of NEWMONT .
J. “ SEPARATION DATE ” shall mean January 11, 2011.
 
 - 2 - 

 

III. COVENANTS
A.  Term of Employment . EMPLOYEE shall remain employed by NEWMONT in the position of Executive Vice President until the Initial Date and thereafter as Technical Advisor to the Chief Executive Officer of NEWMONT until the Separation Date (“Term of Employment”). Until June 30, 2010, EMPLOYEE’s monthly base salary shall continue at the same rate as designated on January 1, 2010. After June 30, 2010, EMPLOYEE shall be paid for any hours worked on behalf of NEWMONT at an hourly rate of $500, rather than a monthly base salary. Through the entire Term of Employment, EMPLOYEE shall be eligible for health and welfare benefits under the applicable plans of NEWMONT and shall be entitled to continue to insure his family members under the same terms as available to other NEWMONT employees; and after the Term of Employment, EMPLOYEE shall be eligible to continue such health and welfare benefits pursuant to the COBRA provisions of the applicable plans. From and after the Initial Date, EMPLOYEE shall not be entitled to any benefits under the Executive Change of Control Plan of Newmont. In addition, during the Term of Employment, EMPLOYEE shall not receive any bonus, stock or option awards for 2010 or 2011 performance, it being understood that the benefits described elsewhere in this paragraph and elsewhere in this Agreement are meant in part to compensate EMPLOYEE for such foregone benefits. During the Term of Employment and for a period of one year from the SEPARATION DATE , NEWMONT shall 1) reimburse EMPLOYEE for any loss EMPLOYEE and his spouse actually incur due to the sale of EMPLOYEE’s primary residence in Denver if such loss is incurred during the Term of Employment or within one year after the SEPARATION DATE and in connection with separation of service; 2) provide standard NEWMONT domestic relocation benefits to EMPLOYEE (per the executive relocation benefit package EMPLOYEE was granted upon his relocation to Denver in 2008), if EMPLOYEE relocates during the Term of Employment or within one year after the SEPARATION DATE , and; 3) at the election of EMPLOYEE , provide outplacement services with NEWMONT’s outplacement service provider up to an amount of $25,000; provided that any expenses paid or reimbursed by NEWMONT in connection with the foregoing are actually incurred by EMPLOYEE and directly related to the termination of services for NEWMONT . In no event shall any payments, benefits or reimbursements described in the preceding sentence be paid or provided with respect to expenses incurred later than the last day of the second calendar year following the calendar year in which EMPLOYEE’s separation from service with NEWMONT occurs, provided that any such reimbursements may be paid through the last day of the third calendar year following the calendar year of such separation. On January 11, 2011, EMPLOYEE’S employment with NEWMONT shall terminate without triggering any sort of severance payment under the Severance Plan of Newmont. Notwithstanding the provisions set forth above, NEWMONT shall be entitled to terminate EMPLOYEE’S employment with NEWMONT prior to January 11, 2011 for CAUSE without any severance or other sort of termination payment to EMPLOYEE .
B.  Termination Payments and Consideration to EMPLOYEE . Contingent upon EMPLOYEE remaining employed until the INITIAL DATE with NEWMONT , NEWMONT shall: 1) make an initial lump sum termination payment in the amount of $1,000,000 less all applicable local, state and federal withholding taxes to EMPLOYEE; and 2) vest any unvested restricted stock or restricted stock units previously granted to EMPLOYEE . Contingent upon EMPLOYEE remaining employed until the SEPARATION DATE with NEWMONT and contingent upon execution of the Release and Waiver attached hereto as EXHIBIT A on January 11, 2011 without revocation, NEWMONT shall: 1) make a final lump sum termination payment in the amount of $471,180 less all applicable local, state, and federal withholding taxes to EMPLOYEE ; 2) or thereafter, if there has not yet been a sale of EMPLOYEE’s primary residence in Denver and within fifteen (15) days after a determination of whether any payment shall be made under Section 1 of paragraph III, A, make an additional lump sum payment of up $250,000 to the extent that any amount paid under subsection 1 of paragraph III, A. above is less than $250,000; and; 3) treat any options granted to EMPLOYEE pursuant to the severance provision of the applicable award agreement.
 
 - 3 - 

 

C. Early Termination of Employment .
If EMPLOYEE’s employment with NEWMONT terminates prior to January 11, 2011 due to death or disability of EMPLOYEE , NEWMONT shall deliver the payments and consideration contained in paragraph III.B above, however such amount s shall be offset by any death or disability benefits paid to EMPLOYEE through any NEWMONT death or disability benefit or plan.
D.  Return and Protection of COMPANY INFORMATION . EMPLOYEE will not use or disclose COMPANY INFORMATION at any time subsequent to the EFFECTIVE DATE of this AGREEMENT . EMPLOYEE will, by January 11, 2011, return to NEWMONT all NEWMONT PROPERTY and all documents and other material containing COMPANY INFORMATION . EMPLOYEE will not retain copies or excerpts of COMPANY INFORMATION . EMPLOYEE will not disclose COMPANY INFORMATION at any time prior to the EFFECTIVE DATE of this AGREEMENT , except as required in the course of EMPLOYEE’s employment with NEWMONT . EMPLOYEE acknowledges that this paragraph is a material term of this AGREEMENT . Accordingly, in the event of a breach of this paragraph by EMPLOYEE , in addition to any other remedy available to NEWMONT , NEWMONT may cease any remaining payments otherwise due EMPLOYEE under this AGREEMENT and will be entitled to injunctive relief and damages against EMPLOYEE .
E.  Release of Claims By EMPLOYEE . As a material inducement to NEWMONT to enter into this AGREEMENT , EMPLOYEE , as a free and voluntary act, hereby forever releases and discharges NEWMONT from, and covenants not to sue NEWMONT for, CLAIMS which EMPLOYEE might have or assert against NEWMONT (1) by reason of EMPLOYEE’S employment by NEWMONT and all circumstances related thereto prior to the EFFECTIVE DATE of this AGREEMENT ; or (2) by reason of any other matter, cause or thing whatsoever which may have occurred between EMPLOYEE and NEWMONT prior to the EFFECTIVE DATE of this AGREEMENT , excluding claims regarding EMPLOYEE ’ s vested Pension or Savings Plan benefits. With respect to any charges of discrimination filed with any federal, state or local agency, pending or otherwise, arising from or related to EMPLOYEE’S employment or termination of employment with NEWMONT , EMPLOYEE acknowledges that EMPLOYEE has the right to file a charge, but that EMPLOYEE knowingly and voluntarily waives his or her right to seek individual relief on his or her own behalf.
F.  Non-disparagement . As a free and voluntary act, EMPLOYEE agrees that he or she will make no written or oral statements that directly or indirectly disparage NEWMONT in any manner whatsoever. It will not be a violation of this paragraph for EMPLOYEE to make truthful statements, under oath, as required by law or formal legal process.
 
