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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K
(Mark One)
 
x	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934	
For the Fiscal Year Ended December 31, 2006
or
 
¨	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	 	84-1611629	
(State or Other Jurisdiction
of Incorporation or Organization)	 	(I.R.S. Employer
Identification No.)	
		
1700 Lincoln Street
Denver, Colorado	 	80203	
(Address of Principal Executive Offices)	 	(Zip Code)	
Registrant’s telephone number, including area code (303) 863-7414
Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	 	Name of Each Exchange on Which Registered	
Common Stock, $1.60 par value	 	New York Stock Exchange	
Securities registered pursuant to Section 12(g) of the Act:
None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes   x     No   ¨
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.    Yes   ¨     No   x
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.    Yes   x     No   ¨
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.   ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer” and “large accelerated filer” in Rule 12b-2 of the Exchange Act.
(Check one):    Large accelerated filer   x     Accelerated filer   ¨     Non-accelerated filer   ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes   ¨     No   x
As of June 30, 2006, the aggregate market value of the registrant’s voting and non-voting common equity held by non-affiliates of the registrant was $23,418,945,245 based on the closing sale price as reported on the New York Stock Exchange. There were 423,519,644 shares of common stock outstanding (and 27,157,953 exchangeable shares exchangeable into Newmont Mining Corporation common stock on a one-for-one basis) on February 12, 2007.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of Registrant’s definitive Proxy Statement submitted to the Registrant’s stockholders in connection with our 2007 Annual Stockholders Meeting to be held on April 24, 2007, are incorporated by reference into Part III of this report.

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 	  	 	  	Page	
PART I	
ITEM 1.	  	BUSINESS	  	1	
			
	  	Introduction	  	1	
	  	Segment Information, Export Sales, etc.	  	1	
	  	Products	  	1	
	  	Hedging Activities	  	3	
	  	Merchant Banking	  	3	
	  	Exploration	  	4	
	  	Licenses and Concessions	  	6	
	  	Condition of Physical Assets and Insurance	  	6	
	  	Environmental Matters	  	6	
	  	Employees	  	7	
	  	Forward-Looking Statements	  	7	
	  	Available Information	  	8	
			
ITEM 1A.	  	RISK FACTORS	  	8	
			
	  	Risks Related to the Mining Industry Generally	  	8	
	  	Risks Related to Newmont	  	10	
			
ITEM 2.	  	PROPERTIES	  	18	
			
	  	Gold and Copper Processing Methods	  	18	
	  	Production Properties	  	19	
	  	Operating Statistics	  	25	
	  	Proven and Probable Equity Reserves	  	27	
			
ITEM 3.	  	LEGAL PROCEEDINGS	  	32	
			
ITEM 4.	  	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS	  	32	
			
ITEM 4A.	  	EXECUTIVE OFFICERS OF THE REGISTRANT	  	32	
	
PART II	
			
ITEM 5.	  	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASE OF EQUITY SECURITIES	  	34	
			
ITEM 6.	  	SELECTED FINANCIAL DATA	  	35	
			
ITEM 7.	  	MANAGEMENT’S DISCUSSION AND ANALYSIS OF CONSOLIDATED FINANCIAL CONDITION AND RESULTS OF OPERATIONS	  	36	
			
	  	Overview	  	36	
	  	Accounting Developments	  	39	
	  	Critical Accounting Policies	  	40	
	  	Consolidated Financial Results	  	49	
	  	Results of Consolidated Operations	  	59	
	  	Recent Accounting Pronouncements	  	69	
	  	Liquidity and Capital Resources	  	69	
	  	Environmental	  	77	
	  	Forward-Looking Statements	  	77	
			
ITEM 7A.	  	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	  	77	
			
	  	Metal Price	  	77	
	  	Foreign Currency	  	78	
	  	Hedging	  	78	
	  	Fixed and Variable Rate Debt	  	80	
	  	Pension and Other Benefit Plans	  	81	
 
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ITEM 8.	  	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	  	83	
			
ITEM 9.	  	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	  	159	
			
ITEM 9A.	  	CONTROLS AND PROCEDURES	  	159	
			
ITEM 9B.	  	OTHER INFORMATION	  	159	
	
PART III	
			
ITEM 10.	  	DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT	  	160	
			
ITEM 11.	  	EXECUTIVE COMPENSATION	  	160	
			
ITEM 12.	  	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	  	160	
			
ITEM 13.	  	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS	  	161	
			
ITEM 14.	  	PRINCIPAL ACCOUNTANT FEES AND SERVICES	  	161	
	
PART IV	
			
ITEM 15.	  	EXHIBITS AND FINANCIAL STATEMENT SCHEDULES	  	162	
		
SIGNATURES	  	S-1	
		
EXHIBIT INDEX	  	E-1	
 
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This document (including information incorporated herein by reference) contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which involve a degree of risk and uncertainty due to various factors affecting Newmont Mining Corporation and our affiliates and subsidiaries. For a discussion of some of these factors, see the discussion in Item 1A, Risk Factors, of this report.
PART I
 
 ITEM 1.	BUSINESS (dollars in millions except per share, per ounce and per pound amounts)	
 Introduction
Newmont Mining Corporation is primarily a gold producer with significant assets or operations in the United States, Australia, Peru, Indonesia, Ghana, Canada, Bolivia, New Zealand and Mexico. As of December 31, 2006, Newmont had proven and probable gold reserves of 93.9 million equity ounces and an aggregate land position of approximately 44,470 square miles (115,200 square kilometers). Newmont is also engaged in the production of copper, principally through its Batu Hijau operation in Indonesia. Newmont Mining Corporation’s original predecessor corporation was incorporated in 1921 under the laws of Delaware.
Newmont’s revenues and long-lived assets are geographically distributed as follows:

 	  	Revenues	 	 	Long-Lived Assets	 	
 	  	2006	 	 	2005	 	 	2004	 	 	2006	 	 	2005	 	 	2004	 	
United States	  	29	%	 	24	%	 	24	%	 	54	%	 	53	%	 	52	%	
Peru	  	31	%	 	34	%	 	29	%	 	10	%	 	11	%	 	11	%	
Australia/New Zealand	  	16	%	 	16	%	 	18	%	 	8	%	 	7	%	 	10	%	
Indonesia	  	19	%	 	23	%	 	25	%	 	15	%	 	17	%	 	19	%	
Ghana	  	2	%	 	—  	 	 	—  	 	 	6	%	 	5	%	 	3	%	
Other (1)	  	3	%	 	3	%	 	4	%	 	7	%	 	7	%	 	5	%	

(1)	Other includes Canada, Mexico, Bolivia and Turkey.	
Newmont’s corporate headquarters are in Denver, Colorado, USA. In this report, “Newmont,” the “Company,” “our” and “we” refer to Newmont Mining Corporation and/or our affiliates and subsidiaries. All dollars are in millions, except per share, per ounce, and per pound amounts.
For additional information, see Item 7, Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations.
 Segment Information, Export Sales, etc.
Newmont has operating segments of Nevada, Yanacocha in Peru, Australia/New Zealand, Batu Hijau in Indonesia, Africa and Other Operations comprising of smaller operations in Bolivia, Mexico and Canada. We also have a Merchant Banking Segment and an Exploration Segment. See Note 27 to the Consolidated Financial Statements for information relating to our business segments, our domestic and export sales, and our customers.
 Products
Gold
General.     Newmont had consolidated sales of 7.4 million ounces of gold (5.9 million equity ounces) in 2006, 8.4 million ounces (6.5 million equity ounces) in 2005 and 8.6 million ounces (6.9 million equity ounces) in 2004. For 2006, 2005 and 2004, 87%, 85% and 82%, respectively, of our net revenues were attributable to

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gold sales. Of our 2006 gold sales, approximately 36% came from Yanacocha, 33% from Nevada, 19% from Australia/New Zealand and 6% from Indonesia. References in this report to “equity ounces” or “equity pounds” mean that portion of gold or copper produced, sold or included in proven and probable reserves that is attributable to our ownership or economic interest.
Most of our revenue comes from the sale of refined gold in the international market. The end product at our gold operations, however, is generally doré bars. Doré is an alloy consisting mostly of gold but also containing silver, copper and other metals. Doré is sent to refiners to produce bullion that meets the required market standard of 99.95% pure gold. Under the terms of refining agreements, the doré bars are refined for a fee, and our share of the refined gold and the separately-recovered silver are credited to our account or delivered to buyers. Gold sold from Batu Hijau, and a portion of the gold from Phoenix in Nevada, is contained in a concentrate.
Gold Uses.     Gold has two main categories of use: fabrication and investment. Fabricated gold has a variety of end uses, including jewelry, electronics, dentistry, industrial and decorative uses, medals, medallions and official coins. Gold investors buy gold bullion, official coins and jewelry.
Gold Supply.     The supply of gold consists of a combination of production from mining and the draw-down of existing stocks of gold held by governments, financial institutions, industrial organizations and private individuals. In recent years, mine production has accounted for 60% to 70% of the annual supply of gold.
Gold Price.     The following table presents the annual high, low and average afternoon fixing prices for gold over the past ten years, expressed in U.S. dollars per ounce, on the London Bullion Market.

Year	  	High	  	Low	  	Average	
1997	  	$	362	  	$	283	  	$	331	
1998	  	$	313	  	$	273	  	$	294	
1999	  	$	326	  	$	253	  	$	279	
2000	  	$	313	  	$	264	  	$	279	
2001	  	$	293	  	$	256	  	$	271	
2002	  	$	349	  	$	278	  	$	310	
2003	  	$	416	  	$	320	  	$	363	
2004	  	$	454	  	$	375	  	$	410	
2005	  	$	536	  	$	411	  	$	444	
2006	  	$	725	  	$	525	  	$	604	
2007 (through February 12, 2007)	  	$	665	  	$	608	  	$	638	

Source: Kitco and Reuters
On February 12, 2007, the afternoon fixing price for gold on the London Bullion Market was $665 per ounce and the spot market price of gold on the New York Commodity Exchange was $661 per ounce.
We generally sell our gold at the prevailing market price during the month in which the gold is delivered to the customer. Our ability to sell gold at market prices is limited in some cases by hedging activities, more particularly described in Note 7A, Quantitative and Qualitative Disclosures about Market Risk, and Note 13 to the Consolidated Financial Statements. We recognize revenue from a sale when the price is determinable, the gold has been delivered, the title has been transferred to the customer and collection of the sales price is reasonably assured.
Copper
General.     Newmont had consolidated sales of 434.7 million pounds of copper (229.9 million equity pounds) in 2006, 572.7 million pounds (302.8 million equity pounds) in 2005 and 683.3 million pounds (384.3 million equity pounds) in 2004. For 2006, 2005 and 2004, 13%, 15% and 18%, respectively, of our net revenues
 
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were attributable to copper sales. As of December 31, 2006, Newmont had a 52.875% economic interest (a 45% ownership interest) in the Batu Hijau operation in Indonesia, which began production in 1999. Production at Batu Hijau is in the form of a copper/gold concentrate that is sold to smelters for further treatment and refining.
Copper Uses.     Refined copper is incorporated into wire and cable products for use in the construction, electric utility, communications and transportation industries. Copper is also used in industrial equipment and machinery, consumer products and a variety of other electrical and electronic applications, and is also used to make brass. Copper substitutes include aluminum, plastics, stainless steel and fiber optics. Refined, or cathode, copper is also an internationally traded commodity.
Copper Supply.     The supply of copper consists of a combination of production from mining and recycled scrap material. Copper supply has not kept pace with increasing demand in recent years, resulting in price increases reflected in the chart below.
Copper Price.     The price of copper is quoted on the London Metal Exchange in terms of dollars per metric ton of high grade copper. The following table presents the dollar per pound equivalent of the high, low and average prices of high grade copper on the London Metal Exchange over the past ten years.

Year	  	High	  	Low	  	Average	
1997	  	$	1.23	  	$	0.77	  	$	1.03	
1998	  	$	0.85	  	$	0.65	  	$	0.75	
1999	  	$	0.84	  	$	0.61	  	$	0.71	
2000	  	$	0.91	  	$	0.73	  	$	0.82	
2001	  	$	0.83	  	$	0.60	  	$	0.72	
2002	  	$	0.77	  	$	0.64	  	$	0.71	
2003	  	$	1.05	  	$	0.70	  	$	0.81	
2004	  	$	1.49	  	$	1.06	  	$	1.30	
2005	  	$	2.11	  	$	1.39	  	$	1.67	
2006	  	$	3.99	  	$	2.06	  	$	3.05	
2007 (through February 12, 2007)	  	$	2.76	  	$	2.40	  	$	2.55	

Source: London Metal Exchange
On February 12, 2007, the closing price of high grade copper was $2.46 per pound on the London Metal Exchange. Our ability to sell copper at market prices is limited in some cases by hedging activities, more particularly described in Note 7A, Quantitative and Qualitative Disclosures about Market Risk, and Note 13 to the Consolidated Financial Statements.
 Hedging Activities
Newmont generally avoids gold hedging. Our philosophy is to provide shareholders with leverage to changes in the gold price by selling our gold production at market prices. We have, however, entered into derivative contracts to protect the selling price for certain anticipated gold and copper production and to manage risks associated with commodities, interest rates and foreign currencies.
For additional information, see Hedging in Item 7A, Quantitative and Qualitative Disclosures about Market Risk, and Note 13 to the Consolidated Financial Statements.
 Merchant Banking
Merchant Banking, also referred to as Newmont Capital, manages a royalty portfolio, an equity portfolio, a downstream gold refining business, and engages in portfolio management activities (managing interests in oil and gas, iron ore and coal properties as well as providing in-house investment banking and advisory services).
 
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Newmont’s royalty portfolio generally offers a natural hedge against lower gold prices by providing free cash flow from assets with limited operating, capital or environmental risk, while retaining upside exposure to further exploration discoveries and reserve expansions. Merchant Banking seeks to grow the royalty portfolio in a number of ways, and looks for opportunities to acquire existing royalties from third parties or to create them in connection with transactions. Merchant Banking also identifies current properties or exploration targets for sale if they are non-core in nature. In the case of a sale, Merchant Banking often seeks to retain royalty or other future participation rights in addition to cash or other consideration received.
In 2006, our royalty and equity portfolios generated $120 in Royalty and dividend income, net . We have royalty interests in Barrick Gold Corporation’s (“Barrick”) Goldstrike, Eskay Creek, Henty and Bald Mountain mines and Stillwater Mining’s Stillwater and East Boulder palladium-platinum mines, among others. We also have a significant oil and gas royalty portfolio in western Canada.
As of December 31, 2006, Merchant Banking’s equity portfolio had a market value of approximately $1,354. The equity portfolio is primarily composed of our investments in Canadian Oil Sands Trust, Shore Gold, Inc., Miramar Mining Corporation and Gabriel Resources, Ltd.
Merchant Banking also manages our interests in downstream gold refining and distribution businesses (40% interest in AGR Matthey Joint Venture (“AGR”) and 50% interest in European Gold Refineries (“EGR”)). Merchant Banking earned $4 in Equity income of affiliates through its investments in AGR and EGR in 2006.
Merchant Banking’s portfolio management activities include managing our interests in coal, iron ore, oil and natural gas.
Merchant Banking provides advisory services to assist in managing the portfolio of operating and property interests. The Merchant Banking group helps maximize net asset value per share and increase cash flow, earnings and reserves by working with the exploration, operations and finance teams to prioritize near-term goals within longer-term strategies. Merchant Banking is engaged in developing value optimization strategies for operating and non-operating assets, business development activities, potential merger and acquisition analysis and negotiations, monetizing inactive exploration properties, capitalizing on proprietary technology and know-how and acting as an internal resource for other corporate groups to improve and maximize business outcomes. In 2006, Merchant Banking sold the Company’s Alberta Oil Sands and Martabe and Holloway gold projects, and purchased additional interests in the Boddington and Akyem projects, as well as a new interest in Shore Gold Inc.’s Fort a la Corne Joint Venture, a diamond project in Saskatchewan, Canada.
Merchant Banking continues to evaluate district optimization opportunities in Nevada, Australia, Peru, Indonesia, Africa and Canada, covering a broad range of alternatives, including asset exchanges, unitization, joint ventures, partnerships, sales, spinouts and buyouts.
 Exploration
Newmont’s exploration group is responsible for all activities, regardless of location, associated with the Company’s efforts to discover new mineralized material and, if successful, advance such mineralized material into proven and probable reserves. Exploration is conducted in areas surrounding our existing mines for the purpose of locating additional deposits and determining mine geology, and in other prospective gold regions globally. Near-mine exploration can result in the discovery of new gold mineralization, which will receive the economic benefit of existing operating, processing, and administrative infrastructures. Greenfields exploration is where a discovery of new gold mineralization would likely require the investment of new capital to build a separate, stand-alone operation away from any of the Company’s existing infrastructure. Our exploration teams employ state-of-the-art technology, including airborne geophysical data acquisition systems, satellite location devices and field-portable imaging systems, as well as geochemical and geological prospecting methods, to identify prospective targets. We spent $170 in 2006, $147 in 2005 and $107 in 2004 on Exploration .
 
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As of December 31, 2006, we had proven and probable gold reserves of 93.9 million equity ounces. We added 5.9 million equity ounces to proven and probable reserves, with 8.9 million equity ounces of depletion and divestitures and 3.7 million equity ounces of acquisitions during 2006. A reconciliation of the changes in proven and probable reserves during the past three years is as follows:

(millions of equity ounces)	  	2006	 	 	2005	 	 	2004	 	
Opening balance	  	93.2	 	 	92.4	 	 	91.3	 	
Greenfield additions	  	1.7	 	 	5.5	 	 	11.0	 	
Near-mine additions	  	4.2	 	 	3.9	 	 	1.4	 	
	  	 	 	 	 	 	 	 	 	
Total additions (1)(2)	  	5.9	 	 	9.4	 	 	12.4	 	
Acquisitions	  	3.7	 	 	—	  	 	—	  	
Depletion	  	(7.4	)	 	(8.3	)	 	(8.3	)	
Reclassifications (3)	  	—	  	 	—	  	 	(2.0	)	
Other divestments (4)	  	(1.5	)	 	(0.3	)	 	(1.0	)	
	  	 	 	 	 	 	 	 	 	
Closing balance	  	93.9	 	 	93.2	 	 	92.4	 	

(1)	Additions attributable to the Exploration Segment	

Total additions	  	5.9	 	 	9.4	 	 	12.4	 	
Previously valued in purchase accounting	  	(0.9	)	 	(1.2	)	 	(1.9	)	
Reclassifications (3)	  	—	  	 	—	  	 	(2.0	)	
	  	 	 	 	 	 	 	 	 	
	  	5.0	 	 	8.2	 	 	8.5	 	

(2)	The impact of the change in gold price assumption on reserve additions was 3.1, 2.6 and 3.8 million equity ounces in 2006, 2005 and 2004, respectively.	

(3)	In 2004, Yanacocha reassessed the challenges involved in obtaining required permits for Cerro Quilish, primarily related to increased community concerns. Based upon this reassessment, Yanacocha reclassified 3.9 million ounces (2.0 million equity ounces) from proven and probable reserves to mineralized material not in reserve as of December 31, 2004.	

(4)	In August 2006, the government of Uzbekistan appropriated the Company’s 50% interest in the Zarafshan-Newmont Joint Venture.	
In Nevada, exploration efforts during 2006 added 2.8 million equity ounces to proven and probable reserves, offset by depletion of 3.0 million equity ounces, resulting in total proven and probable reserves of 33.1 million equity ounces as of December 31, 2006.
In Peru, equity gold reserves decreased to 15.1 million ounces, after depletion of 1.9 million ounces.
In Australia/New Zealand, the Company increased reserves to 18.5 million equity ounces after depletion of 1.5 million equity ounces during 2006. Reserves increased by 2.6 million equity ounces from the acquisition of an additional 22.22% interest in the Boddington project and 2.5 million equity ounces of additions from various sites.
At Batu Hijau, the Company depleted 0.2 billion equity pounds of copper and 0.3 million equity ounces of gold during 2006. Batu Hijau had proven and probable reserves of 4.7 billion equity pounds of copper and 5.0 million equity ounces of gold as of December 31, 2006, after revisions downward of 1.1 billion equity pounds of copper and 1.3 million equity ounces of gold due to a new mine plan incorporating higher costs, lower throughput and new geotechnical assumptions.
At Ahafo in Ghana, proven and probable reserves increased by 0.7 million equity ounces from additions and at Akyem in Ghana, reserves increased 1.1 million equity ounces from the acquisition of the remaining 15% interest. As of December 31, 2006, the Company reported reserves of 12.6 million ounces at Ahafo and 7.7 million equity ounces at Akyem.
For additional information, see Item 2, Properties, Proven and Probable Reserves.
 
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 Licenses and Concessions
Other than operating licenses for our mining and processing facilities, there are no third party patents, licenses or franchises material to our business. In many countries, however, we conduct our mining and exploration activities pursuant to concessions granted by, or under contract with, the host government. These countries include, among others, Australia, Bolivia, Canada, Ghana, Indonesia, Peru, New Zealand and Mexico. The concessions and contracts are subject to the political risks associated with foreign operations. See Item 1A, Risk Factors, Risks Related to Newmont Operations, below. For a more detailed description of our Indonesian Contract of Work, see Item 2, Properties, below.
 Condition of Physical Assets and Insurance
Our business is capital intensive, requiring ongoing capital investment for the replacement, modernization or expansion of equipment and facilities. For more information, see Item 7, Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations, Liquidity and Capital Resources, below.
We maintain insurance policies against property loss and business interruption and insure against risks that are typical in the operation of our business, in amounts that we believe to be reasonable. Such insurance, however, contains exclusions and limitations on coverage, particularly with respect to environmental liability and political risk. There can be no assurance that claims would be paid under such insurance policies in connection with a particular event. See Item 1A, Risk Factors, Risks Related to Newmont Operations, below.
 Environmental Matters
Newmont’s United States mining and exploration activities are subject to various federal and state laws and regulations governing the protection of the environment, including the Clean Air Act; the Clean Water Act; the Comprehensive Environmental Response, Compensation and Liability Act; the Emergency Planning and Community Right-to-Know Act; the Endangered Species Act; the Federal Land Policy and Management Act; the National Environmental Policy Act; the Resource Conservation and Recovery Act; and related state laws. These laws and regulations are continually changing and are generally becoming more restrictive. Our activities outside the United States are also subject to governmental regulations for the protection of the environment.
We conduct our operations so as to protect public health and the environment and believe our operations are in compliance with applicable laws and regulations in all material respects. Each operating mine has a reclamation plan in place that meets all applicable legal and regulatory requirements. We have made, and expect to make in the future, expenditures to comply with such laws and regulations. We have made estimates of the amount of such expenditures, but cannot precisely predict the amount of such future expenditures. Estimated future reclamation costs are based principally on legal and regulatory requirements. As of December 31, 2006, $520 was accrued for reclamation costs relating to currently developed and producing properties.
We are also 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. 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 activities required to meet general environmental standards. Based upon our best estimate of our liability for these matters, $85 was accrued as of December 31, 2006 for such obligations associated with properties previously owned or operated by us or our subsidiaries. These amounts are included in Other current liabilities and Reclamation and remediation liabilities. 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 89% greater or 27% lower than the amount accrued as of December 31, 2006. The amounts accrued for these matters are reviewed periodically based upon facts and circumstances available at the time. Changes in estimates are charged to costs and expenses in the period when estimates are revised.
 
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For a discussion of the most significant reclamation and remediation activities, see Item 7, Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations, and Notes 23 and 29 to the Consolidated Financial Statements, below.
 Employees
There were approximately 15,000 people employed by Newmont as of December 31, 2006.
 Forward-Looking Statements
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:
 
 	•	 	Statements regarding future earnings;	
 
 	•	 	Estimates of future mineral production and sales, for specific operations and on a consolidated or equity basis;	
 
 	•	 	Estimates of future costs applicable to sales, other expenses and taxes for specific operations and on a consolidated basis;	
 
 	•	 	Estimates of future cash flows;	
 
 	•	 	Estimates of future capital expenditures and other cash needs, for specific operations and on a consolidated basis, and expectations as to the funding thereof;	
 
 	•	 	Estimates regarding timing of future capital expenditures, construction, production or closure activities;	
 
 	•	 	Statements as to the projected development of certain ore deposits, including estimates of development and other capital costs and financing plans for these deposits;	
 
 	•	 	Estimates of reserves and statements regarding future exploration results and reserve replacement and the sensitivity of reserves to metal price changes;	
 
 	•	 	Statements regarding the availability and costs related to future borrowing, debt repayment and financing;	
 
 	•	 	Statements regarding modifications to hedge and derivative positions;	
 
 	•	 	Statements regarding future transactions relating to portfolio management or rationalization efforts;	
 
 	•	 	Statements regarding the cost impacts of future changes in the legal and regulatory environment in which we operate; and	
 
 	•	 	Estimates of future costs and other liabilities for certain environmental 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. Such risks include, but are not limited to: the price of gold, copper and other commodities; currency fluctuations; geological and metallurgical assumptions; operating performance of equipment, processes and facilities; labor relations; timing of receipt of necessary governmental permits or approvals; domestic and foreign laws or regulations, particularly relating to the environment and mining; domestic and international economic and political conditions; the ability of Newmont to obtain or maintain necessary financing; and other risks and hazards associated with mining operations. More detailed information regarding these factors is included in Item 1, Business, Item 1A, Risk Factors, and elsewhere throughout this report. Given these uncertainties, readers are cautioned not to place undue reliance on our forward-looking statements.
 
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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 these 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.
 Available Information
Newmont maintains an internet web site at www.newmont.com. Newmont makes available, free of charge, through the Investor Information section of the web site, its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, Section 16 filings and all amendments to those reports, as soon as reasonably practicable after such material is electronically filed with the Securities and Exchange Commission. Newmont’s Corporate Governance Guidelines, the charters of key committees of its Board of Directors and its Code of Business Ethics and Conduct are also available on the web site. Any of the foregoing information is available in print to any stockholder who requests it by contacting Newmont’s Investor Relations Department.
The Company filed with the New York Stock Exchange (“NYSE”) on May 5, 2006, the annual certification by its Chief Executive Officer, certifying that, as of the date of the certification, he was not aware of any violation by the Company of the NYSE’s corporate governance listing standards, as required by Section 303A.12(a) of the NYSE Listed Company Manual. The Company has filed the required certifications under Section 302 of the Sarbanes-Oxley Act of 2002 regarding the quality of its public disclosures as Exhibits 31.1 and 31.2 to this report.
 
 ITEM 1A.	RISK FACTORS (dollars in millions except per share, per ounce and per pound amounts)	
Every investor or potential investor in Newmont should carefully consider the following risks, which have been separated into two groups:
 
 	•	 	Risks related to the mining industry generally; and	
 
 	•	 	Risks related to Newmont.	
 Risks Related to the Mining Industry Generally
A Substantial or Extended Decline in Gold or Copper Prices Would Have a Material Adverse Effect on Newmont
Newmont’s business is dependent on the realized price of gold and copper, which are affected by numerous factors beyond our control. Factors tending to put downward pressure on prices include:
 
 	•	 	Sales or leasing of gold by governments and central banks;	
 
 	•	 	U.S. dollar strength;	
 
 	•	 	Recession or reduced economic activity;	
 
 	•	 	Speculative selling;	
 
 	•	 	Decreased industrial, jewelry or investment demand;	
 
 	•	 	Increased supply from production, disinvestment and scrap;	
 
 	•	 	Sales by producers in forward and other hedging transactions; and	
 
 	•	 	Devaluing local currencies (relative to gold and copper priced in U.S. dollars) leading to lower production costs and higher production in certain regions.	
 
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Any drop in the realized price of gold or copper adversely impacts our revenues, net income and cash flows, particularly in light of our philosophy of generally avoiding gold hedging. We have recorded asset write-downs during periods of low gold prices in the past and may experience additional impairments as a result of low gold or copper prices in the future.
In addition, sustained low gold or copper prices can:
 
 	•	 	Reduce revenues further through production declines due to cessation of the mining of deposits, or portions of deposits, that have become uneconomic at the then-prevailing gold or copper price;	
 
 	•	 	Reduce or eliminate the profit that we currently expect from long-term ore stockpiles;	
 
 	•	 	Halt or delay the development of new projects;	
 
 	•	 	Reduce funds available for exploration, with the result that depleted reserves may not be replaced; and	
 
 	•	 	Reduce existing reserves by removing ores from reserves that can no longer be economically processed at prevailing prices.	
Also see the discussion in Item 1, Business, Gold or Copper Price.
Gold and Copper Producers Must Continually Replace Reserves Depleted By Production
Gold and copper producers must continually replace reserves depleted by production. Depleted reserves must be replaced by expanding known ore bodies or by locating new deposits in order for producers to maintain production levels over the long term. Exploration is highly speculative in nature, involves many risks and frequently is unproductive. No assurances can be given that any of our new or ongoing exploration programs will result in new mineral producing operations. Once mineralization is discovered, it will likely take many years from the initial phases of exploration until production is possible, during which time the economic feasibility of production may change.
Estimates of Proven and Probable Reserves Are Uncertain
Estimates of proven and probable reserves are subject to considerable uncertainty. Such estimates are, to a large extent, based on interpretations of geologic data obtained from drill holes and other exploration techniques. Producers use feasibility studies to derive estimates of capital and operating costs based upon anticipated tonnage and grades of ore to be mined and processed, the predicted configuration of the ore body, expected recovery rates of metals from the ore, the costs of comparable facilities, the costs of operating and processing equipment and other factors. Actual operating costs and economic returns on projects may differ significantly from original estimates. Further, it may take many years from the initial phase of exploration before production is possible and, during that time, the economic feasibility of exploiting a discovery may change.
Increased Costs Could Affect Profitability
Costs at any particular mining location frequently are subject to variation due to a number of factors, such as changing ore grade, changing metallurgy and revisions to mine plans in response to the physical shape and location of the ore body. In addition, costs are affected by the price of commodities, such as fuel, electricity and labor. Commodity costs are at times subject to volatile price movements, including increases that could make production at certain operations less profitable. Reported costs may also be affected by changes in accounting standards. A material increase in costs at any significant location could have a significant effect on Newmont’s profitability and cash flow.
The Company anticipates significant capital expenditures over the next several years in connection with the development of new projects and sustaining existing operations. Costs associated with capital expenditures have escalated on an industry-wide basis over the last several years, as a result of major factors beyond the control of
 
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the Company, including the prices of oil, steel and other commodities. Increased costs for capital expenditures have an adverse effect on the profitability of existing mining operations and returns anticipated from new mining projects.
Shortages of Critical Parts, Equipment and Skilled Labor May Adversely Affect Our Operations and Development Projects.
The industry has been impacted by increased worldwide demand for critical resources such as input commodities, drilling equipment, tires and skilled labor. These shortages have caused unanticipated cost increases and delays in delivery times, thereby impacting operating costs, capital expenditures and production schedules.
Mining Accidents or Other Adverse Events or Conditions at a Mining Location Could Reduce Our Production Levels
At any of Newmont’s operations, production may fall below historic or estimated levels as a result of mining accidents such as a pit wall failure in an open pit mine, or cave-ins or flooding at underground mines. In addition, production may be unexpectedly reduced at a location if, during the course of mining, unfavorable ground conditions or seismic activity are encountered; ore grades are lower than expected; the physical or metallurgical characteristics of the ore are less amenable to mining or treatment than expected; or our equipment, processes or facilities fail to operate properly or as expected.
Mining Companies Are Subject to Extensive Environmental Laws and Regulations
Newmont’s exploration, mining and processing operations are regulated in all countries in which we operate under various federal, state, provincial and local laws relating to the protection of the environment, which generally include air and water quality, hazardous waste management and reclamation. Delays in obtaining, or failure to obtain, government permits and approvals may adversely impact our operations. The regulatory environment in which Newmont operates could change in ways that would substantially increase costs to achieve compliance, or otherwise could have a material adverse effect on Newmont’s operations or financial position. For a more detailed discussion of potential environmental liabilities, see the discussion in Environmental Matters, Note 29 to the Consolidated Financial Statements.
 Risks Related to Newmont
Our Operations Outside North America and Australia/New Zealand Are Subject to Risks of Doing Business Abroad
Exploration, development and production activities outside of North America and Australia/New Zealand are potentially subject to political and economic risks, including:
 
 	•	 	Cancellation or renegotiation of contracts;	
 
 	•	 	Disadvantages of competing against companies from countries that are not subject to U.S. laws and regulations, including the Foreign Corrupt Practices Act;	
 
 	•	 	Changes in foreign laws or regulations;	
 
 	•	 	Royalty and tax increases or claims by governmental entities, including retroactive claims;	
 
 	•	 	Expropriation or nationalization of property;	
 
 	•	 	Currency fluctuations (particularly in countries with high inflation);	
 
 	•	 	Foreign exchange controls;	
 
 	•	 	Restrictions on the ability of local operating companies to sell gold offshore for U.S. dollars, or on the ability of such companies to hold U.S. dollars or other foreign currencies in offshore bank accounts;	
 
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 	•	 	Import and export regulations, including restrictions on the export of gold;	
 
 	•	 	Restrictions on the ability to pay dividends offshore;	
 
 	•	 	Risk of loss due to civil strife, acts of war, guerrilla activities, insurrection and terrorism;	
 
 	•	 	Risk of loss due to disease and other potential endemic health issues; and	
 
 	•	 	Other risks arising out of foreign sovereignty over the areas in which our operations are conducted, including risks inherent in contracts with government owned entities.	
Consequently, Newmont’s exploration, development and production activities outside of North America and Australia/New Zealand may be substantially affected by factors beyond Newmont’s control, any of which could materially adversely affect Newmont’s financial position or results of operations. Furthermore, if a dispute arises from such activities, Newmont may be subject to the exclusive jurisdiction of courts outside North America or Australia, which could adversely affect the outcome of a dispute.
Newmont has substantial investments in Indonesia, a nation that since 1997 has undergone financial crises and devaluation of its currency, outbreaks of political and religious violence, changes in national leadership, and the secession of East Timor, one of its former provinces. These factors heighten the risk of abrupt changes in the national policy toward foreign investors, which in turn could result in unilateral modification of concessions or contracts, increased taxation, denial of permits or permit renewals or expropriation of assets. During 2006, the government purported to designate the land surrounding Batu Hijau as a protected forest, which could make operating permits more difficult to obtain. Newmont’s financial condition and results of operations could be materially adversely affected if any of these actions occur.
In July 2004, a criminal complaint was filed against PT Newmont Minahasa Raya (“PTNMR”), the Newmont subsidiary that operated the Minahasa mine in Indonesia, alleging environmental pollution relating to submarine tailings placement into nearby Buyat Bay. The Indonesian police detained five PTNMR employees during September and October of 2004. The police investigation and the detention of PTNMR’s employees was declared illegal by the South Jakarta District Court in December 2004, but in March 2005, the Indonesian Supreme Court upheld the legality of the police investigation, and the police turned their evidence over to the local prosecutor. In July 2005, the prosecutor filed an indictment against PTNMR and its President Director, alleging environmental pollution at Buyat Bay. After the court rejected motions to dismiss the proceeding, the trial proceeded and all evidence, including that of the defense, was presented in court as of September 2006. In November 2006 the prosecution filed its charge, seeking a three-year jail sentence for PTNMR’s President Director plus a nominal fine. In addition, the prosecution has recommended a nominal fine against PTNMR. The defense filed responses in January 2007 and after final briefing a verdict is expected in the second quarter of 2007.
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. PTNMR remains steadfast that it has not caused pollution or health problems and will continue to vigorously defend itself against these allegations. However, Newmont cannot predict the outcome of the criminal proceeding or whether additional legal actions may occur. This matter could adversely affect our ability to operate in Indonesia.
On March 9, 2005, the Indonesian Ministry of the Environment filed a civil lawsuit against PTNMR and its President Director in relation to these allegations, seeking in excess of $100 in monetary damages. In October 2005, PTNMR filed an objection to the court’s jurisdiction, contending that the Government previously agreed to resolve any disputes through out-of-court conciliation or arbitration. The Court upheld PTNMR’s objection and dismissed the case in November 2005. The Government filed a notice of appeal of this ruling. On February 16, 2006, PTNMR and the Government of the Republic of Indonesia signed an agreement settling the civil lawsuit. Under the terms of the agreement, the Government and PTNMR will nominate members to an independent
 
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scientific panel that will develop and implement a ten-year environmental monitoring and assessment program to make a definitive, scientific conclusion regarding the condition of Buyat Bay. PTNMR is required to fund specific remedial measures if, as a result of its mining operations, pollution has occurred. The agreement also provides for enhanced community development programs in North Sulawesi. PTNMR will provide initial funding of $12 to cover the cost of the monitoring and community development programs. Over a ten year period, PTNMR will contribute an additional $18. The funds will be managed by an organization governed by interested stakeholders. Accountability for the funds will be ensured through yearly reports that will be made available to the public. The transparency of the scientific panel’s activities will also be assured through annual reports to the public. Pursuant to the agreement, the civil lawsuit against PTNMR was been terminated. The scientific panel held its first meeting in February 2007.
During the last several years, Yanacocha, in which Newmont owns a 51.35% interest, has been the target of numerous local political protests, including ones that blocked the road between the Yanacocha mine complex and the City of Cajamarca in Peru. In 2004, local opposition to the Cerro Quilish project became so pronounced that Yanacocha decided to relinquish its drilling permit for Cerro Quilish and the deposit was reclassified from proven and probable reserves to non-reserve mineralization. In 2005, no material roadblocks or protests occurred involving Yanacocha. However, in 2006 a road blockade was carried out by members of the Combayo community. This blockade resulted in a brief cessation of mining activities. We cannot predict whether similar or more significant incidents will occur in the future, and the recurrence of significant community opposition or protests could adversely affect Yanacocha’s assets and operations.
Presidential, congressional and regional elections took place in Peru in 2006, with the new national government taking office in July 2006. In December 2006, Yanacocha, along with other mining companies in Peru, entered into an agreement with the central government to contribute 3.75% of net profits to fund social development projects. Although the current government has generally taken positions promoting private investment, we cannot predict future government positions on foreign investment, mining concessions, land tenure, environmental regulation or taxation. A change in government positions on these issues could adversely affect Yanacocha’s assets and operations.
During 2005, relations between the Republic of Uzbekistan and the U.S. deteriorated significantly, and in July 2005 the government of Uzbekistan evicted the U.S. military from its base at Karshi-Khanabad, south of Tashkent.
In June 2006, an economic court in Uzbekistan ruled in favor of tax authorities and against the Zarafshan-Newmont Joint Venture (“ZNJV”), which is 50% owned by the Company, on two claims to collect approximately $48 in taxes other than income taxes. The tax authorities argued that Decree 151, which protected ZNJV from changes in tax laws and provided other financial and operational benefits, became ineffective and that the taxes and penalties claimed were owed for the period 2002-2005. Decree 151 had been granted by the Republic of Uzbekistan in 1992 as an incentive for the Company’s investment in ZNJV. The benefits it provided, including the stability of the tax and legal regime in effect at that time, were guaranteed to remain in effect for so long as ZNJV had ongoing operations.
On July 26, 2006, the Republic of Uzbekistan caused the seizure of gold, silver and unfinished product belonging to ZNJV. On August 14, 2006, the Company received notice that the economic court had accepted the petition of an agency of the Republic of Uzbekistan to institute bankruptcy proceedings against ZNJV. Neither ZNJV nor the Company received advance notice that the petition was filed or that a hearing would be held. The court ordered “supervisory measures” restricting normal operations, including the export of gold or repayment of loans, without the approval of a court-appointed temporary administrator, who has been overseeing all operations of ZNJV.
At a September 19, 2006 meeting of the ZNJV creditor’s committee, which was principally composed of government representatives, the committee voted to liquidate ZNJV. On September 29, 2006, the economic court
 
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concluded that ZNJV was insolvent and ordered ZNJV to be liquidated by December 29, 2006. At this hearing, representatives of ZNJV and the Company were denied an opportunity to present the case against liquidation. The remaining assets of ZNJV are anticipated to be liquidated to pay the tax liabilities that have been imposed on ZNJV by the Republic of Uzbekistan, resulting in the effective transfer to the Republic of Uzbekistan of the Company’s interest in ZNJV. The liquidation sale has been postponed two times, and is now scheduled for early March 2007. Despite the Company’s demands for compensation for the losses it has suffered, the Republic of Uzbekistan has refused to provide such compensation. On October 31, 2006, the Company filed demands for arbitration against the Republic of Uzbekistan in two separate international venues on the basis that the Republic of Uzbekistan repudiated its obligations to the Company under Decree 151, Uzbek and international law, and various agreements. The Company and the defendants are in the process of appointing arbitrators. As of September 30, 2006, the Company had written off the book value of its ownership interest in ZNJV, resulting in a pre-tax loss of $101. The ultimate outcome of this matter cannot be determined at this time.
Recent violence committed by radical elements in Indonesia and other countries, and the presence of U.S. forces in Iraq and Afghanistan, may increase the risk that operations owned by U.S. companies will be the target of violence. If any of Newmont’s operations were so targeted it could have an adverse effect on our business.
Our Success May Depend on Our Social and Environmental Performance
Newmont’s ability to operate successfully in communities around the world will likely depend on our ability to develop, operate and close mines in a manner that is consistent with the health and safety of our employees, the protection of the environment, and the creation of long-term economic and social opportunities in the communities in which we operate. Newmont has implemented a management system designed to promote continuous improvement in health and safety, environmental performance and community relations. However, our ability to operate could be adversely impacted by accidents or events detrimental (or perceived to be detrimental) to the health and safety of our employees, the environment or the communities in which we operate.
Remediation Costs for Environmental Liabilities May Exceed the Provisions We Have Made
Newmont has conducted extensive remediation work at two inactive sites in the United States. At one of these sites, remediation requirements have not been finally determined, and, therefore, the final cost cannot be determined. At a third site in the United States, an inactive uranium mine and mill formerly operated by a subsidiary of Newmont, remediation work at the mill is ongoing, but remediation at the mine is subject to dispute and has not yet commenced. The environmental standards that may ultimately be imposed at this site remain uncertain and there is a risk that the costs of remediation may exceed the provision that has been made for such remediation by a material amount. For a more detailed discussion of potential environmental liabilities, see the discussion in Environmental Matters, Note 29 to the Consolidated Financial Statements.
Whenever a previously unrecognized remediation liability becomes known, or a previously estimated reclamation cost is increased, the amount of that liability and additional cost will be recorded at that time and could materially reduce net income in that period.
The Use of Hedging Instruments May Prevent Gains Being Realized from Subsequent Price Increases
Newmont does not intend to enter into material new gold hedging positions and intends to continue to decrease gold hedge positions over time by opportunistically delivering gold into our outstanding hedge contracts, or by seeking to eliminate our hedge position when economically attractive. Nonetheless, Newmont currently has gold hedging positions and may, from time-to-time, enter into hedge contracts for copper, other metals or commodities, interest rates or foreign currencies. If the gold or copper price rises above the price at which future production has been committed under these hedge instruments, Newmont will have an opportunity loss. However, if the gold or copper price falls below that committed price, Newmont’s revenues will be protected to the extent of such committed production. In addition, we may experience losses if a hedge counterparty defaults under a contract when the contract price exceeds the gold or copper price.
 
