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.

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. In December 2009, Newmont entered into a transaction with P.T. Pukuafu Indah (“PTPI”), an unrelated noncontrolling partner of PTNNT, 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 the assignment of its voting rights to the Company. As a result, PTPI was also determined to be a VIE as it has minimal equity capital and the voting rights associated with its interest in PTNNT reside with Newmont. The Company is considered the primary beneficiary of these entities and therefore consolidates them in the Company’s financial statements. 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.

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.

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				Total				Capital
		Sales				Sales				Amortization				Exploration				Income				Assets				Expenditures(1)
Three Months Ended March 31, 2010
Nevada		$	468			$	258			$	62			$	17			$	121			$	3,250			$	48
La Herradura			44				14				4				1				25				155				14
Hope Bay			—				—				3				17				(20	)			1,965				9
Other North America			—				—				—				—				(1	)			55				—
North America			512				272				69				35				125				5,425				71
Yanacocha			460				154				37				7				242				2,621				57
Other South America			—				—				—				5				(5	)			25				—
South America			460				154				37				12				237				2,646				57
Boddington
Gold			167				80				22
Copper			38				24				6
Total Boddington			205				104				28				1				68				4,108				48
Other Australia/New Zealand			314				156				31				5				126				864				36
Batu Hijau:
Gold			165				34				10
Copper			455				91				27
Total Batu Hijau			620				125				37				—				407				2,988				28
Other Asia Pacific			—				—				1				5				17				314				2
Asia Pacific			1,139				385				97				11				618				8,274				114
Africa			131				64				17				7				38				1,195				27
Corporate and Other			—				—				4				24				(138	)			5,105				3
Consolidated		$	2,242			$	875			$	224			$	89			$	880			$	22,645			$	272

						Costs								Advanced
						Applicable to								Projects and				Pre-Tax				Total				Capital
		Sales				Sales				Amortization				Exploration				Income				Assets				Expenditures(2)
Three Months Ended March 31, 2009
Nevada		$	468			$	263			$	61			$	14			$	121			$	3,201			$	53
La Herradura			23				10				2				—				13				95				9
Hope Bay			—				—				3				14				(17	)			1,574				1
Other North America			—				—				—				1				(3	)			52				—
North America			491				273				66				29				114				4,922				63
Yanacocha			427				152				41				4				204				2,023				33
Other South America			—				—				—				6				(4	)			24				—
South America			427				152				41				10				200				2,047				33
Boddington			—				—				—				5				(7	)			1,928				216
Other Australia/New Zealand			269				145				32				6				77				816				18
Batu Hijau:
Gold			59				27				7
Copper			161				85				21
Total Batu Hijau			220				112				28				—				64				2,460				6
Other Asia Pacific			—				—				1				2				(8	)			152				1
Asia Pacific			489				257				61				13				126				5,356				241
Africa			129				57				18				6				46				1,190				10
Corporate and Other (1)			—				—				5				14				(99	)			3,510				3
Consolidated		$	1,536			$	739			$	191			$	72			$	387			$	17,025			$	350

NOTE 4 RECLAMATION AND REMEDIATION

At March 31, 2010 and December 31, 2009, $704 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 March 31, 2010 and December 31, 2009, $157 and $161, respectively, were accrued for such obligations.

The following is a reconciliation of reclamation and remediation liabilities:

		Three Months Ended March 31,
		2010				2009
Balance at beginning of period		$	859			$	757
Additions, changes in estimates and other			(3	)			(2	)
Liabilities settled			(8	)			(13	)
Accretion expense			13				12
Balance at end of period		$	861			$	754

The current portion of Reclamation and remediation liabilities of $51 and $54 at March 31, 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 March 31,
		2010				2009
Accretion — operating		$	11			$	9
Accretion — non-operating			2				3
		$	13			$	12
Asset retirement cost amortization		$	7			$	7

Asset retirement cost amortization is a component of Amortization.