 - 4 - 

 

G.  Affirmation of FLSA Compliance. EMPLOYEE affirms that NEWMONT has not violated EMPLOYEE’S rights under the Fair Labor Standards Act of 1938, as amended.
IV. ADDITIONAL PROVISIONS
A.  EMPLOYEE Cooperation . As a free and voluntary act, EMPLOYEE agrees after EMPLOYEE’s separation to cooperate at NEWMONT’S expense with any investigations or lawsuits involving NEWMONT on matters where EMPLOYEE had specific knowledge or responsibility. EMPLOYEE will be reimbursed at a rate equal to his final base salary as of June 30, 2010, computed on an hourly basis. EMPLOYEE shall make himself available at NEWMONT’S expense for any litigation, including specifically, but not exclusively, preparation for depositions and trial. EMPLOYEE will not receive reimbursement for time spent testifying in depositions or trial. EMPLOYEE agrees not to assist or provide information in any litigation against NEWMONT , except as required under law or formal legal process after timely notice is provided to NEWMONT to allow NEWMONT to take legal action with respect to the request for information or assistance. Nothing in this AGREEMENT shall restrict or preclude EMPLOYEE from, or otherwise influence EMPLOYEE in, testifying fully and truthfully in legal or administrative proceedings against NEWMONT , as required by law or formal legal process.
B.  Severability . In case any one or more of the provisions of this AGREEMENT shall be found to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired. Further, any provision found to be invalid, illegal or unenforceable shall be deemed, without further action on the part of the parties hereto, to be modified, amended and/or limited to the minimum extent necessary to render such clauses and/or provisions valid and enforceable.
C.  Entire Agreement . This AGREEMENT supersedes all prior written and verbal promises and agreements between the parties. This AGREEMENT constitutes the entire agreement between the parties and may be amended, modified or superseded only by a written agreement signed by both parties. No oral statements by any employee of NEWMONT shall modify or otherwise affect the terms and provisions of this AGREEMENT .
D.  Governing Law . This AGREEMENT shall be construed in accordance with the laws of the State of Colorado.
E.  No Admission of Liability . NEWMONT denies that it has taken any improper action against EMPLOYEE in violation of any federal, state, or local law or common law principle. The parties agree that this AGREEMENT shall not be admissible in any proceeding as evidence of any improper conduct by NEWMONT .
 
 - 5 - 

 

F.  Free and Voluntary Act . This release means, in part, that EMPLOYEE gives up all rights to damages and/or money based upon any claims against NEWMONT of age discrimination that arise through the date this AGREEMENT is signed. EMPLOYEE acknowledges that EMPLOYEE has been given at least twenty-one (21) days to consider this AGREEMENT and that EMPLOYEE has been advised to consult with an attorney prior to signing this AGREEMENT. EMPLOYEE may waive the balance of the twenty-one (21) day consideration period by signing this AGREEMENT sooner. EMPLOYEE further acknowledges that by law EMPLOYEE has the right to revoke (that is, cancel) this AGREEMENT within seven (7) calendar days of signing it. To be effective, EMPLOYEE’S revocation must be in writing and tendered to Executive Vice President of Human Resources, Newmont, 6363 South Fiddlers Green Circle, Greenwood Village, CO 80111, either by mail or by hand delivery within the seven (7) day period. If by mail, the revocation must be: 1) postmarked within the seven (7) day period; 2) properly addressed; and 3) sent by Certified Mail, Return Receipt Requested. In the event that EMPLOYEE exercises this right to revoke, EMPLOYEE agrees to return to NEWMONT any and all sums paid to EMPLOYEE in consideration of the AGREEMENT.
G.  No Other Representations . EMPLOYEE acknowledges that no promises or representations have been made to induce EMPLOYEE to sign this AGREEMENT other than as expressly set forth herein and that EMPLOYEE has signed this AGREEMENT as a free and voluntary act.
THIS IS A RELEASE — BY SIGNING, YOU ARE ACKNOWLEDGING THAT YOU
HAVE READ, UNDERSTAND, AND AGREE TO THE TERMS SET FORTH
ABOVE. BEFORE SIGNING YOU SHOULD READ CAREFULLY
AND CONSULT WITH AN ATTORNEY
 	 	 	 	 	 	 	 	 	 	 	
NEWMONT	 	 	 	EMPLOYEE	 	 	
 	 	 	 	 	 	 	 	 	 	 	
By:	 	/s/ William MacGowan	 	 	 	/s/ Alan Blank	 	 	
 	 	 	 	 	 	 	 	 	
 	 	Name:	 	William MacGowan	 	 	 	 	 	 	
 	 	Title:	 	President	 	 	 	 	 	 	
 	 	Date: May 5, 2010	 	 	 	Date: May 5, 2010	 	 	
 
 - 6 - 

 

EXHIBIT A
RELEASE AND WAIVER
I. RECITALS
A. This EXHIBIT A RELEASE AND WAIVER (hereinafter “ EXHIBIT ”), which is effective on the EFFECTIVE DATE , is by and between Newmont International Services Limited and Alan Blank (hereinafter “ EMPLOYEE ”).
B. Unless otherwise defined herein, this EXHIBIT incorporates the definitions set forth in the AGREEMENT.
C. This EXHIBIT sets forth the understanding between NEWMONT and EMPLOYEE concerning all of EMPLOYEE’s disputes with NEWMONT , including but not limited to all claims which EMPLOYEE has or could have raised against NEWMONT in connection with EMPLOYEE’s employment and related benefits. It is the desire of the parties to settle all disputes, known and unknown, in accordance with the terms and conditions set forth in this AGREEMENT .
D. In consideration of the promises contained in this EXHIBIT , NEWMONT and EMPLOYEE agree as follows:
II. DEFINITIONS
The following definitions shall be applicable for the purposes of only this AGREEMENT :
A. “ EFFECTIVE DATE ” means the first date upon which all of the following have occurred: (1) EMPLOYEE has executed this EXHIBIT and (2) the revocation period, if any, has expired without revocation by EMPLOYEE ; (3) the executed EXHIBIT has been timely returned to Executive Vice President of Human Resources, Newmont, 6363 South Fiddlers Green Circle, Greenwood Village, CO 80111; and (4) any CLAIMS by EMPLOYEE have been withdrawn and dismissed with prejudice.
B. “ EXHIBIT ” means this Exhibit A Release and Waiver.
C. “ COMPANY INFORMATION ” means any confidential legal, financial, marketing, business, technical, or other information, including specifically but not exclusively, information which EMPLOYEE prepared, caused to be prepared, or received in connection with EMPLOYEE’s employment with NEWMONT , such as management and business plans, business strategies, software, software evaluations, trade secrets, personnel information, marketing methods and techniques, and any of the above-recited information as it relates to NEWMONT . COMPANY INFORMATION does not include: (a) information or knowledge which may subsequently come into the public domain after the termination of EMPLOYEE’s employment other than by way of unauthorized disclosure by EMPLOYEE ; or (b) information or knowledge which EMPLOYEE is required to disclose by order of a governmental agency or court after timely notice has been provided to NEWMONT of such order.
 