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For a more detailed description of the Newmont hedge positions, see the discussion in Hedging in Item 7A, Quantitative and Qualitative Disclosures About Market Risk, and Note 13 to the Consolidated Financial Statements.
Currency Fluctuations May Affect Costs
Currency fluctuations may affect the costs that we incur at our operations. Gold is sold throughout the world based principally on the U.S. dollar price, but a portion of Newmont’s operating expenses are incurred in local currencies. The appreciation of non-U.S. dollar currencies against the U.S. dollar can increase the costs of gold production in U.S. dollar terms at mines located outside the United States, making such mines less profitable. The foreign currencies that primarily impact Newmont’s Results of Operation are the Australian and Canadian dollars.
During 2006, the Australian dollar weakened by an average of 1% and the Canadian dollar strengthened by an average of 7% against the U.S. dollar. This decreased the U.S. dollar Costs applicable to sales in Australia by approximately $7 and in Canada by $nil from 2005 to 2006. For additional information, see Item 7, Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations, Results of Consolidated Operations, Foreign Currency Exchange Rates, below. For a more detailed description of how currency exchange rates may affect costs, see discussion in Foreign Currency in Item 7A, Quantitative and Qualitative Disclosures About Market Risk.
Future Funding Requirements May Affect Our Business
The construction of the Boddington project in Australia, the 200 megawatt coal-fired power plant in Nevada, and the gold mill at Yanacocha in Peru, as well as potential future investments in the Akyem project in Ghana and the Conga project in Peru, will require significant funds for capital expenditures. At current gold and copper prices, new sources of capital will be needed to meet the funding requirements of these investments, fund our ongoing business activities and pay dividends. Our ability to raise and service significant new sources of capital will be a function of macroeconomic conditions, future gold and copper prices and our operational performance, among other factors. In the event of lower gold and copper prices, unanticipated operating or financial challenges, or new funding limitations, our ability to pursue new business opportunities, invest in existing and new projects, fund our ongoing business activities and pay dividends could be significantly constrained.
Our Interest in the Batu Hijau Operation in Indonesia May Be Reduced Under the Contract of Work
Under the Contract of Work with the Indonesian government, beginning in 2005 and continuing through 2010, a portion of each foreign shareholder’s equity interest in the Batu Hijau operation must be offered for sale to the Indonesian government or to Indonesian nationals. The government of Indonesia must approve any sale. The price at which such interest must be offered for sale is the highest of the then-current replacement cost, the price at which shares would be accepted for listing on the Jakarta Stock Exchange, or the fair market value of such interest as a going concern. Pursuant to this provision of the Contract of Work, it is possible that the ownership interest of the Newmont/Sumitomo partnership in Batu Hijau could be reduced to 49% by the end of 2010. A company owned by an Indonesian national currently owns a 20% interest in Batu Hijau, and the Newmont/Sumitomo partnership was required to offer a 3% interest for sale in 2006. An offer to sell a 3% interest was made to the government of Indonesia. While the central government declined to participate, local governments in the area in which the mine is located have expressed interest in acquiring shares, as have various Indonesian nationals. The Newmont/Sumitomo partnership continues discussions to meet its divestiture obligations. Under the terms of the Contract of Work, an additional 7% interest in Batu Hijau must be offered for sale in 2007.
 
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Costs Estimates and Timing of New Projects Are Uncertain
The capital expenditures and time required to develop new mines or other projects are considerable and changes in costs or construction schedules can affect project economics. There are a number of factors that can affect costs and construction schedules, including, among others:
 
 	•	 	Availability of labor, power, transportation, commodities and infrastructure;	
 
 	•	 	Increases in input commodity prices and labor costs;	
 
 	•	 	Fluctuations in exchange rates;	
 
 	•	 	Availability of financing;	
 
 	•	 	Difficulty of estimating construction costs over a period of years; and	
 
 	•	 	Delays in obtaining environmental or other government permits.	
Our Operations May Be Adversely Affected By Power Shortages.
We have experienced power shortages in Ghana resulting from a nationwide drought and lack of hydroelectric generating capacity. Power shortages have caused curtailment of production at our Ahafo operations. Alternative sources of power will result in higher than anticipated costs, which will affect operating costs. Continued power shortages and increased costs may adversely affect our results of operations and financial condition.
Occurrence of Events for Which We Are Not Insured May Affect Our Cash Flow and Overall Profitability
We maintain insurance policies that mitigate against certain risks related to our operations. This insurance is maintained in amounts that we believe are reasonable depending upon the circumstances surrounding each identified risk. However, Newmont may elect not to have insurance for certain risks because of the high premiums associated with insuring those risks or for various other reasons; in other cases, insurance may not be available for certain risks. Some concern always exists with respect to investments in parts of the world where civil unrest, war, nationalist movements, political violence or economic crisis are possible. These countries may also pose heightened risks of expropriation of assets, business interruption, increased taxation and a unilateral modification of concessions and contracts. Newmont does not maintain insurance policies against political risk. Occurrence of events for which Newmont is not insured may affect our cash flow and overall profitability.
Our Business Depends on Good Relations with Our Employees
Newmont could experience labor disputes, work stoppages or other disruptions in production that could adversely affect us. As of December 31, 2006, unions represented approximately 38% of our worldwide work force. On that date, Newmont had 3,040 employees in Indonesia at its Batu Hijau operation, 1,364 employees at its Carlin, Nevada operations, 601 employees in Peru at its Yanacocha operation, 412 employees in Bolivia at its Kori Kollo operation, 150 employees at its Australia operations and 27 employees in New Zealand at its Martha operations working under collective bargaining agreements or similar labor agreements. Currently, there are labor agreements in effect for all of these workers. The labor agreement for Peru expires February 28, 2007, and is currently being re-negotiated. There can be no assurance that future disputes will be resolved without disruptions to operations.
Title to Some of Our Properties May Be Defective or Challenged
Although we have conducted title reviews of our properties, title review does not necessarily preclude third parties from challenging our title. While we believe that we have satisfactory title to our properties, some risk exists that some titles may be defective or subject to challenge. In addition, certain of our Australian properties
 
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could be subject to native title or traditional landowner claims, but such claims would not deprive us of the properties. For information regarding native title or traditional landowner claims, see the discussion under the Australia/New Zealand section of Item 2, Properties, below.
We Compete With Other Mining Companies
We compete with other mining companies to attract and retain key executives, skilled labor and other employees with technical skills and experience in the mining industry. We also compete with other mining companies for rights to mine properties containing gold and other minerals. There can be no assurance that Newmont will continue to attract and retain skilled and experienced employees, or to acquire additional rights to mine properties.
Certain Factors Outside of Our Control May Affect Our Ability to Support the Carrying Value of Goodwill
As of December 31, 2006, the carrying value of goodwill was approximately $3,004 or 19% of our total assets. Goodwill has been assigned to our Merchant Banking ($1,661) and Exploration ($1,129) Segments, and to various mine site reporting units in the Australia/New Zealand Segment ($214). This goodwill primarily arose in connection with our February 2002 acquisitions of Normandy and Franco-Nevada, and it represents the excess of the aggregate purchase price over the fair value of the identifiable net assets of Normandy and Franco-Nevada. We evaluate, on at least an annual basis, the carrying amount of goodwill to determine whether current events and circumstances indicate that such carrying amount may no longer be recoverable. This evaluation involves a comparison of the estimated fair value of our reporting units to their carrying values.
Based on valuations of the Merchant Banking and Exploration Segments, the Company concluded that the estimated fair values significantly exceeded the respective carrying values as of December 31, 2006. The fair values of the Merchant Banking and Exploration Segments are based, in part, on certain factors that may be partially or completely outside of our control, such as the investing environment, the legal and regulatory and political environments in countries where we operate and explore, the successful discovery, development and production of proven and probable reserves, commodity and labor prices, and other factors. In addition, certain of the assumptions underlying the December 31, 2006 Merchant Banking and Exploration Segments valuations may not be easily achieved by the Company.
The Exploration Segment’s valuation model attributes all cash flows expected to be derived from future exploration discoveries, whether near-mine or greenfield, to the Exploration Segment. Therefore, the valuation model includes all expected value from future discoveries, including existing and future mine site reporting units. Existing proven and probable reserves and value beyond proven and probable reserves, including mineralization other than proven and probable reserves and other material that is not part of the measured, indicated or inferred resource base, are included when determining the fair value of mine site reporting units at acquisition and, subsequently, in determining whether the assets are impaired. The value beyond proven and probable reserves (which uses the same valuation concepts as required by EITF 04-03, Mining Assets: Impairment and Business Combinations ) relating to mine site reporting units is excluded when determining the fair value of the Exploration Segment, if any, at acquisition and, subsequently, in determining whether the assets are impaired. The valuation model includes management’s best estimates of future reserve additions from exploration activities and all revenues and costs associated with their discovery, development and production. Historical proven and probable reserve additions, excluding acquisitions, are used as an indicator of the Exploration Segment’s ability to discover additional reserves in the future. Actual reserve additions may vary significantly from year to year due to the time required to advance a deposit from initial discovery to proven and probable reserves and based on the timing of when proven and probable reserves can be reported under the Securities and Exchange Commission Industry Guide 7. The valuation model assumes that the Company will be able to perpetually develop and produce the assumed additions to proven and probable reserves from future discoveries at existing or new mine site reporting units. These estimates assume that the Company will continue to find reserves of sufficient size and
 
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quality to meet the Company’s operational and return thresholds in increasing quantities in perpetuity. Future discoveries could become increasingly difficult to locate, and even if the Company finds reserves in a sufficient quality and size, they may consist of a larger number of smaller deposits that could be more costly to develop and/or operate than historically experienced. The development and production of reserves will eventually lead to the depletion of existing mine site reporting units and require the perpetual development of new mines in increasing quantities through successful greenfield exploration. A reduction in reserves or a lower than expected increase in reserve additions, or a greater than expected increase in operating or capital costs, may negatively impact the value of the Exploration Segment and may result in the impairment of the Exploration Segment’s goodwill. Based on the period required to advance projects from initial discovery to production, the valuation model has negative net cash flows for approximately the first 10 years and more than 100% of the fair value of the Exploration Segment is attributable to its terminal value.
Subsequent to the business combinations for which value beyond proven and probable reserves were recorded, EITF 04-03, Mining Assets: Impairment and Business Combinations, was issued and requires that value beyond proven and probable reserves be allocated to mining assets. The Company defined value beyond proven and probable reserves as the value of known mineralization other than proven and probable reserves and other material that is not part of the measured, indicated or inferred resource base that is measured based on extrapolation of known exploration information, to the extent that it believes a market participant would include such value in determining the fair value of the assets. The Company’s interpretation of value beyond proven and probable reserves may differ from that of other mining industry companies and may result in a different allocation of values at the time of acquisition and subsequent impairment analysis. If value beyond proven and probable reserves was interpreted to include value in excess of the Company’s determination, such values would be considered tangible mineral interests and therefore reduce the implied fair value of goodwill. Under such an interpretation, if the carrying value of the Exploration Segment exceeds its estimated fair value (Step 1), the Company would compare the implied fair value of goodwill to its carrying amount and write-off any excess carrying amount over the implied fair value (Step 2) resulting in an impairment loss in the financial statements. The Company has not been required to perform Step 2 of the goodwill impairment test for the Exploration Segment. Please see the Company’s Summary of Significant Accounting Policies for additional details.
The Company’s approach to managing the exploration aspect of its business separate from the day to day operations of its mine site reporting units may differ from the approach taken by other companies in the mining industry. Other mining companies may integrate the exploration function with their mine site reporting units, allocating residual goodwill to these units. Absent our Exploration Segment’s success and reporting structure, we may have reached a similar conclusion regarding the goodwill allocation. As a result of these potential differences, the Company’s financial position and results of operations may not be comparable to those of other entities in the mining industry.
Based on valuations of various mine site reporting units in the Australia/New Zealand Segment, the Company concluded that the estimated fair values exceeded the respective carrying values as of December 31, 2006. The Company concluded that the estimated fair value of the Nevada Segment did not support the carrying value as of December 31, 2005 and recorded a $41 goodwill impairment charge. The impairment resulted from a reevaluation of life of mine plans that indicated higher future operating and capital costs. In 2004, the Company recorded goodwill and long-lived assets impairment charges of $52 and $6, respectively, relating to the Pajingo reporting unit in the Australia/New Zealand Segment. The Company’s fair value estimates are based on numerous assumptions and it is possible that actual fair value could be significantly different than these estimates, as future quantities of recoverable minerals, gold and other commodity prices, production levels, operating costs and capital costs are each subject to significant risks and uncertainties.
In the absence of any mitigating valuation factors, the Company’s failure to achieve one or more of the December 31, 2006 valuation assumptions may over time result in an impairment charge. Accordingly, no assurance can be given that significant non-cash impairment charges will not be recorded in the future due to possible declines in the fair values of our reporting units. For a more detailed description of the estimates and
 
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assumptions involved in assessing the recoverability of the carrying value of goodwill, see Item 7, Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations, Critical Accounting Policies, below.
Our Ability to Recognize the Benefits of Deferred Tax Assets is Dependent on Future Cash Flows and Taxable Income
The Company recognizes the expected future tax benefit from deferred tax assets when the tax benefit is considered to be more likely than not of being realized. Otherwise, a valuation allowance is applied against deferred tax assets. Assessing the recoverability of deferred tax assets requires management to make significant estimates related to expectations of future taxable income. Estimates of future taxable income are based on forecasted cash flows from operations and the application of existing tax laws in each jurisdiction. To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the Company to realize the deferred tax assets could be impacted. Additionally, future changes in tax laws could limit the Company’s ability to obtain the future tax benefits represented by its deferred tax assets. As of December 31, 2006, the Company’s current and long-term deferred tax assets were $156 and $799, respectively.
Returns for Investments in Pension Plans Are Uncertain
We maintain pension plans for employees, which provide for specified payments after retirement for certain employees. The ability of the pension plans to provide the specified benefits depends on our funding of the plans and returns on investments made by the plans. Returns, if any, on investments are subject to fluctuations based on investment choices and market conditions. A sustained period of low returns or losses on investments could require us to fund the pension plans to a greater extent than anticipated.
 
 ITEM 2.	PROPERTIES (dollars in millions except per share, per ounce and per pound amounts)	
 Gold and Copper Processing Methods
Gold is extracted from naturally-oxidized ores by either heap leaching or milling, depending on the amount of gold contained in the ore, the amenability of the ore to treatment and related capital and operating costs. Higher grade oxide ores are generally processed through mills, where the ore is ground into a fine powder and mixed with water in slurry, which then passes through a carbon-in-leach circuit. Lower grade oxide ores are generally processed using heap leaching. Heap leaching consists of stacking crushed or run-of-mine ore on impermeable pads, where a weak cyanide solution is applied to the surface of the heap to dissolve the gold. In both cases, the gold-bearing solution is then collected and pumped to process facilities to remove the gold by collection on carbon or by zinc precipitation.
Gold contained in ores that are not naturally oxidized can be directly milled if the gold is amenable to cyanidization, generally known as free milling sulfide ores. Ores that are not amenable to cyanidization, known as refractory ores, require more costly and complex processing techniques than oxide or free milling ore. Higher-grade refractory ores are processed through either roasters or autoclaves. Roasters heat finely ground ore to a high temperature, burn off the carbon and oxidize the sulfide minerals that prevent efficient leaching. Autoclaves use heat, oxygen and pressure to oxidize sulfide ores.
Some sulfide ores may be processed through a flotation plant or by bio-milling. In flotation, ore is finely ground, turned into slurry, then placed in a tank known as a flotation cell. Chemicals are added to the slurry causing the gold-containing sulfides to float attached to air bubbles to the top of the tank. The sulfides are removed from the cell and converted into a concentrate that can then be processed in an autoclave or roaster to recover the gold. Bio-milling incorporates patented technology that involves inoculation of suitable crushed ore on a leach pad with naturally occurring bacteria strains, which oxidize the sulfides over a period of time. The ore is then processed through an oxide mill.
 
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At Batu Hijau, ore containing copper and gold is crushed to a coarse size at the mine and then transported from the mine via conveyor to a concentrator, where it is finely ground and then treated by successive stages of flotation, resulting in a concentrate containing approximately 30% copper. The concentrate is dewatered and stored for loading onto ships for transport to smelters.

 Production Properties
Set forth below is a description of Newmont’s significant production properties. Costs applicable to sales for each operation are presented in a table in the next section of Item 2.
Nevada
Newmont has been mining gold in Nevada since 1965. Nevada operations include Carlin, located west of the city of Elko on the geologic feature known as the Carlin Trend, the Twin Creeks mine, located approximately 15 miles north of Golconda, the Lone Tree Complex near the town of Valmy, and the Midas mine near the town of the same name. Newmont also participates in the Turquoise Ridge joint venture with Barrick, which utilizes mill capacity at Twin Creeks. The Phoenix gold/copper project, located 10 miles south of Battle Mountain, commenced commercial production in the fourth quarter of 2006. The Leeville underground mine, located on the Carlin Trend northwest of the Carlin East underground mine, also commenced commercial production in the fourth quarter of 2006.
Gold sales from Nevada totaled approximately 2.5 million ounces (2.4 million equity ounces) for 2006 with ore mined from nine open pit and five underground mines. At year-end 2006, Newmont reported 33.1 million equity ounces of gold reserves in Nevada, with 85% in open pit mines and 15% in underground mines. Refractory ores require more complex, higher cost processing methods. Refractory ore treatment facilities generated 72% of Nevada’s gold production in 2006, compared with 69% in 2005, and 68% in 2004. With respect to remaining reserves, we estimate that 77% are refractory ores and 23% are oxide ores.
 
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The Nevada operations produce gold from a variety of ore types requiring different processing techniques depending on economic and metallurgical characteristics. To ensure the best use of processing capacity, the Company uses a linear programming model to guide the flow of both mining sequence selection and routing of ore streams to various plants. Higher-grade oxide ores are processed by conventional milling and cyanide leaching at Carlin (Mill 5), Twin Creeks (Juniper) and Lone Tree. Lower-grade material with suitable cyanide solubility is treated on heap leach pads at Carlin, Twin Creeks and Lone Tree. Higher-grade refractory ores are processed through either a roaster at Carlin (Mill 6) or autoclaves at Twin Creeks (Sage) and Lone Tree. Lower-grade refractory ores are processed by a flotation plant at Lone Tree or either bio-oxidation/flotation or direct flotation at Mill 5. Ore from the Midas mine is processed by conventional milling and Merrill-Crowe zinc precipitation. Activated carbon from the various leaching circuits is treated to produce gold ore at Carlin and Twin Creeks. Zinc precipitate at Midas is refined on-site. Mining and the final placement of ore on the leach pads at Lone Tree was completed in the fourth quarter of 2006. Residual leaching will continue thereafter. Milling of stockpiled ore at Lone Tree is expected to be completed in the first quarter of 2007.
Newmont owns, or controls through long-term mining leases and unpatented mining claims, all of the minerals and surface area within the boundaries of the present Nevada mining operations (except for the Turquoise Ridge joint venture described below). The long-term leases extend for at least the anticipated mine life of those deposits. With respect to a significant portion of the Gold Quarry mine at Carlin, Newmont owns a 10% undivided interest in the mineral rights and leases the remaining 90%, on which Newmont pays a royalty equivalent to 18% of the mineral production. The remainder of the Gold Quarry mineral rights are wholly-owned or controlled by Newmont, in some cases subject to additional royalties. With respect to certain smaller deposits in Western Nevada, Newmont is obligated to pay royalties on production to third parties that vary from 2% to 5% of production.
Newmont has a 25% interest in a joint venture with a subsidiary of Barrick to operate the Turquoise Ridge and Getchell mines. Newmont has an agreement to provide up to 2,000 tons per day of milling capacity at Twin Creeks to the joint venture. Barrick is the operator of the joint venture for mining and ore delivery to process. Gold sales of 58,300 ounces were attributed to Newmont in 2006, based on its 25% ownership interest.
Newmont has ore sale agreements with Barrick and Queenstake Resources, Ltd. to process some of the Company’s ore. Newmont recognized attributable gold sales, net of treatment charges, of 99,500 ounces in 2006 and 104,600 ounces in 2005 pursuant to these agreements.
Newmont has sales and refining agreements with Gerald Metals, Peñoles, Queenstake, Johnson Matthey and Just Refiners to process intermediate gold bearing product.
Yanacocha, Peru
The properties of Minera Yanacocha S.R.L. (“Yanacocha”) are located approximately 375 miles (604 kilometers) north of Lima and 30 miles (48 kilometers) north of the city of Cajamarca, in Peru. Yanacocha began production in 1993. Newmont holds a 51.35% interest in Yanacocha with the remaining interests held by Compañia de Minas Buenaventura, S.A.A. (43.65%) and the International Finance Corporation (5%).
Yanacocha has mining rights with respect to a large land position. Yanacocha’s mining rights consist of concessions granted by the Peruvian government to Yanacocha and a related entity. These mining concessions provide for both the right to explore and exploit. However, Yanacocha must first obtain the respective exploration and exploitation permits, which are generally granted in due course. Yanacocha may retain mining concessions indefinitely by paying annual fees and, during exploitation, complying with production obligations or paying assessed fines. Mining concessions are freely assignable or transferable.
Yanacocha currently has two active open pit mines, Cerro Yanacocha and La Quinua. In addition, reclamation and/or backfilling activities at Carachugo, San José and Maqui Maqui are currently underway. In
 
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addition, Yanacocha has four leach pads and three processing facilities. Yanacocha’s gold sales for 2006 totaled 2.6 million ounces (1.3 million equity ounces).
The Yanacocha operations contain the Conga deposit, for which a feasibility study was completed in 2004. The Company continues to evaluate the optimum development plan for Conga, and currently anticipates that production would not commence until after 2010.
Yanacocha, along with other mining companies in Peru, has agreed with the central government to contribute 3.75% of its net profits to fund social development projects.
Australia/New Zealand
In Australia, mineral exploration and mining titles are granted by the individual states or territories. Mineral titles may also be subject to native title legislation or, in the Northern Territory, to Aboriginal freehold title legislation that entitles indigenous persons to compensation calculated by reference to the gross value of production. In 1992, the High Court of Australia held that Aboriginal people who have maintained a continuing connection with their land according to their traditions and customs may hold certain rights in respect of the land, such rights commonly referred to as native title. Since the High Court’s decision, Australia has passed legislation providing for the protection of native title and established procedures for Aboriginal people to claim these rights. The fact that native title is claimed with respect to an area, however, does not necessarily mean that native title exists, and disputes may be resolved by the courts.
Generally, under native title legislation, all mining titles granted before January 1, 1994 are valid. Titles granted between January 1, 1994 and December 23, 1996, however, may be subject to invalidation if they were not obtained in compliance with applicable legislative procedures, though subsequent legislation has validated some of these titles. After December 23, 1996, mining titles over areas where native title is claimed to exist became subject to legislative processes that generally give native title claimants the “right to negotiate” with the title applicant for compensation and other conditions. Native title holders do not have a veto over the granting of mining titles, but if agreement cannot be reached, the matter can be referred to the National Native Title Tribunal for decision.
Newmont does not expect that native title claims will have a material adverse effect on any of its operations in Australia. The High Court of Australia determined in an August 2002 decision, which refined and narrowed the scope of native title, that native title does not subsist in minerals in Western Australia and that the rights granted under a mining title would, to the extent inconsistent with asserted native title rights, operate to extinguish those native title rights. Generally, native title is only an issue for Newmont with respect to obtaining new mineral titles or moving from one form of title to another, for example, from an exploration title to a mining title. In these cases, the requirements for negotiation and the possibility of paying compensation may result in delay and increased costs for mining in the affected areas. Similarly, the process of conducting Aboriginal heritage surveys to identify and locate areas or sites of Aboriginal cultural significance can result in additional costs and delay in gaining access to land for exploration and mining-related activities.
In Australia, various ad valorem royalties are paid to state and territorial governments, typically based on a percentage of gross revenues.
Pajingo.     Pajingo (100% owned) is an underground mine located approximately 93 miles (150 kilometers) southwest of Townsville, Queensland and 45 miles (72 kilometers) south of the local township of Charters Towers. In 2006, Pajingo sold 174,600 ounces of gold.
Jundee.     The Jundee operation (100% owned) is situated approximately 435 miles (700 kilometers) northeast of Perth in Western Australia. Jundee sold 305,400 ounces of gold in 2006.
 
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Tanami.     The Tanami operations (100% owned) include The Granites treatment plant and associated mining operations, which are located in the Northern Territory approximately 342 miles (550 kilometers) northwest of Alice Springs, adjacent to the Tanami highway, and the Dead Bullock Soak mining operations, approximately 25 miles (40 kilometers) west of The Granites. The Tanami operations have been wholly-owned since April 2003, when Newmont acquired the minority interests.
The operations are predominantly focused on the Callie underground mine at Dead Bullock Soak, with mill feed supplemented by production stockpiles from the Dead Bullock Soak open pit. Ore from all of these operations is processed through The Granites plant. During 2006, the Tanami operations sold 417,600 ounces of gold.
Kalgoorlie.     The Kalgoorlie operations comprise the Fimiston open pit (commonly referred to as the Super Pit) and Mt. Charlotte underground mine at Kalgoorlie-Boulder, 373 miles (600 kilometers) east of Perth. The mines are managed by Kalgoorlie Consolidated Gold Mines Pty Ltd for the joint venture owners, Newmont and Barrick, each of which holds a 50% interest. The Super Pit is Australia’s largest gold mine in terms of gold production and annual mining volume. During 2006, the Kalgoorlie operations sold 332,200 equity ounces of gold.
Martha.     The Martha operations (100% owned) are located within the town of Waihi, located approximately 68 miles (110 kilometers) southeast of Auckland, New Zealand. During 2006, production commenced at the Favona underground deposit. Production at the Martha open pit will cease in 2007. The operation sold 120,300 ounces of gold during 2006. The Martha mine does not currently pay royalties. Under new royalty arrangements, however, Newmont will pay 1% of gross revenues from gold and silver sales, or 5% of accounting profit, whichever is greater, at Favona.
Boddington.     Boddington is a development project located 81 miles (130 kilometers) southeast of Perth in Western Australia. As of December 31, 2006 Boddington was owned by Newmont (66.67%) and AngloGold Ashanti Limited (33.33%). In March 2006, Newmont acquired Newcrest Mining Limited’s 22.22% interest in Boddington for $173.
Batu Hijau, Indonesia
Batu Hijau is located on the island of Sumbawa, approximately 950 miles (1,529 kilometers) east of Jakarta. Batu Hijau is a large porphyry copper/gold deposit which Newmont discovered in 1990. Development and construction activities began in 1997 and start-up occurred in late 1999. In 2006, copper sales were 434.7 million pounds (229.9 million equity pounds), while gold sales were 435,300 ounces (230,200 equity ounces).
Newmont operates Batu Hijau, a producer of copper/gold concentrates, and has a 45% ownership interest therein, held through a partnership with an affiliate of Sumitomo Corporation. Newmont has a 56.25% interest in the partnership and the Sumitomo affiliate holds the remaining 43.75%. The partnership, in turn, owns 80% of P.T. Newmont Nusa Tenggara (“PTNNT”), the subsidiary that owns Batu Hijau. The remaining 20% interest in PTNNT is a carried interest held by P.T. Pukuafu Indah, an unrelated Indonesian company. Through September 30, 2004, PTNNT recorded cumulative losses and therefore Newmont historically reported a 56.25% economic interest in Batu Hijau. As a result of higher metal prices, improved operating and financial results, and increased life of mine expectations regarding production, costs and economics, PTNNT’s cumulative losses had been recovered by the fourth quarter of 2004, thereby allowing for the payment of dividends. Under existing shareholder agreements, the Indonesian shareholder will be entitled to receive 6% of any dividends paid by PTNNT until such time as a loan to the Indonesian shareholder is fully repaid (including accrued interest). Newmont, therefore, decreased its economic interest in Batu Hijau to 52.875%, effective October 1, 2004, reflecting 56.25% of the 94% of PTNNT’s dividends payable to the Newmont/Sumitomo partnership.
In Indonesia, rights are granted to foreign investors to explore for and to develop mineral resources within defined areas through Contracts of Work entered into with the Indonesian government. In 1986, PTNNT entered
 
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into a Contract of Work with the Indonesian government covering Batu Hijau, under which PTNNT was granted the exclusive right to explore in the contract area, construct any required facilities, extract and process the mineralized materials, and sell and export the minerals produced, subject to certain requirements including Indonesian government approvals and payment of royalties to the government. Under the Contract of Work, PTNNT has the right to continue operating the project for 30 years from operational start-up, or longer if approved by the Indonesian government.
Under the Contract of Work, beginning in 2005 and continuing through 2010, a portion of the project must be offered for sale to the Indonesian government or 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 the end of 2006; 30% by the end of 2007; 37% by the end of 2008, 44% by the end of 2009; and 51% by the end of 2010. The price at which such interest must 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 Jakarta Stock Exchange, or the fair market value of such interest as a going concern. Pursuant to this provision, it is possible that the ownership interest of the Newmont/Sumitomo partnership in Batu Hijau could be reduced to 49% by the end of 2010.
A company owned by an Indonesian national currently owns a 20% interest in Batu Hijau, and therefore the Newmont/Sumitomo partnership was required to offer a 3% interest for sale in 2006. An offer to sell a 3% interest was made to the government of Indonesia. While the central government declined to participate, local governments in the area in which the mine is located have expressed an interest in acquiring shares, as have various Indonesian nationals. An additional 7% interest in Batu Hijau must be offered for sale in 2007. The Newmont/Sumitomo partnership continues discussions with various interested parties to meet its divestiture obligations.
Ghana
The Ahafo operation (100% owned) is located in the Brong Ahafo Region of Ghana, approximately 180 miles (290 kilometers) northwest of Accra. Ahafo poured its first gold on July 18, 2006 and commenced commercial production in August 2006. Ahafo sold 202,000 ounces of gold in 2006.
Newmont currently operates two open pits at Ahafo with total reserves contained in 15 pits. The process plant consists of a conventional mill and carbon-in-leach circuit. Ahafo reserves as of December 31, 2006, were 12.6 million equity ounces.
In December 2003, Ghana’s Parliament unanimously ratified an Investment Agreement between Newmont and the Government of Ghana. The Agreement establishes a fixed fiscal and legal regime, including fixed royalty and tax rates, for the life of any Newmont project in Ghana. Under the Agreement, Newmont will pay corporate income tax at the Ghana statutory tax rate (presently 25%) not to exceed 32.5% and fixed gross royalties on gold production of 3.0% (3.6% for any production from forest reserve areas). The Government of Ghana is also entitled to receive 10% of a project’s net cash flow after Newmont has recouped its investment and may acquire up to 20% of a project’s equity at fair market value on or after the 15 th anniversary of such project’s commencement of production. The Investment Agreement also contains commitments with respect to job training for local Ghanaians, community development, purchasing of local goods and services and environmental protection.
Newmont has one development project in Ghana, currently the subject of further optimization studies. The Akyem project is approximately 80 miles (125 kilometers) northwest of Accra. As of December 31, 2005, Newmont held an 85% interest in the Akyem project. The remaining 15% was held by Kenbert Mines Limited. In January 2006, Newmont acquired the remaining 15% interest, bringing its ownership to 100% of the Akyem project. In the second half of 2006, the Company deferred further development of Akyem, pending completion of permitting, resolution of country-wide power shortages and further engineering and optimization.
 
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Other Operations
Canada.     During 2006, Newmont’s Canadian operations included two underground mines. Golden Giant (100% owned) is located approximately 25 miles (40 kilometers) east of Marathon in Ontario, Canada, and has been in production since 1985. Mining operations at Golden Giant were completed in December 2005 with remnant mining and milling production continuing throughout most of 2006. In 2006, Golden Giant sold 59,300 ounces of gold. Holloway is located approximately 35 miles (56 kilometers) east of Matheson in Ontario, and about 400 miles (644 kilometers) northeast of Golden Giant, and has been in production since 1996. In 2006, Holloway sold 26,000 ounces of gold. On November 6, 2006, Newmont completed the sale of the Holloway mine to St. Andrews Goldfields Ltd. resulting in a $13 pre-tax gain.
Mexico.     Newmont has a 44% interest in La Herradura, which is located in Mexico’s Sonora desert. La Herradura is operated by Industriales Peñoles (which owns the remaining 56% interest) and comprises an open pit operation with run-of-mine heap leach processing. La Herradura sold 79,200 equity ounces of gold in 2006.
Bolivia.     The Kori Kollo open pit mine is on a high plain in northwestern Bolivia near Oruro, on government mining concessions issued to a Bolivian corporation, Empresa Minera Inti Raymi S.A. (“Inti Raymi”), in which Newmont has an 88% interest. The remaining 12% is owned by Mrs. Beatriz Rocabado. Inti Raymi owns and operates the mine. The mill was closed in October 2003 and production continued from residual leaching. In 2005, additional material from the stockpiles and Lla Llagua pit were placed on the existing leach pad and ore from the Kori Chaca pit was processed on a new leach pad. In 2006, the mine sold 113,300 equity ounces of gold.
Minahasa, Indonesia.     Newmont owns 80% of Minahasa and the remaining 20% interest is a carried interest held by P.T. Tanjung Serapung, an unrelated Indonesian company. Minahasa is located on the island of Sulawesi, approximately 1,500 miles (2,414 kilometers) northeast of Jakarta. Mining was completed in late 2001 and gold production was completed in 2004. See Note 29 to the Consolidated Financial Statements for additional information regarding Minahasa.
 
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 Operating Statistics
The following tables detail operating statistics related to gold production and sales.