NOTE 5 ADVANCED PROJECTS, RESEARCH AND DEVELOPMENT

		Three Months Ended March 31,
		2010				2009
Major projects:
Hope Bay		$	10			$	5
Akyem			3				1
Conga			1				—
Boddington			—				3
Other projects:
Technical and project services			12				5
Corporate			12				4
Nevada growth			3				6
Other			5				7
		$	46			$	31

NOTE 6 OTHER EXPENSE, NET

		Three Months Ended March 31,
		2010				2009
Community development		$	48			$	10
Regional administration			13				12
Peruvian royalty			6				6
Western Australia power plant			6				3
World Gold Council dues			3				3
Workforce reduction			—				14
Boddington acquisition costs			—				8
Batu Hijau divestiture			—				5
Other			13				12
		$	89			$	73

NOTE 7 OTHER INCOME, NET

		Three Months Ended March 31,
		2010				2009
Gain on asset sales, net		$	33			$	1
Canadian Oil Sands Trust income			10				4
Interest income			3				3
Write-down of investments (Note 18)			—				(6	)
Foreign currency exchange losses, net			(9	)			(3	)
Other			11				10
		$	48			$	9

NOTE 8 EMPLOYEE PENSION AND OTHER BENEFIT PLANS

		Three Months Ended March 31,
		2010				2009
Pension benefit costs, net
Service cost		$	5			$	5
Interest cost			9				8
Expected return on plan assets			(7	)			(7	)
Amortization of loss			4				3
		$	11			$	9

		Three Months Ended March 31,
		2010				2009
Other benefit costs, net
Service cost		$	1			$	1
Interest cost			1				1
		$	2			$	2

NOTE 9 STOCK BASED COMPENSATION

		Three Months Ended March 31,
		2010				2009
Stock options		$	3			$	3
Restricted stock units			4				1
Performance leveraged stock units			3				—
Common stock			1				1
Restricted stock			1				1
Deferred stock			2				3
		$	14			$	9

No stock option awards were granted during the three months ended March 31, 2010 or 2009. At March 31, 2010, there was $16 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.

For the three months ended March 31, 2010 and 2009, 325,962 and 252,363 restricted stock units, respectively, were granted, at the weighted-average fair market value of $50 and $43, respectively, per underlying share of the Company’s common stock. At March 31, 2010, there was $24 of unrecognized compensation cost related to unvested restricted stock units. This cost is expected to be recognized on a weighted-average basis for a period of approximately 3 years.

For the three months ended March 31, 2010 and 2009, 64,646 and 39,853 shares of common stock, respectively, were granted under the Company’s financial performance share plan at the weighted-average fair market value of $50 and $43, respectively. In addition, for the three months ended March 31, 2010 and 2009, 129,302 and 80,172 restricted stock units, respectively, which were included in the restricted stock unit grants above, were awarded under this plan.

Beginning in 2010, the Company granted performance leveraged stock units (“PSUs”) to eligible executives. The actual number of PSUs earned will be determined at the end of a three year performance period (except two partial awards that will be based on a one and two year performance period, respectively), based upon certain measures of shareholder return. At March 31, 2010, there was $11 of unrecognized compensation cost related to unvested PSUs. This cost is expected to be recognized on a weighted-average basis for a period of approximately 2 years.

NOTE 10 INCOME TAXES

During the first quarter of 2010, the Company recorded estimated income tax expense of $135 resulting in an effective tax rate of 15%. Estimated tax expense during the first quarter of 2009 was $105 for an effective tax rate of 27%. The decrease of 12% in the effective tax rate from 2009 to 2010 was the result of a tax benefit of $127 being recorded 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. The effective tax rates in the first 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.

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 paid the 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. At March 31, 2010, the Company’s total unrecognized tax benefit was $127 for uncertain tax positions taken or expected to be taken on tax returns. Of this, $62 represents the amount of unrecognized tax benefits that, if recognized, would affect the Company’s effective income tax rate.

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 $12 to $15 in the next 12 months.

In March 2010, the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act, was signed into law. This law did not have a material effect on the Company’s financial statements for the quarter.