 - 7 - 

 

D. “ NEWMONT PROPERTY ” shall include, but not be limited to, keys, access cards, files, memoranda, reports, software, credit cards, computer disks, instructional and management manuals, books, cellular phones, blackberries and computer equipment of NEWMONT .
E. “ SEPARATION DATE ” means January 11, 2011.
III. COVENANTS
A.  Consideration to EMPLOYEE . Contingent upon execution of this EXHIBIT without revocation on or after the SEPARATION DATE , NEWMONT will provide the payment and consideration stated in paragraph III.(B) of the AGREEMENT , less all applicable local, state, and federal withholding taxes.
B.  No Other Payments . Payment of all sums set forth in this EXHIBIT shall discharge all obligations of NEWMONT to EMPLOYEE , and EMPLOYEE waives all rights to other compensation and benefits including specifically, but not exclusively, salaries, bonuses, benefits of whatsoever kind and description, and allowances for perquisites, but excluding all vested rights pursuant to NEWMONT’s Pension and Savings plans.
C.  Return and Protection of COMPANY INFORMATION . EMPLOYEE will not use or disclose COMPANY INFORMATION at any time subsequent to the EFFECTIVE DATE of this EXHIBIT . EMPLOYEE will, by the SEPARATION DATE , return to NEWMONT all NEWMONT PROPERTY and all documents and other material containing COMPANY INFORMATION . EMPLOYEE will not retain copies or excerpts of COMPANY INFORMATION . EMPLOYEE acknowledges that this paragraph is a material term of this AGREEMENT . Accordingly, in the event of a breach of this paragraph by EMPLOYEE , in addition to any other remedy available to NEWMONT , NEWMONT may cease any remaining payments otherwise due EMPLOYEE under this AGREEMENT and will be entitled to injunctive relief and damages against EMPLOYEE .
 
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D.  Release of Claims By EMPLOYEE . As a material inducement to NEWMONT to enter into this EXHIBIT , EMPLOYEE , as a free and voluntary act, hereby forever releases and discharges NEWMONT from, and covenants not to sue NEWMONT for, CLAIMS which EMPLOYEE might have or assert against NEWMONT (1) by reason of EMPLOYEE’S employment and/or termination of employment by NEWMONT and all circumstances related thereto; or (2) by reason of any other matter, cause or thing whatsoever which may have occurred between EMPLOYEE and NEWMONT prior to the EFFECTIVE DATE of this EXHIBIT , excluding claims regarding EMPLOYEE ’ s vested benefits in NEWMONT’S Pension or Savings Plans. With respect to any charges of discrimination filed with any federal, state or local agency, pending or otherwise, arising from or related to EMPLOYEE’S employment or termination of employment with NEWMONT , EMPLOYEE acknowledges that EMPLOYEE has the right to file a charge, but that EMPLOYEE knowingly and voluntarily waives his or her right to seek individual relief on his or her own behalf.
E.  Tax Liability . EMPLOYEE and NEWMONT agree that, in the event any taxing authority determines that amounts paid pursuant to this agreement are taxable beyond any amount withheld by NEWMONT , EMPLOYEE is solely responsible for the payment of all such taxes and penalties assessed against EMPLOYEE , except for legally mandated employer contributions, and that NEWMONT has no duty to defend EMPLOYEE against any such tax claim, penalty or assessment. EMPLOYEE agrees to cooperate in the defense of any such claim brought against NEWMONT . NEWMONT agrees to cooperate in the defense of any such claim brought against EMPLOYEE .
IV. ADDITIONAL PROVISIONS
A.  Severability . In case any one or more of the provisions of this EXHIBIT shall be found to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired. Further, any provision found to be invalid, illegal or unenforceable shall be deemed, without further action on the part of the parties hereto, to be modified, amended and/or limited to the minimum extent necessary to render such clauses and/or provisions valid and enforceable.
B.  Governing Law . This AGREEMENT shall be construed in accordance with the laws of the state of Colorado.
C.  No Admission of Liability . NEWMONT denies that it has taken any improper action against EMPLOYEE in violation of any federal, state, or local law or common law principle. The parties agree that this EXHIBIT shall not be admissible in any proceeding as evidence of any improper conduct by NEWMONT .
D.  Free and Voluntary Act . This release means, in part, that EMPLOYEE gives up all rights to damages and/or money based upon any claims against NEWMONT of age discrimination that arise through the date this AGREEMENT is signed. EMPLOYEE acknowledges that EMPLOYEE has been given at least twenty-one (21) days to consider this AGREEMENT and that EMPLOYEE has been advised to consult with an attorney prior to signing this AGREEMENT. EMPLOYEE may waive the balance of the twenty-one (21) day consideration period by signing this AGREEMENT sooner. EMPLOYEE further acknowledges that by law EMPLOYEE has the right to revoke (that is, cancel) this AGREEMENT within seven (7) calendar days of signing it. To be effective, EMPLOYEE’S revocation must be in writing and tendered to Executive Vice President of Human Resources, Newmont, 6363 South Fiddlers Green Circle, Greenwood Village, CO 80111, either by mail or by hand delivery within the seven (7) day period. If by mail, the revocation must be: 1) postmarked within the seven (7) day period; 2) properly addressed; and 3) sent by Certified Mail, Return Receipt Requested. In the event that EMPLOYEE exercises this right to revoke, EMPLOYEE agrees to return to NEWMONT any and all sums paid to EMPLOYEE in consideration of the AGREEMENT.
 
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E.  No Other Representations . EMPLOYEE acknowledges that no promises or representations have been made to induce EMPLOYEE to sign this EXHIBIT other than as expressly set forth herein and that EMPLOYEE has signed this EXHIBIT as a free and voluntary act.
THIS IS A RELEASE — BY SIGNING, YOU ARE ACKNOWLEDGING THAT YOU
HAVE READ, UNDERSTAND, AND AGREE TO THE TERMS SET FORTH
ABOVE. BEFORE SIGNING YOU SHOULD READ CAREFULLY
AND CONSULT WITH AN ATTORNEY
 	 	 	 	 	 	 	 	 	 	 	
NEWMONT	 	 	EMPLOYEE	 	
 	 	 	 	 	 	 	 	 	 	 	
By: 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	
 	Title:  	 	 	 	 	 	 	 	 	 	
 	Date:  	 	 	 	 	Date:	 	 	 	 	

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Exhibit 10.3

NEWMONT
ANNUAL INCENTIVE COMPENSATION PROGRAM
As Amended and Restated Effective January 1, 2010

 

 

NEWMONT
ANNUAL INCENTIVE COMPENSATION PROGRAM
(Effective as of January 1, 2010)
PURPOSE
The purpose of this program is to provide to those employees of Newmont Mining and its Affiliated Entities that participate in this program a more direct interest in the success of the operations of Newmont Mining. Employees of Newmont Mining and participating Affiliated Entities will be rewarded in accordance with the terms and conditions described below.
This program is intended to be a program described in Department of Labor Regulation Section 2510.3-1(b) and shall not be considered a plan subject to the Employee Retirement Income Security Act of 1974, as amended.
SECTION I-DEFINITIONS
1.1 “ Affiliated Entity(ies) ” means any corporation or other entity, now or hereafter formed, that is or shall become affiliated with Newmont Mining, either directly or indirectly, through stock ownership or control, and which is (a) included in the controlled group of corporations (within the meaning of Code Section 1563(a) without regard to Code Section 1563(a)(4) and Code Section 1563(e)(3)(C)) in which Newmont Mining is also included and (b) included in the group of entities (whether or not incorporated) under common control (within the meaning of Code Section 414(c)) in which Newmont Mining is also included.
1.2 “ Board ” means the Board of Directors of Newmont Mining or its delegate.
1.3 “ Bonus Eligible Earnings ” means the total base salary and regular earnings (collectively, “regular earnings”) of the Employee during the calendar year. If an Employee is absent from work because of a work-related injury, the Employee’s “Bonus Eligible Earnings” will be determined by his actual gross base earnings during the calendar year. In the case of a Terminated Eligible Employee who is Disabled, “Bonus Eligible Earnings” will be determined by his actual gross base earnings, including short-term disability pay received during the calendar year, but excluding pay from any other source. If an Employee dies during the calendar year, the “Bonus Eligible Earnings” for such Terminated Eligible Employee will be determined by his actual gross base earnings. If an Employee is on active military duty during a calendar year, the “Bonus Eligible Earnings” will be determined by his actual gross base earnings during the calendar year, exclusive of any government military pay. If an Employee does not receive a W-2, his “Bonus Eligible Earnings” shall be determined on the basis of his actual gross base earnings for the calendar year, or portion thereof, as shown on the payroll records of Newmont Mining or the Participating Employer. In all cases, an Employee’s “Bonus Eligible Earnings” shall be computed before reduction for pre-tax contributions to an employee benefit plan of Newmont Mining pursuant to Section 401(k) or Section 125 of the Code. In the event of a Change of Control, the Bonus Eligible Earnings of each eligible Employee shall be equal to such Employee’s base salary, on an annualized basis, as of the date immediately preceding the Change of Control and, in the case of a Terminated Eligible Employee, such Employee’s base salary for the calendar year through the date of termination of employment.