 	  	Nevada	 	 	Yanacocha, Peru	 	
Year Ended December 31,	  	2006	 	 	2005	 	 	2004	 	 	2006	 	 	2005	 	 	2004	 	
Tons mined (000 dry short tons):	  				 				 				 				 				 				
Open pit	  	 	191,438	 	 	 	193,565	 	 	 	192,821	 	 	 	217,501	 	 	 	218,933	 	 	 	193,407	 	
Underground	  	 	1,651	 	 	 	1,727	 	 	 	1,683	 	 	 	—	  	 	 	—	  	 	 	—	  	
Tons milled/processed (000 dry short tons):	  				 				 				 				 				 				
Mill	  	 	17,882	 	 	 	15,570	 	 	 	13,610	 	 	 	—	  	 	 	—	  	 	 	—	  	
Leach	  	 	22,138	 	 	 	21,660	 	 	 	17,356	 	 	 	118,511	 	 	 	146,645	 	 	 	133,514	 	
Average ore grade (oz/ton):	  				 				 				 				 				 				
Mill	  	 	0.127	 	 	 	0.157	 	 	 	0.174	 	 	 	—	  	 	 	—	  	 	 	—	  	
Leach	  	 	0.026	 	 	 	0.024	 	 	 	0.029	 	 	 	0.026	 	 	 	0.028	 	 	 	0.025	 	
Average mill recovery rate	  	 	81.1	%	 	 	86.0	%	 	 	88.0	%	 	 	—	  	 	 	—	  	 	 	—	  	
Ounces produced (000):	  				 				 				 				 				 				
Mill	  	 	2,059.3	 	 	 	2,060.8	 	 	 	2,127.9	 	 	 	—	  	 	 	—	  	 	 	—	  	
Leach	  	 	363.8	 	 	 	350.7	 	 	 	332.5	 	 	 	2,612.2	 	 	 	3,333.1	 	 	 	3,017.3	 	
Incremental start-up	  	 	100.3	 	 	 	22.1	 	 	 	—	  	 	 	—	  	 	 	—	  	 	 	—	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	2,523.4	 	 	 	2,433.6	 	 	 	2,460.4	 	 	 	2,612.2	 	 	 	3,333.1	 	 	 	3,017.3	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ounces sold (000)	  	 	2,534.1	 	 	 	2,444.1	 	 	 	2,538.0	 	 	 	2,572.3	 	 	 	3,327.5	 	 	 	3,039.9	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production costs per ounce:	  				 				 				 				 				 				
Direct mining and production costs	  	$	404	 	 	$	346	 	 	$	296	 	 	$	200	 	 	$	150	 	 	$	144	 	
Deferred stripping	  	 	—	  	 	 	(20	)	 	 	(15	)	 	 	—	  	 	 	—	  	 	 	—	  	
By-product credits	  	 	(15	)	 	 	(7	)	 	 	(8	)	 	 	(16	)	 	 	(10	)	 	 	(8	)	
Royalties and production taxes	  	 	9	 	 	 	8	 	 	 	5	 	 	 	4	 	 	 	3	 	 	 	2	 	
Reclamation/accretion expense	  	 	3	 	 	 	2	 	 	 	2	 	 	 	3	 	 	 	2	 	 	 	2	 	
Other	  	 	2	 	 	 	4	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	2	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs applicable to sales	  	 	403	 	 	 	333	 	 	 	282	 	 	 	193	 	 	 	147	 	 	 	142	 	
Depreciation, depletion and amortization	  	 	74	 	 	 	51	 	 	 	50	 	 	 	67	 	 	 	62	 	 	 	65	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total production costs	  	$	477	 	 	$	384	 	 	$	332	 	 	$	260	 	 	$	209	 	 	$	207	 	

																									
 	  	Australia/New Zealand	 	 	Batu Hijau, Indonesia	 	
Year Ended December 31,	  	2006	 	 	2005	 	 	2004	 	 	2006	 	 	2005	 	 	2004	 	
Tons mined (000 dry short tons):	  				 				 				 				 				 				
Open pit	  	 	54,221	 	 	 	60,691	 	 	 	64,083	 	 	 	293,159	 	 	 	225,838	 	 	 	235,455	 	
Underground	  	 	4,225	 	 	 	4,023	 	 	 	4,806	 	 	 	—	  	 	 	—	  	 	 	—	  	
Tons milled (000 dry short tons)	  	 	13,636	 	 	 	15,893	 	 	 	16,702	 	 	 	47,026	 	 	 	50,210	 	 	 	54,243	 	
Average ore grade (oz/ton)	  	 	0.111	 	 	 	0.110	 	 	 	0.117	 	 	 	0.012	 	 	 	0.018	 	 	 	0.016	 	
Average mill recovery rate	  	 	91.6	%	 	 	91.7	%	 	 	92.3	%	 	 	79.5	%	 	 	80.7	%	 	 	80.9	%	
Ounces produced (000)	  	 	1,393.0	 	 	 	1,595.0	 	 	 	1,818.7	 	 	 	447.7	 	 	 	731.8	 	 	 	718.8	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ounces sold (000)	  	 	1,350.1	 	 	 	1,600.5	 	 	 	1,887.6	 	 	 	435.3	 	 	 	720.5	 	 	 	715.2	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production costs per ounce:	  				 				 				 				 				 				
Direct mining and production costs	  	$	361	 	 	$	311	 	 	$	259	 	 	$	203	 	 	$	145	 	 	$	110	 	
Deferred stripping	  	 	—	  	 	 	(5	)	 	 	9	 	 	 	—	  	 	 	1	 	 	 	13	 	
By-product credits	  	 	(10	)	 	 	(8	)	 	 	(5	)	 	 	(9	)	 	 	(5	)	 	 	(4	)	
Royalties and production taxes	  	 	27	 	 	 	13	 	 	 	14	 	 	 	13	 	 	 	9	 	 	 	8	 	
Reclamation/accretion expense	  	 	4	 	 	 	3	 	 	 	3	 	 	 	2	 	 	 	2	 	 	 	1	 	
Other	  	 	2	 	 	 	3	 	 	 	—	  	 	 	—	  	 	 	—	  	 	 	—	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs applicable to sales	  	 	384	 	 	 	317	 	 	 	280	 	 	 	209	 	 	 	152	 	 	 	128	 	
Depreciation, depletion and amortization	  	 	89	 	 	 	74	 	 	 	67	 	 	 	46	 	 	 	47	 	 	 	39	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total production costs	  	$	473	 	 	$	391	 	 	$	347	 	 	$	255	 	 	$	199	 	 	$	167	 	

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 	  	Ahafo, Ghana	 	 	 	  	 	  	 	  	 	  	 	
Year Ended December 31,	  	2006	 	 	 	  	 	  	 	  	 	  	 	
Tons mined (000 dry short tons):	  				 		  		  		  		  		
Open pit	  	 	19,999	 	 		  		  		  		  		
Underground	  	 	—	 	 		  		  		  		  		
Tons milled (000 dry short tons)	  	 	3,515	 	 		  		  		  		  		
Average ore grade: (oz/ton)	  	 	0.065	 	 		  		  		  		  		
Average mill recovery rate	  	 	88.3	%	 		  		  		  		  		
Ounces produced (000)	  	 	202.1	 	 		  		  		  		  		
	  	 	 	 	 		  		  		  		  		
Ounces sold (000)	  	 	202.1	 	 		  		  		  		  		
	  	 	 	 	 		  		  		  		  		
Production costs per ounce:	  				 		  		  		  		  		
Direct mining and production costs	  	$	277	 	 		  		  		  		  		
By-product credits and other	  	 	(1	)	 		  		  		  		  		
Royalties and production taxes	  	 	18	 	 		  		  		  		  		
Reclamation/accretion expense	  	 	1	 	 		  		  		  		  		
Other	  	 	2	 	 		  		  		  		  		
	  	 	 	 	 		  		  		  		  		
Costs applicable to sales	  	 	297	 	 		  		  		  		  		
Depreciation, depletion and amortization	  	 	94	 	 		  		  		  		  		
	  	 	 	 	 		  		  		  		  		
Total production costs	  	$	391	 	 		  		  		  		  		

																									
 	  	Other Operations	 	 	Total Gold	 	
Year Ended December 31,	  	2006	 	 	2005	 	 	2004	 	 	2006	 	 	2005	 	 	2004	 	
Ounces produced (000):	  				 				 				 				 				 				
Mill	  	 	59.2	 	 	 	161.8	 	 	 	328.6	 	 	 	4,161.3	 	 	 	4,549.4	 	 	 	4,994.0	 	
Leach	  	 	208.2	 	 	 	177.6	 	 	 	94.0	 	 	 	3,184.2	 	 	 	3,861.4	 	 	 	3,443.8	 	
Incremental start-up	  	 	—	 	 	 	—	 	 	 	—	 	 	 	100.3	 	 	 	22.1	 	 	 	—	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	267.4	 	 	 	339.4	 	 	 	422.6	 	 	 	7,445.8	 	 	 	8,432.9	 	 	 	8,437.8	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ounces sold (000)	  	 	267.3	 	 	 	336.7	 	 	 	438.1	 	 	 	7,361.2	 	 	 	8,429.3	 	 	 	8,618.8	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production costs per ounce:	  				 				 				 				 				 				
Direct mining and production costs	  	$	214	 	 	$	230	 	 	$	238	 	 	$	302	 	 	$	240	 	 	$	217	 	
Deferred stripping	  	 	—	 	 	 	(8	)	 	 	3	 	 	 	—	 	 	 	(7	)	 	 	(3	)	
By-product credits	  	 	(11	)	 	 	(3	)	 	 	(3	)	 	 	(13	)	 	 	(8	)	 	 	(6	)	
Royalties and production taxes	  	 	—	 	 	 	6	 	 	 	7	 	 	 	10	 	 	 	7	 	 	 	7	 	
Reclamation/accretion expense	  	 	9	 	 	 	6	 	 	 	5	 	 	 	3	 	 	 	2	 	 	 	2	 	
Other	  	 	10	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	3	 	 	 	1	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs applicable to sales	  	 	222	 	 	 	233	 	 	 	252	 	 	 	304	 	 	 	237	 	 	 	218	 	
Depreciation, depletion and amortization	  	 	69	 	 	 	58	 	 	 	84	 	 	 	73	 	 	 	60	 	 	 	60	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total production costs	  	$	291	 	 	$	291	 	 	$	336	 	 	$	377	 	 	$	297	 	 	$	278	 	

26

Table of Contents
The following table details operating statistics related to copper production and sales.

 	  	Batu Hijau, Indonesia	 	
Year Ended December 31,	  	2006	 	 	2005	 	 	2004	 	
Tons milled (000 dry short tons)	  	 	47,026	 	 	 	50,210	 	 	 	54,243	 	
Average copper grade	  	 	0.55	%	 	 	0.69	%	 	 	0.75	%	
Average copper recovery rate	  	 	87.3	%	 	 	86.7	%	 	 	87.8	%	
Copper pounds produced (millions)	  	 	453.7	 	 	 	596.0	 	 	 	716.9	 	
Copper pounds sold (millions)	  	 	434.7	 	 	 	572.7	 	 	 	683.3	 	
				
Production costs per pound:	  				 				 				
Costs applicable to sales	  	$	0.71	 	 	$	0.53	 	 	$	0.45	 	
Depreciation, depletion and amortization	  	 	0.15	 	 	 	0.15	 	 	 	0.13	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total production costs	  	$	0.86	 	 	$	0.68	 	 	$	0.58	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
 Proven and Probable Equity Reserves
Newmont had proven and probable equity gold reserves of 93.9 million ounces as of December 31, 2006. Gold reserves were calculated at a $500, A$675 or NZ$750 per ounce gold price. Newmont’s 2006 reserves would decline by approximately 7%, or 6.7 million ounces, if calculated at a $475 per ounce gold price. An increase in the gold price to $525 per ounce would increase reserves by approximately 5%, or 4.4 million ounces, all other assumptions remaining constant.
As of December 31, 2006, Newmont’s equity gold reserves in Nevada were 33.1 million ounces. Outside of Nevada, year-end equity gold reserves were 60.8 million ounces, including 18.5 million ounces in Australia/New Zealand, 15.1 million ounces in Peru and 20.3 million ounces in Ghana.
Newmont’s equity copper reserves as of December 31, 2006 were 8.0 billion pounds. Copper reserves were calculated at a price of $1.25 or A$1.70 per pound.
Under Newmont’s current mining plans, all reserves are located on fee property or mining claims or will be depleted during the terms of existing mining licenses or concessions, or where applicable, any assured renewal or extension periods for the licenses or concessions.
Proven and probable equity reserves are based on extensive drilling, sampling, mine modeling and metallurgical testing from which economic feasibility has been determined. The price sensitivity of reserves depends upon several factors including grade, metallurgical recovery, operating cost, waste-to-ore ratio and ore type. Metallurgical recovery rates vary depending on the metallurgical properties of each deposit and the production process used. The reserve tables below list the average metallurgical recovery rate for each deposit, which takes into account the several different processing methods to be used. The cut-off grade, or lowest grade of mineralized material considered economic to process, varies with material type, metallurgical recoveries and operating costs.
The proven and probable equity reserve figures presented herein are estimates based on information available at the time of calculation. No assurance can be given that the indicated levels of recovery of gold and copper will be realized. Ounces of gold or pounds of copper in the proven and probable reserves are calculated without regard to any losses during metallurgical treatment. Reserve estimates may require revision based on actual production experience. Market price fluctuations of gold and copper, as well as increased production costs or reduced metallurgical recovery rates, could render proven and probable reserves containing relatively lower grades of mineralization uneconomic to exploit and might result in a reduction of reserves.
Reserves are published once each year and will be recalculated as of December 31, 2007, taking into account metal prices, divestments and depletion as well as any acquisitions and additions to reserves during 2007.
 
27

Table of Contents
The following tables detail gold proven and probable equity reserves (1) reflecting only those reserves owned by Newmont on December 31, 2006 and 2005:

 	 	December 31, 2006	 	
 	 	 	 	 	Proven Reserves	 	Probable Reserves	 	Proven and Probable Reserves	 	 	 	
Deposits/Districts	 	Newmont
Share	 	 	Tonnage (2)
 (000)	 	Grade
(oz/ton)	 	Ounces (3)
 (000)	 	Tonnage (2)
 (000)	 	Grade
(oz/ton)	 	Ounces (3)
 (000)	 	Tonnage (2)
 (000)	 	Grade
(oz/ton)	 	Ounces (3)
 (000)	 	Metallurgical
Recovery (3)	 	
Nevada (4)	 			 		 		 		 		 		 		 		 		 		 			
Carlin Open Pit (5)	 	100	%	 	25,900	 	0.069	 	1,780	 	245,700	 	0.040	 	9,750	 	271,600	 	0.042	 	11,530	 	74	%	
Carlin Underground	 	100	%	 	1,700	 	0.44	 	750	 	5,700	 	0.44	 	2,510	 	7,400	 	0.44	 	3,260	 	94	%	
Midas (6)	 	100	%	 	600	 	0.58	 	350	 	600	 	0.35	 	200	 	1,200	 	0.47	 	550	 	95	%	
Phoenix	 	100	%	 	—	 	—	 	—	 	295,200	 	0.027	 	8,080	 	295,200	 	0.027	 	8,080	 	75	%	
Turquoise Ridge (7)	 	25	%	 	1,200	 	0.54	 	640	 	900	 	0.54	 	510	 	2,100	 	0.54	 	1,150	 	90	%	
Twin Creeks	 	100	%	 	15,500	 	0.084	 	1,300	 	49,300	 	0.075	 	3,680	 	64,800	 	0.077	 	4,980	 	81	%	
Nevada In-Process (8)	 	100	%	 	45,600	 	0.024	 	1,120	 	––	 	––	 	––	 	45,600	 	0.024	 	1,120	 	66	%	
Nevada Stockpiles (9)	 	100	%	 	29,100	 	0.080	 	2,330	 	2,500	 	0.045	 	110	 	31,600	 	0.077	 	2,440	 	76	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
	 			 	119,600	 	0.069	 	8,270	 	599,900	 	0.041	 	24,840	 	719,500	 	0.046	 	33,110	 	78	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
Yanacocha, Peru	 			 		 		 		 		 		 		 		 		 		 			
Conga (10)	 	51.35	%	 	—	 	—	 	—	 	317,200	 	0.019	 	6,080	 	317,200	 	0.019	 	6,080	 	79	%	
Yanacocha In-Process (8)(11)	 	51.35	%	 	24,000	 	0.028	 	670	 	—	 	—	 	—	 	24,000	 	0.028	 	670	 	71	%	
Yanacocha Open Pits (11)	 	51.35	%	 	28,500	 	0.020	 	560	 	249,300	 	0.031	 	7,750	 	277,800	 	0.030	 	8,310	 	68	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
	 			 	52,500	 	0.023	 	1,230	 	566,500	 	0.024	 	13,830	 	619,000	 	0.024	 	15,060	 	73	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
Australia/New Zealand	 			 		 		 		 		 		 		 		 		 		 			
Boddington, Western Australia (12)	 	66.67	%	 	100,800	 	0.027	 	2,760	 	276,900	 	0.023	 	6,330	 	377,700	 	0.024	 	9,090	 	82	%	
Jundee, Western Australia (13)	 	100	%	 	2,500	 	0.086	 	220	 	4,400	 	0.29	 	1,260	 	6,900	 	0.21	 	1,480	 	93	%	
Kalgoorlie Open Pits and Underground	 	50	%	 	34,500	 	0.061	 	2,120	 	40,100	 	0.064	 	2,550	 	74,600	 	0.063	 	4,670	 	86	%	
Kalgoorlie Stockpiles (9)	 	50	%	 	13,100	 	0.032	 	420	 	—	 	—	 	—	 	13,100	 	0.032	 	420	 	79	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
Total Kalgoorlie, Western Australia (14)	 	50	%	 	47,600	 	0.053	 	2,540	 	40,100	 	0.064	 	2,550	 	87,700	 	0.058	 	5,090	 	85	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
Pajingo, Queensland (15)	 	100	%	 	600	 	0.31	 	170	 	700	 	0.17	 	130	 	1,300	 	0.23	 	300	 	96	%	
Tanami Underground and Open Pits	 	100	%	 	5,100	 	0.16	 	800	 	7,100	 	0.15	 	1,060	 	12,200	 	0.15	 	1,860	 	95	%	
Tanami Stockpiles (9)	 	100	%	 	400	 	0.084	 	40	 	2,600	 	0.032	 	80	 	3,000	 	0.039	 	120	 	95	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
Total Tanami, Northern Territory (16)	 	100	%	 	5,500	 	0.15	 	840	 	9,700	 	0.12	 	1,140	 	15,200	 	0.13	 	1,980	 	95	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
Martha, New Zealand (17)	 	100	%	 	—	 	—	 	—	 	4,100	 	0.14	 	560	 	4,100	 	0.14	 	560	 	90	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
	 			 	157,000	 	0.042	 	6,530	 	335,900	 	0.036	 	11,970	 	492,900	 	0.038	 	18,500	 	86	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
Batu Hijau, Indonesia	 			 		 		 		 		 		 		 		 		 		 			
Batu Hijau Open Pit (18)	 	52.875	%	 	106,100	 	0.015	 	1,540	 	266,100	 	0.011	 	2,960	 	372,200	 	0.012	 	4,500	 	80	%	
Batu Hijau Stockpiles (9)   (18)	 	52.875	%	 	—	 	—	 	—	 	145,800	 	0.004	 	540	 	145,800	 	0.004	 	540	 	67	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
	 			 	106,100	 	0.015	 	1,540	 	411,900	 	0.009	 	3,500	 	518,000	 	0.010	 	5,040	 	79	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
Ghana	 			 		 		 		 		 		 		 		 		 		 			
Ahafo (19)	 	100	%	 	—	 	—	 	—	 	163,800	 	0.078	 	12,620	 	163,800	 	0.078	 	12,620	 	87	%	
Akyem (20)	 	100	%	 	—	 	—	 	—	 	147,200	 	0.052	 	7,660	 	147,200	 	0.052	 	7,660	 	89	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
	 			 	—	 	—	 	—	 	311,000	 	0.065	 	20,280	 	311,000	 	0.065	 	20,280	 	88	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
Other Operations	 			 		 		 		 		 		 		 		 		 		 			
Kori Kollo, Bolivia (21)	 	88	%	 	20,300	 	0.004	 	80	 	21,500	 	0.018	 	390	 	41,800	 	0.011	 	470	 	61	%	
La Herradura, Mexico (22)	 	44	%	 	27,000	 	0.020	 	540	 	37,500	 	0.023	 	850	 	64,500	 	0.022	 	1,390	 	66	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
	 			 	47,300	 	0.013	 	620	 	59,000	 	0.021	 	1,240	 	106,300	 	0.017	 	1,860	 	65	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
Total Gold	 			 	482,500	 	0.038	 	18,190	 	2,284,200	 	0.033	 	75,660	 	2,766,700	 	0.034	 	93,850	 	81	%	

28

Table of Contents

 	 	December 31, 2005	 	
 	 	 	 	 	Proven Reserves	 	Probable Reserves	 	Proven and Probable Reserves	 	 	 	
Deposits/Districts	 	Newmont
Share	 	 	Tonnage (2)
 (000)	 	Grade
(oz/ton)	 	Ounces (3)
 (000)	 	Tonnage (2)
 (000)	 	Grade
(oz/ton)	 	Ounces (3)
 (000)	 	Tonnage (2)
 (000)	 	Grade
(oz/ton)	 	Ounces (3)
 (000)	 	Metallurgical
Recovery (3)	 	
Nevada	 			 		 		 		 		 		 		 		 		 		 			
Carlin Open Pit	 	100	%	 	21,000	 	0.072	 	1,520	 	217,300	 	0.041	 	8,810	 	238,300	 	0.043	 	10,330	 	72	%	
Carlin Underground	 	100	%	 	1,700	 	0.53	 	900	 	6,000	 	0.47	 	2,850	 	7,700	 	0.49	 	3,750	 	94	%	
Lone Tree Complex (23)	 	100	%	 	800	 	0.096	 	70	 	3,200	 	0.076	 	250	 	4,000	 	0.080	 	320	 	80	%	
Midas	 	100	%	 	600	 	0.67	 	430	 	900	 	0.52	 	470	 	1,500	 	0.58	 	900	 	95	%	
Phoenix	 	100	%	 	—	 	—	 	—	 	308,400	 	0.029	 	8,950	 	308,400	 	0.029	 	8,950	 	81	%	
Turquoise Ridge (7)	 	25	%	 	1,100	 	0.56	 	620	 	800	 	0.57	 	480	 	1,900	 	0.56	 	1,100	 	90	%	
Twin Creeks	 	100	%	 	14,800	 	0.081	 	1,200	 	46,400	 	0.072	 	3,320	 	61,200	 	0.074	 	4,520	 	82	%	
Nevada In-Process (8)	 	100	%	 	46,800	 	0.021	 	1,000	 	2,100	 	0.067	 	140	 	48,900	 	0.023	 	1,140	 	65	%	
Nevada Stockpiles (9)	 	100	%	 	22,600	 	0.089	 	2,010	 	4,800	 	0.053	 	250	 	27,400	 	0.083	 	2,260	 	80	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
	 			 	109,400	 	0.071	 	7,750	 	589,900	 	0.043	 	25,520	 	699,300	 	0.048	 	33,270	 	80	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
Yanacocha, Peru	 			 		 		 		 		 		 		 		 		 		 			
Conga	 	51.35	%	 	—	 	—	 	—	 	317,200	 	0.019	 	6,080	 	317,200	 	0.019	 	6,080	 	79	%	
Yanacocha In-Process (8)	 	51.35	%	 	34,700	 	0.028	 	970	 	—	 	—	 	—	 	34,700	 	0.028	 	970	 	70	%	
Yanacocha Open Pits	 	51.35	%	 	30,900	 	0.024	 	740	 	263,600	 	0.034	 	8,960	 	294,500	 	0.033	 	9,700	 	69	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
	 			 	65,600	 	0.026	 	1,710	 	580,800	 	0.026	 	15,040	 	646,400	 	0.026	 	16,750	 	73	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
Australia/New Zealand	 			 		 		 		 		 		 		 		 		 		 			
Boddington, Western Australia	 	44.44	%	 	60,600	 	0.029	 	1,780	 	136,800	 	0.025	 	3,380	 	197,400	 	0.026	 	5,160	 	82	%	
Jundee, Western Australia	 	100	%	 	2,900	 	0.060	 	170	 	3,700	 	0.36	 	1,360	 	6,600	 	0.23	 	1,530	 	93	%	
Kalgoorlie Open Pits and Underground	 	50	%	 	32,900	 	0.060	 	1,980	 	39,400	 	0.063	 	2,500	 	72,300	 	0.062	 	4,480	 	88	%	
Kalgoorlie Stockpiles (9)	 	50	%	 	12,600	 	0.033	 	420	 	—	 	—	 	—	 	12,600	 	0.033	 	420	 	88	%	
Total Kalgoorlie, Western Australia (24)	 	50	%	 	45,500	 	0.053	 	2,400	 	39,400	 	0.063	 	2,500	 	84,900	 	0.058	 	4,900	 	88	%	
Pajingo, Queensland	 	100	%	 	400	 	0.41	 	150	 	1,200	 	0.25	 	300	 	1,600	 	0.29	 	450	 	97	%	
Tanami Underground and Open Pits	 	100	%	 	5,400	 	0.17	 	890	 	8,100	 	0.16	 	1,330	 	13,500	 	0.16	 	2,220	 	95	%	
Tanami Stockpiles (9)	 	100	%	 	400	 	0.074	 	30	 	2,200	 	0.037	 	80	 	2,600	 	0.043	 	110	 	95	%	
Total Tanami, Northern Territory	 	100	%	 	5,800	 	0.16	 	920	 	10,300	 	0.14	 	1,410	 	16,100	 	0.15	 	2,330	 	95	%	
Martha, New Zealand	 	100	%	 	—	 	—	 	—	 	3,500	 	0.16	 	570	 	3,500	 	0.16	 	570	 	91	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
	 			 	115,200	 	0.047	 	5,420	 	194,900	 	0.049	 	9,520	 	310,100	 	0.048	 	14,940	 	88	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
Batu Hijau, Indonesia	 			 		 		 		 		 		 		 		 		 		 			
Batu Hijau Open Pit (18)	 	52.875	%	 	147,600	 	0.012	 	1,770	 	446,500	 	0.010	 	4,540	 	594,100	 	0.011	 	6,310	 	80	%	
Batu Hijau Stockpiles (9)(18 )	 	52.875	%	 	—	 	—	 	—	 	103,900	 	0.003	 	340	 	103,900	 	0.003	 	340	 	69	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
	 			 	147,600	 	0.012	 	1,770	 	550,400	 	0.009	 	4,880	 	698,000	 	0.010	 	6,650	 	80	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
Ghana	 			 		 		 		 		 		 		 		 		 		 			
Ahafo	 	100	%	 	—	 	—	 	—	 	156,900	 	0.078	 	12,190	 	156,900	 	0.078	 	12,190	 	88	%	
Akyem	 	85	%	 	—	 	—	 	—	 	125,100	 	0.052	 	6,510	 	125,100	 	0.052	 	6,510	 	89	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
	 			 	—	 	—	 	—	 	282,000	 	0.066	 	18,700	 	282,000	 	0.066	 	18,700	 	88	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
Other Operations	 			 		 		 		 		 		 		 		 		 		 			
Holloway, Ontario (25)	 	100	%	 	50	 	0.17	 	10	 	100	 	0.20	 	20	 	150	 	0.19	 	30	 	90	%	
Kori Kollo, Bolivia	 	88	%	 	12,600	 	0.010	 	120	 	16,200	 	0.019	 	320	 	28,800	 	0.015	 	440	 	63	%	
La Herradura, Mexico	 	44	%	 	18,100	 	0.021	 	380	 	16,800	 	0.023	 	390	 	34,900	 	0.022	 	770	 	66	%	
Zarafshan,
Uzbekistan (26)  	 	50	%	 	46,700	 	0.036	 	1,690	 	—	 	—	 	—	 	46,700	 	0.036	 	1,690	 	56	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
	 			 	77,450	 	0.028	 	2,200	 	33,100	 	0.022	 	730	 	110,550	 	0.027	 	2,930	 	60	%	
	 			 	 	 		 	 	 	 	 		 	 	 	 	 		 	 	 			
Total Gold	 			 	515,250	 	0.037	 	18,850	 	2,231,100	 	0.033	 	74,390	 	2,746,350	 	0.034	 	93,240	 	81	%	

(1)	The term “reserve” means that part of a mineral deposit that can be economically and legally extracted or produced at the time of the reserve determination.	
The term “economically,” as used in the definition of reserve, means that profitable extraction or production has been established or analytically demonstrated in a full feasibility study to be viable and justifiable under reasonable investment and market assumptions.
The term “legally,” as used in the definition of reserve, does not imply that all permits needed for mining and processing have been obtained or that other legal issues have been completely resolved. However, for a reserve to exist, Newmont must have a justifiable
 
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expectation, based on applicable laws and regulations, that issuance of permits or resolution of legal issues necessary for mining and processing at a particular deposit will be accomplished in the ordinary course and in a timeframe consistent with Newmont’s current mine plans.
The term “proven reserves” means reserves for which (a) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes; (b) grade and/or quality are computed from the results of detailed sampling; and (c) the sites for inspection, sampling and measurements are spaced so closely and the geologic character is sufficiently defined that size, shape, depth and mineral content of reserves are well established.
The term “probable reserves” means reserves for which quantity and grade are computed from information similar to that used for proven reserves, but the sites for sampling are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven reserves, is high enough to assume continuity between points of observation.
Proven and probable equity reserves were calculated using different cut-off grades. The term “cut-off grade” means the lowest grade of mineralized material that can be included in the reserves in a given deposit. Cut-off grades vary between deposits depending upon prevailing economic conditions, mineability of the deposit, amenability of the ore to gold extraction, and type of milling or leaching facilities available.
2006 reserves were calculated at a $500, A$675 or NZ$750 per ounce gold price unless otherwise noted.
2005 reserves were calculated at a $400, A$550 or NZ$650 per ounce gold price unless otherwise noted.
(2)	Tonnages include allowances for losses resulting from mining methods. Tonnages are rounded to the nearest 100,000.	

(3)	Ounces or pounds are estimates of metal contained in ore tonnages and do not include allowances for processing losses. Metallurgical recovery rates represent the estimated amount of metal to be recovered through metallurgical extraction processes. Ounces are rounded to the nearest 10,000.	

(4)	Cut-off grades utilized in Nevada 2006 reserves were as follows: oxide leach material not less than 0.006 ounce per ton; oxide mill material not less than 0.040 ounce per ton; refractory leach material not less than 0.028 ounce per ton; and refractory mill material not less than 0.051 ounce per ton.	

(5)	Includes undeveloped reserves at Castle Reef, North Lantern and Emigrant deposits for combined total undeveloped reserves of 1.8 million ounces.	

(6)	Also contains reserves of 6.8 million ounces of silver with a metallurgical recovery of 90%.	

(7)	Reserve estimates provided by Barrick, the operator of the Turquoise Ridge Joint Venture. Barrick estimated 2006 reserves using a $475 per ounce gold price.	

(8)	In-process material is that material on leach pads at the end of the year from which gold remains to be recovered. In-process material is reported separately where tonnage or contained ounces are greater than 5% of the total site-reported reserves and contained ounces are greater than 100,000.	

(9)	Stockpiles are comprised primarily of material that has been set aside to allow processing of higher grade material in the mills. Stockpiles increase or decrease depending on current mine plans. Stockpile reserves are reported separately where tonnage or contained ounces are greater than 5% of the total site-reported reserves and contained ounces are greater than 100,000.	

(10)	Deposit is currently undeveloped. Cut-off grade utilized in 2006 reserves not less than 0.009 ounce per ton.	

(11)	Reserves include currently undeveloped deposits at Corimayo and Chaquicocha Sur, which contain combined undeveloped reserves of 3.2 million equity ounces. Cut-off grades utilized in 2006 reserves were as follows: oxide leach material not less than 0.004 ounce per ton; and oxide mill material not less than 0.035 ounce per ton.	

(12)	Deposit is currently in development. Newmont acquired an additional 22.22% equity interest during 2006, bringing Newmont's equity ownership to 66.67%. Cut-off grade utilized in 2006 reserves not less than 0.010 ounce per ton.	

(13)	Cut-off grade utilized in 2006 reserves not less than 0.018 ounce per ton.	

(14)	Cut-off grade utilized in 2006 reserves not less than 0.023 ounce per ton.	

(15)	Cut-off grade utilized in 2006 reserves not less than 0.018 ounce per ton.	

(16)	Cut-off grade utilized in 2006 reserves not less than 0.031 ounce per ton.	

(17)	Includes partially developed reserves at the Favona deposit containing 320,000 ounces. Cut-off grade utilized in 2006 reserves not less than 0.029 ounce per ton.	

(18)	Percentage reflects Newmont’s economic interest in remaining reserves. Cut-off grade utilized in 2006 reserves not less than 0.011 ounce per ton.	

(19)	Deposits are partially developed and milling operations began in 2006. Includes undeveloped reserves totaling 6.4 million ounces. Cut-off grade utilized in 2006 reserves not less than 0.019 ounce per ton.	

(20)	Deposit is currently undeveloped. Cut-off grade utilized in 2006 reserves not less than 0.012 ounce per ton. Newmont acquired an additional 15% equity interest during 2006, bringing Newmont’s equity ownership to 100%.	

(21)	Cut-off grade utilized in 2006 reserves not less than 0.007 ounce per ton.	

(22)	Cut-off grade utilized in 2006 reserves not less than 0.009 ounce per ton.	

(23)	The Lone Tree deposit was mined out in 2006. Processing of stockpiles and residual leaching is ongoing.	

(24)	Reserves were calculated at a gold price of A$560 per ounce.	

(25)	Mine was closed in April 2006 and remaining assets were sold in November 2006.	

(26)	See Item 1A, Risk Factors, Risks Related to Newmont Operations, above.	
 
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The following tables detail copper proven and probable equity reserves (1) reflecting only those reserves owned by Newmont on December 31, 2006 and 2005:

 	 	December 31, 2006	 	
 	 	 	 	 	Proven Reserves	 	Probable Reserves	 	Proven and Probable
Reserves	 	 	 	
Deposits/Districts	 	Newmont
Share	 	 	Tonnage (2)
 (000)	 	Grade
(Cu %)	 	 	Pounds (3)
(millions)	 	Tonnage (2)
 (000)	 	Grade
(Cu %)	 	 	Pounds (3)
(millions)	 	Tonnage (2)
 (000)	 	Grade
(Cu %)	 	 	Pounds (3)
(millions)	 	Metallurgical
Recovery (3)	 	
Batu Hijau Open Pit (4)	 	52.875	%	 	106,100	 	0.53	%	 	1,120	 	266,100	 	0.47	%	 	2,530	 	372,200	 	0.49	%	 	3,650	 	85	%	
Batu Hijau, Stockpiles (4)(5)  	 	52.875	%	 	—	 	—	 	 	—	 	145,800	 	0.37	%	 	1,070	 	145,800	 	0.37	%	 	1,070	 	72	%	
	 			 	 	 			 	 	 	 	 			 	 	 	 	 			 	 	 			
Total Batu Hijau, Indonesia (4)	 	52.875	%	 	106,100	 	0.53	%	 	1,120	 	411,900	 	0.44	%	 	3,600	 	518,000	 	0.46	%	 	4,720	 	82	%	
	 			 	 	 			 	 	 	 	 			 	 	 	 	 			 	 	 			
Boddington, Western Australia (6)	 	66.67	%	 	100,800	 	0.11	%	 	230	 	276,600	 	0.11	%	 	610	 	377,400	 	0.11	%	 	840	 	83	%	
Conga, Peru (7)  	 	51.35	%	 	—	 	—	 	 	—	 	317,200	 	0.26	%	 	1,660	 	317,200	 	0.26	%	 	1,660	 	85	%	
Phoenix, Nevada	 	100	%	 	—	 	—	 	 	—	 	296,600	 	0.13	%	 	770	 	296,600	 	0.13	%	 	770	 	65	%	
	 			 	 	 			 	 	 	 	 			 	 	 	 	 			 	 	 			
Total Copper	 			 	206,900	 	0.33	%	 	1,350	 	1,302,300	 	0.25	%	 	6,640	 	1,509,200	 	0.26	%	 	7,990	 	81	%	

 	 	December 31, 2005	 	
 	 	 	 	 	Proven Reserves	 	Probable Reserves	 	Proven and Probable
Reserves	 	 	 	
Deposits/Districts	 	Newmont
Share	 	 	Tonnage (2)
 (000)	 	Grade
(Cu %)	 	 	Pounds (3)
(millions)	 	Tonnage (2)
 (000)	 	Grade
(Cu %)	 	 	Pounds (3)
(millions)	 	Tonnage (2)
 (000)	 	Grade
(Cu %)	 	 	Pounds (3)
(millions)	 	Metallurgical
Recovery (3)	 	
Batu Hijau Open Pit (4)	 	52.875	%	 	147,600	 	0.47	%	 	1,390	 	446,500	 	0.44	%	 	3,920	 	594,100	 	0.45	%	 	5,310	 	83	%	
Batu Hijau, Stockpiles (4) (5)  	 	52.875	%	 	—	 	—	 	 	—	 	103,900	 	0.36	%	 	750	 	103,900	 	0.36	%	 	750	 	70	%	
	 			 	 	 			 	 	 	 	 			 	 	 	 	 			 	 	 			
Total Batu Hijau, Indonesia (4)	 	52.875	%	 	147,600	 	0.47	%	 	1,390	 	550,400	 	0.42	%	 	4,670	 	698,000	 	0.43	%	 	6,060	 	81	%	
	 			 	 	 			 	 	 	 	 			 	 	 	 	 			 	 	 			
Boddington, Western Australia	 	44.44	%	 	60,600	 	0.12	%	 	140	 	136,600	 	0.12	%	 	340	 	197,200	 	0.12	%	 	480	 	83	%	
	 			 	 	 			 	 	 	 	 			 	 	 	 	 			 	 	 			
Conga, Peru 	 	51.35	%	 	—	 	—	 	 	—	 	317,200	 	0.26	%	 	1,660	 	317,200	 	0.26	%	 	1,660	 	85	%	
Phoenix, Nevada	 	100	%	 	—	 	—	 	 	—	 	309,900	 	0.15	%	 	900	 	309,900	 	0.15	%	 	900	 	67	%	
	 			 	 	 			 	 	 	 	 			 	 	 	 	 			 	 	 			
Total Copper	 			 	208,200	 	0.37	%	 	1,530	 	1,314,100	 	0.29	%	 	7,570	 	1,522,300	 	0.30	%	 	9,100	 	81	%	

(1)	See footnote (1) to the Gold Proven and Probable Equity Reserves tables above. Copper reserves for 2006 were calculated at a $1.25 or A$1.70 per pound copper price. Copper reserves for 2005 were calculated at a $1.00 or A$1.43 per pound copper price.	

(2)	See footnote (2) to the Gold Proven and Probable Equity Reserves tables above. Tonnages are rounded to nearest 100,000.	

(3)	See footnote (3) to the Gold Proven and Probable Equity Reserves tables above. Pounds are rounded to the nearest 10 million.	

(4)	Percentage reflects Newmont’s economic interest in remaining reserves.	

(5)	Stockpiles are comprised primarily of material that has been set aside to allow processing of higher grade material in the mills. Stockpiles increase or decrease depending on current mine plans. Stockpiles are reported separately where tonnage or contained metal are greater than 5% of the total site reported reserves.	

(6)	Deposit is currently in development. Newmont acquired an additional 22.22% equity interest during 2006, bringing Newmont’s equity ownership to 66.67%.	

(7)	Deposit is undeveloped.	
 
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The following table reconciles year-end 2006 and 2005 gold proven and probable equity reserves:

 	  	Newmont Equity
Contained Ounces	 	
 	  	(in millions)	 	
December 31, 2005	  	93.2	 	
Depletion (1)	  	(7.4	)	
Divestments/Other (2)	  	(1.5	)	
Acquisitions (3)	  	3.7	 	
Revisions and Additions (4)	  	5.9	 	
	  	 	 	
December 31, 2006	  	93.9	 	

(1)	Reserves mined and processed in 2006.	

(2)	Expropriation of Newmont's equity ownership of Zarafshan by the Republic of Uzbekistan. See Item 1A, Risk Factors, Risks Related to Newmont Operations, above.	

(3)	Includes increase in Newmont’s equity ownership of Boddington from 44.44% to 66.67% and in Akyem from 85% to 100%.	

(4)	Revisions and additions are due to reserve conversions, optimizations, model updates, metal price changes and updated unit costs and recoveries.	
 
 ITEM 3.	LEGAL PROCEEDINGS	
For a discussion of legal proceedings, see Note 29 to the Consolidated Financial Statements.
 
 ITEM 4.	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS	
No matters were submitted to a vote of security holders, through the solicitation of proxies or otherwise, during the quarter ended December 31, 2006.
 