On January 1, 2010, various U.S. tax provisions expired, and as of March 31, 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 include the Kori Kollo, Bolivia operation 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 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.

For the three months ended March 31, 2009, Sales at Kori Kollo were $16 offset by operating costs of $16, resulting in Net income from discontinued operations of $nil.

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 $4 in the first quarter of 2010 and 2009, respectively.

Net cash used in financing activities of discontinued operations was $1 in the first quarter of 2009 for repayment of debt.

NOTE 12 NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

		Three Months Ended March 31,
		2010				2009
Batu Hijau		$	118			$	21
Yanacocha			80				67
Other			(1	)			—
		$	197			$	88

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 $15 (after tax of $34) and $63 (after tax of $115), respectively, that were recorded in Additional paid-in capital.

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 the assignment of its voting rights to the Company. As a result, PTPI was determined to be a VIE as it has minimal equity capital and the voting rights associated with its 20% interest in PTNNT reside with the Company. Based on the transaction with PTPI, the Company recognized an additional 17% effective economic interest in PTNNT.

At March 31, 2010, Newmont had 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%).

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 the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued.

		Three Months Ended March 31,
		2010				2009
Net income attributable to Newmont stockholders		$	546			$	189
Weighted average common shares (millions):
Basic			491				472
Effect of employee stock-based awards			1				1
Effect of convertible notes			1				—
Diluted			493				473
Net income attributable to Newmont stockholders per common share, basic and diluted		$	1.11			$	0.40

Options to purchase 1.2 and 4.6 million shares of common stock at average exercise prices of $55 and $47 were outstanding at March 31, 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 in accordance with accounting guidance for earnings per share. 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 months ended March 31, 2010 exceeded the conversion price of $46.25 and $46.21 for the notes issued in 2009 and 2007, respectively, and therefore, 1.4 million additional shares were included in the computation of diluted weighted average common shares for the three months ended March 31, 2010.

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 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 March 31,
		2010				2009
Net income attributable to Newmont stockholders		$	546			$	189
Transfers from noncontrolling interests:
Increase in Additional paid in capital from sale of PTNNT shares, net of tax of $34			15				—
Net income attributable to Newmont stockholders and transfers from noncontrolling interests		$	561			$	189

NOTE 14 COMPREHENSIVE INCOME

		Three Months Ended March 31,
		2010				2009
Net income		$	743			$	277
Other comprehensive income (loss), net of tax:
Unrealized gain on marketable securities			49				93
Foreign currency translation adjustments			56				(47	)
Pension and other benefit liability adjustments			2				1
Change in fair value of cash flow hedge instruments:
Net change from periodic revaluations			29				(19	)
Net amount reclassified to income			(19	)			17
Net unrecognized gain (loss) on derivatives			10				(2	)
			117				45
Comprehensive income		$	860			$	322
Comprehensive income attributable to:
Newmont stockholders		$	663			$	234
Noncontrolling interests			197				88
		$	860			$	322

NOTE 15 CHANGES IN EQUITY

		Three Months Ended March 31,
		2010				2009
Common stock:
At beginning of period		$	770			$	709
Common stock offering			—				55
Stock based compensation			1				1
Shares issued in exchange for exchangeable shares			2				1
At end of period			773				766
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			17				14
Shares issued in exchange for exchangeable shares			(2	)			(1	)
Sale of subsidiary shares to noncontrolling interests			15				—
At end of period			8,188				8,024
Accumulated other comprehensive (loss) income:
At beginning of period			626				(253	)
Other comprehensive (loss) income (Note 14)			117				45
At end of period			743				(208	)
Retained earnings:
At beginning of period			1,149				4
Net income attributable to Newmont stockholders			546				189
Common stock dividends			(49	)			(4	)
At end of period			1,646				189
Noncontrolling interests:
At beginning of period			1,910				1,370
Net income attributable to noncontrolling interests			197				88
Dividends paid to noncontrolling interests			(220	)			—
Sale of subsidiary shares to noncontrolling interests, net			168				—
At end of period			2,055				1,458
Total equity		$	13,405			$	10,229