 

1.4 “ Change of Control ” means the occurrence of any of the following events:
(i) The acquisition in one or a series of transactions by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either (x) the then outstanding shares of common stock of Newmont Mining (the “Outstanding Company Common Stock”) or (y) the combined voting power of the then outstanding voting securities of Newmont Mining entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change of Control: (A) any acquisition directly from Newmont Mining other than an acquisition by virtue of the exercise of a conversion privilege, unless the security being so converted was itself acquired directly from Newmont Mining, (B) any acquisition by Newmont Mining, (C) any acquisition by any employee benefits plan (or related trust) sponsored or maintained by Newmont Mining or any corporation controlled by Newmont Mining or (D) any acquisition by any corporation pursuant to a transaction which complies with clauses (A), (B) and (C) of paragraph (iii) below; or
(ii) Individuals who, as of the Effective Date, constitute the Board of Directors of Newmont Mining (“Incumbent Board”) cease for any reason to constitute at least a majority of the Board of Directors of Newmont Mining; provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or nomination for election by Newmont Mining’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board of Directors of Newmont Mining; or
(iii) Consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of Newmont Mining or an acquisition of assets of another corporation (a “Business Combination”), in each case, unless, following such Business Combination, (A) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation or other entity which as a result of such transaction owns Newmont Mining or all or substantially all of Newmont Mining’s assets either directly or through one or more subsidiaries

 

(a “Parent Company”)) in substantially the same proportions as their ownership, immediately prior to such Business Combination, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (B) no person or entity (excluding Newmont Mining, any corporation resulting from such Business Combination, any employee benefits plan (or related trust) of Newmont Mining or its Affiliate or any corporation resulting from such Business Combination or, if reference was made to equity ownership of any Parent Company for purposes of determining whether clause (A) above is satisfied in connection with the applicable Business Combination, such Parent Company) beneficially owns, directly or indirectly, 20% or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors, unless such ownership resulted solely from ownership of securities of Newmont Mining, prior to the Business Combination and (C) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination (or, if reference was made to equity ownership of any Parent Company for purposes of determining whether clause (A) above is satisfied in connection with the applicable Business Combination, of the Parent Company) were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board of Directors of Newmont Mining, providing for such Business Combination; or
(iv) Approval by the stockholders of Newmont Mining of a complete liquidation or dissolution of Newmont Mining.
1.5 “ Code ” means the Internal Revenue Code of 1986, as amended from time to time.
1.6 “ Compensation Committee ” means the Compensation Committee of the Board of Directors of Newmont Mining.
1.7 “ Consolidated Capital Expenditures ” means Newmont Mining’s total capital expenditures on an accrual basis measured against target capital expenditures on an accrual basis, adjusted from time to time as approved by the Board.
1.8 “Consolidated Costs Applicable to Sales — Gold and Copper” means audited, US GAAP consolidated costs applicable to sales for gold (per ounce calculation) and for copper (per pound calculation), measured against the target consolidated costs applicable to sales for gold (per ounce calculation) and to sales for copper (per pound calculation) per the approved business plan, and as adjusted from time to time as approved by the Board.
1.9 “ Corporate Performance Bonus ” means the bonus payable to an Employee pursuant to Section III.

 

1.10 “ Disability ” means a condition such that the salaried Employee has terminated employment with Newmont Mining or Affiliated Entities with a disability and has begun receiving benefits from the Long Term Disability Plan of Newmont Mining (or Affiliated Entity) or a successor plan.
1.11 “ Equity Ounces Production — Gold and Equity Pounds Production — Copper ” means the reported equity ounces of gold produced and reported equity pounds of copper produced for the applicable calendar year, measured against the target equity ounces of gold and target equity pounds of copper produced per the approved business plan, and as adjusted from time to time as approved by the Board.
1.12 “ Economic Performance Driver ” means Consolidated Capital Expenditures, Consolidated Costs Applicable to Sales — Gold and Copper, Equity Ounces Production — Gold and Equity Pounds Production Copper, and Reserve and NRM Additions.
1.13 “ Employee ” means an employee of Newmont Mining or an Affiliated Entity who satisfied the conditions for this program and who is not (a) an individual who performs services for Newmont Mining or an Affiliated Entity under an agreement, contract or arrangement (which may be written or oral) between the employer and the individual or with any other organization that provides the services of the individual to the Employer pursuant to which the individual is initially classified or treated as an independent contractor or whose remuneration for services has not been treated initially as subject to the withholding of federal income tax pursuant to Code § 3401, or who is otherwise treated as an employee of an entity other than Newmont Mining or an Affiliated Entity, irrespective of whether he or she is treated as an employee of Newmont Mining or an Affiliated Entity under common-law employment principles or pursuant to the provisions of Code § 414(m), 414(n) or 414(o), even if the individual is subsequently reclassified as a common-law employee as a result of a final decree of a court of competent jurisdiction, the settlement of an administrative or judicial proceeding or a determination by the Internal Revenue Service, the Department of the Treasury or the Department of Labor, (b) an individual who is a leased employee, (c) a temporary employee, or (d) an individual covered by a collective bargaining agreement unless otherwise provided for in such agreement.
1.14 “ Key Objectives ” means the key results expected by the end of the review period for an Employee, as established and administered through Newmont Mining’s performance management system.
1.15 “ Newmont Mining ” means Newmont Mining Corporation.
1.16 “ Participating Employer ” means Newmont Mining and any Affiliated Entity.
1.17 “ Pay Grade ” means those jobs sharing a common salary range, as designated by the Board or its delegate.
1.18 “ Performance Rating Category ” means the numerical category used to classify the performance of each Employee in accordance with Newmont Mining’s performance management system.