 ITEM 4A.	EXECUTIVE OFFICERS OF THE REGISTRANT	
Newmont’s executive officers as of February 12, 2007 were:

Name	  	Age	  	Office	
Wayne W. Murdy	  	62	  	Chairman and Chief Executive Officer	
Britt D. Banks	  	45	  	Executive Vice President, Legal and External Affairs	
Thomas L. Enos	  	55	  	Executive Vice President, Operations	
David Harquail	  	50	  	Executive Vice President, Exploration and Business Development	
Richard T. O’Brien	  	52	  	Executive Vice President and Chief Financial Officer	
Russell Ball	  	38	  	Vice President and Controller	
Robert J. Gallagher	  	55	  	Vice President, Asia-Pacific Operations	
David Gutierrez	  	52	  	Vice President, Tax	
Brant Hinze	  	51	  	Vice President, North American Operations	
Thomas P. Mahoney	  	51	  	Vice President and Treasurer	
Carlos Santa Cruz	  	51	  	Vice President, South American Operations	
William M. Zisch	  	49	  	Vice President, African Operations	
There are no family relationships by blood, marriage or adoption among any of the above executive officers of Newmont. All executive officers are elected annually by the Board of Directors of Newmont to serve for one year or until his respective successor is elected and qualified. There is no arrangement or understanding between any of the above executive officers and any other person pursuant to which he was selected as an executive officer.
Mr. Murdy has been Chairman of the Board of Newmont since January 2002 and Chief Executive Officer thereof since January 2001. Mr. Murdy was President of Newmont from July 1999 to February 2002. He served
 
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as Executive Vice President and Chief Financial Officer from July 1996 to July 1999, and Senior Vice President and Chief Financial Officer from December 1992 to July 1996. Mr. Murdy was elected to the Board of Directors of Newmont in September 1999.
Mr. Banks was elected Executive Vice President Legal and Public Affairs, in September 2006. He previously served as Senior Vice President and General Counsel from April 2005 to September 2006; Vice President and General Counsel from May 2001 to April 2005; Secretary from April 2001 to April 2004; and Associate General Counsel from July 1996 to May 2001.
Mr. Enos was elected Executive Vice President, Operations, in September 2006. He previously served as Senior Vice President, Operations from October 2005 to September 2006; Senior Vice President, International Operations, from March 2005 to October 2005; Vice President, International Operations, from December 2002 to March 2005; Vice President of Newmont and Managing Director of Newmont Indonesia Limited from May 2002 to November 2002; and Vice President, Indonesian Operations from July 1998 to May 2002.
Mr. Harquail was elected Executive Vice President, Exploration and Business Development in September 2006, having served as Vice President, Merchant Banking from April 2004 to September 2006; President and Managing Director of Newmont Capital Limited since May 2002 and Vice President of Newmont since September 2003. Previously, he served as Senior Vice President of Franco-Nevada Mining Corporation Limited from May 1998 to February 2002.
Mr. O'Brien was elected Executive Vice President and Chief Financial Officer in September 2006, having served as Senior Vice President and Chief Financial Officer since September 2005. Mr. O'Brien was Executive Vice President and Chief Financial Officer of AGL Resources from April 2001 to September 2005 and Vice President of Mirant Corporation from March 2000 to April 2001.
Mr. Ball was elected Vice President and Controller of Newmont in August 2004. Previously, he served as Group Executive, Investor Relations, May 2002 to August 2004 and Finance Director, Indonesia, from June 2001 to April 2002.
Mr. Gallagher was named Vice President, Asia-Pacific Operations, in January 2006. He served as Vice President, Indonesia Operations, from April 2004 to January 2006; Managing Director, Newmont Indonesia Limited from November 2002 to April 2004; General Manager of Newmont's Batu Hijau operations in Indonesia from April 2001 to November 2002; and Director of Operations thereof from August 2000 to April 2001.
Mr. Gutierrez was named Vice President, Tax, in December 2005. Prior to joining Newmont, he was a partner with KPMG LLP from June 2002 to December 2005, serving as the Denver office Tax Managing Partner from September 2003 to December 2005. Prior to that he was a partner with Arthur Andersen LLP, serving as the Tax Managing Partner of the Denver office from September 1997 to June 2002.
Mr. Hinze was elected Vice President, North American Operations, in October 2005. He previously served as General Manager of the Minera Yanacocha operations in Peru from April 2003 to October 2005 and managed Newmont's Minahasa and Martabe projects in Indonesia from January 2001 to December 2002.
Mr. Mahoney was elected Vice President and Treasurer of Newmont in May 2002. He served as Treasurer of Newmont from May 2001 to May 2002. Previously, he served as Assistant Treasurer from March 1997 to May 2001.
Mr. Santa Cruz has served as Vice President, South American Operations, of Newmont since August 2001. He served as General Manager of Minera Yanacocha S.R.L. from 1997 to 2001.
Mr. Zisch has served as Vice President, African Operations since October 2005. He previously served as Group Executive, African Operations, from October 2003 to October 2005; and Operations Manager of the Minera Yanacocha operations in Peru from January 2001 to October 2003.
 
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PART II
 
 ITEM 5.	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASE OF EQUITY SECURITIES	
Newmont’s common stock is listed and principally traded on the New York Stock Exchange (under the symbol “NEM”) and is also listed in the form of CHESS Depositary Interests (“CDIs”) (under the symbol “NEM”) on the Australian Stock Exchange (“ASX”). In Australia, Newmont is referred to as “Newmont Mining Corporation ARBN 099 065 997 organized in Delaware with limited liability.” Since July 1, 2002, Newmont CDIs have traded on the ASX as a Foreign Exempt Listing granted by the ASX, which provides an ancillary trading facility to Newmont’s primary listing on NYSE. Newmont Mining Corporation of Canada Limited’s exchangeable shares (“Exchangeable Shares”) are listed on the Toronto Stock Exchange (under the symbol “NMC”). The Exchangeable Shares were issued in connection with the acquisition of Franco-Nevada. The following table sets forth, for the periods indicated, the high and low sales prices per share of Newmont’s common stock as reported on the New York Stock Exchange Composite Tape.

 	  	2006	  	2005	
 	  	High	  	Low	  	High	  	Low	
First quarter	  	$	61.95	  	$	47.79	  	$	46.24	  	$	40.40	
Second quarter	  	$	58.43	  	$	47.72	  	$	42.45	  	$	35.10	
Third quarter	  	$	55.52	  	$	42.75	  	$	48.05	  	$	36.86	
Fourth quarter	  	$	47.57	  	$	40.83	  	$	53.69	  	$	42.51	
On February 12, 2007, there were outstanding 423,519,644 shares of Newmont’s common stock (including shares represented by CDIs), which were held by approximately 16,413 stockholders of record. A dividend of $0.10 per share of common stock outstanding was declared in each quarter of 2006 and 2005, for a total of $0.40 during each year.
On February 12, 2007, there were outstanding 27,157,953 Exchangeable Shares, which were held by 48 holders of record. The Exchangeable Shares are exchangeable at the option of the holders into Newmont common stock. Holders of Exchangeable Shares are therefore entitled to receive dividends equivalent to those that Newmont declares on its common stock.
The determination of the amount of future dividends will be made by Newmont’s Board of Directors from time to time and will depend on Newmont’s future earnings, capital requirements, financial condition and other relevant factors.
Issuer purchase of equity securities:

Period	  	(a)
Total
Number
of Shares
Purchased	 	 	(b)
Average
Price Paid
Per Share	  	(c)
Total Number of
Shares Purchased as
Part of Publicly
Announced Plans or
Programs	  	(d)
Maximum Number (or
Approximate Dollar Value) of
Shares that may yet be
Purchased under the Plans or
Programs	
October 1, 2006 through October 31, 2006	  	3,289	(1)(2)	 	$	48.26	  	—	  	N/A	
November 1, 2006 through November 30, 2006	  	—	 	 	$	—	  	—	  	N/A	
December 1, 2006 through December 31, 2006	  	386	(1)	 	$	47.01	  	—	  	N/A	

(1)	Represents shares delivered to the Company from restricted stock held by a Company employee upon vesting for purposes of covering the recipient’s tax withholding obligation, and restricted stock forfeited by a Company employee on termination of employment.	

(2)	Represents shares delivered to the Company from restricted stock held by a Company employee upon vesting for purposes of covering the recipient’s tax withholding obligation.	
 
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 ITEM 6.	SELECTED FINANCIAL DATA (dollars in millions, except per share)	

 	  	Years Ended December 31,	
 	  	2006	 	 	2005	 	 	2004 (1)	 	 	2003	 	 	2002	
Revenues	  	$	4,987	 	 	$	4,352	 	 	$	4,326	 	 	$	2,980	 	 	$	2,458	
Income from continuing operations, net of preferred stock dividend	  	$	840	 	 	$	360	 	 	$	411	 	 	$	476	 	 	$	113	
Net income applicable to common shares (2)(3)	  	$	791	 	 	$	322	 	 	$	443	 	 	$	476	 	 	$	154	
Basic income (loss) per common share:	  				 				 				 				 			
From continuing operations	  	$	1.87	 	 	$	0.81	 	 	$	0.93	 	 	$	1.16	 	 	$	0.30	
Discontinued operations	  	$	(0.11	)	 	$	(0.09	)	 	$	0.18	 	 	$	0.08	 	 	$	0.10	
Cumulative effect of a change in accounting principle	  	$	—	  	 	$	—	  	 	$	(0.11	)	 	$	(0.08	)	 	$	0.02	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income per common share, basic	  	$	1.76	 	 	$	0.72	 	 	$	1.00	 	 	$	1.16	 	 	$	0.42	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted income (loss) per common share:	  				 				 				 				 			
From continuing operations	  	$	1.86	 	 	$	0.80	 	 	$	0.92	 	 	$	1.15	 	 	$	0.29	
Discontinued operations	  	$	(0.11	)	 	$	(0.08	)	 	$	0.18	 	 	$	0.08	 	 	$	0.10	
Cumulative effect of a change in accounting principle	  	$	—	  	 	$	—	  	 	$	(0.11	)	 	$	(0.08	)	 	$	0.02	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income per common share, diluted	  	$	1.75	 	 	$	0.72	 	 	$	0.99	 	 	$	1.15	 	 	$	0.41	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Dividends declared per common share	  	$	0.40	 	 	$	0.40	 	 	$	0.30	 	 	$	0.17	 	 	$	0.12	
		
 	  	At December 31,	
Total assets	  	$	15,601	 	 	$	13,992	 	 	$	12,776	 	 	$	10,698	 	 	$	10,147	
Long-term debt, including current portion	  	$	1,911	 	 	$	1,918	 	 	$	1,590	 	 	$	1,065	 	 	$	1,802	
Stockholders’ equity	  	$	9,337	 	 	$	8,376	 	 	$	7,938	 	 	$	7,385	 	 	$	5,419	

(1)	Effective January 1, 2004, the Company consolidated Batu Hijau.	

(2)	Net income includes the cumulative effect of a change in accounting principle related to a net expense for the consolidation of Batu Hijau of $47 ($0.11 per share, basic) net of tax and minority interest in 2004; a net expense for reclamation and remediation of $35 ($0.08 per share, basic), net of tax, in 2003; and a net gain for depreciation of property, plant and mine development of $8 ($0.02 per share, basic), net of tax, in 2002.	

(3)	Net income includes income (loss) from discontinued operations for Golden Grove, Holloway and Zarafshan of ($49) ($0.11 per share, basic), $(38) ($0.09 per share, basic), $79 ($0.18 per share, basic), $nil, and $3 ($0.01 per share, basic) net of tax in 2006, 2005, 2004, 2003 and 2002, respectively.	
 
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 ITEM 7.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF CONSOLIDATED FINANCIAL CONDITION AND RESULTS OF OPERATIONS (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” or the “Company”). References to “A$” refer to Australian currency, “CDN$” to Canadian currency, “CHF” to Swiss currency, “NZD$” to New Zealand currency, “IDR” to Indonesian currency and “$” to United States currency.
This discussion addresses matters we consider important for an understanding of our financial condition and results of operations as of and for the three years ended December 31, 2006, as well as our future results. It consists of the following subsections:
 
 	•	 	“Overview,” which provides a brief summary of our consolidated results and financial position and the primary factors affecting those results, as well as a summary of our expectations for 2007;	
 
 	•	 	“Accounting Developments,” which provides a discussion of recent changes to our accounting policies that have affected our consolidated results and financial position;	
 
 	•	 	“Critical Accounting Policies,” which provides an analysis of the accounting policies we consider critical because of their effect on the reported amounts of assets, liabilities, income and/or expenses in our consolidated financial statements and/or because they require difficult, subjective or complex judgments by our management;	
 
 	•	 	“Consolidated Financial Results,” which includes a discussion of our consolidated financial results for the last three years;	
 
 	•	 	“Results of Consolidated Operations,” which sets forth an analysis of the operating results for the last three years, the Merchant Banking Segment and the Exploration Segment;	
 
 	•	 	“Recent Accounting Pronouncements,” which summarizes recently published authoritative accounting guidance, how it might apply to us and how it might affect our future results; and	
 
 	•	 	“Liquidity and Capital Resources,” which contains a discussion of our cash flows and liquidity, investing activities and financing activities, contractual obligations and off-balance sheet arrangements.	
This item should be read in conjunction with our consolidated financial statements and the notes thereto included in this annual report.
 Overview
Newmont is one of the world’s largest gold producers and is the only gold company included in the S&P 500 Index. We are also engaged in the exploration for and acquisition of gold properties. We have operations in the United States, Australia, Peru, Indonesia, Canada, Bolivia, New Zealand, Ghana and Mexico.
We face key risks associated with our business. One of the most significant risks is fluctuation in the prices of gold and copper, which are affected by numerous factors beyond our control. Other challenges we face include capital and production cost increases and social and environmental issues. Operating costs at our operations are subject to variation due to a number of factors, such as changing ore grades, metallurgy, revisions to mine plans and changes in accounting principles. At foreign locations, such costs are also influenced by currency fluctuations that may affect our U.S. dollar operating costs. In addition, we must continually replace reserves depleted through production by expanding known ore bodies, by acquisition or by locating new deposits in order to maintain production levels over the long term.
 
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Summary of Consolidated Financial and Operating Performance
The table below highlights key financial and operating results:

 	  	Years Ended December 31,	
 	  	2006	  	2005	  	2004	
Revenues	  	$	4,987	  	$	4,352	  	$	4,326	
Income from continuing operations	  	$	840	  	$	360	  	$	411	
Net income	  	$	791	  	$	322	  	$	443	
Net income per common share, basic	  			  			  			
Income from continuing operations	  	$	1.87	  	$	0.81	  	$	0.93	
Net income	  	$	1.76	  	$	0.72	  	$	1.00	
Consolidated gold ounces sold (thousands) (1)	  	 	7,361	  	 	8,429	  	 	8,619	
Consolidated copper pounds sold (millions)	  	 	435	  	 	573	  	 	683	
Average price received (2)	  			  			  			
Gold (per ounce)	  	$	599	  	$	441	  	$	412	
Copper (per pound)	  	$	1.99	  	$	1.45	  	$	1.33	
Costs applicable to sales (3)	  			  			  			
Gold (per ounce)	  	$	304	  	$	237	  	$	218	
Copper (per pound)	  	$	0.71	  	$	0.53	  	$	0.45	

(1)	Includes incremental start-up ounces of 100,300 and 22,100 in 2006 and 2005, respectively.	

(2)	Before treatment and refining charges.	

(3)	Excludes depreciation, depletion and amortization.	
Consolidated Financial Performance
Gold revenues increased in 2006 from 2005 primarily due to higher gold prices, partially offset by lower gold sales volume. Gold sold decreased to 7.4 million ounces in 2006 from 8.4 million ounces in 2005, primarily due to decreased throughput and lower grade ores processed at Yanacocha, Nevada and Batu Hijau, decreased throughput at Australia/New Zealand partially offset by the commencement of operations at Ahafo in the third quarter of 2006. Copper revenues decreased in 2006 from 2005 due to a decrease in copper pounds sold at Batu Hijau, partially offset by an increase in the average realized price (see Results of Consolidated Operations below).
The gold price increases over the last few years were partially offset by higher production costs and fewer gold ounces sold. During the same period, Newmont has seen significant increases in the costs of labor, fuel, power and other bulk consumables.
In addition, our financial and operating results for the year ended December 31, 2006 were impacted by the following (pre-tax):
 
 	•	 	Gain on the sale of the Alberta Oil Sands project ($266 in 2006);	
 
 	•	 	Increased income tax expense ($114 greater than 2005);	
 
 	•	 	Loss on the expropriation of the Zarafshan-Newmont Joint Venture (“ZNJV”) ($101 in 2006);	
 
 	•	 	Increased reclamation and remediation costs ($47 in 2006);	
 
 	•	 	Loss on the early extinguishment of prepaid forward sales obligation ($40 in 2006);	
 
 	•	 	Increased exploration expenditures ($23 greater than 2005); and	
 
 	•	 	Increased advanced projects research and development expenditures ($21 greater than 2005).	
 
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Liquidity
The Company’s financial position was as follows:

 	  	At December 31,	
 	  	2006	  	2005	
Total debt	  	$	1,911	  	$	1,918	
Total stockholders’ equity	  	$	9,337	  	$	8,376	
Cash and cash equivalents	  	$	1,166	  	$	1,082	
During 2006 our debt and liquidity positions were affected by the following:
 
 	•	 	Net proceeds from the issuance of debt of $198;	
 
 	•	 	Net cash provided from continuing operations of $1,237;	
 
 	•	 	Proceeds from the sale of discontinued operations of $40 and other assets of $334;	
 
 	•	 	Scheduled debt repayments of $111 cash and $48 non-cash;	
 
 	•	 	Early extinguishment of prepaid forward sales obligation of $48;	
 
 	•	 	Capital expenditures at continuing operations of $1,551;	
 
 	•	 	Dividends paid to common shareholders of $180; and	
 
 	•	 	Dividends paid to minority interests of $264.	
Looking Forward
Certain key factors will affect our future financial and operating results. These include, but are not limited to, the following:
 
 	•	 	Fluctuations in gold prices and, to a lesser extent, copper prices;	
 
 	•	 	Newmont expects 2007 consolidated gold sales of approximately 6.1 to 6.6 million ounces (approximately 5.2 to 5.6 million equity ounces), primarily as a result of lower production from Yanacocha and Australia, as well as the closure of Lone Tree in Nevada and Golden Giant in Canada in 2006.	
 
 	•	 	Costs applicable to sales per ounce for 2007 are expected to be approximately 25% higher than 2006, primarily from lower production at Yanacocha and Australia, as well as higher labor, consumables and energy prices in all operating regions. Additionally, future potential power interruptions in Ghana could further impact the Company’s Costs applicable to sales in 2007.	
 
 	•	 	The Company anticipates capital expenditures of approximately $1.8 to $2.0 billion in 2007, with approximately one third invested in Nevada, one third in Australia/New Zealand and the remaining one third invested at the other locations. Approximately $0.8 to $0.9 billion of the 2007 capital budget is allocated to sustaining investments, with the remaining $1.0 to $1.1 billion allocated to new project development and improvement initiatives, including the Boddington project, continued development of the power plant in Nevada and completion of the Yanacocha gold mill.	
 
 	•	 	We expect 2007 exploration expenditures of approximately $170 to $175 and 2007 advanced projects, research and development expenditures of approximately $85 to $100; and	
 
 	•	 	The construction of the Boddington project, the 200 megawatt coal-fired power plant in Nevada and the gold mill at Yanacocha, as well as potential future investments in the Akyem project in Ghana and the Conga project in Peru will require significant funds for capital expenditures. At current gold and copper prices, new sources of capital will be needed to meet the funding requirements of these investments, fund our ongoing business activities and pay dividends. Our ability to raise and service significant new	
 
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 	sources of capital will be a function of macroeconomic conditions, future gold and copper prices and our operational performance, among other factors. In the event of lower gold and copper prices, unanticipated operating or financial challenges, or new funding limitations, our ability to pursue new business opportunities, invest in existing and new projects, fund our ongoing business activities and pay dividends could be significantly constrained.	
 Accounting Developments
Pensions
As of December 31, 2006, the Company adopted the provisions of the Financial Accounting Standards Board (“FASB”) Statement No. 158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans—an amendment of FASB Statements No. 87, 88, 106, and 132(R)” (“FAS 158”). FAS 158 required employers that sponsor one or more defined benefit plans to (i) recognize the funded status of a benefit plan in its statement of financial position, (ii) recognize the gains or losses and prior service costs or credits that arise during the period as a component of other comprehensive income, net of tax, (iii) measure the defined benefit plan assets and obligations as of the date of the employer’s fiscal year-end statement of financial position, and (iv) disclose in the notes to the financial statements additional information about certain effects on net periodic cost for the next fiscal year that arise from delayed recognition of the gains or losses, prior service costs or credits, and transition asset or obligation. The impact of adopting FAS 158 on the Consolidated Balance Sheets was as follows:

 	  	Before
Application of
FAS 158	  	Adjustment	 	 	After
Application of
FAS 158	
Other long-term assets	  	$	193	  	$	(15	)	 	$	178	
Total assets	  	$	15,616	  	$	(15	)	 	$	15,601	
Employee pension and other benefits	  	$	229	  	$	27	 	 	$	256	
Deferred income taxes	  	$	717	  	$	(14	)	 	$	703	
Accumulated other comprehensive income	  	$	700	  	$	(27	)	 	$	673	
Total stockholders’ equity	  	$	9,364	  	$	(27	)	 	$	9,337	
Stock Based Compensation
On January 1, 2006, the Company adopted the fair value recognition provisions of FASB Statement No. 123(R), “ Share-Based Paymen t” (“FAS 123(R)”). The Company adopted FAS 123(R) using the modified prospective transition method. Under this method, compensation cost recognized in 2006 includes: a) compensation cost for all share-based payments granted prior to, but not yet vested as of January 1, 2006, based on the grant-date fair value estimated in accordance with the original provisions of FAS 123, and b) compensation cost for all share-based payments granted subsequent to January 1, 2006, based on the grant-date fair value estimated in accordance with the provisions of FAS 123(R).
As a result of adopting FAS 123(R), the Company’s Income from continuing operations and Net income for 2006 is $19 ($0.04 per share) lower, than if we had continued to account for share-based compensation under APB 25 as we did in the comparable prior year periods. Prior to the adoption of FAS 123(R), cash retained as a result of tax deductions relating to stock-based compensation was included in operating cash flows, along with other tax cash flows. FAS 123(R) requires tax benefits relating to the deductibility of increases in the equity instruments issued under share-based compensation arrangements that are not included in Costs applicable to sales (“excess tax benefits”) to be presented in the Statement of Cash Flows as financing cash inflows. The benefit realized for tax deductions from option exercises totaled $3 in 2006.
Deferred Stripping Costs
On January 1, 2006 the Company adopted Emerging Issues Task Force Issue No. 04-06 (“EITF 04-06”), “Accounting for Stripping Costs Incurred during Production in the Mining Industry.” EITF 04-06 addresses the
 
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accounting for stripping costs incurred during the production phase of a mine and refers to these costs as variable production costs that should be included as a component of inventory to be recognized in Costs applicable to sales in the same period as the revenue from the sale of inventory. As a result, capitalization of post-production stripping costs is appropriate only to the extent product inventory exists at the end of a reporting period. The guidance required the recognition of a cumulative effect adjustment to opening retained earnings in the period of adoption, with no charge to earnings in the period of adoption for prior periods. The cumulative effect adjustment reduced retained earnings by $81 (net of tax and minority interests) and eliminated the $71 net deferred stripping asset from the balance sheet. Adoption of EITF 04-06 had no impact on the Company’s cash position or net cash from operations.
Consolidation of Batu Hijau
In December 2003, FASB issued Interpretation No. 46R (“FIN 46R”), which provides guidance on the identification and reporting for entities over which control is achieved through means other than voting rights. FIN 46R defines such entities as variable interest entities (“VIEs”). Newmont identified the Nusa Tenggara Partnership (“NTP”) and P.T. Newmont Nusa Tenggara (“PTNNT”) (collectively, “Batu Hijau”) as VIEs. Therefore, as of January 1, 2004, the Company has fully consolidated Batu Hijau in its Consolidated Financial Statements.
Under the Batu Hijau Contract of Work, a portion of the project must be offered for sale to the Indonesian government or to Indonesian nationals. Therefore, it is possible that future changes in the Company’s economic ownership interest in Batu Hijau would result in the Company accounting for its investment in Batu Hijau using the equity method of accounting, significantly impacting the Company’s Consolidated Financial Statements. In this case, Batu Hijau revenues, expenses, assets, liabilities, minority interests and cash flows would no longer be individually reported in the Company’s Consolidated Financial Statements. The Company’s share of Batu Hijau net income would be reported as Equity income of affiliates in the Statements of Consolidated Income, the net investment in Batu Hijau would be included in Investments in the Consolidated Balance Sheets and dividends received from Batu Hijau would be reported in Operating activities in the Statements of Consolidated Cash Flows.
Upon consolidation of Batu Hijau, effective January 1, 2004, certain adjustments were recorded to the opening balance sheet of PTNNT to conform to Newmont’s accounting policies. These adjustments were recorded to change from units-of-production depreciation of processing plant and mining facilities to straight-line depreciation of such facilities and to change from allocating costs to stockpile inventories based on mining costs per ton to allocating costs based on recoverable pounds of copper equivalent contained in the various categories of stockpiles. The impact of these adjustments was a charge of $47, net of income tax expense and minority interest which has been recorded in Cumulative effect of a change in accounting principle, net of tax in the 2004 Statement of Consolidated Income.
 Critical Accounting Policies
Listed below are the accounting policies that the Company believes are critical to its financial statements due to the degree of uncertainty regarding the estimates or assumptions involved and the magnitude of the asset, liability, revenue or expense being reported .
Carrying Value of Goodwill
As of December 31, 2006, the carrying value of goodwill was approximately $3,004. Goodwill was assigned to the Company’s Merchant Banking ($1,661) and Exploration ($1,129) Segments and to various mine site reporting units in the Australia/New Zealand Segment ($214). Substantially all of this goodwill arose in connection with our February 2002 acquisitions of Normandy and Franco-Nevada, and represents the excess of the aggregate purchase price over the fair value of the identifiable net assets. Our approach to allocating goodwill was to identify those reporting units that we believed had contributed to such excess purchase price. We then performed valuations to
 
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measure the incremental increases in the fair values of such reporting units that were attributable to the acquisitions, and that were not already captured in the fair values assigned to such units’ identifiable net assets. In the case of the Merchant Banking and Exploration Segments, these valuations were based on each reporting unit’s potential for future growth, and in the case of the mine site reporting units, the valuation was based on the merger-related synergies that were expected to be realized by each mine site reporting unit.
We evaluate, on at least an annual basis, the carrying amount of goodwill to determine whether current events and circumstances indicate that such carrying amount may no longer be recoverable. To accomplish this, we compare the estimated fair values of the reporting units to their carrying amounts. If the carrying value of a reporting unit exceeds its fair value at the time of the evaluation, we would compare the implied fair value of the reporting unit’s goodwill to its carrying amount and any shortfall would be charged to earnings. Assumptions underlying fair value estimates are subject to risks and uncertainties. Newmont performed its annual impairment tests of goodwill during the fourth quarter of 2006 and determined that goodwill was not impaired as of December 31, 2006. A similar assessment by the Company during the fourth quarter of 2005 determined that the Nevada reporting unit was impaired as of December 31, 2005. To the extent the assumptions used in the Company’s valuation models, described below, for such impairment tests are not achieved in the future, it is reasonably possible that the Company will record charges for impairment of goodwill in future periods. The specific application of the Company’s goodwill impairment policy with respect to the Merchant Banking Segment, Exploration Segment and mine site reporting units is separately discussed below.
Merchant Banking Segment Goodwill
Newmont’s Merchant Banking Segment is comprised of an equity portfolio, focused on managing the Company’s portfolio of equity securities, a royalty portfolio, portfolio management activities, providing in-house investment banking and advisory services to the Company, and downstream business activities.
As of December 31, 2006, the $1,661 carrying value of the Merchant Banking Segment goodwill represented approximately 54% of the carrying value of the total assets of the Merchant Banking Segment. Based on a December 31, 2006 valuation of the Merchant Banking Segment, the Company concluded that the fair value of the Merchant Banking Segment was significantly in excess of its carrying value as of December 31, 2006.
The December 31, 2006 discounted cash flow analysis for the Equity Portfolio of the Merchant Banking Segment assumed: (i) a discount rate of 9%; (ii) a time horizon of ten years; (iii) pre-tax returns on investment ranging from 35% in 2007 and gradually declining to 15% in 2014 through 2016; (iv) an initial equity portfolio investment of approximately $1,400; (v) capital infusions of $50 annually for the next three years; and (vi) a terminal value of approximately $5,400.
The December 31, 2006 discounted cash flow analysis for the Royalty Portfolio of the Merchant Banking Segment assumed: (i) a discount rate of 9%; (ii) a time horizon of ten years; (iii) an annual growth rate of 5% in the Royalty Portfolio; and (iv) a pre-tax rate of return on investment of 13%.
The December 31, 2006 discounted cash flow analysis for the Portfolio Management of the Merchant Banking Segment assumed: (i) a discount rate of 9%; (ii) a time horizon of ten years; and (iii) a pre-tax advisory fee of 5% on approximately $500 of transactions and value-added activities in 2007, with the dollar amount of such transactions and activities increasing by 5% annually thereafter.
The December 31, 2006 discounted cash flow analysis for the downstream business of the Merchant Banking Segment assumed: (i) a discount rate of 9%; (ii) a time horizon of ten years; and (iii) a pre-tax annual return on investment of 15%. The December 31, 2006 discounted cash flow analysis assumed a combined terminal value for the royalty portfolio, portfolio management and downstream business of approximately $700.
For purposes of valuing the Merchant Banking Segment in the future, the Company expects that the valuation model will continue to be reevaluated and enhanced to recognize the activities and objectives of the
 
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Merchant Banking Segment. The key drivers of such future valuations are expected to include (i) expected long-term investment returns, adjusted for Company specific and market driven factors; (ii) expected economic value to be added by the Merchant Banking Segment in addition to such investment returns; (iii) the level of capital accessible by the Merchant Banking Segment; and (iv) other relevant facts and circumstances. To determine the appropriate returns, investment levels and other assumptions for purposes of this analysis, the Company will (i) review the expected and actual returns from transactions that were initiated and/or completed since the last impairment test; (ii) assess the actual economic value added by other Merchant Banking Segment activities since the last impairment test; and (iii) assess the ongoing appropriateness of all assumptions impacting the valuation based on then current conditions and expectations. The Company believes that any model used to value the Merchant Banking Segment will need to take into account the relatively long time horizon required to evaluate the investment returns and other economic value added activities of the Merchant Banking Segment.
A high degree of judgment is involved in determining the assumptions and estimates used to determine the fair value of the Merchant Banking Segment. Accordingly, no assurance can be given that actual results will not differ significantly from the corresponding assumptions and estimates. If a triggering event were to occur that could reasonably be expected to result in an impairment of the carrying value of the Merchant Banking Segment, the Company would be required to test the goodwill assigned to the Merchant Banking Segment as of the end of the reporting period in which any such event occurred. The Company believes that triggering events with respect to the Merchant Banking Segment could include, but are not limited to: (i) the Company’s partial or complete withdrawal of financial support for the Merchant Banking Segment; (ii) a significant reduction in management’s long-term expectation of the price of gold or oil, given the adverse effect such a development could have on the fair values of the Merchant Banking Segment’s investment and royalty interest portfolios and the Merchant Banking Segment’s prospects for future growth; (iii) the divestiture of a significant portion of the Merchant Banking Segment’s investment portfolio together with management’s determination not to fund the replenishment of such portfolio for the foreseeable future; and (iv) any other event that might adversely affect the ability of the Merchant Banking Segment to consummate transactions that create value for the Company. The Company currently has no plans to withdraw financial support for the Merchant Banking Segment. For a discussion of the results of operations of the Merchant Banking Segment, see Results of Consolidated Operations, Merchant Banking Segment, below.
Exploration Segment Goodwill
The Exploration Segment is responsible for all activities, whether near-mine or greenfield, associated with the Company’s efforts to discover new mineralized material that could ultimately advance into proven and probable reserves. As discussed in greater detail below, when performing its Exploration Segment goodwill impairment testing, the Company uses historic additions to proven and probable reserves as an indication of the expected future performance of the Exploration Segment.
The Exploration Segment’s valuation model attributes all cash flows expected to be derived from future exploration discoveries, whether near-mine or greenfield, to the Exploration Segment. Therefore, the valuation model includes all expected value from future discoveries, including existing and future mine site reporting units. Existing proven and probable reserves and value beyond proven and probable reserves, including mineralization other than proven and probable reserves and other material that is not part of the measured, indicated or inferred resource base, are included when determining the fair value of mine site reporting units at acquisition and, subsequently, in determining whether the assets are impaired. The value beyond proven and probable reserves relating to mine site reporting units (which uses the same valuation concepts as required by EITF 04-03, Mining Assets: Impairment and Business Combinations ) is excluded when determining the fair value of the Exploration Segment, if any, at acquisition and, subsequently, in determining whether the assets are impaired.
The valuation model includes management’s best estimates of future reserve additions from exploration activities and all revenues and costs associated with their discovery, development and production. Historical proven and probable reserve additions, excluding acquisitions, are used as an indicator of the Exploration Segment’s ability to discover additional reserves in the future. Actual reserve additions may vary significantly
 
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from year to year due to the time required to advance a deposit from initial discovery to proven and probable reserves and based on the timing of when proven and probable reserves can be reported under the Securities and Exchange Commission Industry Guide 7. The valuation model assumes that the Company will be able to perpetually develop and produce the assumed additions to proven and probable reserves from future discoveries at existing or new mine site reporting units. These estimates assume that the Company will continue to find reserves of sufficient size and quality to meet the Company’s operational and return thresholds in increasing quantities in perpetuity. Future discoveries could become increasingly difficult to locate, and even if the Company finds reserves in a sufficient quality and size, they may consist of a larger number of smaller deposits that could be more costly to develop and or operate than historically experienced. The development and production of reserves will eventually lead to the depletion of existing mine site reporting units and require the perpetual development of new mines in increasing quantities through successful greenfield exploration. A reduction in reserves or a lower than expected increase in reserve additions, or a greater than expected increase in operating, capital or finding costs, may negatively impact the value of the Exploration Segment and may result in the impairment of the Exploration Segment’s goodwill.
Subsequent to the business combinations for which value beyond proven and probable reserves were recorded, EITF 04-03, Mining Assets: Impairment and Business Combinations, was issued and requires that value beyond proven and probable reserves be allocated to mining assets consistent with the Company’s existing policy. The Company has defined value beyond proven and probable reserves as the value of known mineralization other than proven and probable reserves and other material that is not part of the measured, indicated or inferred resource base that is measured based on extrapolation of known exploration information, to the extent that it believes a market participant would include such value in determining the fair value of the assets. The Company’s interpretation of value beyond proven and probable reserves may differ from that of other mining industry companies and may result in a different allocation of values at the time of acquisition and subsequent impairment analysis. If value beyond proven and probable reserves was interpreted to include value in excess of the Company’s determination, such values would be considered tangible mineral interests and therefore reduce the implied fair value of goodwill. Under such an interpretation, if Step 2 of a goodwill impairment analysis (which requires the Company to compare the implied fair value of goodwill to its carrying amount and write write-off any excess carrying amount over the implied fair value) was required for the existing Exploration Segment, goodwill could be significantly impaired resulting in an impairment loss in the financial statements. The Company has not been required to perform Step 2 of the goodwill impairment test for the Exploration Segment. Please see the Company’s Summary of Significant Accounting Policies for additional details.
The Company’s approach to managing the exploration aspect of its business separate from the day to day operations of its mine site reporting units may differ from the approach taken by other companies in the mining industry. Other mining companies may integrate the exploration function with their mine site reporting units, allocating residual goodwill to these units. Absent our Exploration Segment’s success and reporting structure, we may have reached a similar conclusion regarding the goodwill allocation. As a result of these potential differences, the Company’s financial position and results of operations may not be comparable to those of other entities in the mining industry.
Internally generated proven and probable reserve additions are attributed to the Exploration Segment for purposes of determining the Company’s assumptions with respect to the expected future performance of the Exploration Segment only to the extent that such additions are derived from (i) a discovery made by the Company; or (ii) a discovery made on previously acquired properties as a result of exploration efforts conducted subsequent to the acquisition date. A portion of the additions to proven and probable reserves during 2004 through 2006 was derived from the conversion of mineralized material that had been assigned value as part of the purchase price allocation process. In addition, the Company expects that a portion of internally generated reserve additions during 2007 and the next several years will also be derived from the conversion of mineralized material which had been assigned value as part of purchase price accounting. To avoid duplication, the reserves which are expected to be derived from this mineralized material in the future are excluded from the reserve additions used in the valuation of the Exploration Segment performed in connection with the Company’s goodwill impairment tests.
 
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As of December 31, 2006, the $1,129 carrying value of the Exploration Segment goodwill represented approximately 87% of the carrying value of the total assets of the Exploration Segment. Based on valuations of the Exploration Segment as of December 31, 2006 and 2005, the Company concluded that substantially all of the fair value of the Exploration Segment, which was significantly in excess of the carrying value, was derived from the terminal value. Based on the period required to advance projects from initial discovery to production, the valuation model has negative net cash flows for approximately the first 10 years and more than 100% of the fair value of the Exploration Segment is attributable to its terminal value. The valuation models included the following assumptions:

 	  	At December 31,	 	
 	  	2006	 	 	2005	 	
Initial year additions to reserves (gold ounces in millions):	  				 				
Total additions	  	 	8.6	 	 	 	9.5	 	
Less: Additions previously valued in purchase accounting	  	 	(0.6	)	 	 	(0.9	)	
	  	 	 	 	 	 	 	 	
Additions attributable to the Exploration Segment	  	 	8.0	 	 	 	8.6	 	
	  	 	 	 	 	 	 	 	
Annual reserve addition and terminal growth rate	  	 	4	%	 	 	5	%	
Time horizon (years)	  	 	16	 	 	 	16	 	
Time lag between reserve additions and production (years)	  	 	7.5	 	 	 	7.1	 	
Production period (years)	  	 	5	 	 	 	5	 	
Discount rate	  	 	8	%	 	 	8	%	
Price/cost assumptions (per ounce of gold):	  				 				
Gold price	  	$	550	 	 	$	450	 	
Operating costs	  	$	331	 	 	$	264	 	
Capital costs	  	$	73	 	 	$	56	 	
Finding costs	  	$	15	 	 	$	13	 	
The cash flow assumptions used in the valuation models are burdened only to the extent of management’s estimate of the Company’s internal costs to explore, develop and produce the expected discoveries based on the Company’s historical experience and long-term plans. The cost assumptions may not be representative of what a third party would be required to pay for access to the Company’s properties. The annual reserve addition and terminal growth rate assumptions have a significant impact on the fair value of the Exploration Segment. Due to the shortfall in reserve additions during the last two years, the Company has revised its assumptions for initial year additions to gold reserves and the annual reserve addition and terminal growth rate. If these rate assumptions were reduced further from 4% to 3%, the fair value of the Exploration Segment would have been approximately $1,000 lower as of December 31, 2006. Price and cost assumptions were updated to reflect the Company’s long-term planning assumptions. As of December 31, 2006 and 2005, the terminal value of the Exploration Segment was approximately $5.2 billion and $7.5 billion, respectively.
 