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; and

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;

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 March 31, 2010
		Total				Level 1				Level 2				Level 3
Assets:
Cash equivalents		$	1,929			$	1,929			$	—			$	—
Marketable equity securities:
Extractive industries			1,243				1,243				—				—
Other			6				6				—				—
Marketable debt securities:
Asset backed commercial paper			19				—				—				19
Corporate			9				9				—				—
Auction rate securities			5				—				—				5
Trade receivable from provisional copper and gold concentrate sales, net			363				363				—				—
Derivative instruments, net:
Foreign exchange forward contracts			151				—				151				—
Interest rate swap contracts			8				—				8				—
Diesel forward contracts			6				—				6				—
		$	3,739			$	3,550			$	165			$	24
Liabilities:
8 5/8% debentures ($222 hedged portion)		$	246			$	—			$	246			$	—
Boddington contingent consideration			85				—				—				85
		$	331			$	—			$	246			$	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.

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 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 table below sets forth a summary of changes in the fair value of the Company’s Level 3 financial assets and liabilities for the three months ended March 31, 2010.

						Asset Backed				Boddington
		Auction Rate				Commercial				Contingent
		Securities				Paper				Consideration				Total
Balance at beginning of period		$	5			$	18			$	85			$	108
Unrealized gain			—				1				—				1
Balance at end of period		$	5			$	19			$	85			$	109

Unrealized gains of $1 for the period were included in Accumulated other comprehensive income (loss) as a result of changes in C$ exchange rates from December 31, 2009. At March 31, 2010, the assets and liabilities classified within Level 3 of the fair value hierarchy represent 1% and 26% of the total assets and liabilities measured at fair value.

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 (loss) 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.

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 March 31, 2010:

		Expected Maturity Date
																		Total/
		2010				2011				2012				2013				Average
A$ Fixed Forward Contracts:
$ (millions)		$	489			$	432			$	195			$	12			$	1,128
Average rate ($/A$)			0.79				0.77				0.79				0.81				0.78
A$ notional (millions)			618				563				246				15				1,442
Expected hedge ratio			66	%			44	%			20	%			5	%			38	%
NZ$ Fixed Forward Contracts:
$ (millions)		$	33			$	23			$	1			$	—			$	57
Average rate ($/NZ$)			0.65				0.67				0.66				—				0.66
NZ$ notional (millions)			51				34				2				—				87
Expected hedge ratio			63	%			27	%			5	%			—				37	%
IDR Fixed Forward Contracts:
$ (millions)		$	38			$	—			$	—			$	—			$	38
Average rate (IDR/$)			9,944				—				—				—				9,944
IDR notional (millions)			258,537				—				—				—				258,537
Expected hedge ratio			27	%			—				—				—				27	%

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 March 31, 2010:

		Expected Maturity Date
														Total/
		2010				2011				2012				Average
Diesel Fixed Forward Contracts:
$ (millions)		$	32			$	21			$	1			$	54
Average rate ($/gallon)			2.01				2.18				2.31				2.08
Diesel gallons (millions)			16				10				—				26
Expected Nevada hedge ratio			55	%			25	%			4	%			34	%

Fair Value Hedges

Interest Rate Swap Contracts

At March 31, 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 March 31, 2010 and December 31, 2009:

		Fair Values of Derivative Instruments
		At March 31, 2010
		Other Current				Other long-				Other Current				Other Long-
		Assets				Term Assets				Liabilities				Term Liabilities
Foreign currency exchange contracts:
A$ fixed forward contracts		$	90			$	56			$	—			$	—
NZ$ fixed forward contracts			3				—				—				—
IDR fixed forward contracts			2				—				—				—
Diesel fixed forward contracts			5				1				—				—
Interest rate swap contracts			3				5				—				—
Total derivative instruments (Notes 21 and 23)		$	103			$	62			$	—			$	—