 

1.19 “ Personal Performance Bonus ” means the bonus payable to an Employee based on the individual performance of such Employee, as set forth in Section 4.2.
1.20 “ Personal Performance Bonus Factor ” means the factor used to determine an Employee’s Personal Performance Bonus, based upon the Performance Rating Category assigned to the Employee, in accordance with Section 4.1.
1.21 “ Reserve and NRM Additions ” means annual gold reserve and non-reserve mineralization material (“NRM”) additions measured against target annual reserve and non-reserve mineralization material additions per the approved business plan, and as adjusted from time to time as approved by the Board.
1.22 “ Terminated Eligible Employee ” means an Employee employed in a position located in Colorado or any Employee in an Executive grade level position who terminates employment with Newmont Mining and/or a Participating Employer during the calendar year on account of death, retirement or Disability. The Executive Vice President of Human Resources of Newmont Mining (or his or her delegate) may, in his/her sole discretion, also designate in writing other Employees who terminate employment during the calendar year under other circumstances as “Terminated Eligible Employees.”
SECTION II-ELIGIBILITY
All Employees of a Participating Employer are potentially eligible to receive a bonus payment under this program, provided (i) they are on the payroll of a Participating Employer as of the last day of the calendar year, and at the time of payment, or (ii) they are a Terminated Eligible Employee with respect to such calendar year. Otherwise eligible Employees who are on short-term disability under the Short-Term Disability Plan of Newmont Mining (of Affiliated Entity) or a similar or a successor plan or not working because of a work-related injury as of the last day of the calendar year shall be eligible to receive a bonus under clause (i). Notwithstanding the foregoing provisions of this paragraph, the Compensation Committee or the Executive Vice President of Human Resources (or his or her delegate) may, prior to the end of the calendar year, exclude from eligibility for participation under this program with respect to the calendar year any Employee or Employees, as he or she may determine in his or her sole discretion. Additionally, the Compensation Committee or the Executive Vice President of Human Resources (or his or her delegate) may, prior to the end of the calendar year, exclude from eligibility for participation under this program with respect to the calendar year any Employee or Employees, that has failed to complete any required ethics training or failed to comply with acknowledgement of any Code of Conduct of Newmont Mining or any Affiliated Entity.

 

SECTION III-CORPORATE PERFORMANCE BONUS
3.1 Eligibility for Corporate Performance Bonus . For the calendar year, the Corporate Performance Bonus will be determined pursuant to this section for each eligible Employee who is (a) in Pay Grade 109 and above on the last day of the calendar year and at the time the payment is made (or was in such Pay Grade at the time of termination of employment), excluding any Employee eligible to participate in the Senior Executive Compensation Program; (b) each eligible Employee who is in Pay Grade 108 and below who is employed by the corporate office (including expatriate assignments) or at a non-operating site location, as determined by the Executive Vice President of Human Resources (or his or her delegate), on the last day of the calendar year and at the time payment is made (or was in such Pay Grade and at such location at the time of termination of employment); and (c) any other employee or class of employees as determined by the Executive Vice President of Human Resources (or his or her delegate). For the calendar year, the performance bonus for each eligible Employee who is in Pay Grade 108 or below on the last day of the calendar year and at the time the payment is made (or was in such Pay Grade at the time of termination of employment) and who is not assigned to the corporate office or at a non-site location, will be determined in accordance with such performance factors, weighting factors and other methods of bonus determination as shall be established for each specific site or region by Newmont Mining for the calendar year, rather than the Corporate Performance Bonus. Each operating site shall develop its own critical performance indicators for this purpose.
3.2 Target Amounts for Economic Performance Drivers . The Compensation Committee shall establish both the targets and the minimum and maximum amounts for each Economic Performance Driver on an annual basis. The target Consolidated Capital Expenditures and Consolidated Costs Applicable to Sales — Gold and Copper, together with the applicable minimums and maximums for each such Economic Performance Driver, shall be established in United States dollars and cents. The target, minimum and maximum Equity Ounces Production-Gold and Reserve and NRM Additions shall be established in ounces. The target, minimum and maximum Equity Pounds Production-Copper shall be established in pounds. Targets will be adjusted for acquisitions or divestitures as approved by the Newmont Mining Board of Directors.
3.3 Actual Performance for Economic Performance Drivers . As soon as possible after the end of each calendar year, the Compensation Committee shall certify the extent to which actual performance met the target amounts for each Economic Performance Driver.
3.4 Aggregate Payout Percentage . An aggregate payout factor (the “Aggregate Payout Percentage”) will be calculated as follows:
(i) Calculating the Performance Percentage for each Economic Performance Driver . For each Economic Performance Driver, actual performance will be compared to the target, minimum and maximum amounts to arrive at a performance percentage (“Performance Percentage”) calculated as follows:

 	•	 	If the actual amount is less than the minimum amount, the Performance Percentage is zero;	

 

 	•	 	If the actual amount is equal to the minimum amount, the Performance Percentage is 50%;	

 	•	 	If the actual amount is less than the target amount and greater than the minimum amount, the Performance Percentage is the sum of (A) 50%, plus (B) the product of 50%, times a fraction, the numerator of which is the difference between the actual amount and the minimum amount, and the denominator of which is the difference between the target amount and the minimum amount;	

 	•	 	If the actual amount is equal to the target amount, the Performance Percentage is 100%;	

 	•	 	If the actual amount is greater than the target amount and less than the maximum amount, the Performance Percentage is the sum of (A) 100%, plus (B) a fraction, the numerator of which is the difference between the actual amount and the target amount, and the denominator of which is the difference between the maximum amount and the target amount; and	

 	•	 	If the actual amount is greater than or equal to the maximum amount, the Performance Percentage is 200%.	
(ii) Calculating the Payout Percentage for each Economic Performance Driver . The payout percentage for each Economic Performance Driver is the product of the Performance Percentage times the applicable weighting factor as listed in Appendix A (“Payout Percentage for each Economic Performance Driver”).
(iii) Calculating the Aggregate Payout Percentage . The Aggregate Payout Percentage is the sum of the Payout Percentages for each Performance Factor.
3.5 Determination of Target Performance Level . An Employee’s Target Performance Level is determined by the Employee’s Pay Grade pursuant to the table in Appendix B.
3.6 Determination of the Corporate Performance Bonus . The Corporate Performance Bonus for each eligible Employee is the product of the Aggregate Payout Percentage, times the Employee’s Target Performance Level, times the Employee’s Bonus Eligible Earnings.
3.7 Terminated Eligible Employees . Terminated Eligible Employees shall be eligible to receive a Corporate Performance Bonus. This bonus will be calculated as follows:
Target Performance Level x Year to Date Bonus Eligible Earnings = Corporate Performance Bonus Payable

 

3.8 Adjustments . The Compensation Committee may adjust the Performance Percentage or any measure or otherwise increase or decrease the Corporate Performance Bonus otherwise payable in order to reflect changed circumstances or such other matters as the Compensation Committee deems appropriate.
SECTION IV-PERSONAL PERFORMANCE BONUS
4.1 Personal Performance Level . At the end of the calendar year, each eligible Employee’s supervisor will evaluate the Employee and rate the Employee’s personal performance level. In accordance with Newmont Mining’s performance management system, the supervisor will rate the Employee. Each Employee will be rated by the Employee’s supervisor in one of Newmont Mining’s Performance Rating Categories. In conjunction with these ratings, Newmont Mining will assign a Personal Performance Bonus Factor for the Employee as listed in Appendix C. For Employees in grades E6-E5, the Employee’s supervisor shall also recommend a Personal Performance Payout Factor within the range stated in Appendix C corresponding to the rating that Employee’s supervisor assigned to Employee. Newmont Mining may increase or decrease any eligible Employee’s Personal Performance Bonus Factor in its sole discretion.
4.2 Determination of Personal Performance Bonus . Subject to Section 4.3, an eligible Employee’s Personal Performance Bonus is determined by multiplying the eligible Employee’s Bonus Eligible Earnings times the applicable percentage from the Target Performance Level, as set forth in Appendix C times the Personal Performance Bonus Factor determined pursuant to Section 4.1.
4.3 Terminated Eligible Employees . Terminated Eligible Employees shall be eligible to receive a Personal Performance Bonus based upon an assumed Personal Performance Bonus Factor of 1.0, so that the Terminated Eligible Employees will receive a Personal Performance Bonus at their individual Target Performance Level multiplied by their Bonus Eligible Earnings for the calendar year.
4.4 Ineligible Employees . Eligible Employees whose Personal Performance Bonus Factor (determined pursuant to Section 4.1) is less than .70 shall not be eligible to receive a Personal Performance Bonus.
4.5 Adjustments of Personal Performance Bonus . The Compensation Committee may adjust the Personal Performance Bonus Factor or any measure or otherwise increase the Personal Performance Bonus otherwise payable in order to reflect changed circumstances or such other matters as the Compensation Committee deems appropriate.