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The December 31, 2006 Exploration Segment goodwill valuation model assumes proven and probable reserve additions attributable to the Exploration Segment of 8.0 million equity ounces in 2007. Actual proven and probable additions attributable to the Exploration segment for 2006, 2005 and 2004 compared to assumptions used as of December 31, 2005, 2004 and 2003, respectively, were as follows:

(millions of equity ounces)	  	Actual	 	 	Assumption (1)	 	 	Excess
(shortfall)	 	
2006	  			 			 			
Total additions	  	5.9	 	 	9.5	 	 	(3.6	)	
Additions previously valued in purchase accounting	  	(0.9	)	 	(0.9	)	 	—	  	
	  	 	 	 	 	 	 	 	 	
Additions attributable to the Exploration Segment	  	5.0	 	 	8.6	 	 	(3.6	)	
	  	 	 	 	 	 	 	 	 	
2005	  			 			 			
Total additions	  	9.4	 	 	11.0	 	 	(1.6	)	
Additions previously valued in purchase accounting	  	(1.2	)	 	(1.0	)	 	(0.2	)	
	  	 	 	 	 	 	 	 	 	
Additions attributable to the Exploration Segment	  	8.2	 	 	10.0	 	 	(1.8	)	
	  	 	 	 	 	 	 	 	 	
2004	  			 			 			
Total additions	  	12.4	 	 	7.9	 	 	4.5	 	
Additions previously valued in purchase accounting	  	(1.9	)	 	(5.0	)	 	3.1	 	
Reclassification of Cerro Quilish reserves	  	(2.0	)	 	—	  	 	(2.0	)	
	  	 	 	 	 	 	 	 	 	
Additions attributable to the Exploration Segment	  	8.5	 	 	2.9	 	 	5.6	 	

(1)	Additions assumed in the Exploration Segment valuation models for 2006 as of December 31, 2005, for 2005 as of December 31, 2004 and for 2004 as of December 31, 2003.	
Triggering events that impact certain assumptions used in the Exploration Segment valuation model and require an asset impairment evaluation with respect to the Exploration Segment would include, but are not limited to: (i) the Company’s partial or complete withdrawal of financial support for the Exploration Segment; (ii) a significantly lower assumed annual reserve addition growth rate; (iii) a significant decrease in the Company’s long-term expectation of the price of gold; (iv) a significant change in the financial markets resulting in a significant increase in the discount rate; (v) a significant increase in long-term operating, capital and finding cost estimates; and (vi) a significant impairment at an existing mine location (an impairment could call into question the projections of future exploration success which are based on historical results both positive and negative). The Company currently has no plans to withdraw financial support for the Exploration Segment. For a discussion of the results of operations of the Exploration Segment, see Results of Consolidated Operations, Exploration Segment, below.
Mine Site Goodwill
The assignment of goodwill to mine site reporting units was based on synergies that have been incorporated into the Company’s operations and business plans over time and from the purchase of an additional 22.22% of the Boddington project in Australia during 2006. The amount of goodwill assigned to each segment or reporting unit was based on discounted cash flow analyses that assumed risk-adjusted discount rates over the remaining lives of the applicable mining operations. The Company believes that triggering events with respect to the goodwill assigned to mine site reporting units could include, but are not limited to: (i) a significant decrease in the Company’s long-term gold and copper price assumptions; (ii) a decrease in reserves; (iii) a significant reduction in the estimated fair value of mine site exploration potential; and (iv) any event that might otherwise adversely affect mine site production levels or costs. The Company performed its annual impairment test of mine site goodwill as of December 31, 2006 and determined that the fair value of each mine site reporting unit was in excess of the relevant carrying value as of December 31, 2006. For more information on the discounted cash flows used to value mine site reporting units, see Carrying Value of Long-Lived Assets, below.
 
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Depreciation, Depletion and Amortization
Expenditures for new facilities or equipment and expenditures that extend the useful lives of existing facilities or equipment are capitalized and depreciated using the straight-line method at rates sufficient to depreciate such costs over the estimated future lives of such facilities or equipment. These lives do not exceed the estimated mine life based on proven and probable reserves as the useful lives of these assets are considered to be limited to the life of the relevant mine.
Costs incurred to develop new properties are capitalized as incurred, where it has been determined that the property can be economically developed based on the existence of proven and probable reserves. At the Company’s surface mines, these costs include costs to further delineate the ore body and remove overburden to initially expose the ore body. At the Company’s underground mines, these costs include the cost of building access ways, shaft sinking and access, lateral development, drift development, ramps and infrastructure development. All such costs are amortized using the units-of-production (“UOP”) method over the estimated life of the ore body based on estimated recoverable ounces to be produced from proven and probable reserves.
Major development costs incurred after the commencement of production are amortized using the UOP method based on estimated recoverable ounces to be produced from proven and probable reserves. Depending upon whether the development is expected to benefit the entire remaining ore body, or specific ore blocks or areas only, the UOP basis is either the life of the entire ore body or the life of the specific ore block or area.
The calculation of the UOP rate of amortization, and therefore the annual amortization charge to operations, could be materially impacted to the extent that actual production in the future is different from current forecasts of production based on proven and probable reserves. This would generally occur to the extent that there were significant changes in any of the factors or assumptions used in determining reserves. These factors could include: (i) an expansion of proven and probable reserves through exploration activities; (ii) differences between estimated and actual costs of production, due to differences in grade, metal recovery rates and foreign currency exchange rates; and (iii) differences between actual commodity prices and commodity price assumptions used in the estimation of reserves. Such changes in reserves could similarly impact the useful lives of assets depreciated on a straight-line basis, where those lives are limited to the life of the mine, which in turn is limited to the life of the proven and probable reserves.
The expected useful lives used in depreciation, depletion and amortization calculations are determined based on applicable facts and circumstances, as described above. Significant judgment is involved in the determination of useful lives, and no assurance can be given that actual useful lives will not differ significantly from the useful lives assumed for purpose of depreciation, depletion and amortization calculations.
Carrying Value of Stockpiles
Stockpiles represent ore that has been extracted from the mine and is available for further processing. Stockpiles are measured by estimating the number of tons added and removed from the stockpile, the number of contained ounces based on assay data, and the estimated recovery percentage based on the expected processing method. Stockpile tonnages are verified by periodic surveys. Stockpiles are valued based on mining costs incurred up to the point of stockpiling the ore, including applicable depreciation, depletion and amortization relating to mining operations. Costs are added to a stockpile based on current mining costs and removed at the average cost per recoverable ounce of gold in the stockpile. Stockpiles are reduced as material is removed and processed further. The adoption of EITF 04-06 resulted in the allocation of deferred and advanced stripping costs to stockpiles and the value of the Company’s stockpiles decreased from $532 as of December 31, 2005 to $515 as of January 1, 2006. As of December 31, 2006, the Company’s stockpiles had a total carrying value of $743.
Costs that are incurred in or benefit from the productive process are accumulated as stockpiles. The Company records stockpiles at the lower of average cost or net realizable value (“NRV”), and carrying values are evaluated at least quarterly. NRV represents the estimated future sales price of the product based on prevailing
 
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and long-term metals prices, less estimated costs to complete production and bring the product to sale. The primary factors that influence the need to record write-downs of stockpiles include short-term and long-term metals prices and costs for production inputs such as labor, fuel and energy, materials and supplies, as well as realized ore grades and actual production levels. During the years ended December 31, 2006, 2005 and 2004, write-downs of stockpiles to NRV totaled $2, $10 and $10, respectively.
Cost allocation to stockpiles and the NRV measurement involves the use of estimates and assumptions unique to each mining operation regarding current and future operating and capital costs, metal recoveries, production levels, commodity prices, proven and probable reserve quantities, engineering data and other factors. A high degree of judgment is involved in determining such assumptions and estimates and no assurance can be given that actual results will not differ significantly from those estimates and assumptions.
Carrying Value of Long-Lived Assets
The Company reviews and evaluates its long-lived assets for impairment when events or changes in circumstances indicate the related carrying amounts may not be recoverable. An asset impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the asset, including goodwill, if any. An impairment loss is measured and recorded based on discounted estimated future cash flows. Future cash flows are estimated based on estimated quantities of recoverable minerals, expected gold and other commodity prices (considering current and historical prices, price trends and related factors), production levels and costs of production, capital and reclamation costs, all based on life-of-mine plans. The significant assumptions in determining the future discounted cash flows for each mine site reporting unit as of December 31, 2006, apart from production cost and capitalized expenditure assumptions unique to each operation, included a long-term gold price of $550 per ounce and Australian and Canadian dollar exchange rates of A$1.33 and CDN$1.11, respectively per $1.00.
Existing proven and probable reserves and value beyond proven and probable reserves, including mineralization other than proven and probable reserves and other material that is not part of the measured, indicated or inferred resource base, are included when determining the fair value of mine site reporting units at acquisition and, subsequently, in determining whether the assets are impaired. The term “recoverable minerals” refers to the estimated amount of gold or other commodities that will be obtained after taking into account losses during ore processing and treatment. Estimates of recoverable minerals from such exploration stage mineral interests are risk adjusted based on management’s relative confidence in such materials. In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups.
As discussed above under Depreciation, Depletion and Amortization, various factors could impact the Company’s ability to achieve its forecasted production schedules from proven and probable reserves. Additionally, production, capital and reclamation costs could differ from the assumptions used in the cash flow models used to assess impairment. The ability to achieve the estimated quantities of recoverable minerals from exploration stage mineral interests involves further risks in addition to those factors applicable to mineral interests where proven and probable reserves have been identified, due to the lower level of confidence that the identified mineralized material could ultimately be mined economically. Assets classified as other mine-related exploration potential and greenfields exploration potential have the highest level of risk that the carrying value of the asset can be ultimately realized, due to the still lower level of geological confidence and economic modeling.
Stripping Costs
Stripping costs incurred during the production phase of a mine are variable production costs that are included as a component of inventory to be recognized in Costs applicable to sales in the same period as the revenue from the sale of inventory. Capitalization of post-production stripping costs is appropriate only to the extent product inventory exists at the end of a reporting period.
 
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Prior to 2006 (see Note 3 to Consolidated Financial Statements) at some of the Company’s mining operations, deferred stripping costs were charged to Costs applicable to sales as gold or copper was sold using the units of production method based on estimated recoverable quantities of proven and probable gold or copper reserves, using a stripping ratio calculated as the ratio of total tons to be moved to total proven and probable ore reserves, which resulted in the recognition of the costs of waste removal activities over the life of the mine as gold or copper was sold. The application of the deferred stripping accounting method generally resulted in an asset (deferred stripping costs), although a liability (advanced stripping costs) arose when the actual stripping ratio incurred to date was less than the expected stripping ratio over the life of the mine. The Advanced stripping costs primarily pertained to the Batu Hijau operation.
Financial Instruments
All financial instruments that meet the definition of a derivative are recorded on the balance sheet at fair market value, with the exception of contracts that qualify for the normal purchases and normal sales exemption. Changes in the fair market value of derivatives recorded on the balance sheet are recorded in the statements of consolidated operations, except for the effective portion of the change in fair market value of derivatives that are designated as a cash flow hedge and qualify for cash flow hedge accounting. The Company’s portfolio of derivatives includes various complex instruments that are linked to gold prices and other factors. Management applies significant judgment in estimating the fair value of instruments that are highly sensitive to assumptions regarding gold and other commodity prices, gold lease rates, market volatilities, foreign currency exchange rates and interest rates. Variations in these factors could materially affect amounts credited or charged to earnings to reflect the changes in fair market value of derivatives. In addition, certain derivative contracts are accounted for as cash flow hedges, whereby the effective portion of changes in fair market value of these instruments are deferred in Accumulated other comprehensive income and will be recognized in the statements of consolidated operations when the underlying production designated as the hedged item is sold. All derivative contracts qualifying for hedge accounting are designated against the applicable portion of future production from proven and probable reserves, where management believes the forecasted transaction is probable of occurring. To the extent that management determines that such future production is no longer probable of occurring due to changes in the factors impacting the determination of reserves, as discussed above under Depreciation, depletion and amortization , gains and losses deferred in Accumulated other comprehensive income would be reclassified to the statements of consolidated operations immediately.
Reclamation and Remediation Obligations (Asset Retirement Obligations)
Reclamation costs are allocated to expense over the life of the related assets and are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation and remediation costs. The asset retirement obligation is based on when the spending for an existing environmental disturbance will occur. The Company reviews, on at least an annual basis, the asset retirement obligation at each mine site in accordance with FASB FAS No. 143, “Accounting for Asset Retirement Obligations.”
Future remediation costs for inactive mines are accrued based on management’s best estimate at the end of each period of the costs expected to be incurred. Such cost estimates include, where applicable, ongoing care, water treatment, maintenance and monitoring costs. Changes in estimates at inactive mines are reflected in earnings in the period an estimate is revised.
Accounting for reclamation and remediation obligations requires management to make estimates unique to each mining operation of the future costs the Company will incur to complete the reclamation and remediation work required to comply with existing laws and regulations. Actual costs incurred in future periods could differ from amounts estimated. Additionally, future changes to environmental laws and regulations could increase the extent of reclamation and remediation work required. Any such increases in future costs could materially impact the amounts charged to earnings for reclamation and remediation.
 
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Deferred Tax Assets
The Company recognizes the expected future tax benefit from deferred tax assets when the tax benefit is considered to be more likely than not of being realized. Assessing the recoverability of deferred tax assets requires management to make significant estimates related to expectations of future taxable income. Estimates of future taxable income are based on forecasted cash flows and the application of existing tax laws in each jurisdiction. Refer above under Carrying Value of Long-Lived Assets for a discussion of the factors that could cause future cash flows to differ from estimates. To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the Company to realize deferred tax assets recorded at the balance sheet date could be impacted. Additionally, future changes in tax laws in the jurisdictions in which the Company operates could limit the Company’s ability to obtain the future tax benefits represented by its deferred tax assets recorded at the reporting date.
 Consolidated Financial Results
Sales—gold, net increased in 2006 compared to 2005 due to a $158 per ounce increase in the average realized price, partially offset by a decrease in ounces sold. In 2005, gold sales increased over 2004 primarily due to a $29 per ounce increase in the average realized price, partially offset by a decrease in ounces sold. For a complete discussion regarding variations in gold volumes, see Results of Consolidated Operations below.
The following analysis reflects the increase in consolidated gold sales:

 	  	Years Ended December 31,	 	
 	  	2006	 	 	2005	 	 	2004	 	
Consolidated gold sales:	  				 				 				
Gross	  	$	4,346	 	 	$	3,706	 	 	$	3,551	 	
Less: Treatment and refining charges	  	 	(30	)	 	 	(26	)	 	 	(11	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net	  	$	4,316	 	 	$	3,680	 	 	$	3,540	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Consolidated gold ounces sold (thousands)	  				 				 				
Gross	  	 	7,361	 	 	 	8,429	 	 	 	8,619	 	
Less: Incremental start-up sales	  	 	(100	)	 	 	(22	)	 	 	—	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net	  	 	7,261	 	 	 	8,407	 	 	 	8,619	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Average realized gold price per ounce:	  				 				 				
Before treatment and refining charges	  	$	599	 	 	$	441	 	 	$	412	 	
After treatment and refining charges	  	$	594	 	 	$	437	 	 	$	411	 	
The change in consolidated gold sales is due to:

 	  	2006 vs.
2005	 	 	2005 vs.
2004	 	
Reduction in consolidated ounces sold	  	$	(505	)	 	$	(87	)	
Increase in average realized gold price	  	 	1,145	 	 	 	242	 	
Increase in treatment and refining charges	  	 	(4	)	 	 	(15	)	
	  	 	 	 	 	 	 	 	
	  	$	636	 	 	$	140	 	
	  	 	 	 	 	 	 	 	
Sales—copper, net were unchanged in 2006 compared to 2005 as lower sales volumes were offset by higher realized prices. In addition, in 2006 a loss of $56 was included in Other income, net for the ineffective portion of copper hedges. In 2005, copper sales decreased compared to 2004 due to a 16% decrease in copper pounds sold, partially offset by a 9% increase in the average realized copper price. For a complete discussion regarding variations in copper volumes, see Results of Consolidated Operations below.
 
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The following analysis reflects the changes in consolidated copper sales:

 	  	Years Ended December 31,	 	
 	  	2006	 	 	2005	 	 	2004	 	
Consolidated copper sales:	  				 				 				
Gross before hedging	  	$	1,333	 	 	$	953	 	 	$	880	 	
Hedging losses	  	 	(633	)	 	 	(258	)	 	 	(39	)	
Provisional pricing mark-to-market	  	 	165	 	 	 	138	 	 	 	66	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Gross after hedging	  	 	865	 	 	 	833	 	 	 	907	 	
Less: Treatment and refining charges	  	 	(194	)	 	 	(161	)	 	 	(121	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net	  	$	671	 	 	$	672	 	 	$	786	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Consolidated copper pounds sold (millions)	  	 	435	 	 	 	573	 	 	 	683	 	
Average realized price per pound:	  				 				 				
Gross before hedging	  	$	3.07	 	 	$	1.66	 	 	$	1.29	 	
Hedging losses	  	 	(1.46	)	 	 	(0.45	)	 	 	(0.06	)	
Provisional pricing mark-to-market	  	 	0.38	 	 	 	0.24	 	 	 	0.10	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Gross after hedging	  	 	1.99	 	 	 	1.45	 	 	 	1.33	 	
Less: Treatment and refining charges	  	 	(0.45	)	 	 	(0.28	)	 	 	(0.18	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net	  	$	1.54	 	 	$	1.17	 	 	$	1.15	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
The change in consolidated copper sales is due to:

 	  	2006 vs.
2005	 	 	2005 vs.
2004	 	
Decrease in consolidated pounds sold	  	$	(201	)	 	$	(146	)	
Increase in average realized copper price	  	 	233	 	 	 	72	 	
Increase in treatment and refining charges	  	 	(33	)	 	 	(40	)	
	  	 	 	 	 	 	 	 	
	  	$	(1	)	 	$	(114	)	

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The following is a summary of net gold and copper sales:

 	  	Years Ended December 31,	 	
 	  	2006	 	 	2005	 	 	2004	 	
Gold	  				 				 				
Nevada, USA	  	$	1,441	 	 	$	1,053	 	 	$	1,037	 	
Yanacocha, Peru	  	 	1,543	 	 	 	1,490	 	 	 	1,250	 	
Australia/New Zealand:	  				 				 				
Tanami, Australia	  	 	250	 	 	 	221	 	 	 	273	 	
Kalgoorlie, Australia	  	 	198	 	 	 	183	 	 	 	192	 	
Jundee, Australia	  	 	190	 	 	 	154	 	 	 	156	 	
Pajingo, Australia	  	 	105	 	 	 	87	 	 	 	104	 	
Martha, New Zealand	  	 	71	 	 	 	73	 	 	 	54	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
	  	 	814	 	 	 	718	 	 	 	779	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Batu Hijau, Indonesia	  	 	264	 	 	 	318	 	 	 	288	 	
Ahafo, Ghana	  	 	124	 	 	 	—	  	 	 	—	  	
Other Operations:	  				 				 				
Golden Giant, Canada	  	 	35	 	 	 	73	 	 	 	66	 	
Kori Kollo, Bolivia	  	 	77	 	 	 	44	 	 	 	10	 	
La Herradura, Mexico	  	 	48	 	 	 	36	 	 	 	27	 	
Ovacik, Turkey	  	 	—	  	 	 	—	  	 	 	44	 	
Minahasa, Indonesia	  	 	—	  	 	 	—	  	 	 	32	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
	  	 	160	 	 	 	153	 	 	 	179	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Corporate	  	 	(30	)	 	 	(52	)	 	 	7	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
	  	$	4,316	 	 	$	3,680	 	 	$	3,540	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Copper	  				 				 				
Batu Hijau, Indonesia	  	$	671	 	 	$	672	 	 	$	786	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Costs applicable to sales—gold increased in 2006 compared to 2005 due to higher labor and input commodity prices and lower grades at Nevada, Batu Hijau and Yanacocha, higher waste removal at Yanacocha and Batu Hijau, as well as increased operating costs from the start-up of Phoenix and Leeville in Nevada and Ahafo in Ghana. The increase in 2005 from 2004 resulted primarily from increased operating costs in Nevada and at Yanacocha. Costs applicable to sales—copper were $308 and $303 in 2006 and 2005, respectively. Newmont has seen significant increases in the costs of labor, fuel, power and other consumables during these periods. For a complete discussion regarding variations in operations, see Results of Consolidated Operations below.
 
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The following is a summary of Costs applicable to sales by operation:

 	  	Years Ended December 31,	 	
 	  	2006	 	 	2005	 	 	2004	 	
Gold	  				 				 				
Nevada, USA	  	$	980	 	 	$	807	 	 	$	716	 	
Yanacocha, Peru	  	 	498	 	 	 	487	 	 	 	432	 	
Australia/New Zealand:	  				 				 				
Tanami, Australia	  	 	155	 	 	 	162	 	 	 	194	 	
Kalgoorlie, Australia	  	 	163	 	 	 	144	 	 	 	141	 	
Jundee, Australia	  	 	113	 	 	 	115	 	 	 	106	 	
Pajingo, Australia	  	 	61	 	 	 	58	 	 	 	59	 	
Martha, New Zealand	  	 	27	 	 	 	29	 	 	 	28	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
	  	 	519	 	 	 	508	 	 	 	528	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Batu Hijau, Indonesia	  	 	91	 	 	 	109	 	 	 	91	 	
Ahafo, Ghana	  	 	60	 	 	 	—	  	 	 	—	  	
Other Operations:	  				 				 				
Golden Giant, Canada	  	 	13	 	 	 	48	 	 	 	48	 	
Kori Kollo, Bolivia	  	 	27	 	 	 	16	 	 	 	10	 	
La Herradura, Mexico	  	 	19	 	 	 	15	 	 	 	10	 	
Ovacik, Turkey	  	 	—	  	 	 	—	  	 	 	23	 	
Minahasa, Indonesia	  	 	—	  	 	 	—	  	 	 	20	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
	  	 	59	 	 	 	79	 	 	 	111	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
	  	$	2,207	 	 	$	1,990	 	 	$	1,878	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Copper	  				 				 				
Batu Hijau, Indonesia	  	$	308	 	 	$	303	 	 	$	305	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Deferred stripping.     The net deferred stripping amounts included in Costs applicable to sales by operation were as follows:

 	  	Years Ended December 31,	 	
 	  	    2005    	 	 	    2004    	 	
Gold	  				 				
Nevada, USA	  	$	(47	)	 	$	(39	)	
Australia/New Zealand:	  				 				
Tanami, Australia	  	 	—	  	 	 	8	 	
Kalgoorlie, Australia	  	 	(9	)	 	 	4	 	
Martha, New Zealand	  	 	2	 	 	 	(4	)	
	  	 	 	 	 	 	 	 	
	  	 	(7	)	 	 	8	 	
	  	 	 	 	 	 	 	 	
Batu Hijau, Indonesia	  	 	—	  	 	 	9	 	
Other Operations:	  				 				
La Herradura, Mexico	  	 	(3	)	 	 	—	  	
Ovacik, Turkey	  	 	—	  	 	 	(3	)	
	  	 	 	 	 	 	 	 	
	  	 	(3	)	 	 	(3	)	
	  	 	 	 	 	 	 	 	
	  	$	(57	)	 	$	(25	)	
	  	 	 	 	 	 	 	 	
Copper	  				 				
Batu Hijau, Indonesia	  	$	1	 	 	$	29	 	
	  	 	 	 	 	 	 	 	
See Accounting Developments, above.
 
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Depreciation, depletion and amortization  remained at the same level in 2006 from 2005, as capital spending increases from the start-up of Phoenix and Leeville in Nevada and Ahafo in Ghana and capital expenditures at other operations were offset by lower production at Yanacocha and Batu Hijau. The decrease in 2005 from 2004 primarily resulted from the disposition of the Ovacik mine in Turkey and lower consolidated ounces sold. Depreciation, depletion and amortization expense fluctuates as capital expenditures increase or decrease and as production levels increase or decrease. For a complete discussion, see Results of Consolidated Operations , below. Newmont expects Depreciation, depletion and amortization to increase to approximately $800 to $865 in 2007.
The following is a summary of Depreciation, depletion and amortization by operation:

 	  	    Years Ended December 31,    	
 	  	2006	 	 	2005	 	 	2004	
Nevada, USA	  	$	180	 	 	$	124	 	 	$	127	
Yanacocha, Peru	  	 	172	 	 	 	205	 	 	 	198	
Australia/New Zealand:	  				 				 			
Tanami, Australia	  	 	30	 	 	 	33	 	 	 	38	
Kalgoorlie, Australia	  	 	25	 	 	 	17	 	 	 	16	
Jundee, Australia	  	 	26	 	 	 	27	 	 	 	27	
Pajingo, Australia	  	 	28	 	 	 	25	 	 	 	31	
Martha, New Zealand	  	 	10	 	 	 	16	 	 	 	14	
	  	 	 	 	 	 	 	 	 	 	 	
Gold	  	 	119	 	 	 	118	 	 	 	126	
Other	  	 	3	 	 	 	3	 	 	 	4	
	  	 	 	 	 	 	 	 	 	 	 	
	  	 	122	 	 	 	121	 	 	 	130	
	  	 	 	 	 	 	 	 	 	 	 	
Batu Hijau, Indonesia	  				 				 			
Gold	  	 	20	 	 	 	34	 	 	 	28	
Copper	  	 	66	 	 	 	87	 	 	 	90	
	  	 	 	 	 	 	 	 	 	 	 	
	  	 	86	 	 	 	121	 	 	 	118	
	  	 	 	 	 	 	 	 	 	 	 	
Ahafo, Ghana	  	 	19	 	 	 	1	 	 	 	1	
Other Operations:	  				 				 			
Golden Giant, Canada	  	 	1	 	 	 	11	 	 	 	11	
Kori Kollo, Bolivia	  	 	9	 	 	 	4	 	 	 	2	
La Herradura, Mexico	  	 	8	 	 	 	5	 	 	 	5	
Ovacik, Turkey	  	 	—	  	 	 	—	  	 	 	16	
Minahasa, Indonesia	  	 	—	  	 	 	—	  	 	 	3	
	  	 	 	 	 	 	 	 	 	 	 	
Gold	  	 	18	 	 	 	20	 	 	 	37	
Other	  	 	1	 	 	 	2	 	 	 	3	
	  	 	 	 	 	 	 	 	 	 	 	
	  	 	19	 	 	 	22	 	 	 	40	
	  	 	 	 	 	 	 	 	 	 	 	
Other:	  				 				 			
Merchant Banking	  	 	19	 	 	 	21	 	 	 	24	
Exploration	  	 	3	 	 	 	4	 	 	 	3	
Corporate and Other	  	 	16	 	 	 	16	 	 	 	11	
	  	 	 	 	 	 	 	 	 	 	 	
	  	 	38	 	 	 	41	 	 	 	38	
	  	 	 	 	 	 	 	 	 	 	 	
	  	$	636	 	 	$	635	 	 	$	652	
	  	 	 	 	 	 	 	 	 	 	 	
Exploration period-to-period increases reflect increased exploration and related activity in response to higher gold prices and increased labor and consumable costs. Advanced projects, research and development costs represent spending on advanced projects, feasibility studies and drilling at Phoenix, Martabe, Akyem, Ahafo and Conga. Newmont expects Exploration to be approximately $170 to $175 and Advanced projects, research and development to be approximately $85 to $100 in 2007.
 
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General and administrative expense increased in 2006 from 2005 primarily due to $12 of stock option expense. General and administrative expense as a percentage of revenues was 3.0% in 2006, compared to 3.1% in 2005 and 2.7% in 2004. Newmont expects General and administrative expenses to be approximately $155 to $165 in 2007, including $10 in stock option expense.
Write-down of goodwill was $nil, $41 and $52 for 2006, 2005 and 2004, respectively. The 2005 expense was related to the Nevada segment resulting from anticipated increased future operating and capital costs. The 2004 expense was related to the Pajingo reporting unit in Australia resulting from anticipated increased future operating costs and lower grade ore.
Write-down of long-lived assets totaled $3, $43 and $39 for 2006, 2005 and 2004, respectively. The 2006 write-down primarily related to equipment. The 2005 write-down primarily related to the Martabe exploration project in Indonesia and exploration tenements in Australia. The 2004 write-down included $16 related to the Ovacik mine in Turkey. The remainder of the write-down for 2004 was related to exploration tenements in Australia, mineral interests at Pajingo, and processing facilities at Yanacocha.
For a discussion of the Company’s policy for assessing the carrying value of its goodwill and long-lived assets for impairment, see Critical Accounting Policies, above.
Other expense, net includes the following:

 	  	    Years Ended December 31,    	 	
 	  	2006	  	2005	 	 	2004	 	
Reclamation and remediation	  	$	47	  	$	38	 	 	$	(11	)	
Peruvian royalty	  	 	22	  	 	—	  	 	 	—	  	
Buyat Bay settlement and other (Note 29)	  	 	22	  	 	56	 	 	 	7	 	
Peruvian worker’s participation reserves	  	 	15	  	 	—	  	 	 	—	  	
Yanacocha leach pad repair	  	 	10	  	 	—	  	 	 	—	  	
Other	  	 	33	  	 	18	 	 	 	38	 	
	  	 	 	  	 	 	 	 	 	 	 	
	  	$	149	  	$	112	 	 	$	34	 	
	  	 	 	  	 	 	 	 	 	 	 	
The 2006 expense primarily includes changes in environmental obligation estimates at non-operating sites, legal and other costs incurred in regards to pollution allegations at Minahasa and at Yanacocha, a new Peruvian royalty, costs associated with leach pad repairs and Peruvian worker’s participation reserves. The 2005 expense included legal and other costs incurred in regards to pollution allegations at Minahasa, changes in environmental obligation estimates at other non-operating properties, costs incurred to stabilize material and repair damage to roads and utility lines for a waste dump slide in Nevada and a pension settlement loss. The 2004 expense related to the closure of Minahasa, care and maintenance charges at Ovacik in Turkey, engineering and permitting expenses for the power plant in Nevada and other miscellaneous expenses.
 
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Other income, net is summarized as follows:

 	  	    Years Ended December 31,    	 	
 	  	2006	 	 	2005	  	2004	 	
Gain on sale of Alberta Oil Sands project	  	$	266	 	 	$	—	  	$	—	 	
Royalty and dividend income, net	  	 	120	 	 	 	79	  	 	64	 	
Interest income	  	 	67	 	 	 	59	  	 	23	 	
Gain on sale of Martabe project	  	 	30	 	 	 	—	  	 	—	 	
Income from development projects, net	  	 	19	 	 	 	—	  	 	—	 	
Gain (loss) on investments, net	  	 	13	 	 	 	54	  	 	(39	)	
Gain on sale of property, plant and equipment	  	 	12	 	 	 	11	  	 	20	 	
Foreign currency exchange gains	  	 	5	 	 	 	8	  	 	7	 	
Gain on sale of other assets, net	  	 	6	 	 	 	37	  	 	8	 	
Gain on QMC debt guarantee	  	 	—	 	 	 	9	  	 	11	 	
Loss on early extinguishment of debt	  	 	(40	)	 	 	—	  	 	—	 	
(Loss) gain on ineffective portion of derivative investments, net	  	 	(60	)	 	 	2	  	 	2	 	
Other	  	 	13	 	 	 	10	  	 	6	 	
	  	 	 	 	 	 	 	  	 	 	 	
	  	$	451	 	 	$	269	  	$	102	 	
	  	 	 	 	 	 	 	  	 	 	 	
During the third quarter of 2006, Merchant Banking completed the sale of the Alberta Oil Sands project to the Korean National Oil Corporation and the Martabe project in Indonesia to Agincourt Resources Limited (“Agincourt”). Newmont received net cash proceeds of $271 for the Alberta Oil Sands project. Newmont received net cash proceeds of $42 and approximately 43 million Agincourt shares valued at $37 for the Martabe project.
Royalty and dividend income increased each year due to higher gold, oil and gas prices and higher distributions received from Canadian Oil Sands Trust, which was acquired during the second and third quarters of 2004.
Interest income increased each year due to increased funds invested and higher investment yields.
Income from development projects includes the gold and copper sales net of incremental operating costs incurred prior to commercial production at the Leeville and Phoenix operations in Nevada.
The 2006 gain on investments is primarily related to the sale of Regis Resources NL and Pan Australian Resources Ltd. which resulted in gains of $7 and $4, respectively. The gain on investments during 2005 was primarily attributable to the sale of investments in Kinross Gold Corporation and Oxiana Limited which resulted in gains of $20 and $25, respectively. The loss on investments during 2004 was attributable to a $39 impairment of Kinross based on an extended decline in value of Kinross equity securities.
The 2006 gain on sale of other assets primarily related to additional proceeds from the sale of Ovacik. The gain on sale of other assets during 2005 was primarily attributable to the sale of the Mezcala gold deposit. The 2004 gain on sale of other assets primarily resulted from the sales of Perama, Midwest Uranium and Bronzewing.
Newmont was the guarantor of an A$71 (approximately $53) amortizing loan facility of QMC Finance Pty Ltd. (“QMC”) which was collateralized by the assets of the Queensland Magnesium Project. Newmont reduced the amount accrued for this contingent obligation by the estimated fair value of the Australian Magnesium Corporation assets that would be subrogated to Newmont in the event the guarantee was called, which resulted in a $30 loss during 2003. During 2004, Newmont entered into a transaction resulting in a loan from Newmont to a subsidiary of QMC for A$30 (approximately $23), the release of Newmont from its guarantee obligation and recognition of an $11 gain resulting from the release of all previously accrued contingent liabilities. An
 
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allowance was provided for 100% of the loan receivable from the QMC entity. In 2005, a gain was recognized for A$12 (approximately $9), resulting from a reduction in the allowance provided on the loan receivable.
On September 27, 2006, Newmont settled its remaining obligations under the prepaid forward gold sales contract and forward gold purchase contract for which it was required to deliver 17,951 ounces of gold in December 2006 and 179,062 ounces of gold in June 2007. This settlement resulted in cash payments of $96, and included a $48 reduction to the current portion of long-term debt and a $40 pre-tax loss on extinguishment of debt.
The loss on ineffective portion of derivative instruments includes a loss of $56 in 2006 for the ineffective portion of the copper collar instruments designated as cash flow hedges. Other losses relate to the ineffective portion of legacy gold puts in Australia.
Interest expense, net of capitalized interest was $97, $97 and $97 for 2006, 2005 and 2004, respectively. Capitalized interest totaled $57, $39 and $13 in each year, respectively. Interest costs increased each year due to the issuance of the $600 5  7 / 8 % notes in 2005 and the $200 bond issuance at Yanacocha in July 2006. These increases were offset each year by higher capitalized interest due to construction of Leeville, Phoenix and the power plant in Nevada, the Ahafo project in Ghana and the Boddington project in Australia. Newmont expects Interest expense, net of capitalized interest to be approximately $95 to $105 in 2007.
Income tax expense was $424 in 2006, compared to $310 and $324 in 2005 and 2004, respectively. The effective tax rates were 26.1%, 29.6%, and 30.3% in 2006, 2005 and 2004, respectively. The factors that most significantly impact the Company’s effective tax rate are percentage depletion and resource allowances, the rate differential related to foreign earnings indefinitely invested, valuation allowances related to deferred tax assets, foreign earnings net of foreign tax credits, earnings attributable to minority interests in subsidiaries and affiliated companies, foreign currency translation gains and losses, impacts of the analysis of income taxes payable and U.S. book and tax basis of assets and liabilities, changes in tax laws and the impact of certain specific transactions. Most of these factors are sensitive to the average realized price of gold and other metals.
Percentage depletion allowances (tax deductions for depletion that may exceed the Company’s tax basis in its mineral reserves) are available to the Company under the income tax laws of the United States for operations conducted in the United States or through branches and partnerships owned by U.S. subsidiaries included in the Company’s consolidated United States income tax return. The deductions are highly sensitive to the price of gold and other minerals produced by the Company. For 2006 and prior years, similar types of deductions are available for mining operations in Canada. The tax benefits from percentage depletion and resource allowances were $83, $47 and $47 in 2006, 2005 and 2004, respectively. The increase in 2006 compared to 2005 primarily is due to an increase in the Company’s average realized gold price.
The Company operates in various countries around the world that have tax laws, tax incentives and tax rates that are significantly different than those of the United States. Many of these differences combine to move the Company’s overall effective tax rate higher or lower than the United States statutory rate depending on the mix of income relative to income earned in the United States. The effect of these differences is shown in Note 7 to the Consolidated Financial Statements as either a foreign rate differential or the effect of foreign earnings, net of credits. Differences in tax rates and other foreign income tax law variations make the Company’s ability to fully utilize all of its available foreign income tax credits on a year-by-year basis highly dependent on the price of the gold and copper produced by the Company and the costs of production, since lower prices or higher costs can result in the Company having insufficient sources of taxable income in the United States to utilize all available foreign tax credits. Such credits have limited carry back and carry forward periods and can only be used to reduce the United States income tax imposed on the Company’s foreign earnings included in its annual United States consolidated income tax return. The effects of foreign earnings, net of allowable credits, were an increase of income tax expense of $9, $12 and $25, in 2006, 2005 and 2004, respectively. The effect of different income tax rates in countries where earnings are indefinitely reinvested contributed to an increase in the Company’s income tax expense of $79, $8 and $61 in 2006, 2005 and 2004 respectively.
 
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The tax effect of changes in local country tax laws, as shown in the Company’s effective tax reconciliation in Note 7 to the Consolidated Financial Statements, resulted in a net tax benefit of $22, $24 and $51 in 2006, 2005 and 2004, respectively. The net tax benefit in 2006 is primarily related to a decrease in the Canadian federal and provincial statutory tax rates. The net tax benefit in 2005 and 2004 is primarily related to a change in Australian tax law regarding the ability of the company to file consolidated income tax returns.
The Company adopted the U.S. dollar as its functional currency for Australian tax reporting purposes. This change will eliminate fluctuations in the effective tax rate that resulted from foreign currency exchange rate movements between the U.S. dollar and Australian dollar. The change resulted in a tax benefit of $48 in 2006.
The need to record valuation allowances related to the Company’s deferred tax assets (primarily attributable to net operating losses and tax credits) is principally dependent on the following factors: (i) the extent to which the net operating losses and tax credits can be carried back and yield a tax benefit; (ii) the Company’s long-term estimate of future average realized minerals prices; and (iii) the degree to which many of the tax laws and income tax agreements imposed upon the Company and its subsidiaries around the world tend to create significant tax deductions early in the mining process. These up-front deductions can give rise to net operating losses and tax credit carry forwards in circumstances where future sources of taxable income may not coincide with available carry forward periods even after taking into account all available tax planning strategies. Furthermore, certain liabilities, accrued for financial reporting purposes, may not be deductible for tax purposes until such liabilities are actually funded which could happen after mining operations have ceased, when sufficient sources of taxable income may not be available. Changes to valuation allowances decreased income tax expense by $27 in 2006, increased income tax expense by $22 in 2005, and decreased income tax expense by $58 in 2004. This utilization primarily is due to generation of low taxed, foreign sourced income, in addition to higher sources of taxable income in the United States resulting from the increase in the Company’s average realized gold price in 2006. The release of valuation allowance on capital loss carry forwards was due to the realization of capital gains outside the United States.
The Company, consolidates certain subsidiaries of which it does not own 100% of the outstanding equity. However, for tax purposes, the Company is only responsible for the income taxes on the portion of the taxable earnings attributable to its ownership interest of each consolidated entity. Such minority interests contributed $15, $15 and $7 in 2006, 2005 and 2004, respectively, as reductions in the Company’s income tax expense.
The Company’s tax expense decreased by $2, $14 and $13 in 2006, 2005 and 2004 respectively due to changes in foreign currency exchange rates. In 2005 and 2004, these amounts primarily relate to the Australian tax effect of realized and unrealized translation gains attributable to United States dollar-denominated assets and liabilities and the gold derivatives positions at Newmont Australia Limited whose functional currency is the United States dollar. Because Newmont intends to indefinitely reinvest earnings from Newmont Australia Limited, no offsetting United States deferred income tax effect can be recorded.
During 2006 the Company completed a reconciliation of its U.S. book and tax basis assets and liabilities as well as a detailed analysis of its income taxes payable. This exercise identified differences of $27. The entire adjustment was recognized as a tax benefit in 2006. The Company also recognized a net tax benefit of $16 due to an adjustment on the interest accrued on tax contingencies.
Based on the uncertainty and inherent unpredictability of the factors influencing the Company’s effective tax rate and the sensitivity of such factors to gold and other metals prices as discussed above, the effective tax rate is expected to be volatile in future periods. The effective tax rate is expected to be between 29% and 34% in 2007.
In June 2006, the FASB issued FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes,” (“FIN 48”) an interpretation of FASB Statement No. 109, “Accounting for Income Taxes.” FIN 48 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax
 
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position taken or expected to be taken in a tax return. FIN 48 requires that the Company recognize in its financial statements, the impact of a tax position, if that position is more likely than not of being sustained on audit, based on the technical merits of the position. FIN 48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods and disclosure. The provisions of FIN 48 are effective beginning January 1, 2007 with the cumulative effect of the change in accounting principle recorded as an adjustment to the opening balance of retained earnings, goodwill, deferred income taxes and income taxes payable in the Consolidated Balance Sheets. The Company is currently evaluating the impact of adopting FIN 48 on the Company’s consolidated financial position, results of operations and disclosures.
Minority interest in income of subsidiaries decreased in 2006 from 2005 as a result of lower production and earnings at Batu Hijau (see Results of Consolidated Operations, Batu Hijau Operations). The 2005 increase from 2004 resulted from increased earnings at Yanacocha due to increased gold price and ounces sold, partially offset by an increase in costs (see Results of Consolidated Operations, Yanacocha Operations).
Equity income (loss) of affiliates was as follows:

 	  	    Years Ended December 31,    	 	
 	  	2006	 	 	2005	 	 	2004	 	
European Gold Refineries	  	$	3	 	 	$	6	 	 	$	1	 	
AGR Matthey Joint Venture	  	 	1	 	 	 	(2	)	 	 	1	 	
Regis Resources NL	  	 	(2	)	 	 	—	  	 	 	—	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
	  	$	2	 	 	$	4	 	 	$	2	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
The Loss from discontinued operations of $49 in 2006 resulted from the Holloway and Zarafshan gold operations being discontinued from sale and expropriation, respectively. The Company reclassified the income statement results from the historical presentation to discontinued operations in the Consolidated Statements of Income for all periods presented. The Company recorded a pre-tax impairment loss of $101 as a result of the Uzbekistan government’s expropriation of the Zarafshan operation. A $13 pre-tax gain was recorded for the sale of the Holloway operation. The 2005 loss of $38 was primarily due to a $42 pre-tax write-down of long-lived assets as a result of the classification of the Golden Grove copper-zinc operation in Australia as a discontinued operation. A $6 pre-tax gain was recorded later in 2005 for the sale of Golden Grove. The gain of $79 in 2004 was primarily due to a tax credit related to Golden Grove from an election to prepare a consolidated tax return in Australia (see Note 9 to the Consolidated Financial Statements).
Cumulative effect of a change in accounting principle, net of tax was $47 effective January 1, 2004 resulting from the consolidation of Batu Hijau to conform Batu Hijau’s accounting policies to Newmont’s accounting policies. See Accounting Developments, above, for more information.
Other comprehensive income, net of tax in 2006 included a $272 gain in value of marketable securities, $47 for unrealized gains on derivatives designated as cash flow hedges and $17 related to a minimum pension liability adjustment, offset by a loss of $14 on the translation of subsidiaries with non-U.S. dollar functional currencies. Other comprehensive income, net of tax in 2005 included a $282 gain in value of marketable equity securities and a $26 gain on the translation of subsidiaries with non-U.S. dollar functional currencies, offset by losses of $18 related to a minimum pension liability adjustment and $59 for unrealized losses on derivatives designated as cash flow hedges. Other comprehensive income, net of tax in 2004 included a $123 gain in value of marketable equity securities and a $31 gain on the translation of subsidiaries with non-U.S. dollar functional currencies, offset by losses of $11 related to a minimum pension liability adjustment and $19 for unrealized losses on derivatives designated as cash flow hedges.
 