 

SECTION V-PAYMENT OF BONUS
5.1 Pay Grade . If an eligible Employee was in more than one Pay Grade during the calendar year, the bonus payable to such eligible Employee shall be calculated on a pro-rata basis in accordance with the amount of time spent by such eligible Employee in each Pay Grade during the calendar year.
5.2 Time and Method of Payment . The aggregate of any and all bonuses payable under this program shall be payable to each eligible Employee (other than Terminated Eligible Employees) in cash as soon as practicable following approval of bonuses by the Compensation Committee. Terminated Eligible Employees shall receive the aggregate of any and all bonuses payable under this program in cash as soon as practicable following the date of their termination from employment with a Participating Employer. All payments and the timing of such payments shall be made in accordance with practices and procedures established by the Participating Employer. Payment under this program will be made no later than the 15 th day of the third month following the calendar year in which an Employee’s right to payment is no longer subject to a substantial risk of forfeiture. Notwithstanding the foregoing, in the event an Employee failed to complete any required ethics training or failed to comply with acknowledgement of any Code of Conduct of Newmont Mining or any Affiliated Entity, Newmont Mining may withhold payment under this program unless or until such Employee complies.
5.3 Withholding Taxes . All bonuses payable hereunder shall be subject to the withholding of such amounts as Newmont Mining or a Participating Employer may determine is required to be withheld pursuant to any applicable federal, state, local or foreign law or regulation.
SECTION VI-CHANGE OF CONTROL
6.1 In General . In the event of a Change of Control, each eligible Employee (including Terminated Eligible Employees who terminate employment during the calendar year in which the Change of Control occurs) shall become entitled to the payment of a Corporate Performance Bonus and a Personal Performance Bonus, in accordance with the provisions of this Section.
6.2 Calculation of Bonuses . Upon a Change of Control, each eligible Employee, excluding any Terminated eligible Employee who terminated prior to the Change of Control, shall become entitled to the payment of (i) a Corporate Performance Bonus calculated on the basis of a Performance Percentage equal to the greater of the actual results attained for the calendar year or the applicable targets for such Calendar year and (ii) a Personal Performance Bonus calculated on the basis of a Personal Performance Bonus Factor equal to the greater of the actual Personal Performance Bonus Factor for the calendar year or a Personal Performance Bonus Factor of 1.0. If a Change of Control occurs prior to the time that the Compensation Committee has established the targets for the calendar year, such percentages shall be based upon the corresponding percentages for the immediately preceding calendar year.

 

6.3 Payment of Bonuses . The bonuses payable in accordance with the provisions of this Section VI shall be calculated and paid as soon as practicable following the date of the Change of Control. Such payments shall be subject to the withholding of such amounts as Newmont Mining or a Participating Employer may determine is required to be withheld pursuant to any applicable federal, state or local law or regulation. Upon the completion of such payments, eligible Employees shall have no further right to the payment of any bonus hereunder (other than any bonus payable hereunder with respect to a previous calendar year that has not yet been paid).
SECTION VII-GENERAL PROVISIONS
7.1 Amount Payable Upon Death of Employee . If an eligible Employee who is entitled to payment hereunder dies after becoming eligible for payment but before receiving full payment of the amount due, or if an eligible Employee dies and becomes a Terminated Eligible Employee, all amounts due shall be paid as soon as practicable after the death of the eligible Employee, in a cash lump sum, to the beneficiary or beneficiaries designated by the eligible Employee to receive life insurance proceeds under Group Life and Accidental Death & Dismemberment Plan of Newmont USA Limited (or a successor plan) or a similar plan of a Participating Employer. In the absence of an effective beneficiary designation under said plan, any amount payable hereunder following the death of an eligible Employee shall be paid to the eligible Employee’s estate.
7.2 Right of Offset . To the extent permitted by applicable law, Newmont Mining or a Participating Employer may, in its sole discretion, apply any bonus payments otherwise due and payable under this program against any eligible Employee or Terminated Eligible Employee loans outstanding to Newmont Mining, an Affiliated Entity, or Participating Employer, or other debts of the eligible Employee or Terminated Eligible Employee to Newmont Mining Newmont Mining, an Affiliated Entity, or Participating Employer. By accepting payments under this program, the eligible Employee consents to the reduction of any compensation paid to the eligible Employee by Newmont Mining, an Affiliated Entity, or Participating Employer to the extent the eligible Employee receives an overpayment from this program.
7.3 Termination . The Board may at any time amend, modify, suspend or terminate this program; provided, however, that the Compensation Committee may, consistent with its administrative powers, waive or adjust provisions of this program as it determines necessary from time to time.
7.4 Payments Due Minors or Incapacitated Persons . If any person entitled to a payment under this program is a minor, or if the Compensation Committee or its delegate determines that any such person is incapacitated by reason of physical or mental disability, whether or not legally adjudicated as an incompetent, the Compensation Committee or its delegate shall have the power to cause the payment becoming due to such person to be made to another for his or her benefit, without responsibility of the Compensation Committee or its delegate, Newmont Mining, or any other person or entity to see to the application of such payment. Payments made pursuant to such power shall operate as a complete discharge of the Compensation Committee, this program, Newmont Mining, and Affiliated Entity or Participating Employer.

 

7.5 Severability . If any section, subsection or specific provision is found to be illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining provisions of this program, and this program shall be construed and enforced as if such illegal and invalid provision had never been set forth in this program.
7.6 No Right to Employment . The establishment of this program shall not be deemed to confer upon any person any legal right to be employed by, or to be retained in the employ of, Newmont Mining, any Affiliated Entity, any Participating Employer, or to give any Employee or any person any right to receive any payment whatsoever, except as provided under this program. All Employees shall remain subject to discharge from employment to the same extent as if this program had never been adopted.
7.7 Transferability . Any bonus payable hereunder is personal to the eligible Employee or Terminated Eligible Employee and may not be sold, exchanged, transferred, pledged, assigned or otherwise disposed of except by will or by the laws of descent and distribution.
7.8 Successors . This program shall be binding upon and inure to the benefit of Newmont Mining, the Participating Employers and the eligible Employees and Terminated Eligible Employees and their respective heirs, representatives and successors.
7.9 Governing Law . This program and all agreements hereunder shall be construed in accordance with and governed by the laws of the State of Colorado, unless superseded by federal law.
7.10 Reimbursement . The Compensation Committee, to the full extent permitted by governing law, shall have the discretion to require reimbursement of any portion of Corporate Performance Bonus previously paid to an eligible Employee pursuant to the terms of this compensation program if: a) the amount of such Corporate Performance Bonus was calculated based upon the achievement of certain financial results that were subsequently the subject of a restatement, and b) the amount of such Corporate Performance Bonus that would have been awarded to the eligible Employee had the financial results been reported as in the restatement would have been lower than the Corporate Performance Bonus actually awarded. Additionally, the Compensation Committee, to the full extent permitted by governing law, shall have the discretion to require reimbursement of any portion of a Corporate Performance Bonus and Personal Performance Bonus previously paid to an eligible Employee pursuant to the terms of this compensation program if the eligible Employee is terminated for cause as defined in the Executive Change of Control Plan of Newmont.

 
APPENDIX A - Payout Percentage for each Economic Performance Driver
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Reserve and	 	 	 	 	 	 	Equity	 	
 	 	 	 	NRM	 	 	 	 	 	 	Ounces	 	
 	 	 	 	Additions (2/3	 	 	 	 	 	 	Production -	 	
 	 	 	 	gold reserves	 	 	 	 	 	 	Gold and	 	
 	 	 	 	and 1/3 non-	 	 	Consolidated	 	 	Equity	 	
Consolidated	 	 	reserve	 	 	Costs	 	 	Pounds	 	
Capital	 	 	mineralization	 	 	Applicable to	 	 	Production -	 	
Expenditures	 	 	material)	 	 	Sales	 	 	Copper	 	
 	25	%	 	 	25	%	 	 	25	%	 	 	25	%	

 
APPENDIX B
 	 	 	 	 	
 	 	Target Corporate	 	
	 	Performance Bonus	 	
Pay Grade	 	Level	 	
E-5	 	 	30	%	
E-6	 	 	20	%	
109	 	 	20	%	
107-108	 	 	15	%	
105-106	 	 	14	%	
103-104	 	 	10	%	
101-102	 	 	5	%	
99-100	 	 	4	%	
49-50	 	 	3	%	
11-27	 	 	3	%	

 
APPENDIX C
 	 	 	
Performance	 	Personal	
Rating System	 	Performance	
E5-E6	 	Bonus Factor	
1	 	0	
2	 	.50-.90	
3	 	.90-1.10	
4	 	1.10-1.30	
5	 	1.30-1.70	
6	 	1.70-2.0	
 	 	 	 	 	
Performance	 	Personal	 	
Rating System	 	Performance	 	
109 and below	 	Bonus Factor	 	
1	 	 	0	 	
2	 	 	.70	 	
3	 	 	1.0	 	
4	 	 	1.20	 	
5	 	 	1.50	 	
6	 	 	2.0	 	
 	 	 	 	 	
	 	Target Personal	 	
Pay Grade	 	Performance Bonus Level	 	
E-5	 	 	30	%	
E-6	 	 	20	%	
109	 	 	20	%	
107-108	 	 	15	%	
105-106	 	 	14	%	
103-104	 	 	10	%	
101-102	 	 	5	%	
99-100	 	 	4	%	
49-50	 	 	3	%	
11-27	 	 	3	%	

Exhibit 10.4
 
NEWMONT
EMPLOYEE PERFORMANCE INCENTIVE COMPENSATION
PROGRAM
(Effective and restated January 1, 2010)

   

 

NEWMONT
EMPLOYEE PERFORMANCE INCENTIVE COMPENSATION
PROGRAM
(Effective as of January 1, 2010)
PURPOSE
The purpose of this program is to provide to Employees of Newmont Mining and its Affiliated Entities that participate in this program a more direct interest in the success of the operations of Newmont Mining. Employees of Newmont Mining and participating Affiliated Entities will be rewarded in accordance with the terms and conditions described below.
SECTION I-DEFINITIONS
The capitalized terms used in this program shall have the same meaning as the capitalized terms in the Annual Incentive Compensation Program, unless otherwise stated herein. In addition, the terms set forth in this Section shall have the meaning set forth below.
1.1 “ Common Stock ” means the $1.60 par value common stock of Newmont Mining Corporation.
1.2 “ EPI Bonus ” means the bonus payable to an eligible Employee in the form of Restricted Stock Units under this program with respect to a Performance Period (or portion thereof as provided in Section 3.2), which shall be determined by multiplying the eligible Employee’s Bonus Eligible Earnings by the product of (a) the Targeted Payout Percentage as set forth in Appendix A for the eligible Employee’s grade for the Performance Period (or portion thereof) times (b) the Aggregate Payout Percentage calculated in accordance with Section 3.4 of the Annual Incentive Compensation Program. EPI bonus will be calculated using a three-year weighted EPI bonus calculation. The three-year weighted EPI bonus calculation is comprised of 20% weighting for the first year (two years ago), 30% weighting for the second year (one year ago), and 50% weighting for the third year (the current year). Restricted Stock or Restricted Stock Units awarded as an EPI Bonus shall have terms and conditions, and shall be subject to such restrictions as defined by the Compensation Committee.
1.3 “ Fair Market Value ” means, with respect to a share of Common Stock as of a given date, the fair market value calculated in accordance with the Newmont Mining stock plan from which such shares are to be issued.
1.4 “ Performance Period ” means the calendar year over which the Aggregate Performance Percentage shall be calculated for purposes of determining the amount of an EPI Bonus. The Performance Period shall be the calendar year.

 

1.5 “ Restricted Stock Units ” means the right to receive Common Stock under terms and conditions defined in a restricted stock unit agreement, as defined by the Compensation Committee.
1.6 “ Targeted Payout Percentage ” means the percentage of an eligible Employee’s Bonus Eligible Earnings taken into account when calculating the EPI Bonus with respect to a Performance Period, as specified in Appendix A. If the Pay Grade of an eligible Employee changes during a Performance Period, the Targeted Payout Percentage applicable to such eligible Employee shall be prorated based upon the number of days spent in each Pay Grade during the Performance Period.
1.7 “Terminated Eligible Employee” has the same meaning as stated in the Annual Incentive Compensation Program except that a Terminated Eligible Employee for purposes of this program shall not include employees severed under any severance plan of Newmont Mining or any Affiliated Entity.
SECTION II-ELIGIBILITY
All Employees of a Participating Employer in an executive grade level, except any Employee who is eligible for the Senior Executive Compensation Program, are eligible to receive an EPI Bonus under this program, provided (i) they are on the payroll of a Participating Employer as of the last day of the relevant Performance Period, and at the time the award is granted, or (ii) they are a Terminated Eligible Employee with respect to such calendar year. Employees who are on short-term disability under the Short-Term Disability Plan of Newmont or a successor plan or not working because of a work-related injury as of the last day of the Performance Period shall be eligible to receive a bonus under this program. Notwithstanding the foregoing provisions of this Section II, the Compensation Committee or the Executive Vice President of Human Resources of Newmont Mining (or his or her delegate) may, prior to the end of any Performance Period, exclude from or include in eligibility for participation under this program with respect to such Performance Period any Employee or Employees.
SECTION III-EPI BONUS
3.1 Determination of EPI Bonus—In General . The EPI Bonus shall be calculated as soon as reasonably practicable after the Compensation Committee determines the Aggregate Payout Percentage for the most current year and the three year weighted EPI bonus calculation. Following such determination, payment of the EPI Bonus shall be made to the eligible Employees (other than Terminated Eligible Employees) in accordance with the provisions of this Section III as soon as reasonably practicable.