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 Results of Consolidated Operations

 	  	Gold Ounces or
Copper Pounds Sold (1)	  	Costs Applicable to Sales (2)	  	Depreciation, Depletion
and Amortization	
 	  	2006	  	2005	  	2004	  	2006	  	2005	  	2004	  	2006	  	2005	  	2004	
 	  	(ounces in thousands)	  	($ per ounce)	  	($ per ounce)	
Gold	  		  		  		  			  			  			  			  			  			
Nevada	  	2,534.1	  	2,444.1	  	2,538.0	  	$	403	  	$	333	  	$	282	  	$	74	  	$	51	  	$	50	
Yanacocha (3) (51.35% owned)	  	2,572.3	  	3,327.5	  	3,039.9	  	 	193	  	 	147	  	 	142	  	 	67	  	 	62	  	 	65	
Australia/New Zealand	  	1,350.1	  	1,600.5	  	1,887.6	  	 	384	  	 	317	  	 	280	  	 	89	  	 	74	  	 	67	
Batu Hijau (3)(4)	  	435.3	  	720.5	  	715.2	  	 	209	  	 	152	  	 	128	  	 	46	  	 	47	  	 	39	
Ahafo	  	202.1	  	—	  	—	  	 	297	  	 	—	  	 	—	  	 	94	  	 	—	  	 	—	
Other (3)	  	267.3	  	336.7	  	438.1	  	 	222	  	 	233	  	 	252	  	 	69	  	 	58	  	 	84	
	  	 	  	 	  	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Total/Weighted-Average	  	7,361.2	  	8,429.3	  	8,618.8	  	$	304	  	$	237	  	$	218	  	$	73	  	$	60	  	$	60	

 	  	(pounds in millions)	  	($ per pound)	  	($ per pound)	
Copper	  		  		  		  			  			  			  			  			  			
Batu Hijau (2)(3)	  	434.7	  	572.7	  	683.3	  	$	0.71	  	$	0.53	  	$	0.45	  	$	0.15	  	$	0.15	  	$	0.13	

(1)	Includes incremental start-up ounces of 100,300 and 22,100 in 2006 and 2005, respectively.	

(2)	Excludes depreciation, depletion and amortization.	

(3)	Consolidated gold ounces or copper pounds sold includes minority interests’ share.	

(4)	Economic interest decreased to 52.875% from 56.25% on October 1, 2004.	
Consolidated gold ounces sold decreased in 2006 from 2005 due to:
 
 	•	 	decreased sales at Yanacocha and Batu Hijau due to lower grade ores and lower throughput at Batu Hijau;	
 
 	•	 	the completion of operations at Lone Tree (Nevada) and Golden Giant (Other); partially offset by	
 
 	•	 	the start-up of operations at Ahafo (Ghana) and Leeville and Phoenix (Nevada).	
Consolidated gold ounces sold decreased in 2005 from 2004 due to:
 
 	•	 	lower grade ores processed in Nevada and Australia/New Zealand;	
 
 	•	 	the dispositions of Ovacik (Other) and Bronzewing (Australia/New Zealand); and	
 
 	•	 	the completion of operations at Minahasa (Other); partially offset by	
 
 	•	 	increased sales at Yanacocha.	
Consolidated copper pounds sold decreased in 2006 and 2005 due to the processing of lower grade ore (0.55% vs. 0.69%) and lower mill throughput due to mine plan changes and harder material.
Consolidated copper pounds sold also decreased in 2005 from 2004 due to the processing of lower grade ore (0.69% vs. 0.75%) after access to ore in the lower portion of the pit was restricted as a result of several small pit wall slides during the first quarter of 2005.
Costs applicable to sales per consolidated gold ounce sold increased in 2006 from 2005 and in 2005 from 2004, primarily due to the decrease in production at Yanacocha, Batu Hijau, and Australia/New Zealand and increased operating costs in Nevada, Yanacocha, Batu Hijau and Australia/New Zealand. Costs applicable to sales per consolidated copper pound increased from year-to-year due to the decrease in copper production and increased operating costs.
The Company expects consolidated gold sales of approximately 6.1 to 6.6 million ounces in 2007, primarily as a result of lower production from Yanacocha and Australia, as well as the closure of Lone Tree in Nevada and
 
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Golden Giant in Canada in 2006. Costs applicable to sales per ounce for 2007 are expected to be approximately 25% higher than 2006, primarily from lower production at Yanacocha and Australia, as well as expected higher labor, consumables and energy prices in all operating regions. Additionally, future potential power interruptions in Ghana could further impact the Company’s Costs applicable to sales in 2007.
The Company expects consolidated copper sales of approximately 400 to 435 million pounds of copper in 2007 at Costs applicable to sales of approximately $1.10 to $1.20 per pound.
Nevada Operations
Nevada gold ounces sold increased by 90,000 ounces in 2006 from 2005, due to the commencement of commercial operations at Phoenix and Leeville in the fourth quarter of 2006 and increased access to open pit ore at the Twin Creeks layback, partially offset by lower production from Lone Tree. The Phoenix project commenced commercial operations on October 1, 2006, followed by the Leeville project on October 14, 2006. Leeville and Phoenix produced 243,700 ounces in 2006, including 100,300 incremental start-up ounces included in Other income, net . Gold production at Lone Tree declined as mining was completed in 2006. Overall, mill ore grade decreased 17% and mill throughput increased 16% as a result of the start-up of the lower grade Phoenix operation. Heap leach production was slightly higher than 2005 due to a 9% increase in average grade of ore placed on the leach pads. Costs applicable to sales per ounce increased 22%, primarily due to increased labor, diesel, power, cyanide and other commodity prices, higher underground contract service costs. Costs applicable to sales were also impacted by the change in accounting for open pit waste removal costs. In 2005, $47 of mining costs was deferred which reduced Costs applicable to sales by $20 per ounce. Depreciation, depletion and amortization increased as a result of placing new equipment and facilities in operation.
Gold ounces sold decreased in 2005 from 2004, as a 12% decrease in mill ore grade and sales from inventories in 2004 were partially offset by an 18% increase in mill throughput and a 12% increase in heap leach ore placed. Adverse mill grades were caused by unfavorable ground conditions at underground operations and a labor shortage impacting underground development. Ore placed on the leach pads increased by 12% in 2005 from 2004 due to increased open pit production from Carlin and Twin Creeks. Costs applicable to sales per ounce increased 18%, primarily due to increased labor, diesel and other commodity prices, a decrease in ounces produced and higher underground contract service costs. During the fourth quarter of 2005, Nevada recorded a goodwill impairment charge of $41 as a result of anticipated increased future operating and capital costs.
Consolidated gold sales are expected to remain stable in 2007 at approximately 2.35 to 2.55 million ounces. Higher production from Phoenix, Leeville and Twin Creeks is expected to be partially offset by the shut-down of Lone Tree at the end of 2006. Higher mill throughput and mill recoveries are expected to be offset by lower planned mill grades and leach recoveries in 2007. Costs applicable to sales are also expected to remain stable in 2007 at approximately $375 to $400 per ounce. Ongoing labor and energy cost pressures are expected to be offset by reduced contracted services and other expenses, as well as lower anticipated maintenance costs associated with a newer mining fleet.
Construction of a 200-megawatt coal-fired power plant is approximately 37% complete as of December 31, 2006. Capital costs for the power plant are expected to be between $620 and $640 and completion is targeted for mid-2008.
Non-governmental organizations have brought a series of actions relating to the Nevada operations, as described in more detail in Note 29 to the Consolidated Financial Statements. While Newmont believes that the legal actions are without merit, unfavorable outcomes could result in additional conditions being imposed on the Company’s operations, and such conditions could have a material adverse effect on Nevada’s results of operations or financial position.
 
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Yanacocha Operations
Gold ounces sold decreased in 2006 from 2005, primarily due to a decrease in ore tons mined and placed on the leach pads, as anticipated in the mine plan. The proportion of waste tons mined increased from 0.50 waste tons per ton of ore in 2005 to 0.88 waste tons per ton of ore in 2006. Costs applicable to sales per ounce increased due to the decrease in production, increased consumption and prices of diesel, cyanide, lime and other commodities and higher worker’s participation bonuses and royalties due to increased gold prices, partially offset by increased silver by-product credits.
Gold ounces sold increased in 2005 from 2004, primarily due to a 12% increase in the grade of ore placed and a 10% increase in the total ore placed, partially offset by timing of flows from the leach pads and increased inventory. Costs applicable to sales per ounce increased due to increased workers’ participation payments, increased consumption of reagents and higher royalties due to increased gold prices. Increased labor and commodity costs were partially offset by increased production, related allocation of costs to inventory and increased silver by-product credits.
Consolidated gold sales are expected to decrease in 2007 to approximately 1.5 to 1.6 million ounces, primarily as a result of lower throughput and ore grades. Consolidated gold sales for 2008 through 2010 are expected to be approximately 1.6 to 1.8 million ounces per year. Costs applicable to sales at Yanacocha are expected to increase in 2007 to approximately $340 to $360 per ounce, primarily as a result of lower production.
During 2004, Peru enacted legislation to establish a sliding scale mining royalty of up to 3% based on the volume of mine production. The royalty is calculated on revenue from sales of product less certain refining and transportation expenses. While the Peruvian royalty became effective during the second quarter of 2004, it did not apply to those projects that had tax stabilization agreements prior to the adoption of the royalty law. Virtually all of Yanacocha’s current production is derived from projects that were stabilized prior to the enactment of the royalty legislation; however, future projects not covered by the tax stabilization agreements will be burdened by this royalty. In addition, the recent presidential, congressional and regional elections may result in changes to the government's positions on regulations and policies that could impact Yanacocha's operations. Although the new administration has affirmed its intention to uphold these tax stabilization agreements, it is possible that the Congress will attempt to set aside these agreements and impose the mining royalty on projects covered by such agreements or that additional payments may be required to address the perception that proceeds from mining activities should be more equitably shared.
In 2006, Yanacocha recorded a $22 charge to Other expense, net related to an agreement with the Peruvian government to provide for a royalty payment for community improvements during current high metal prices. The negotiated royalty is based on 3.75% of Yanacocha’s net income beginning January 1, 2006 for a period of up to five years.
There is a collective bargaining agreement in place at Yanacocha through February 2007. The agreement is currently being re-negotiated. A minority of the union membership staged a three-day strike in April 2006. The strike had no material impact on operations. There can be no assurance that future disputes will be resolved without disruption to operations.
In August 2006, Yanacocha resumed all mining and construction activities after a blockade that temporarily restricted access to the Yanacocha mine. The Company signed agreements with the Peruvian government and duly appointed representatives of the protesting community members on August 30, 2006 to peacefully end the blockade. Yanacocha will participate in a high-level government commission to continue to address the concerns of those community members.
Cerro Quilish is a deposit within the Yanacocha complex. In July 2004, Yanacocha received a drilling permit for the Cerro Quilish deposit and commenced drilling activities to further define the deposit. During September 2004, individuals from the Cajamarca region, where Cerro Quilish is located, conducted a sustained blockade of the road between the City of Cajamarca and the mine site, in protest of these exploration activities.
 
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Yanacocha suspended all drilling activities at Cerro Quilish and the blockade was resolved. At the request of Yanacocha, the Cerro Quilish drilling permit was revoked in November 2004. Yanacocha has reassessed the challenges involved in obtaining required permits for Cerro Quilish primarily related to increased community concerns. Based upon this reassessment, Yanacocha reclassified 3.9 million ounces (2.0 million equity ounces) of gold from proven and probable reserves to mineralized material not in reserve as of December 31, 2004.
Australia/New Zealand Operations

 	  	Gold Ounces Sold	  	Costs Applicable to
Sales (1)	  	Depreciation, Depletion
and Amortization	
 	  	2006	  	2005	  	2004	  	2006	  	2005	  	2004	  	2006	  	2005	  	2004	
 	  	(in thousands)	  	($ per ounce)	  	($ per ounce)	
Tanami	  	417.6	  	493.7	  	658.0	  	$	370	  	$	328	  	$	295	  	$	72	  	$	67	  	$	58	
Kalgoorlie (50% owned)	  	332.2	  	409.6	  	468.4	  	 	490	  	 	352	  	 	301	  	 	76	  	 	42	  	 	35	
Jundee (2)	  	305.4	  	341.8	  	379.3	  	 	369	  	 	335	  	 	279	  	 	85	  	 	80	  	 	71	
Pajingo	  	174.6	  	192.0	  	251.4	  	 	350	  	 	301	  	 	236	  	 	161	  	 	130	  	 	125	
Martha	  	120.3	  	163.4	  	130.5	  	 	223	  	 	177	  	 	215	  	 	83	  	 	97	  	 	106	
	  	 	  	 	  	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Total/Weighted-Average	  	1,350.1	  	1,600.5	  	1,887.6	  	$	384	  	$	317	  	$	280	  	$	89	  	$	74	  	$	67	

(1)	Excludes depreciation, depletion and amortization.	

(2)	During 2004, Jundee included Bronzewing which ceased mining in the first quarter of 2004 and was sold during the third quarter of 2004.	
Australia/New Zealand operations sold fewer ounces of gold in 2006 compared to 2005, primarily due to lower production resulting from decreased ore tons mined and lower mill throughput. Costs applicable to sales per ounce increased in 2006 from 2005 primarily due to the decreases in ounces sold, increased commodity costs partially offset by depreciation of the Australian and New Zealand dollars compared to the U.S. dollar. The favorable foreign exchange movements decreased Australia/New Zealand Costs applicable to sales in 2006 from 2005 by $5 per ounce. Costs applicable to sales were also impacted by the change in accounting for open pit waste removal costs. In 2005, $7 of mining costs was deferred which reduced Costs applicable to sales by $5 per ounce.
In 2005, gold ounces sold decreased compared to 2004, primarily due to lower grades at Tanami and Kalgoorlie combined with lower throughput at Tanami and Pajingo. Costs applicable to sales per ounce increased in 2005 from 2004, primarily due to the decreases in ounces sold, increased commodity costs and appreciation of the Australian and New Zealand dollars compared to the U.S. dollar. The unfavorable foreign exchange movements increased Australia/New Zealand Costs applicable to sales in 2005 from 2004 by $15 per ounce.
Consolidated gold sales are expected to decline in 2007 to approximately 1.275 to 1.325 million ounces, primarily as a result of lower planned throughput and ore grades. At Martha, lower mill throughput is anticipated as a result of planned mine sequencing adjustments. Lower anticipated ore grades at Tanami and planned ramp-down sequencing at Pajingo are also expected to contribute to declining gold sales in the region until Boddington begins production. Costs applicable to sales are expected to increase to approximately $445 to $470 per ounce in 2007, primarily as a result of lower planned production and higher anticipated labor, electricity and fuel expenses.
Tanami, Australia .    Gold ounces sold decreased in 2006 from 2005, primarily due to a 23% decline in mill throughput resulting from the completion of processing Groundrush stockpiles, partially offset by higher ore grade from the Granites. Costs applicable to sales per ounce increased due to lower gold production and increased royalties due to the higher gold price.
 
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Gold ounces sold decreased in 2005 from 2004, primarily due to a 16% decline in ore grade from mining lower grade zones of the Callie underground deposit and processing lower grade stockpiles at Groundrush. Mining was completed at Groundrush in 2004 and the lower grade stockpiles were exhausted in the third quarter of 2005. Costs applicable to sales per ounce increased due to lower gold production, higher maintenance, diesel, power, ground support and surface works costs and appreciation of the Australian dollar.
Kalgoorlie, Australia .    Gold ounces sold decreased in 2006 from 2005, due to lower mill throughput (harder ore), a decrease in mill ore grade and a decrease in roaster throughput resulting from a higher sulfer to gold ratio and adverse weather conditions. Costs applicable to sales per ounce increased due to lower production and increased labor, diesel and contract services. Milling costs also increased due to mill maintenance costs and higher grinding costs due to the harder ore. Costs applicable to sales were also impacted by the change in accounting for open pit waste removal costs. In 2005, $9 of mining costs was deferred which reduced Costs applicable to sales by $23 per ounce.
Gold ounces sold decreased in 2005 from 2004, primarily due to a 7% decrease in ore grade milled and sales from inventories in 2004, partially offset by a 2% increase in tons milled. Costs applicable to sales per ounce increased due to increased mill throughput, increased diesel, reagent and power costs and appreciation of the Australian dollar.
Jundee, Australia .    Gold ounces sold decreased in 2006 from 2005, due to a 4% decrease in tons milled and a 6% decrease in mill ore grade. The decrease in tons milled was attributable to severe weather conditions, flooding and an extended mill shutdown in the first half of the year. Costs applicable to sales per ounce increased due to lower gold production and higher maintenance costs, partially offset by reduced mining activity.
Gold ounces sold decreased 10% in 2005 from 2004, due to the cessation of production at Bronzewing, partially offset by higher mill ore grade from Jundee. Processing at Bronzewing ceased during the second quarter of 2004 and Bronzewing was sold the third quarter of 2004 (see Other Investing Activities, below). Costs applicable to sales per ounce increased due to higher underground contract services, steel, diesel and administration costs and appreciation of the Australian dollar.
Pajingo, Australia .    Gold ounces sold decreased in 2006 from 2005, primarily due to a 14% decrease in tons milled. The decrease in tons milled was attributable to ground control issues at Vera South Deeps and slower than planned access at Jandam. Costs applicable to sales per ounce increased due to lower production, increased contract services and equipment maintenance costs. Pajingo is approaching the end of its mine life, based on current mine plans, and operations are expected to be completed in 2008.
Gold ounces sold decreased in 2005 from 2004, due to a 19% decrease in ore milled as low grade stockpiles which supplemented production in 2004 were exhausted. Costs applicable to sales per ounce increased due to lower production and appreciation of the Australian dollar.
Martha, New Zealand .    Gold ounces sold decreased in 2006 from 2005, primarily due to a 4% decrease in mill ore grade and a 20% decrease in mill throughput due to reduced open pit mining activity and the commencement of Favona ore treatment which requires finer grinding. Costs applicable to sales per ounce increased due to the decrease in gold production.
Gold ounces sold increased in 2005 from 2004, primarily due to a 37% increase in ore grade due to mine sequencing, partially offset by a 9% decrease in ore milled. Costs applicable to sales per ounce decreased due to increased production, partially offset by higher processing costs from harder ore and appreciation of the New Zealand dollar.
 
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Batu Hijau Operations

 	 	Gold Ounces or Copper Pounds Sold	 	Costs Applicable to Sales (1)	 	Depreciation, Depletion and
Amortization	
 	 	    2006    	 	    2005    	 	    2004    	 	    2006    	 	    2005    	 	    2004    	 	    2006    	 	    2005    	 	    2004    	
 	 	(ounces in thousands)	 	($ per ounce)	 	($ per ounce)	
Gold	 		 		 		 			 			 			 			 			 			
Batu Hijau (2)(3)	 	435.3	 	720.5	 	715.2	 	$	209	 	$	152	 	$	128	 	$	46	 	$	47	 	$	39	
				
 	 	(pounds in millions)	 	($ per pound)	 	($ per pound)	
Copper	 		 		 		 			 			 			 			 			 			
Batu Hijau (2)(3)	 	434.7	 	572.7	 	683.3	 	$	0.71	 	$	0.53	 	$	0.45	 	$	0.15	 	$	0.15	 	$	0.13	

(1)	Excludes depreciation, depletion and amortization.	

(2)	Consolidated gold ounces or copper pounds sold includes minority interests’ share.	

(3)	Economic interest decreased to 52.875% from 56.25% on October 1, 2004.	
Batu Hijau revised its mine plan in 2006 to address geotechnical instability of the operation’s east pit wall and harder than modeled ore. Production was impacted by lower grades due to the mining sequence, as well as lower mill throughput due to processing harder ore. Copper and gold sales decreased in 2006 from 2005 as a result of lower copper (20%) and gold (34%) ore grades, and lower mill throughput (6%). Total tons mined were 30% higher in 2006 from 2005 primarily due to the addition of new mining equipment, shorter hauling distance and increased shovel productivity. Costs applicable to sales per pound of copper and per ounce of gold increased due to lower production, the expansion of the mining fleet and increased diesel, tire, labor and process maintenance costs, partially offset by an increased allocation of costs to stockpile inventories. Short-term stockpiles were built for processing in 2007.
Copper sales decreased and gold sales increased slightly in 2005 from 2004. Access to ore in the lower portion of the pit was restricted as a result of several small pit wall slides during the first quarter of 2005. As a result, the mine plan was revised, resulting in the processing of lower grade stockpiles. Costs applicable to sales per pound of copper and per ounce of gold increased as a result of the decrease in production, increased fuel, maintenance, consumables, and labor costs.
Consolidated sales are expected to remain stable in 2007 at approximately 435,000 to 475,000 ounces of gold and approximately 395 to 435 million pounds of copper. Consolidated gold and copper sales are expected to be positively impacted by higher grades and throughput, offset by lower copper recoveries. Costs applicable to sales are expected to increase in 2007 to approximately $225 to $240 per ounce of gold and approximately $1.10 to $1.20 per pound of copper. Increasing operating costs are expected to result primarily from higher stripping expenses, as well as rising fuel, energy and consumables prices.
As of October 1, 2004, cumulative losses had been recovered and Batu Hijau began to report positive retained earnings, allowing for the payment of dividends, 6% of which are paid to the minority partner. Accordingly, Newmont began recognizing the minority interests in Batu Hijau at 47.125% (effective 52.875% Newmont share) of Batu Hijau’s earnings and will continue to do so until a loan to the minority interest partner is fully repaid (including accrued interest). See Consolidated Financial Results above for more information.
Under the Contract of Work, beginning in 2005 and continuing through 2010, a portion of the project must be offered for sale to the Indonesian government or 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): 15%, by the end of 2005; 23%, by the end of 2006; 30%, by the end of 2007; 37%, by the end of 2008; 44%, by the end of 2009; and 51%, by the end of 2010. The price at which such interest must be offered for sale to the Indonesian parties is the highest of the then-current replacement cost, the price at which shares of the project company would be accepted for listing on the Jakarta Stock Exchange, or the fair market value of such interest in the project company as a going concern. Pursuant to this provision, it is possible that the ownership interest of the Newmont/Sumitomo partnership in Batu Hijau could be reduced to 49% by the end of 2010.
 
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A company owned by an Indonesian national currently owns a 20% interest in Batu Hijau, and therefore the Newmont/Sumitomo partnership was required to offer a 3% interest for sale in 2006. An offer to sell a 3% interest was made to the government of Indonesia. While the central government declined to participate, local governments in the area in which the mine is located have expressed interest in acquiring shares, as have various Indonesian nationals. The Newmont/Sumitomo partnership continues discussions with various interested parties to meet its divestiture obligations. Under the terms of the Contract of Work, an additional 7% interest in Batu Hijau must be offered for sale in 2007.
Ahafo Operation
Ahafo commenced commercial production in August 2006 and had gold sales of 202,100 ounces in 2006. Gold production was negatively impacted by nation-wide power rationing due to low water levels at Lake Volta serving Ghana’s Akosombo hydroelectric facilities, which limited mill availability and throughput. Costs applicable to sales in 2006 benefited from the capitalization of pre-production costs and are expected to be higher in 2007 as a result. The Company is installing additional temporary diesel generating capacity at Ahafo and, along with other Ghanaian mining industry members, is exploring longer-term, lower-cost solutions to the current power shortages.
Consolidated gold sales for 2007 are expected to increase to approximately 410,000 to 450,000 ounces, as the mine enters its first full year of production. Gold production in 2007 is expected to be lower than previously planned as a result of reduced processing grades and recoveries. Additionally, higher costs and potential production interruptions could result from possible future power shortages in 2007. Costs applicable to sales are expected to increase substantially in 2007 to approximately $460 to $500 per ounce, primarily as a result of lower than previously planned production and higher power costs. Operating costs are also expected to increase in 2007 as a result of higher anticipated labor and contracted services expenditures, as well as rising fuel and consumables prices.
Other Operations

 	  	Gold Ounces Sold	  	Costs Applicable to Sales (1)	  	Depreciation, Depletion
and Amortization	
 	  	2006	  	2005	  	2004	  	2006	  	2005	  	2004	  	2006	  	2005	  	2004	
 	  	(in thousands)	  	($ per ounce)	  	($ per ounce)	
Kori Kollo (2) (88% owned)	  	128.8	  	94.5	  	24.6	  	$	210	  	$	167	  	$	398	  	$	68	  	$	40	  	$	93	
La Herradura (44% owned)	  	79.2	  	80.2	  	68.8	  	 	248	  	 	184	  	 	147	  	 	114	  	 	63	  	 	73	
Golden Giant	  	59.3	  	162.0	  	160.0	  	 	214	  	 	296	  	 	298	  	 	10	  	 	67	  	 	71	
Ovacik (3)	  	—	  	—	  	110.0	  	 	—	  	 	—	  	 	208	  	 	—	  	 	—	  	 	143	
Minahasa (2) (94% economic interest)	  	—	  	—	  	74.7	  	 	—	  	 	—	  	 	266	  	 	—	  	 	—	  	 	32	
	  	 	  	 	  	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Total/Weighted-Average	  	267.3	  	336.7	  	438.1	  	$	222	  	$	233	  	$	252	  	$	69	  	$	58	  	$	74	

(1)	Excludes depreciation, depletion and amortization.	

(2)	Consolidated gold ounces sold includes minority interests’ share.	

(3)	Ovacik sold in March 2005.	
Kori Kollo, Bolivia .    Gold ounces sold increased in 2006 from 2005, due to a 59% increase in the ore grade of the material placed on the leach pads, partially offset by 25% fewer tons placed. Total tons mined increased 69%, however, the proportion of waste tons mined increased from 0.11 waste tons per ton of ore in 2005 to 1.50 waste tons per ton of ore in 2006. Costs applicable to sales per ounce increased in 2006 from 2005, primarily as a result of the higher waste removal costs.
Gold ounces sold increased in 2005 from 2004, due to the placement of additional material from the Kori Kollo pit on the existing leach pad and ore from the Kori Chaca pit on a new leach pad beginning in the third
 
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quarter of 2005. The mill was shut down in October 2003, however production continued from residual leaching. Costs applicable to sales per ounce decreased from 2004 to 2005 as a result of the increased production.
La Herradura, Mexico .    Gold ounces sold decreased in 2006 from 2005 due to the timing of flows from the leach pads. Tons placed on the leach pads increased 21% and was offset by an 18% decrease in ore grade. Costs applicable to sales per ounce increased due to expensing all open pit waste removal costs, an increase in waste tons mined and increased labor, diesel and other commodity prices. In 2005, $3 of mining costs was deferred which reduced Costs applicable to sales by $31 per ounce.
Gold ounces sold increased in 2005 from 2004 due to a 12% increase in ore grade and the timing of flows from the leach pads. Costs applicable to sales per ounce increased due to increased labor, diesel and other commodity prices.
Golden Giant, Canada .    Mining operations at Golden Giant were completed in December 2005. Remnant mining and milling production in 2006 was higher than expected due to additional in-circuit inventory recovery and mill clean-up activities. Remnant production from these activities is expected to be completed in the first half of 2007.
Ovacik, Turkey .    On March 1, 2005, the Ovacik mine was sold to a subsidiary of Koza Davetiye, a Turkish conglomerate. Operations were suspended in August 2004 as a result of a court decision ordering suspension of operating permits pending completion of certain additional permitting requirements and the submission of an updated environmental impact assessment.
Minahasa, Indonesia .    Mining activities at Minahasa ceased in 2001. Milling of the remaining stockpiles was completed in August 2004. See Note 29 to the Consolidated Financial Statements for information regarding legal actions related to Minahasa.
Consolidated gold sales for other operations in 2007 are expected to decrease to approximately 160,000 to 200,000 ounces at Costs applicable to sales of approximately $305 to $325 per ounce as a result of higher stripping expenses and higher anticipated labor and fuel expenses.
Merchant Banking
Merchant Banking is a reportable segment for financial reporting purposes. Merchant Banking, also referred to as Newmont Capital, manages a royalty portfolio, an equity portfolio, a downstream gold refining business, and engages in value realization activities (managing interests in oil and gas, iron ore, and coal properties as well as providing in-house investment banking and advisory services).
Merchant Banking manages a royalty portfolio which includes interests that were acquired as a result of the Franco-Nevada acquisition, as well as royalties created by virtue of its land bank activities (through sale or farm-out). Royalty interests are generally in the form of a net smelter return (“NSR”) royalty that provides for the payment of a specified percentage of production, less certain specified transportation and refining costs. In some cases, royalties are a net profit interest (“NPI”) entitling Newmont to a specified percentage of the net profits, as defined in each case. The majority of NSR royalty revenue and NPI revenue can be received in cash or in-kind at the option of Newmont.
Merchant Banking’s royalty interests and equity investments generated $120, $79 and $64 of Royalty and dividend income, net in 2006, 2005 and 2004, respectively. The increase from period-to-period was primarily attributable to steady performance from the gold and platinum group metals royalties coupled with higher gold and oil and gas prices as well as an increase in distributions received from Canadian Oil Sands Trust. Depreciation, depletion and amortization expense related to Royalty and dividend income, net was $19, $21 and $24 in 2006, 2005 and 2004, respectively.
 
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As of December 31, 2006, Merchant Banking’s equity portfolio had a market value of approximately $1,354 compared to the 2005 value of approximately $940. The increase is attributable to unrealized gains of approximately $321 during 2006, Merchant Banking purchasing marketable equity securities of Gabriel Resources, reinvesting dividends from Canadian Oil Sands Trust and closing on a private placement and ore purchase agreement with Queenstake Resources Ltd. for approximately $17, $25 and $10, respectively. During 2005, in addition to unrealized gains of approximately $343, Merchant Banking purchased marketable equity securities of Shore Gold, Gabriel Resources and Miramar Mining for approximately $87, $31 and $27, respectively and sold Kinross equity securities for approximately $111. Merchant Banking also sold Oxiana Limited equity securities for $78, of which, the majority were obtained from the sale of Golden Grove. During 2004, in addition to an unrealized gain of approximately $155, Merchant Banking purchased marketable equity securities of Canadian Oil Sands Trust and Gabriel for approximately $200 and $19, respectively. Also in 2004, Newmont recognized a $39 impairment of its investment in Kinross.
Merchant Banking provides advisory services to Newmont to assist it in managing its portfolio of operating and property interests. During 2006, Merchant Banking completed the acquisition of an additional 22.22% interest in the Boddington project and the remaining 15% interest in Akyem, bringing the Company’s ownership to 66.67% and 100%, respectively, and the acquisition of a 40% interest in Shore Gold Inc.’s Fort a la Corne diamond Joint Venture in Saskatchewan, Canada. Merchant Banking completed the sale of the Alberta Oil Sands project, the Martabe project in Indonesia, and the discontinued Holloway operation as discussed above under Other income, net and Loss from discontinued operations . Newmont received net cash proceeds of $271 for the Alberta Oil Sands project resulting in a $266 pre-tax gain. Newmont received net cash proceeds of $42 and approximately 43 million Agincourt shares valued at $37 for the Martabe project, resulting in a $30 pre-tax gain. Newmont received net cash proceeds of $40 plus a royalty for the Holloway operation resulting in a $13 pre-tax gain. In 2005, Merchant Banking provided assistance in the sale of non-core properties including Golden Grove in Australia, Ovacik in Turkey and Mezcala in Mexico. In 2004, Merchant Banking’s assistance was provided in the sale of non-core properties including Bronzewing in Australia, Perama in Greece and Midwest Uranium in Canada. In addition, Merchant Banking participated in the restructuring of Australian Magnesium Corporation eliminating all remaining Newmont obligations (see Other Investing Activities below).
Merchant Banking also manages the Company’s interests in downstream gold refining and distribution businesses (40% interest in AGR Matthey Joint Venture and 50% interest in European Gold Refineries). Merchant Banking earned $4, $4, and $2 in Equity income of affiliates through its investments in AGR and EGR in 2006, 2005 and 2004, respectively.
Other income, net attributable to the Merchant Banking Segment was as follows:

 	  	    Years Ended December 31,    	 	
 	  	2006	 	 	2005	 	 	2004	 	
Gain on sale of Alberta Oil Sands project	  	$	266	 	 	$	—	  	 	$	—	 	
Royalty and dividend income, net	  	 	120	 	 	 	79	 	 	 	64	 	
Gain on sale of Martabe project	  	 	30	 	 	 	—	  	 	 	—	  	
Gain (loss) on investments, net	  	 	13	 	 	 	54	 	 	 	(39	)	
Gain on sale of the Mezcala gold deposit	  	 	—	  	 	 	31	 	 	 	—	  	
Gain on QMC debt guarantee	  	 	—	  	 	 	9	 	 	 	11	 	
Other	  	 	4	 	 	 	1	 	 	 	5	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
	  	$	433	 	 	$	174	 	 	$	41	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Exploration
Exploration expense was $170, $147 and $107 for 2006, 2005 and 2004, respectively. Exploration expense in 2006 reflects higher funding of exploration and related activities in response to higher gold prices and increased labor and consumable costs. Newmont anticipates it will expense between $170 and $175 on exploration activities in 2007.
 
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During 2006, Newmont replaced approximately 8.9 million equity gold ounces of depletion and divestitures with 3.7 million equity gold ounces in acquisitions and 5.9 million equity gold ounces of additions and revisions to proven and probable reserves. Exploration activities during 2006 succeeded in converting significant new reserves at Carlin open pits (2.3 million equity gold ounces), Boddington (1.4 million equity gold ounces), Twin Creeks (1.1 million equity gold ounces), Ahafo (0.7 million equity gold ounces), La Herradura (0.7 million equity gold ounces), and Kalgoorlie (0.6 million equity gold ounces).
Exploration activities during 2005 primarily focused on the conversion of significant new reserves at the Carlin open pits (1.9 million equity gold ounces), the Conga district in Peru (1.6 million equity gold ounces), and the two Ghana projects (Ahafo 1.6 million equity gold ounces, Akyem 1.1 million equity gold ounces). Newmont added a total of 9.4 million equity gold ounces to proven and probable reserves in 2005.
Exploration activities during 2004 primarily focused on the Conga district in Peru and the Phoenix deposit in Nevada. Newmont added 4.5 million equity gold ounces at Conga and 2.3 million equity gold ounces at Phoenix in 2004. Exploration also focused its activities on the Ghana projects where reserves increased by 3.0 million equity gold ounces at Ahafo and 1.1 million equity gold ounces at Akyem in 2004.
Foreign Currency Exchange Rates
In addition to its domestic operations in the United States, Newmont has operations in Australia, New Zealand, Peru, Indonesia, Canada, Bolivia and other foreign locations. The Company’s operations sell their production based on U.S. dollar metal prices.
Fluctuations in local currency exchange rates in relation to the U.S. dollar can increase or decrease profit margins and Costs applicable to sales to the extent costs are paid in local currency at foreign operations. Such fluctuations have not had a material impact on the Company’s revenue since gold and copper are sold throughout the world principally in U.S. dollars. Approximately 33%, 37% and 40% of Newmont’s Costs applicable to sales were paid in local currencies in 2006, 2005 and 2004, respectively. The Company’s Costs applicable to sales are most significantly impacted by variations in the Australian dollar/U.S. dollar exchange rate. However, variations in the Australian dollar/U.S. dollar exchange rate historically have been strongly correlated to variations in the U.S. dollar gold price over the long-term. Increases or decreases in costs at Australian locations due to exchange rate changes have therefore tended to be mitigated by changes in sales reported in U.S. dollars at Australian locations. No assurance, however, can be given that the Australian dollar/U.S. dollar exchange rate will continue to be strongly correlated to the U.S. dollar gold price in the future.
Variations in the local currency exchange rates in relation to the U.S. dollar at Newmont’s foreign mining operations decreased Costs applicable to sales $7 in Australia and increased Costs applicable to sales $9 in Indonesia in 2006 from 2005 and increased Costs applicable to sales $15 in 2005 from 2004, primarily in Australia.
Foreign currency exchange rates in relation to the U.S. dollar have not had a material impact on the Company’s determination of proven and probable reserves in the past. However, if a sustained weakening of the U.S. dollar in relation to the Australian dollar, and/or to other foreign currencies that impact the Company’s cost structure, were not mitigated by offsetting increases in the U.S. dollar gold price or by other factors, the amount of proven and probable reserves in the applicable foreign country could be reduced as certain proven and probable reserves may no longer be economic. The extent of any such reduction would be dependent on a variety of factors including the length of time of any such weakening of the U.S. dollar, and management’s long-term view of the applicable exchange rate. Future reductions of proven and probable reserves would primarily result in reduced gold or copper sales and increased depreciation, depletion and amortization calculated using the units-of-production method and, depending on the level of reduction, could also result in impairments of property, plant and mine development, mineral interests and/or goodwill.
 