 

3.2 Determination of EPI Bonus and Payment of EPI Bonus to Terminated Eligible Employees . Terminated Eligible Employees shall be entitled to receive an EPI Bonus based upon their Bonus Eligible Earnings for the Performance Period during which their employment with Newmont Mining and/or a Participating Employer terminates, calculated by using the Targeted Payout Percentage for the Performance Period applicable to the Performance Period during which the eligible Employee terminated employment. Payment shall be made to a Terminated Eligible Employee with respect to a Performance Period in accordance with Section 3.3 as soon as practicable following the date of termination from employment with Newmont Mining and/or a Participating Employer.
3.3 Form of Payment . The amount of EPI Bonuses payable under this Program shall be paid in Restricted Stock Units (payable in whole shares only rounded down to the nearest share), which shall be subject to the restrictions set forth in Section 3.5 below. The number of shares of Restricted Stock Units to be issued in payment of an EPI Bonus shall be determined based upon the Fair Market Value of the Common Stock on the date that the Compensation Committee meets and certifies the satisfaction of the material terms of this program with respect to the payment of the EPI Bonus in accordance with the provisions of Section 3.1.
3.4 Withholding Taxes . All bonuses payable hereunder shall be subject to the withholding of such amounts as Newmont Mining or Participating Employer may determine is required to be withheld pursuant to any applicable federal, state or local law or regulation.
3.5 Restrictions on Common Stock or Restricted Stock Units .
(a) Shares of Restricted Stock Units issued as an EPI Bonus will have a three year vesting period, with one-third of the units vesting each year on the anniversary of the date of grant.
(b) Shares of Restricted Stock Units issued under this program are subject to forfeiture as follows: If an eligible Employee terminates employment prior to the first anniversary of the date on which such shares of Restricted Stock Units were granted to the eligible Employee (the “Grant Date”), all such shares of Restricted Stock Units shall be forfeited. If an eligible Employee terminates employment on or after the first anniversary of the Grant Date, but prior to the second anniversary of the Grant Date, the eligible Employee shall forfeit two-thirds of the shares of Restricted Stock Units awarded as a part of such EPI Bonus. If an eligible Employee terminates employment on or after the second anniversary of the Grant Date, the eligible Employee shall forfeit one-third of the shares the Restricted Stock Units awarded as part of such EPI Bonus. If the eligible Employee terminates employment on or after the third anniversary of the Grant Date there are no restrictions.
(c) Shares of Restricted Stock Units issued hereunder as a part of an EPI Bonus shall not be subject to transfer by the eligible Employee until such time as the Shares have become non-forfeitable in accordance with this Section, at which time such Shares of Common Stock may be freely transferred by the eligible Employee subject to all applicable laws, regulations and Newmont Mining and Participating Employer policies.
(d) Shares of Restricted Stock Units issued under this program may be issued pursuant to the provisions of any stock plan of Newmont Mining or as otherwise determined in the sole discretion of the Compensation Committee.

 

(e) Notwithstanding anything contained in this program to the contrary, this program shall be administered and operated in accordance with any applicable laws and regulations including but not limited to laws affecting the timing of payment of the EPI Bonus to eligible Employees under this program. The Compensation Committee or its delegate reserves the right to amend their program at any time in order for this program to comply with such laws or regulations.
(f) The Compensation Committee, to the full extent permitted by governing law, shall have the discretion to require reimbursement of any portion of an EPI Bonus previously paid to an executive grade level employee pursuant to the terms of this program if: a) the amount of such EPI Bonus was calculated based upon the achievement of certain financial results that were subsequently the subject of a restatement, and: b) the amount of such EPI Bonus that would have been awarded to the executive had the financial results been reported as in the restatement would have been lower than the EPI Bonus actually awarded. Additionally, the Compensation Committee, to the full extent permitted by governing law, shall have the discretion to require reimbursement of any portion of a EPI Bonus if the eligible Employee is terminated for cause as defined in the Executive Change of Control Plan of Newmont.
3.6 Timing of Payments. Payment under this program will be made no later than the 15 th day of the third month following the calendar year in which an Employee’s right to payment is no longer subject to a substantial risk of forfeiture.
SECTION IV-GENERAL PROVISIONS
The “General Provisions” section of the Annual Incentive Compensation Program shall otherwise apply to this program.

 
APPENDIX A
Targeted Payout Percentages
 	 	 	 	 	
Grade	 	Payout Percentage	 	
E-5	 	 	60	%	
E-6	 	 	40	%	

Exhibit 12.1
NEWMONT MINING CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in millions except ratio)
 	 	 	 	 	
 	 	Six Months Ended	 	
 	 	June 30, 2010	 	
Earnings:	 	 	 	 	
Income from continuing operations before income tax expense, equity loss of affiliates and noncontrolling interests in subsidiaries (1)	 	$	1,692	 	
Adjustments:	 	 	 	 	
Fixed charges added to earnings	 	 	152	 	
Dividends from equity affiliates	 	 	7	 	
Amortization of capitalized interest	 	 	14	 	
 	 	 	 	
 	 	$	1,865	 	

Fixed Charges:	 	 	 	 	
Net interest expense (2)	 	$	144	 	
Portion of rental expense representative of interest	 	 	8	 	
 	 	 	 	
Fixed charges added to earnings	 	 	152	 	
Capitalized interest	 	 	6	 	
 	 	 	 	
 	 	$	158	 	
 	 	 	 	
Ratio of earnings to fixed charges	 	 	11.8	 	

 	 	 	
(1)	 	Excludes interest on income tax liabilities. Interest and penalties related to income taxes are included in Income tax expense .	
 		
(2)	 	Includes interest expense of majority-owned subsidiaries and amortization of debt issuance costs.	

Exhibit 31.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
(Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002)
I, Richard T. O’Brien, certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of Newmont Mining Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 	 	 	 	 	
 	 	/s/ RICHARD T. O’BRIEN
 
Richard T. O’Brien	 	 	
 	 	Chief Executive Officer	 	 	
July 28, 2010

Exhibit 31.2
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
(Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002)
I, Russell Ball, certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of Newmont Mining Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 	 	 	 	 	
 	 	/s/ RUSSELL BALL
 
Russell Ball	 	 	
 	 	Chief Financial Officer	 	 	
July 28, 2010

Exhibit 32.1
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
(Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002)
In connection with the Quarterly Report on Form 10-Q for the quarter ended June 30, 2010 of Newmont Mining Corporation (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”) and pursuant to 18. U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, Richard T. O’Brien, Chief Executive Officer of the Company, certify, that to my knowledge:
1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 	 	 	 	 	
 	 	/s/ RICHARD T. O’BRIEN
 
Richard T. O’Brien	 	 	
 	 	Chief Executive Officer	 	 	
July 28, 2010
Note: A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

Exhibit 32.2
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
(Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002)
In connection with the Quarterly Report on Form 10-Q for the quarter ended June 30, 2010 of Newmont Mining Corporation (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”) and pursuant to 18. U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, Russell Ball, Chief Financial Officer of the Company, certify, that to my knowledge:
1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 	 	 	 	 	
 	 	/s/ RUSSELL BALL
 
Russell Ball	 	 	
 	 	Chief Financial Officer	 	 	
July 28, 2010
Note: A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.