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 Recent Accounting Pronouncements
In June 2006, the FASB issued FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes,” (“FIN 48”) an interpretation of FASB Statement No. 109, “Accounting for Income Taxes.” FIN 48 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FIN 48 requires that the Company recognize in its financial statements, the impact of a tax position, if that position is more likely than not of being sustained on audit, based on the technical merits of the position. FIN 48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods and disclosure. The provisions of FIN 48 are effective beginning January 1, 2007 with the cumulative effect of the change in accounting principle recorded as an adjustment to the opening balance of retained earnings, goodwill, deferred income taxes and income taxes payable in the Consolidated Balance Sheets. The Company is currently evaluating the impact of adopting FIN 48 on the Company’s consolidated financial position, results of operations and disclosures.
In September 2006, the FASB issued FASB Statement No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. The provisions for FAS 157 are effective for the Company’s fiscal year beginning January 1, 2008. The Company is currently evaluating the impact that the adoption of this statement will have on the Company’s consolidated financial position, results of operations or cash flows.
 
 Liquidity and Capital Resources
Cash Provided from Operating Activities
Net cash provided from continuing operations was $1,237, $1,243 and $1,503 for 2006, 2005 and 2004, respectively, and was significantly impacted by the following key factors:

 	  	Years Ended December 31,	
 	  	2006	  	2005	  	2004	
Consolidated gold ounces sold (in thousands) (1)	  	 	7,361	  	 	8,429	  	 	8,619	
Average price received per ounce of gold (2)	  	$	599	  	$	441	  	$	421	
Costs applicable to sales per ounce of gold sold (3)	  	$	304	  	$	237	  	$	218	
Consolidated copper pounds sold (in millions)	  	 	435	  	 	573	  	 	683	
Average price received per pound of copper (2)	  	$	1.99	  	$	1.45	  	$	1.33	
Costs applicable to sales per pound of copper sold (3)	  	$	0.71	  	$	0.53	  	$	0.45	

(1)	Includes incremental start-up ounces of 100,300 and 22,100 in 2006 and 2005, respectively.	

(2)	Before treatment and refining charges.	

(3)	Excludes depreciation, depletion and amortization.	
Net cash provided from continuing operations remained constant in 2006 compared to 2005. Cash flow from continuing operations during 2006 was positively impacted by higher realized gold and copper prices, partially offset by fewer gold ounces and copper pounds sold. Also impacting cash flows from operations during 2006 were higher operating costs as noted in Results of Consolidated Operations , a $110 increase in accounts receivable primarily due to trade receivables at Nevada and a $388 increase in inventories, stockpiles and ore on leach pads. Inventories, stockpiles and ore on leach pads increased due to new operations at Ahafo, Phoenix, and Leeville, increased mining costs, mining rates exceeding processing rates and increased open pit waste removal. Net cash provided from continuing operations was also impacted by the physical delivery of 161,111 ounces of gold under the prepaid forward sales obligation which resulted in the recognition of $48 of non-cash revenue in June 2006. Additionally, net cash provided by continuing operations was impacted by the early settlement of the remaining prepaid forward sales obligation, which resulted in a $40 premium on early extinguishment.
Other.  Cash provided from operating activities is expected to be negatively impacted in 2007 by the $287 increase in current income and mining taxes payable. Newmont is currently planning to contribute $65 to its
 
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retirement benefit programs in 2007 from Net cash provided by operating activities . For additional discussion see Item 7A, Qualitative Disclosure About Market Risk, Pension and Other Benefit Plans, below, and Note 20 to the Consolidated Financial Statements.
Investing Activities
Net cash used in investing activities of continuing operations was $838, $1,093 and $1,388 in 2006, 2005 and 2004, respectively, primarily due to Additions to property, plant and mine development, of $1,551, $1,220 and $674 for continuing operations in 2006, 2005 and 2004, respectively, and net proceeds from (investments in) marketable debt and equity securities of $721, $57 and $(821) in 2006, 2005 and 2004, respectively. Additionally, approximately $6, $31 and $44 was spent on capital expenditures for the discontinued operations of Golden Grove, Holloway and Zarafshan in 2006, 2005 and 2004, respectively.
Additions to property, plant and mine development were:

 	  	    Years Ended December 31,    	 	
 	  	2006	 	 	2005	 	 	2004	 	
Nevada, USA	  	$	705	 	 	$	479	 	 	$	169	 	
Yanacocha, Peru	  	 	269	 	 	 	225	 	 	 	232	 	
Australia/New Zealand:	  				 				 				
Pajingo, Australia	  	 	8	 	 	 	12	 	 	 	11	 	
Yandal, Australia	  	 	23	 	 	 	25	 	 	 	19	 	
Tanami, Australia	  	 	31	 	 	 	19	 	 	 	18	 	
Kalgoorlie, Australia	  	 	14	 	 	 	12	 	 	 	27	 	
Martha, New Zealand	  	 	28	 	 	 	11	 	 	 	7	 	
Boddington, Australia	  	 	93	 	 	 	5	 	 	 	3	 	
Other, Australia	  	 	3	 	 	 	14	 	 	 	4	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
	  	 	200	 	 	 	98	 	 	 	89	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Batu Hijau, Indonesia	  	 	106	 	 	 	65	 	 	 	35	 	
Ghana, West Africa:	  				 				 				
Ahafo, Ghana	  	 	177	 	 	 	258	 	 	 	83	 	
Akyem, Ghana	  	 	57	 	 	 	18	 	 	 	9	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
	  	 	234	 	 	 	276	 	 	 	92	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Other Operations:	  				 				 				
Kori Kollo, Bolivia	  	 	1	 	 	 	22	 	 	 	4	 	
La Herradura, Mexico	  	 	10	 	 	 	2	 	 	 	4	 	
Ovacik, Turkey	  	 	—	  	 	 	—	  	 	 	9	 	
Golden Giant, Canada	  	 	—	  	 	 	—	  	 	 	2	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
	  	 	11	 	 	 	24	 	 	 	19	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Exploration	  	 	—	  	 	 	—	  	 	 	—	  	
Merchant Banking	  	 	6	 	 	 	4	 	 	 	5	 	
Corporate and Other	  	 	20	 	 	 	49	 	 	 	33	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
	  	$	1,551	 	 	$	1,220	 	 	$	674	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Capital expenditures in Nevada during 2006 included $239 for the power plant, $160 for surface mining equipment, $104 for the development of the Leeville underground mine, $87 for the development of the Phoenix project, and $54 for tailings dams and leach pads. Yanacocha capital expenditures included $113 for development and leach pad expansions, $44 for the gold mill project, $43 for mine maintenance and services, and $11 for development of the Conga project. Australian capital expenditures included $93 for Boddington
 
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development and $71 for mine development. Expenditures at Batu Hijau included $67 for the purchase of additional mining equipment and $20 for process improvements and replacement of the tailings line. Capital expenditures at Ahafo included $117 for project completion and $24 for mining equipment. Akyem expenditures were primarily for the engineering and procurement expenditures for process facilities and other pre-construction activities. Corporate expenditures primarily included information technology systems.
Capital expenditures in Nevada during 2005 included $73 for the development of the Leeville underground mine, $43 for the power plant and $226 for the development of the Phoenix project. Yanacocha capital expenditures included $73 for development and leach pad expansions at La Quinua and process facilities, $12 for environmental projects, $30 for mining equipment and $17 for the Conga project. Kori Kollo expenditures reflect investment in new leach pads. Australian capital expenditures included $54 for mine development and $22 for facilities. Expenditures at Batu Hijau included $36 for the purchase of additional mining equipment and $6 for tailings line replacement. Capital expenditures at Ahafo were primarily for the engineering, procurement and construction of the mine and process facilities. Corporate expenditures primarily included information technology systems and land.
Capital expenditures for Nevada during 2004 primarily included $52 for the development of the Leeville underground mine, $26 for the development of the Phoenix Project and $21 for the Mill 5 flotation plant expansion. Yanacocha capital expenditures included $79 for mine and leach pad expansions at the La Quinua and other pits, $33 for environmental site and regional water management projects, $46 for mining equipment and $73 related to other ongoing expansion work. Australia/New Zealand capital expenditures primarily included $54 for mine development and reserve definition, $19 for mining equipment previously leased under an operating lease at Kalgoorlie, $10 for facilities and $7 for mobile equipment. Batu Hijau capital expenditures were primarily for mine and plant equipment. Capital expenditures at Ahafo were primarily for the engineering, procurement and construction of the mine and processing facilities. Akyem capital expenditures were for development activities. Corporate expenditures included $33 primarily for improvements in information technology systems.
Newmont expects to spend approximately $1,800 to $2,000 on capital expenditures during 2007, with approximately one third in Nevada, one third in Australia/New Zealand and the remaining one third at the other locations. Approximately one half of the capital budget is allocated to sustaining investments and the remaining portion is allocated to new project development and business improvement initiatives.
Investments in marketable debt and equity securities, net.     The Company had net investing activity of $721, $57 and $(821) related to proceeds from (investments in) the sale of marketable debt and equity investments in 2006, 2005 and 2004, respectively. The Company had net proceeds of $774 and net investments of $1 and $602 from auction rate marketable debt securities in 2006, 2005 and 2004, respectively. The Company accounts for these investments as short-term available-for-sale marketable debt securities.
During 2006, the Company purchased marketable equity securities of Queenstake Resources for $10 and Gabriel Resources for $17. Newmont also reinvested dividends from Canadian Oil Sands Trust for $26. During 2005, the Company purchased marketable equity securities of Shore Gold, Gabriel Resources, Miramar and Miramar warrants for approximately $87, $31, $27 and $10, respectively. During 2004, the Company purchased marketable equity securities of Canadian Oil Sands Trust and Gabriel Resources for $200 and $19, respectively. The Company accounts for these investments as long-term available-for-sale marketable equity securities.
In the third quarter of 2005, Newmont sold its remaining Kinross Gold Corporation shares for cash proceeds of $111 and recorded a net gain of $20.
In the third quarter of 2005, Newmont received approximately 82 million shares of Oxiana Limited (as part of the proceeds for the sale of Golden Grove) with a fair value of $61. These shares were sold in the fourth quarter of 2005 for net proceeds of $78. In the first quarter of 2005, Newmont sold approximately 10 million shares of Oxiana for net proceeds of $8.
 
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Acquisitions.     In September 2006, Newmont acquired a 40% interest in Shore Gold Inc.’s Fort a la Corne diamond Joint Venture in Saskatchewan, Canada for $152. The Company believes that this investment represents an opportunity to participate directly in a significant, district-scale diamond development project.
In March 2006, Newmont acquired Newcrest Mining Limited’s 22.22% interest in the Boddington project, bringing its interest in the project to 66.67%, for total consideration of $173. Development of the Boddington project in Western Australia with AngloGold Ashanti Limited was also announced in the first quarter 2006. Construction of the Boddington project is expected to cost Newmont approximately $0.9 to $1.0 billion, with initial production expected in late 2008 or early 2009. The project has a current estimated mine life of more than 15 years, with Newmont’s share of annual production expected to be approximately 700,000 ounces for the first five years and average approximately 600,000 ounces over the life of the project.
In January 2006, Newmont acquired the remaining 15% interest in the Akyem project in Ghana, bringing its interest to 100%. In September 2006, the Company deferred further development of the Akyem project pending completion of permitting, resolution of country-wide power shortages and further engineering optimization.
Proceeds from sale of assets, net.     In August 2006, Newmont sold its Alberta Oil Sands project for net cash proceeds of $271. In August 2006, Newmont also sold its Martabe project for net cash proceeds of $42 and approximately 43 million shares of Agincourt valued at $37.
In March 2005, the Mezcala gold deposit was sold for cash proceeds of $31.
In March 2005, the Ovacik operation, located in western Turkey, was sold to a subsidiary of Koza Davetiye, a listed Turkish conglomerate. Consideration included $20 at closing, $10 during the fourth quarter of 2005 and various deferred payments that could total as much as $15. Newmont received $2 in payments in 2006.
In December 2004, Newmont sold its 20.7% interest in the Midwest Uranium Joint Venture for $10 in cash and marketable equity securities valued at $2.
In December 2004, Newmont sold its 80% interest in the Perama Hill Project located in northeastern Greece to Frontier Pacific Mining Corporation for $12.
During the third quarter of 2004, Newmont sold assets associated with the closed Bronzewing mine, including certain mining tenements and plant and equipment. In exchange for the assets, the buyer made installment payments in 2005 totaling $3 and assumed all of the reclamation and closure liabilities. Under the agreement, Newmont is entitled to a 1% net smelter return royalty on all future metal production from the property.
During 2004, Newmont entered into an agreement relating to a loan and loan guarantee involving AMC and certain of its subsidiaries. The agreement resulted in the release of Newmont from its guarantee obligation and the release of all previously accrued and contingent liabilities. This transaction resulted in an $11 gain after providing a A$30 ($23) subordinated loan to a subsidiary of QMC. An allowance was provided for 100% of the loan receivable. During 2005, the Company reduced the valuation allowance resulting in a gain of $9.
Also impacting cash flows from investing activities for the year ended December 31, 2004 was the consolidation of Batu Hijau, effective January 1, 2004, which resulted in the recording of approximately $82 of Batu Hijau’s cash balances.
Financing Activities
Net cash (used in) provided by financing activities of continuing operations was $(333) in 2006, compared to $39 and $(473) in 2005 and 2004, respectively.
 
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Proceeds from debt, net.     In July 2006, Yanacocha issued $100 of bonds in the Peruvian capital markets under a $200 bond program approved by the Peruvian securities regulatory authority. The issuance is comprised of $42 of floating interest rate bonds bearing interest at a rate of LIBOR plus 1.4375%; and $58 of fixed rate bonds bearing interest at 7.0%. The bonds have a four year grace period and amortize quarterly over six years. The bonds are uncollateralized and are non-recourse to Newmont. Funds generated from the issuance will be used by Yanacocha primarily for capital expenditures.
In May 2006, Yanacocha entered into an uncollateralized $100 bank financing with a syndicate of Peruvian commercial banks. Quarterly repayments begin May 2007 with final maturity May 2014. Borrowings under the facility bear interest at a rate of LIBOR plus 1.875%. The loan is non-recourse to Newmont.
Proceeds received during 2005 were primarily from the issuance of 30-year 5  7 / 8 % Notes for net proceeds of $582 during March 2005. The proceeds were used to fund capital investments, including a 200 megawatt power plant in Nevada, and for general corporate purposes.
During 2004, the Company received proceeds from the issuance of debt of $56.
Repayment of debt .    During 2006, the Company made scheduled cash debt repayments of $111 and a scheduled non-cash debt repayment of $48 in connection with the Prepaid forward sales obligation .
Scheduled minimum debt repayments are $159 in 2007, $243 in 2008, $125 in 2009, $133 in 2010, $104 in 2011 and $1,147 thereafter. Newmont expects to be able to fund maturities of its debt from Net cash provided by operating activities and existing cash balances .
Early extinguishment of prepaid forward sales obligation.     In September 2006, Newmont settled its remaining obligations under the prepaid forward gold sales contract and forward gold purchase contract for which it was required to deliver 17,951 ounces of gold in December 2006 and 179,062 ounces of gold in June 2007. This settlement resulted in cash payments of approximately $96 and a $48 reduction to the current portion of long-term debt.
Dividends paid to common stockholders.     The Company paid dividends of $0.40 per common share during 2006, $0.40 per common share during 2005, and $0.30 per common share during 2004. Additionally, Newmont Mining Corporation of Canada Limited, a subsidiary of the Company, paid dividends of CDN$0.46, CDN$0.49 and CDN$0.38 during 2006, 2005 and 2004, respectively. On February 7, 2007, the Company declared a regular quarterly dividend of $0.10 per share, payable March 29, 2007 to holders of record at the close of business on March 7, 2007. The total paid to common stockholders was $180, $179 and $133 for 2006, 2005 and 2004, respectively.
Dividends paid to minority interests.     The Company also paid dividends of $264, $186 and $237 to minority interests during 2006, 2005 and 2004, respectively.
Proceeds from stock issuance.     The Company received proceeds of $78, $43 and $78 during 2006, 2005 and 2004, respectively, from the issuance of common stock related to the exercise of stock options.
Discontinued Operations
Net cash (used in) provided from discontinued operations was $(12) in 2006, compared to $nil and $54 in 2005 and 2004, respectively. Cash flow used in operations during 2006 was primarily from the loss at Holloway, offset by cash provided by Zarafshan, primarily from the gain on operations before classification to discontinued operations in July 2006.
Cash flow from discontinued operations in 2005 was a result of cash provided by Golden Grove and Zarafshan, offset by cash used in discontinued operations of Holloway.
 
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Cash flow from discontinued operations in 2004 was a result of the cash provided by Golden Grove, Zarafshan and Holloway.
Net cash (used in) provided from investing activities of discontinued operations was $34, $116 and $(44) in 2006, 2005 and 2004, respectively. Cash provided from investing activities of discontinued operations in 2006 was a result of $40 proceeds from the sale of Holloway in November 2006 offset by $6 Additions to property, plant and mine development at Zarafshan.
Cash provided from investing activities of discontinued operations in 2005 was primarily the result of proceeds of $147 received from the sale of Golden Grove to Oxiana Limited.
Cash used in investing activities of discontinued operations in 2004 resulted from Additions to property, plant and mine development at Holloway, Zarafshan and Golden Grove.
Net cash used in financing activities of discontinued operations was $7, $1 and $2 all from the repayment of debt at Zarafshan.
Project Financing
On June 30, 2006, Newmont Ghana Gold Limited (“NGGL”), a wholly-owned subsidiary, entered into a $125 project financing with the International Finance Corporation (“IFC”). The financing is comprised of a $75 A-loan funded by the IFC; and a $50 B-loan funded by a syndicate of commercial lenders. The financing contains certain Conditions of Disbursement that must be completed prior to funds being made available. NGGL anticipates meeting the Conditions of Disbursement during the first half of 2007. Amounts borrowed under the financing will be collateralized by the assets of the Ahafo project and will be guaranteed by Newmont pending the successful completion of requirements associated with the Project Financial Completion Certificate (“Project Financial Completion”). The loans will require semi-annual payments beginning in April 2007. The A-loan has a final maturity of October 2018 and borrowings will be subject to an interest rate of LIBOR plus 1.125% pre-completion, and LIBOR plus 2.00% following Project Financial Completion. The B-loan has a final maturity of October 2017 and borrowings will be subject to an interest rate of LIBOR plus 0.80% pre-completion, and LIBOR plus 1.40% post-completion for the first 4-years. The interest rate on the B-loan then increases to LIBOR plus 1.70% (years 5-7); LIBOR plus 1.90% (years 8-9) and LIBOR plus 2.00% (thereafter).
Corporate Revolving Credit Facilities
The Company has an uncollateralized $1,250 revolving credit facility with a syndicate of commercial banks, which matures in July 2010. The facility contains a letter of credit sub-facility. Interest rates and facility fees vary based on the credit ratings of the Company’s senior, uncollateralized, long-term debt. Borrowings under the facilities bear interest at an annual interest rate of the greater of LIBOR plus a margin ranging from 0.22% to 1.00%, the federal funds rate plus 0.5% or the lead bank’s prime interest rate. Facility fees accrue at an annual rate ranging from 0.080% to 0.250% of the aggregate commitments. The Company also pays a utilization fee of 0.10% on the amount of revolving credit loans and letters of credit outstanding under the facility for each day on which the sum of such loans and letters of credit exceed 50% of the commitments under the facility. As of December 31, 2006 and 2005, the facility fees were 0.09% of the commitment. There was $321 and $275 outstanding under the letter of credit sub-facility as of December 31, 2006 and 2005, respectively.
Debt Covenants
The 5  7 / 8 % notes, Newmont Australia 7  5 / 8 % notes, 8  5 / 8 % debentures, and sale-leaseback of the refractory ore treatment plant debt facilities contain various common public debt covenants and default provisions including payment defaults, limitation on liens, limitation on sales and leaseback agreements and merger restrictions.
In addition to the covenants noted above, the corporate revolving credit facility contains financial ratio covenants requiring the Company to maintain a net debt to EBITDA (earnings before interest expense, income
 
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taxes, depreciation and amortization) ratio of less than or equal to 4.0 and a net debt (total debt net of cash, cash equivalents and auction rate securities) to total capitalization ratio of less than or equal to 62.5%. Furthermore, the corporate revolving credit facility contains covenants limiting the sale of all or substantially all of the Company’s assets, certain change of control provisions and a negative pledge on certain assets.
Certain of the Company’s project debt facilities contain debt covenants and default provisions including limitations on dividends subject to certain debt service cover ratios, limitations on sales of assets, negative pledges on certain assets, change of control provisions and limitations of additional permitted debt.
As of December 31, 2006, the Company and its related entities were in compliance with all debt covenants and default provisions.
Shelf Registration Statement
In January 2004, Newmont filed with the Securities and Exchange Commission a shelf registration statement on Form S-3 which enables it to issue debt and equity securities from time-to-time having an aggregate offering price up to $1,000. Newmont also filed a shelf registration statement on Form S-4 which enables it to issue, from time-to-time in connection with acquisitions of businesses, properties or assets, common stock and common stock warrants having an  aggregate offering price of $200. These registration statements were declared effective on February 4, 2004.
Contractual Obligations
Newmont’s contractual obligations as of December 31, 2006 are summarized as follows:

 	  	Payments Due by Period	 	
Contractual Obligations	  	Total	  	Less than
1 Year	  	1-3
Years	  	3-5
Years	  	More than
5 Years	 	
Debt (1)	  	$	2,934	  	$	247	  	$	697	  	$	254	  	$	1,736	 	
Capital lease obligations (1)	  	 	328	  	 	41	  	 	107	  	 	99	  	 	81	 	
Remediation and reclamation obligations (2 )	  	 	1,137	  	 	78	  	 	180	  	 	78	  	 	801	 	
Employee-related benefits (3)	  	 	220	  	 	98	  	 	76	  	 	30	  	 	16	 	
Operating leases	  	 	16	  	 	6	  	 	8	  	 	2	  	 	—	  	
Minimum royalty payments	  	 	141	  	 	8	  	 	17	  	 	36	  	 	80	 	
Purchase obligations (4)	  	 	393	  	 	131	  	 	158	  	 	41	  	 	63	 	
Other (5)	  	 	553	  	 	184	  	 	251	  	 	113	  	 	5	 	
	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	 	
	  	$	5,722	  	$	793	  	$	1,494	  	$	653	  	$	2,782	 	

(1)	Amounts represent principal ($1,908) and estimated interest payments ($1,354) assuming no early extinguishment.	

(2)	Mining operations are subject to extensive environmental regulations in the jurisdictions in which they operate. Pursuant to environmental regulations, the Company is required to close its operations and reclaim and remediate the lands that operations have disturbed. The estimated undiscounted cash outflows of these remediation and reclamation obligations are reflected here. For more information regarding remediation and reclamation liabilities, see Note 23 to the Consolidated Financial Statements.	

(3)	Contractual obligations for Employee-related benefits include severance, workers’ participation, pension funding and other benefit plans. Pension plan funding beyond 2011 cannot be reasonably estimated given variable market conditions and actuarial assumptions and are not included.	

(4)	Purchase obligations are not recorded in the Consolidated Financial Statements. Purchase obligations represent contractual obligations for purchase of power, materials and supplies, consumables, inventories and capital projects.	

(5)	Other contractual obligations that are not reflected in the Company’s Consolidated Financial Statements include labor and service contracts. Payments related to derivative contracts cannot be reasonably estimated given variable market conditions. See Note 13 to the Consolidated Financial Statements.	
 
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Off-Balance Sheet Arrangements
The Company has the following off-balance sheet arrangements: operating leases as disclosed in the above table and $445 of outstanding letters of credit, surety bonds and bank guarantees (see Note 19 to the Consolidated Financial Statements). There is also an undrawn contingent sponsor support line of credit to Batu Hijau of $65, of which Newmont’s pro rata share is $37.
Batu Hijau has sales agreements to sell copper concentrates as follows (in millions of pounds) 1,540 in 2007; 1,115 in 2008; 1,411 in 2009; 2,180 in 2010, 1,378 in 2011 and 3,191 thereafter. For information regarding these copper sales agreements, see Item 7A, Quantitative and Qualitative Disclosures about Market Risk-Hedging, Provisional Copper and Gold Sales, below.
Future Cash Flows
We anticipate that significant capital expenditures in 2007 through 2009 (see Investing Activities, above), funding of the Exploration and Merchant Banking Segments (see Results of Consolidated Operations, above), debt repayments and dividends to both common shareholders and minority interests could lead to Net cash used in investing activities exceeding Net cash provided by operating activities . We expect that any such deficit will be funded through various sources, including Net cash provided by operating activities . Newmont believes that financing required to execute all of these investments will be available over the time period required from Net cash provided by operating activities, cash, marketable equity securities or other sources of funds, including the Company’s revolving credit facility, project financing and financing alternatives available in the broader capital markets. For information on the Company’s long-term debt, capital lease obligations and operating leases, see Note 19 to the Consolidated Financial Statements. Subject to any significant adverse changes in the Company’s long-term view of gold and copper prices, the Company has both the ability and intention to fund from Net cash provided by operating activities, the exploration expenditures and investments that were assumed in the goodwill valuations to support the Exploration and Merchant Banking Segments.
Net cash provided from operating activities in 2007 are expected to be impacted by the $287 increase in current income and mining taxes payable.
Cash flows are expected to be impacted by variations in the realized spot price of gold and copper. The Company has a series of price-capped gold sales contracts under which it will realize the lower of the spot price on the delivery date or the capped price. The Company also has copper collar contracts for 102 million pounds under which it will realize a minimum and maximum price of $1.10 and $1.40 per pound, respectively, in 2007. For information on the sensitivity of Newmont’s Net cash provided by operating activities to metal prices, see Item 7A, Quantitative and Qualitative Disclosures about Market Risk.
Cash flows are also expected to be impacted by variations in foreign currency exchange rates in relation to the U.S. dollar, particularly with respect to the Australian dollar. For information concerning the sensitivity of the Company’s Costs applicable to sales to changes in foreign currency exchange rates, see Results of Consolidated Operations, Foreign Currency Exchange Rates, above. For information on the sensitivity of Newmont’s Net cash provided to operating activities to foreign currency exchange rates, see Item 7A, Quantitative and Qualitative Disclosures about Market Risk.
Based on Newmont’s production profile for the next three years and proven and probable reserves as of December 31, 2006, without considering future additions to such reserves, Newmont expects that consolidated gold ounces sold will be between 6.1 and 6.6 million ounces in 2007. The Company does not anticipate that reasonably expected variations in gold or copper sales alone will influence its ability to pay its debt and other obligations over that period.
 
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 Environmental
The Company’s 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. 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. As of December 31, 2006 and 2005, $520 and $428, respectively, were accrued for reclamation costs relating to currently producing mineral properties, of which $67 is classified as current liabilities expected to be spent in 2007.
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, $85 and $77 were accrued for such obligations as of December 31, 2006 and 2005, respectively. 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 89% greater or 27% lower than the amount accrued as of December 31, 2006. The amounts accrued for these matters are reviewed periodically based upon facts and circumstances available at the time. Changes in estimates are charged to Other expense, net in the period estimates are revised.
Newmont spent $12, $14 and $20 in 2006, 2005, and 2004, respectively, for environmental obligations related to former, primarily historic, mining activities, and has classified $10 as a current liability expected to be spent in 2007. Expenditures for 2006, 2005 and 2004 related primarily to legacy Normandy properties in Australia, the McCoy/Cove property in Nevada and the Dawn mill site near Ford, Washington.
Included in capital expenditures were $124, $35 and $43 in 2006, 2005 and 2004, respectively, to comply with environmental regulations. Ongoing costs to comply with environmental regulations have not been a significant component of Costs applicable to sales .
For more information on the Company’s reclamation and remediation liabilities, see Note 23 to the Consolidated Financial Statements.
 Forward-Looking Statements
The foregoing discussion and analysis, as well as certain information contained elsewhere in this Annual Report, contain “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 created thereby. See the discussion in Forward-Looking Statements in Item 1, Business.
 
 ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK (dollars in millions except per share, per ounce and per pound amounts)	
 Metal Price
Changes in the market price of gold and copper significantly affect Newmont’s 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 and global mine production levels. 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.
 
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 Foreign Currency
Changes in the foreign currency exchange rates in relation to the U.S. dollar may affect Newmont’s profitability and cash flow. Foreign currency exchange rates can fluctuate widely due to numerous factors, such as supply and demand for foreign and U.S. currencies and U.S. and foreign country economic conditions. In addition to its operations in the United States, Newmont has operations in Australia, Peru, Indonesia, Canada, Bolivia, New Zealand and Mexico. The Company’s non-U.S. operations sell their metal production based on a U.S. dollar gold price. Fluctuations in the local currency exchange rates in relation to the U.S. dollar can increase or decrease profit margins and total cash costs per ounce to the extent costs are paid in local currency at foreign operations. Since the Company’s February 15, 2002 acquisition of Normandy, the Australian dollar/U.S. dollar exchange rate has had the greatest impact on the Company’s total cash costs, as measured in U.S. dollars. However, variations in the Australian dollar/U.S. dollar exchange rate have historically been strongly correlated to variations in the U.S. dollar gold price over the long-term. Increases or decreases in costs at Australian gold operations due to exchange rate changes have therefore tended to be mitigated by changes in sales reported in U.S. dollars for such locations. No assurance can be given that the Australian dollar/U.S. dollar exchange rate will continue to be strongly correlated to the U.S. dollar gold price in the future, or that short-term changes in the Australian dollar/U.S. dollar exchange rate will not have an impact on the Company’s profitability and cash flow. Foreign currency exchange rates in relation to the U.S. dollar have not had a material impact on Newmont’s determination of proven and probable reserves in the past. However, if a sustained weakening of the U.S. dollar in relation to the Australian dollar, and/or to other foreign currencies that impact the Company’s cost structure, were not mitigated by offsetting increases in the U.S. dollar gold price or by other factors, profitability, cash flows and the amount of proven and probable reserves in the applicable foreign country could be reduced. The extent of any such reduction would be dependent on a variety of factors including the length of time of any such weakening of the U.S. dollar, and management’s long-term view of the applicable exchange rate. For information concerning the sensitivity of the Company’s cash costs to changes in foreign currency exchange rates, see Item 7, Management’s Discussion and Analysis of Consolidated Results of Operations and Financial Condition-Results of Consolidated Operations-Foreign Currency Exchange Rates, above.
 Hedging
Newmont generally avoids hedging its gold production. Newmont’s philosophy is to provide shareholders with leverage to gold prices by selling its gold production at market prices. Newmont has entered into derivative contracts to protect the selling price for certain anticipated gold and copper production and to manage risks associated with sales contracts, commodities, interest rates, and foreign currency. Newmont is not required to place collateral with respect to derivative contracts and there are no margin calls associated with such contracts. During 2005 and 2006, Newmont entered into copper option collar contracts and $/IDR forward purchase contracts. As of December 31, 2006, approximately 13 million pounds of copper are hedged by the copper option collar contracts, which have been designated as cash flow hedges of forecasted copper sales, and as such, changes in the fair value related to the effective portion of the hedges have been recorded in Accumulated other comprehensive income . As of December 31, 2006, approximately 89 million pounds of copper option collar contracts are accounted for on a mark-to-market basis currently through earnings. The $/IDR forward purchase contracts have been designated as cash flow hedges of future IDR expenditures, and as such, changes in the market value have been recorded in Accumulated other comprehensive income .
 
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For 2006, 2005 and 2004, net losses of ($60) and net gains of $2 and $2, respectively, were included in Other income, net for the ineffective portion of derivative instruments designated as cash flow hedges. The amount to be reclassified from Accumulated other comprehensive income (loss) , net of tax to income for derivative instruments during the next 12 months is a loss of approximately $1. The maximum period over which hedged forecasted transactions are expected to occur is 5 years.

 	  	Expected Maturity Date	  	Fair Value	 	
 	  		  	At December 31,	 	
 	  	2007	  	2006	 	 	2005	 	
Gold Put Option Contracts:	  			  				 				
Ounces (thousands)	  	 	20	  	$	(1	)	 	$	(3	)	
Average price	  	$	397	  				 				
Copper Collar Contracts: (1) 	  			  				 				
Pounds (millions)	  	 	102	  	$	(149	) (2)	 	$	(261	) (3)	
Average cap price	  	$	1.40	  				 				
Average floor price	  	$	1.10	  				 				
$/IDR Forward Purchase Contracts: (1) 	  			  				 				
$ (millions)	  	$	58	  	$	4	 	 	$	—  	 	
Average rate (IDR/$)	  	 	9,693	  				 				

(1)	56.25% guaranteed by Newmont, 43.75% guaranteed by an affiliate of Sumitomo Corporation.	

(2)	The fair value does not include amounts payable ($24) on derivative contracts that have been closed out in December 2006 with the net settlement due and paid in January 2007.	

(3)	The fair value does not include amounts payable ($36) on derivative contracts that had been closed out in December 2005 with the net settlement due and paid in January 2006.	
Provisional Copper and Gold Sales
The Company’s sales based on a provisional sales price 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 concentrates at the forward London Metal Exchange price 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. As of December 31, 2006 and 2005, respectively, the Company had embedded copper derivatives on 180 million pounds and 223 million pounds, recorded at an average price of $2.87 and $2.01 per pound, respectively.
For 2006 and 2005, Batu Hijau recorded the following gross revenues before treatment and refining charges, which were subject to final price adjustments as of December 31, 2006, 2005 and 2004, as follows:

 	  	At December 31,	
 	  	2006	  	2005	  	2004	
Gross revenue subject to final price adjustments	  			  			  			
Copper	  	$	535	  	$	447	  	$	325	
Gold	  	$	44	  	$	19	  	$	29	
The average final price adjustments realized were as follows:

 	  	Years ended
December 31,	 	
 	  	2006	 	 	2005	 	 	2004	 	
Average final price adjustments	  			 			 			
Copper	  	31.2	%	 	12.1	%	 	13.8	%	
Gold	  	2.6	%	 	1.4	%	 	0.9	%	
 
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Price-Capped Forward Sales Contracts
In 2001, Newmont entered into transactions that closed out certain call options. The options were replaced with a series of forward sales contracts requiring physical delivery of the same quantity of gold over slightly extended future periods. Under the terms of the contracts, Newmont will realize the lower of the spot price on the delivery date or the capped price ranging from $381 to $392 per ounce. The initial fair value of the forward sales contracts was recorded as deferred revenue. As of December 31, 2006, $47 remained in deferred revenue and will be included in revenue as delivery occurs. The forward sales contracts are accounted for as normal sales contracts under FAS No. 133 “Accounting for Derivative Instruments and Hedging Activities” and FAS No. 138 “Accounting for Certain Derivative Instruments and Certain Hedging Activities-an Amendment to FAS No. 133.”
Newmont had the following price-capped forward sales contracts outstanding as of December 31, 2006:

  	  	Expected Maturity Date or Transaction Date	  	Fair Value
At December 31,	 	
 	  	2008	  	2009	  	2011	  	Total
Average	  	2006	 	 	2005	 	
Ounces (thousands)	  	 	1,000	  	 	600	  	 	250	  	 	1,850	  	$	(534	)	 	$	(338	)	
Average price	  	$	384	  	$	381	  	$	392	  	$	384	  				 				
Interest Rate Swap Contracts
In 2001, Newmont entered into contracts to hedge a portion of the interest rate risk exposure on a portion of its $275 8  5 / 8 % debentures expiring in 2011 and its $200 8  3 / 8 % debentures which expired in 2005. Under the $275 8  5 / 8 % debentures hedge contract terms, the Company receives fixed-rate interest payments at 8.625% and pays floating-rate interest amounts based on periodic London Interbank Offered Rate (“LIBOR”) settings plus a spread, ranging from 2.60% to 3.49%. Prior to expiration of the $200 8  3 / 8 % debentures and the associated hedge contracts, Newmont received fixed-rate interest payments of 8.375% and paid floating-rate interest amounts based on periodic LIBOR settings plus a spread, ranging from 3.41% to 4.25%. These transactions resulted in a reduction in interest expense of $nil, $3 and $6 for the years ended December 31, 2006, 2005 and 2004, respectively. The remaining swap contracts are designated as a hedge against $100 principal of the 8  5 / 8 % debentures. The fair value of the interest rate swaps was $1 and $2 as of December 31, 2006 and 2005, respectively.
 Fixed and Variable Rate Debt
Newmont has both fixed and variable rate debt. 74% and 78% of debt was fixed and 26% and 22% was variable as of December 31, 2006 and 2005, respectively. The Company has managed some of its fixed rate debt exposure by entering into interest rate swaps (see Interest Rate Swap Contracts above). The Company’s fixed rate debt exposure as of December 31, 2006 and 2005 is summarized as follows:

 	  	2006	  	2005	
Carrying value of fixed rate debt (1)	  	$	934	  	$	935	
Fair value of fixed rate debt (1)	  	$	919	  	$	960	
Pro forma fair value sensitivity of fixed rate debt of a +/–10 basis point interest rate change (2)	  	$	+/–8.2	  	$	+/–9.1	

(1)	Excludes specialized and hybrid debt instruments for which it is not practicable to estimate fair values and pro forma fair values or sensitivities. These instruments include the Sale-Leaseback of the Refractory Ore Treatment Plant, Prepaid Forward Sales Obligation, PTNNT project financing facility, PTNNT partner loan and certain capital leases. The estimated fair value quoted above may or may not reflect the actual trading value of these instruments.	

(2)	The pro forma information assumes a +/–10 basis point change in market interest rates as of December 31 of each year, and reflects the corresponding estimated change in the fair value of fixed rate debt outstanding at that date under that assumption. Actual changes in the timing and amount of interest rate variations may differ from the above assumptions.	
 
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 Pension and Other Benefit Plans
As of December 31, 2006, the Company adopted the provisions of FASB Statement No. 158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans—an amendment of FASB Statements No. 87, 88, 106, and 132(R)” (“FAS 158”). FAS 158 required employers that sponsor one or more defined benefit plans to (i) recognize the funded status of a benefit plan in its statement of financial position, (ii) recognize the gains or losses and prior service costs or credits that arise during the period as a component of other comprehensive income, net of tax, (iii) measure the defined benefit plan assets and obligations as of the date of the employer’s fiscal year-end statement of financial position, and (iv) disclose in the notes to the financial statements additional information about certain effects on net periodic cost for the next fiscal year that arise from delayed recognition of the gains or losses, prior service costs or credits, and transition asset or obligation. The impact of adopting FAS 158 on the Consolidated Balance Sheets was as follows:

 	  	Before
Application
of FAS 158	  	Adjustment	 	 	After
Application of
FAS 158	
Other long-term assets	  	$	193	  	$	(15	)	 	$	178	
Total assets	  	$	15,616	  	$	(15	)	 	$	15,601	
Employee pension and other benefits	  	$	229	  	$	27	 	 	$	256	
Deferred income taxes	  	$	717	  	$	(14	)	 	$	703	
Accumulated other comprehensive income	  	$	700	  	$	(27	)	 	$	673	
Total stockholders’ equity	  	$	9,364	  	$	(27	)	 	$	9,337	
The effect of the Medicare Prescription Drug, Improvement and Modernization Act of 2003, prescription drug benefit under Medicare Part D, decreased post-retirement project benefit obligations by $8 in 2006.
Yield curves matching our benefit obligations were derived using a cash flow analysis under the Citigroup pension discount curve. The Citigroup pension discount curve shows the relationship between interest rates and duration for hypothetical zero coupon investments. Under this approach, Treasury par curve data is used to set the shape of the yield curve and calculate the AA corporate spot yield at each maturity. The resulting curve was used to identify a discount rate for the Company of 5.9% and 5.75% in 2006 and 2005, respectively, based on the timing of future benefit payments. The decision to use 8% as the expected long-term return on plan assets was made based on an analysis of the actual plan asset returns over multiple time horizons and review of assumptions used by other U.S. corporations with defined benefit plans of similar size and investment strategy. The average actual return on plan assets during the 18 years ended December 31, 2006 approximated 10%.
Pension and other benefit plan costs can be impacted by actual results that differ from assumptions selected. These differences are reflected in financial results over future periods. Actual returns on pension assets were $28, $18 and $19 in 2006, 2005 and 2004, respectively, compared to expected returns of $32, $21 and $14 for the same periods. If the difference between expected returns and actual results related to plan assets, combined with the gains or losses resulting from the projected benefit obligation, fall outside certain limits, the difference will be amortized into future earnings on a straight-line basis over the average remaining working life of the participants (currently 13.1 years). The following table provides details of the pension plans asset mix as of December 31, 2006:

Asset Class	  	Actual Mix	 	 	Target Mix	 	 	Expected
Rate of
Return	 	 	Standard
Deviation or
Volatility	 	
U.S. equity investments	  	45	%	 	45	%	 	7.9	%	 	18.5	%	
International equity investments	  	21	%	 	20	%	 	8.7	%	 	28.0	%	
Fixed income investments	  	34	%	 	35	%	 	5.0	%	 	8.5	%	
	  			 			 	 	 	 	 	 	
	  			 			 	7.6	%	 	12.6	%	
 
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The pension plan employs several independent investment firms which invest the assets of the plan in certain approved funds that correspond to specific asset classes with associated target allocations. Depending upon actual sector performance, the assets in the plan are periodically rebalanced to match the established target levels for the asset classes. This rebalancing may be accomplished through actual transfer of funds between asset classes and managers, or through targeted cash contributions and/or distributions. The goal of the pension fund investment program is to achieve expected rates of return consistent with the investment risk associated with the approved investment portfolio. The investment performance of the plan and that of the individual investment firms is measured against recognized market indices. This performance is monitored by an investment committee comprised of members of the Company’s management, which in turn, is advised by an independent investment consultant. The performance of the plan is reviewed annually with the Audit Committee of the Company’s board of directors.
Contributions to the pension plans were $23, $12 and $38 in 2006, 2005 and 2004, respectively. The Company is currently planning to contribute $65, to its retirement benefit programs in 2007.
 
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 ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting. The Securities and Exchange Act of 1934 defines internal control over financial reporting in Rule 13a-15(f) and 15d-15(f) as a process designed by, or under the supervision of, the company’s principal executive and principal financial officers and effected by the company’s board of directors, management and other personnel, 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 and includes those policies and procedures that:
 
 	•	 	Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company;	
 
 	•	 	Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and	
 
 	•	 	Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the consolidated financial statements.	
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
The Company’s management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2006. In making this assessment, the Company’s management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework .
Based upon its assessment, management concluded that, as of December 31, 2006, the Company’s internal control over financial reporting is effective based upon those criteria.
Management’s assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2006 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which appears herein.
 
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 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of Newmont Mining Corporation:
We have completed integrated audits of Newmont Mining Corporation's 2006, 2005 and 2004 consolidated financial statements and of its internal control over financial reporting as of December 31, 2006, in accordance with the standards of the Public Company Accounting Oversight Board (United States). Our opinions, based on our audits, are presented below.
Consolidated financial statements
In our opinion, the consolidated financial statements listed in the index appearing under Item 15(a)(1) present fairly, in all material respects, the financial position of Newmont Mining Corporation and its subsidiaries as of December 31, 2006 and 2005, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2006 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
As discussed in Note 3 to the consolidated financial statements, the Company changed its methods of accounting for share-based payments, stripping costs incurred during the production phase and defined benefit pension and other post retirement plans all effective January 1, 2006; and changed its method of accounting for an investment following the adoption of FIN-46R effective January 1, 2004.
Internal control over financial reporting
Also, in our opinion, management’s assessment, included in Management’s Report on Internal Control Over Financial Reporting appearing under Item 8, that the Company maintained effective internal control over financial reporting as of December 31, 2006, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), is fairly stated, in all material respects, based on those criteria. Furthermore, in our opinion, the Company maintained in all material respects effective internal control over financial reporting as of December 31, 2006, based on criteria established in Internal Control—Integrated Framework issued by the COSO. The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting. Our responsibility is to express opinions on management’s assessment and on the effectiveness of the Company’s internal control over financial reporting based on our audit. We conducted our audit of internal control over financial reporting in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. An audit of internal control over financial reporting includes obtaining an understanding of internal control over financial reporting, evaluating management’s assessment, testing and evaluating the design and operating effectiveness of internal control, and performing such other procedures as we consider necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinions.
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
 
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accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
PricewaterhouseCoopers LLP
Denver, Colorado
February 23, 2007
 
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 NEWMONT MINING CORPORATION
STATEMENTS OF CONSOLIDATED INCOME

 	  	Years Ended December 31,	 	
 	  	2006	 	 	2005	 	 	2004	 	
 	  	(in millions, except per share)	 	
Revenues	  				 				 				
Sales—gold, net	  	$	4,316	 	 	$	3,680	 	 	$	3,540	 	
Sales—copper, net	  	 	671	 	 	 	672	 	 	 	786	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
	  	 	4,987	 	 	 	4,352	 	 	 	4,326	 	
Costs and expenses	  				 				 				
Costs applicable to sales (exclusive of depreciation, depletion and amortization shown separately below)	  				 				 				
Gold	  	 	2,207	 	 	 	1,990	 	 	 	1,878	 	
Copper	  	 	308	 	 	 	303	 	 	 	305	 	
Depreciation, depletion and amortization	  	 	636	 	 	 	635	 	 	 	652	 	
Exploration	  	 	170	 	 	 	147	 	 	 	107	 	
Advanced projects, research and development	  	 	94	 	 	 	73	 	 	 	80	 	
General and administrative	  	 	149	 	 	 	134	 	 	 	116	 	
Write-down of goodwill (Note 18)	  	 	—	  	 	 	41	 	 	 	52	 	
Write-down of long-lived assets (Note 4)	  	 	3	 	 	 	43	 	 	 	39	 	
Other expense, net (Note 5)	  	 	149	 	 	 	112	 	 	 	34	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
	  	 	3,716	 	 	 	3,478	 	 	 	3,263	 	
Other income (expense)	  				 				 				
Other income, net (Note 6)	  	 	451	 	 	 	269	 	 	 	102	 	
Interest expense, net of capitalized interest of $57, $39 and $13, respectively	  	 	(97	)	 	 	(97	)	 	 	(97	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
	  	 	354	 	 	 	172	 	 	 	5	 	
Income from continuing operations before income tax, minority interest and equity income of affiliates	  	 	1,625	 	 	 	1,046	 	 	 	1,068	 	
Income tax expense (Note 7)	  	 	(424	)	 	 	(310	)	 	 	(324	)	
Minority interest in income of consolidated subsidiaries	  	 	(363	)	 	 	(380	)	 	 	(335	)	
Equity income of affiliates (Note 8)	  	 	2	 	 	 	4	 	 	 	2	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations	  	 	840	 	 	 	360	 	 	 	411	 	
(Loss) income from discontinued operations (Note 9)	  	 	(49	)	 	 	(38	)	 	 	79	 	
Cumulative effect of a change in accounting principle, net of tax of $25 in 2004 (Note 3)	  	 	—	  	 	 	—	  	 	 	(47	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	791	 	 	$	322	 	 	$	443	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations per common share, basic	  	$	1.87	 	 	$	0.81	 	 	$	0.93	 	
(Loss) income from discontinued operations per common share, basic	  	 	(0.11	)	 	 	(0.09	)	 	$	0.18	 	
Cumulative effect of a change in accounting principle per common share, basic	  	 	—	  	 	 	—	  	 	 	(0.11	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net income per common share, basic (Note 10)	  	$	1.76	 	 	$	0.72	 	 	$	1.00	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations per common share, diluted	  	$	1.86	 	 	$	0.80	 	 	$	0.92	 	
(Loss) income from discontinued operations per common share, diluted	  	 	(0.11	)	 	 	(0.08	)	 	 	0.18	 	
Cumulative effect of a change in accounting principle per common share, diluted	  	 	—	  	 	 	—	  	 	 	(0.11	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net income per common share, diluted (Note 10)	  	$	1.75	 	 	$	0.72	 	 	$	0.99	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Basic weighted-average common shares outstanding	  	 	450	 	 	 	446	 	 	 	443	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Diluted weighted-average common shares outstanding	  	 	452	 	 	 	449	 	 	 	447	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Cash dividends declared per common share	  	$	0.40	 	 	$	0.40	 	 	$	0.30	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
The accompanying notes are an integral part of these consolidated financial statements.
 
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 NEWMONT MINING CORPORATION
CONSOLIDATED BALANCE SHEETS

 	  	At December 31,	
 	  	2006	 	 	2005	
 	  	(in millions)	
ASSETS	  				 			
Cash and cash equivalents	  	$	1,166	 	 	$	1,082	
Marketable securities and other short-term investments (Note 14)	  	 	109	 	 	 	817	
Trade receivables	  	 	142	 	 	 	94	
Accounts receivable	  	 	216	 	 	 	135	
Inventories (Note 15)	  	 	382	 	 	 	304	
Stockpiles and ore on leach pads (Note 16)	  	 	378	 	 	 	241	
Deferred stripping costs (Note 3)	  	 	—	  	 	 	78	
Deferred income tax assets (Note 7)	  	 	156	 	 	 	159	
Other current assets	  	 	93	 	 	 	90	
	  	 	 	 	 	 	 	
Current assets	  	 	2,642	 	 	 	3,000	
Property, plant and mine development, net (Note 17)	  	 	6,847	 	 	 	5,581	
Investments (Note 14)	  	 	1,319	 	 	 	955	
Long-term stockpiles and ore on leach pads (Note 16)	  	 	812	 	 	 	599	
Deferred stripping costs (Note 2)	  	 	—	  	 	 	100	
Deferred income tax assets (Note 7)	  	 	799	 	 	 	515	
Other long-term assets	  	 	178	 	 	 	181	
Goodwill (Note 18)	  	 	3,004	 	 	 	2,879	
Assets of operations held for sale (Note 9)	  	 	—	  	 	 	182	
	  	 	 	 	 	 	 	
Total assets	  	$	15,601	 	 	$	13,992	
	  	 	 	 	 	 	 	
LIABILITIES	  				 			
Current portion of long-term debt (Note 19)	  	$	159	 	 	$	195	
Accounts payable	  	 	340	 	 	 	227	
Employee-related benefits (Note 20)	  	 	182	 	 	 	176	
Derivative instruments	  	 	174	 	 	 	270	
Income and mining taxes (Note 7)	  	 	364	 	 	 	77	
Other current liabilities (Note 22)	  	 	520	 	 	 	394	
	  	 	 	 	 	 	 	
Current liabilities	  	 	1,739	 	 	 	1,339	
Long-term debt (Note 19)	  	 	1,752	 	 	 	1,723	
Reclamation and remediation liabilities (Note 23)	  	 	528	 	 	 	442	
Deferred income tax liabilities (Note 7)	  	 	703	 	 	 	446	
Employee-related benefits (Note 20)	  	 	309	 	 	 	273	
Other long-term liabilities (Note 22)	  	 	135	 	 	 	415	
Liabilities of operations held for sale (Note 9)	  	 	—	  	 	 	47	
	  	 	 	 	 	 	 	
Total liabilities	  	 	5,166	 	 	 	4,685	
	  	 	 	 	 	 	 	
Commitments and contingencies (Note 29)	  				 			
Minority interest in subsidiaries	  	 	1,098	 	 	 	931	
	  	 	 	 	 	 	 	
STOCKHOLDERS’ EQUITY	  				 			
Common stock—$1.60 par value;	  				 			
Authorized—750 million shares
Issued and outstanding—	  				 			
Common: 423 million and 417 million shares issued, less 246,000 and 234,000 treasury shares, respectively	  	 	677	 	 	 	666	
Exchangeable: 56 million shares issued, less 29 million and 25 million redeemed shares, respectively	  				 			
Additional paid-in capital	  	 	6,703	 	 	 	6,578	
Accumulated other comprehensive income (Note 11)	  	 	673	 	 	 	378	
Retained earnings	  	 	1,284	 	 	 	754	
	  	 	 	 	 	 	 	
Total stockholders’ equity	  	 	9,337	 	 	 	8,376	
	  	 	 	 	 	 	 	
Total liabilities and stockholders’ equity	  	$	15,601	 	 	$	13,992	
	  	 	 	 	 	 	 	
The accompanying notes are an integral part of these consolidated financial statements.
 
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 NEWMONT MINING CORPORATION
STATEMENTS OF CONSOLIDATED CHANGES IN STOCKHOLDERS’ EQUITY

 	  	Common Stock	 	 	Additional
Paid-In
Capital	 	 	Retained
Earnings	 	 	Accumulated
Other
Comprehensive
Income	 	 	Total
Stockholders’
Equity	 	
 	  	Shares	 	 	Amount	 	 			 			 			 			
 	  	(in millions)	 	
Balance at December 31, 2003	  	442	 	 	$	638	 	 	$	6,423	 	 	$	301	 	 	$	23	 	 	$	7,385	 	
Net income	  	—	  	 	 	—	  	 	 	—	  	 	 	443	 	 	 	—	  	 	 	443	 	
Other comprehensive income	  	—	  	 	 	—	  	 	 	—	  	 	 	—	  	 	 	124	 	 	 	124	 	
Common stock dividends	  	—	  	 	 	—	  	 	 	—	  	 	 	(133	)	 	 	—	  	 	 	(133	)	
Stock based compensation	  	4	 	 	 	6	 	 	 	113	 	 	 	—	  	 	 	—	  	 	 	119	 	
Shares issued in exchange for exchangeable shares	  	—	  	 	 	12	 	 	 	(12	)	 	 	—	  	 	 	—	  	 	 	—	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at December 31, 2004	  	446	 	 	$	656	 	 	$	6,524	 	 	$	611	 	 	$	147	 	 	$	7,938	 	
Net income	  	—	  	 	 	—	  	 	 	—	  	 	 	322	 	 	 	—	  	 	 	322	 	
Other comprehensive income	  	—	  	 	 	—	  	 	 	—	  	 	 	—	  	 	 	231	 	 	 	231	 	
Common stock dividends	  	—	  	 	 	—	  	 	 	—	  	 	 	(179	)	 	 	—	  	 	 	(179	)	
Stock based compensation	  	2	 	 	 	3	 	 	 	61	 	 	 	—	  	 	 	—	  	 	 	64	 	
Shares issued in exchange for exchangeable shares	  	—	  	 	 	7	 	 	 	(7	)	 	 	—	  	 	 	—	  	 	 	—	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at December 31, 2005	  	448	 	 	$	666	 	 	$	6,578	 	 	$	754	 	 	$	378	 	 	$	8,376	 	
Net income	  	—	  	 	 	—	  	 	 	—	  	 	 	791	 	 	 	—	  	 	 	791	 	
Other comprehensive income	  	—	  	 	 	—	  	 	 	—	  	 	 	—	  	 	 	322	 	 	 	322	 	
Common stock dividends	  	—	  	 	 	—	  	 	 	—	  	 	 	(180	)	 	 	—	  	 	 	(180	)	
Adoption of EITF 04-06 (Note 3)	  	—	  	 	 	—	  	 	 	—	  	 	 	(81	)	 	 	—	  	 	 	(81	)	
Adoption of FAS 158 (Note 3)	  	—	  	 	 	—	  	 	 	—	  	 	 	—	  	 	 	(27	)	 	 	(27	)	
Stock based compensation and related share issuances	  	3	 	 	 	5	 	 	 	131	 	 	 	—	  	 	 	—	  	 	 	136	 	
Shares issued in exchange for exchangeable shares	  	—	  	 	 	6	 	 	 	(6	)	 	 	—	  	 	 	—	  	 	 	—	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at December 31, 2006	  	451	 	 	$	677	 	 	$	6,703	 	 	$	1,284	 	 	$	673	 	 	$	9,337	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME

 	  	Years Ended December 31,	 	
 	  	    2006    	 	 	    2005    	 	 	    2004    	 	
 	  	(in millions)	 	
Net income	  	$	791	 	 	$	322	 	 	$	443	 	
Other comprehensive income (loss):	  				 				 				
Unrealized gains on marketable equity securities, net of $49, $61 and $32 tax expense, respectively	  	 	272	 	 	 	282	 	 	 	123	 	
Foreign currency translation adjustments	  	 	(14	)	 	 	26	 	 	 	31	 	
Change in minimum pension liability, net of $10 tax expense, $10 and $6 tax benefit, respectively	  				 				 				
Net change from periodic valuations	  	 	12	 	 	 	(22	)	 	 	(14	)	
Net amount reclassified to income	  	 	5	 	 	 	4	 	 	 	3	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net unrecognized loss on pension liability prior to adoption of FAS 158	  	 	17	 	 	 	(18	)	 	 	(11	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Change in fair value of cash flow hedge instruments, net of tax and minority interests of $(26), $30 and $8, respectively	  				 				 				
Net change from periodic revaluations	  	 	6	 	 	 	(65	)	 	 	(8	)	
Net amount reclassified to income	  	 	41	 	 	 	6	 	 	 	(11	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net unrecognized gain (loss) on derivatives	  	 	47	 	 	 	(59	)	 	 	(19	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Other comprehensive income	  	 	322	 	 	 	231	 	 	 	124	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Comprehensive income	  	$	1,113	 	 	$	553	 	 	$	567	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
The accompanying notes are an integral part of these consolidated financial statements.
 
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 NEWMONT MINING CORPORATION
STATEMENTS OF CONSOLIDATED CASH FLOWS

 	  	Years Ended December 31,	 	
 	  	2006	 	 	2005	 	 	2004	 	
 	  	(in millions)	 	
Operating activities:	  				 				 				
Net income	  	$	791	 	 	$	322	 	 	$	443	 	
Adjustments to reconcile net income to net cash from continuing operations:	  				 				 				
Depreciation, depletion and amortization	  	 	636	 	 	 	635	 	 	 	652	 	
Revenue from prepaid forward sales obligation	  	 	(48	)	 	 	(48	)	 	 	—	  	
Loss (gain) from discontinued operations	  	 	49	 	 	 	38	 	 	 	(79	)	
Accretion of accumulated reclamation obligations	  	 	31	 	 	 	27	 	 	 	25	 	
Amortization of deferred stripping costs, net	  	 	—	  	 	 	(56	)	 	 	4	 	
Deferred income taxes	  	 	(55	)	 	 	(12	)	 	 	75	 	
Minority interest expense	  	 	363	 	 	 	380	 	 	 	335	 	
Cumulative effect of change in accounting principle, net	  	 	—	  	 	 	—	  	 	 	47	 	
Gain on asset sales, net	  	 	(315	)	 	 	(48	)	 	 	(28	)	
(Gain) loss on sale of investments, net	  	 	(13	)	 	 	(54	)	 	 	39	 	
Hedge (gain) loss, net	  	 	(46	)	 	 	99	 	 	 	10	 	
Other operating adjustments and write-downs	  	 	150	 	 	 	146	 	 	 	83	 	
Decrease (increase) in operating assets:	  				 				 				
Trade and accounts receivable	  	 	(110	)	 	 	(65	)	 	 	(6	)	
Inventories, stockpiles and ore on leach pads	  	 	(388	)	 	 	(179	)	 	 	(14	)	
Other assets	  	 	(25	)	 	 	(29	)	 	 	3	 	
Increase (decrease) in operating liabilities:	  				 				 				
Accounts payable and other accrued liabilities	  	 	277	 	 	 	135	 	 	 	(38	)	
Reclamation liabilities	  	 	(60	)	 	 	(48	)	 	 	(48	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided from continuing operations	  	 	1,237	 	 	 	1,243	 	 	 	1,503	 	
Net cash (used in) provided from discontinued operations	  	 	(12	)	 	 	—	  	 	 	54	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net cash from operations	  	 	1,225	 	 	 	1,243	 	 	 	1,557	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Investing activities:	  				 				 				
Additions to property, plant and mine development	  	 	(1,551	)	 	 	(1,220	)	 	 	(674	)	
Investments in marketable debt and equity securities	  	 	(1,503	)	 	 	(3,301	)	 	 	(1,720	)	
Proceeds from sale of marketable debt and equity securities	  	 	2,224	 	 	 	3,358	 	 	 	899	 	
Acquisitions (Note 12)	  	 	(348	)	 	 	—	  	 	 	—	  	
Proceeds from sale of assets, net	  	 	334	 	 	 	79	 	 	 	51	 	
Cash recorded upon consolidation of Batu Hijau	  	 	—	  	 	 	—	  	 	 	82	 	
Other	  	 	6	 	 	 	(9	)	 	 	(26	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net cash used in investing activities of continuing operations	  	 	(838	)	 	 	(1,093	)	 	 	(1,388	)	
Net cash (used in) provided from investing activities of discontinued operations	  	 	34	 	 	 	116	 	 	 	(44	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net cash used in investing activities	  	 	(804	)	 	 	(977	)	 	 	(1,432	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Financing activities:	  				 				 				
Proceeds from debt, net	  	 	198	 	 	 	583	 	 	 	56	 	
Repayment of debt	  	 	(111	)	 	 	(217	)	 	 	(252	)	
Early extinguishment of prepaid forward sales obligation	  	 	(48	)	 	 	—	  	 	 	—	  	
Dividends paid to common stockholders	  	 	(180	)	 	 	(179	)	 	 	(133	)	
Dividends paid to minority interests	  	 	(264	)	 	 	(186	)	 	 	(237	)	
Proceeds from stock issuance	  	 	78	 	 	 	43	 	 	 	78	 	
Change in restricted cash and other	  	 	(6	)	 	 	(5	)	 	 	15	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net cash (used in) provided from financing activities of continuing operations	  	 	(333	)	 	 	39	 	 	 	(473	)	
Net cash used in financing activities of discontinued operations	  	 	(7	)	 	 	(1	)	 	 	(2	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net cash (used in) provided from financing activities	  	 	(340	)	 	 	38	 	 	 	(475	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Effect of exchange rate changes on cash	  	 	3	 	 	 	(3	)	 	 	2	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net change in cash and cash equivalents	  	 	84	 	 	 	301	 	 	 	(348	)	
Cash and cash equivalents at beginning of period	  	 	1,082	 	 	 	781	 	 	 	1,129	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents at end of period	  	$	1,166	 	 	$	1,082	 	 	$	781	 	

See Note 25 for supplemental cash flow information.
The accompanying notes are an integral part of these consolidated financial statements.
 
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 NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 1    THE COMPANY
Newmont Mining Corporation and its affiliates and subsidiaries (collectively, “Newmont” or the “Company”) predominantly operate in a single industry, namely, exploration for and production of gold.
The Company’s sales result from operations in the United States, Australia, Peru, Indonesia, Ghana, Canada, Bolivia, New Zealand and Mexico. The cash flow and profitability of the Company’s operations are significantly affected by the market price of gold, and to a lesser extent, copper. The prices of gold and copper can fluctuate widely and are affected by numerous factors beyond the Company’s control.
References to “A$” refers to Australian currency, “CDN$” to Canadian currency, “IDR” to Indonesian currency, and “$” to United States currency.
NOTE 2    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates
The Company’s Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of the Company’s Consolidated Financial Statements requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions relate to mineral reserves that are the basis for future cash flow estimates utilized in impairment calculations and units-of-production depreciation, depletion and amortization calculations; environmental, reclamation and closure obligations; estimates of recoverable gold and other minerals in stockpile and leach pad inventories; estimates of fair value for certain reporting units and asset impairments (including impairments of goodwill, long-lived assets and investments); write-downs of inventory to net realizable value; post employment, post retirement and other employee benefit liabilities; valuation allowances for deferred tax assets; reserves for contingencies and litigation; and the fair value and accounting treatment of financial instruments. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ significantly from these estimates under different assumptions or conditions.
Principles of Consolidation
The Consolidated Financial Statements include the accounts of Newmont Mining Corporation and more-than-50%-owned subsidiaries that it controls and entities over which control is achieved through means other than voting rights (see Note 3). The Company also includes its pro-rata share of assets, liabilities and operations for unincorporated joint ventures in which it has an interest. All significant intercompany balances and transactions have been eliminated. The functional currency for the majority of the Company’s operations, including the Australian operations, is the U.S. dollar. The functional currency of the Canadian operations is the Canadian dollar.
Cash and Cash Equivalents
Cash and cash equivalents consist of all cash balances and highly liquid investments with an original maturity of three months or less. Because of the short maturity of these investments, the carrying amounts approximate their fair value. Cash and cash equivalents are invested in United States Treasury bills and high-quality commercial paper. Restricted cash is excluded from cash and cash equivalents and is included in other current and long-term assets.
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
Investments
Management determines the appropriate classification of its investments in equity securities at the time of purchase and reevaluates such determinations at each reporting date. Investments in incorporated entities in which the Company’s ownership is greater than 20% and less than 50%, or which the Company does not control through majority ownership or means other than voting rights, are accounted for by the equity method and are included in long-term assets. The Company periodically reviews and accounts for its equity security investments as available for sale securities in accordance with Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards (“FAS”) No. 115, “Accounting for Certain Investments in Debt and Equity Securities.” Additional information concerning the Company’s equity method and security investments is included in Note 14.
The Company accounts for its investments in auction rate securities in accordance with FAS No. 115. Specifically, when the underlying security of an auction rate security has a stated or contractual maturity date in excess of 90 days, regardless of the frequency of the interest rate reset date, the security is classified as an available-for-sale marketable debt security.
Stockpiles, Ore on Leach Pads and Inventories
As described below, costs that are incurred in or benefit the productive process are accumulated as stockpiles, ore on leach pads and inventories. Stockpiles, ore on leach pads and inventories are carried at the lower of average cost or net realizable value. Net realizable value represents the estimated future sales price of the product based on current and long-term metals prices, less the estimated costs to complete production and bring the product to sale. Write-downs of stockpiles, ore on leach pads and inventories, resulting from net realizable value impairments, are reported as a component of Costs applicable to sales . The current portion of stockpiles, ore on leach pads and inventories is determined based on the expected amounts to be processed within the next 12 months. Stockpiles, ore on leach pads and inventories not expected to be processed within the next 12 months are classified as long-term. The major classifications are as follows:
Stockpiles
Stockpiles represent ore that has been mined and is available for further processing. Stockpiles are measured by estimating the number of tons added and removed from the stockpile, the number of contained ounces or pounds (based on assay data) and the estimated metallurgical recovery rates (based on the expected processing method). Stockpile ore tonnages are verified by periodic surveys. Costs are allocated to stockpiles based on relative values of material stockpiled and processed using current mining costs incurred up to the point of stockpiling the ore, including applicable overhead, depreciation, depletion and amortization relating to mining operations, and removed at each stockpile’s average cost per recoverable unit.
Ore on Leach Pads
The recovery of gold from certain gold oxide ores is achieved through the heap leaching process. Under this method, oxide ore is placed on leach pads where it is treated with a chemical solution, which dissolves the gold contained in the ore. The resulting “pregnant” solution is further processed in a plant where the gold is recovered. Costs are added to ore on leach pads based on current mining costs, including applicable depreciation, depletion and amortization relating to mining operations. Costs are removed from ore on leach pads as ounces are recovered based on the average cost per estimated recoverable ounce of gold on the leach pad.
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
The estimates of recoverable gold on the leach pads are calculated from the quantities of ore placed on the leach pads (measured tons added to the leach pads), the grade of ore placed on the leach pads (based on assay data) and a recovery percentage (based on ore type). In general, leach pads recover approximately 50% to 95% of the recoverable ounces in the first year of leaching, declining each year thereafter until the leaching process is complete.
Although the quantities of recoverable gold placed on the leach pads are reconciled by comparing the grades of ore placed on pads to the quantities of gold actually recovered (metallurgical balancing), the nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, the metallurgical balancing process is constantly monitored and estimates are refined based on actual results over time. Historically, the Company’s operating results have not been materially impacted by variations between the estimated and actual recoverable quantities of gold on its leach pads. Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write-downs to net realizable value are accounted for on a prospective basis.
In-process Inventory
In-process inventories represent materials that are currently in the process of being converted to a saleable product. Conversion processes vary depending on the nature of the ore and the specific processing facility, but include mill in-circuit, leach in-circuit, flotation and column cells, and carbon in-pulp inventories. In-process material is measured based on assays of the material fed into the process and the projected recoveries of the respective plants. In-process inventories are valued at the average cost of the material fed into the process attributable to the source material coming from the mines, stockpiles and/or leach pads plus the in-process conversion costs, including applicable depreciation relating to the process facilities incurred to that point in the process.
Precious Metals Inventory
Precious metals inventories include gold doré and/or gold bullion. Precious metals that are received as in-kind payments of royalties are valued at fair value on the date title is transferred to the Company. Precious metals that result from the Company’s mining and processing activities are valued at the average cost of the respective in-process inventories incurred prior to the refining process, plus applicable refining costs.
Concentrate Inventory
Concentrate inventories represent copper and gold concentrate available for shipment. The Company values concentrate inventory at the average cost, including an allocable portion of mill support costs and mill depreciation. Costs are added and removed to the concentrate inventory based on tons of concentrate and are valued at the lower of average cost or net realizable value.
Materials and Supplies
Materials and supplies are valued at the lower of average cost or net realizable value. Cost includes applicable taxes and freight.
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
Property, Plant and Mine Development
Expenditures for new facilities or equipment and expenditures that extend the useful lives of existing facilities or equipment are capitalized and depreciated using the straight-line method at rates sufficient to depreciate such costs over the estimated productive lives, which do not exceed the related estimated mine lives, of such facilities based on proven and probable reserves.
Mineral exploration costs are expensed as incurred. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, costs incurred prospectively to develop the property are capitalized as incurred and are amortized using the units-of-production (“UOP”) method over the estimated life of the ore body based on estimated recoverable ounces or pounds in proven and probable reserves. At the Company’s surface mines, these costs include costs to further delineate the ore body and remove overburden to initially expose the ore body. At the Company’s underground mines, these costs include the cost of building access ways, shaft sinking and access, lateral development, drift development, ramps and infrastructure development.
Major development costs incurred after the commencement of production are amortized using the UOP method based on estimated recoverable ounces or pounds in proven and probable reserves. To the extent that these costs benefit the entire ore body, they are amortized over the estimated life of the ore body. Costs incurred to access specific ore blocks or areas that only provide benefit over the life of that area are amortized over the estimated life of that specific ore block or area.
Interest cost allocable to the cost of developing mining properties and to constructing new facilities is capitalized until assets are ready for their intended use.
Mineral Interests
Mineral interests include acquired mineral and royalty interests in production, development and exploration stage properties. The amount capitalized related to a mineral or royalty interest represents its fair value at the time it was acquired, either as an individual asset purchase or as a part of a business combination.
The value of such assets is primarily driven by the nature and amount of mineralized material believed to be contained in such properties. Production stage mineral interests represent interests in operating properties that contain proven and probable reserves. Development stage mineral interests represent interests in properties under development that contain proven and probable reserves. Exploration stage mineral interests represent interests in properties that are believed to potentially contain mineralized material consisting of (i) other mineralized material such as inferred material within pits; measured, indicated and inferred material with insufficient drill spacing to qualify as proven and probable reserves; and inferred material in close proximity to proven and probable reserves; (ii) around-mine exploration potential such as inferred material not immediately adjacent to existing reserves and mineralization but located within the immediate mine area; (iii) other mine-related exploration potential that is not part of measured, indicated or inferred material and is comprised mainly of material outside of the immediate mine area; or (iv) greenfields exploration potential that is not associated with any other production, development or exploration stage property, as described above. The Company’s mineral rights generally are enforceable regardless of whether proven and probable reserves have been established. In certain limited situations, the nature of a mineral right changes from an exploration right to a mining right upon the establishment of proven and probable reserves. The Company has the ability and intent to renew mineral interests where the existing term is not sufficient to recover all identified and valued proven and probable reserves and/or undeveloped mineralized material.
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
Royalty interests are generally in the form of a net smelter return (“NSR”) royalty, which provides for the payment either in cash or physical metal (“in-kind”) of a specified percentage of production less certain specified transportation and refining costs. Net profit interests (“NPI”) are those pursuant to which Newmont is entitled to a specified percentage of the net profits, as defined in each case. The majority of NSR royalty revenue and NPI revenue can be received in-kind (generally in the form of gold bullion) at the option of Newmont. As detailed further in Note 17, the Company owns royalty interests in production, development and exploration stage properties.
Asset Impairment
Long-lived Assets
The Company reviews and evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. An impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets, including goodwill, if any. An impairment loss is measured and recorded based on discounted estimated future cash flows. Future cash flows are estimated based on quantities of recoverable minerals, expected gold and other commodity prices (considering current and historical prices, price trends and related factors), production levels and operating costs of production and capital, all based on life-of-mine plans. Existing proven and probable reserves and value beyond proven and probable reserves, including mineralization other than proven and probable reserves and other material that is not part of the measured, indicated or inferred resource base, are included when determining the fair value of mine site reporting units at acquisition and, subsequently, in determining whether the assets are impaired. The term “recoverable minerals” refers to the estimated amount of gold or other commodities that will be obtained after taking into account losses during ore processing and treatment. Estimates of recoverable minerals from such exploration stage mineral interests are risk adjusted based on management’s relative confidence in such materials. In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups. The Company’s estimates of future cash flows are based on numerous assumptions and it is possible that actual future cash flows will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold and other commodity prices, production levels and operating costs of production and capital are each subject to significant risks and uncertainties.
Goodwill
The Company evaluates, on at least an annual basis, the carrying amount of goodwill to determine whether current events and circumstances indicate that such carrying amount may no longer be recoverable. To accomplish this, the Company compares the estimated fair value of its reporting units to their carrying amounts. If the carrying value of a reporting unit exceeds its estimated fair value, the Company compares the implied fair value of the reporting unit’s goodwill to its carrying amount, and any excess of the carrying value over the fair value is charged to earnings. The Company’s fair value estimates are based on numerous assumptions and it is possible that actual fair value will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold and other commodity prices, production levels and operating costs of production and capital are each subject to significant risks and uncertainties.
Revenue Recognition
Revenue is recognized, net of treatment and refining charges, from a sale when the price is determinable, the product has been delivered, the title has been transferred to the customer and collection of the sales price is
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
reasonably assured. Revenues from by-product sales are credited to Costs applicable to sales as a by-product credit. Royalty revenue received in-kind (generally in the form of gold bullion) is recognized based on the fair value on the date that title is transferred to the Company.
Concentrate sales are initially recorded based on 100% of the provisional sales prices. Until final settlement occurs, adjustments to the provisional sales prices are made to take into account the mark-to-market changes based on the forward prices for the estimated month of settlement. For changes in metal quantities upon receipt of new information and assay, the provisional sales quantities are adjusted as well. The principal risks associated with recognition of sales on a provisional basis include metal price fluctuations between the date initially recorded and the date of final settlement. If a significant decline in metal prices occurs between the provisional pricing date and the final settlement-date, it is reasonably possible that the Company could be required to return a portion of the sales proceeds received based on the provisional invoice.
The Company’s sales based on a provisional sales price 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 concentrates at the forward London Metal Exchange price 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.
Stripping Costs
Stripping costs incurred during the production phase of a mine are variable production costs that are included as a component of inventory to be recognized in Costs applicable to sales in the same period as the revenue from the sale of inventory. Capitalization of post-production stripping costs is appropriate only to the extent product inventory exists at the end of a reporting period.
Prior to 2006 (see Note 3) at some of the Company’s mining operations, deferred stripping costs were charged to Costs applicable to sales as gold or copper was produced and sold using the units of production method based on estimated recoverable quantities of proven and probable gold or copper reserves, using a stripping ratio calculated as the ratio of total tons to be moved to total proven and probable ore reserves, which resulted in the recognition of the costs of waste removal activities over the life of the mine as gold or copper was produced. The application of the deferred stripping accounting method generally resulted in an asset (deferred stripping costs), although a liability (advanced stripping costs) arose when the actual stripping ratio incurred to date was less than the expected stripping ratio over the life of the mine. The Advanced stripping costs primarily pertained to the Batu Hijau operation.
Reclamation and Remediation Costs (Asset Retirement Obligations)
Reclamation costs are allocated to expense over the life of the related assets and are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation and abandonment costs. The asset retirement obligation is based on when the spending for an existing environmental disturbance and activity to date will occur. The Company reviews, on an annual basis, unless otherwise deemed necessary, the asset retirement obligation at each mine site in accordance with FASB FAS No. 143, “Accounting for Asset Retirement Obligations.”
Future remediation costs for inactive mines are accrued based on management’s best estimate at the end of each period of the costs expected to be incurred at a site. Such cost estimates include, where applicable, ongoing care, maintenance and monitoring costs. Changes in estimates at inactive mines are reflected in earnings in the period an estimate is revised.
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
Income and Mining Taxes
The Company accounts for income taxes using the liability method, recognizing certain temporary differences between the financial reporting basis of the Company’s liabilities and assets and the related income tax basis for such liabilities and assets. This method generates either a net deferred income tax liability or asset for the Company, as measured by the statutory tax rates in effect. The Company derives its deferred income tax charge or benefit by recording the change in either the net deferred income tax liability or asset balance for the year. Mining taxes represent Canadian provincial taxes levied on mining operations and are classified as income taxes; as such taxes are based on a percentage of mining profits. With respect to the earnings that the Company derives from the operations of its consolidated subsidiaries, in those situations where the earnings are indefinitely reinvested, no deferred taxes have been provided on the unremitted earnings (including the excess of the carrying value of the net equity of such entities for financial reporting purposes over the tax basis of such equity) of these consolidated companies.
The Company’s deferred income tax assets include certain future tax benefits. The Company records a valuation allowance against any portion of those deferred income tax assets when it believes, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred income tax asset will not be realized.
Foreign Currency
The functional currency for the majority of the Company’s operations, including the Australian operations, is the U.S. dollar. All monetary assets and liabilities where the functional currency is the U.S. dollar are translated at current exchange rates and the resulting adjustments are included in Other income, net . The functional currency of the Canadian operations is the Canadian dollar. All monetary assets and liabilities recorded in functional currencies other than U.S. dollars are translated at current exchange rates and the resulting adjustments are charged or credited directly to Accumulated other comprehensive income (“OCI”) in Stockholders’ equity. Revenues and expenses in foreign currencies are translated at the weighted-average exchange rates for the period.
Sales Contracts, Commodity and Derivative Instruments
Derivative contracts qualifying as normal purchases and sales are accounted for under deferral accounting. Gains and losses arising from a change in the fair value of a contract before the contract’s designated delivery date are not recorded and the contract price is recognized in Sales—gold, net following settlement of the contract by physical delivery of production to the counterparty at contract maturity.
The fair value of derivative contracts qualifying as cash flow hedges are reflected as assets or liabilities in the balance sheet. To the extent these hedges are effective in offsetting forecasted cash flows from the sale of production or production costs (the “effective portion”), changes in fair value are deferred in OCI. Amounts deferred in OCI are reclassified to Sales, net or to Costs applicable to sales , as applicable, when the hedged transaction has occurred. The ineffective portion of the change in the fair value of the derivative is recorded in Other income, net in each period.
When derivative contracts qualifying as cash flow hedges are settled, accelerated or restructured before the maturity date of the contracts, the accumulated OCI at the settlement date is deferred and reclassified to Sales—gold, net when the originally designated hedged transaction occurs.
The fair values of derivative contracts qualifying as fair value hedges are reflected as assets or liabilities in the balance sheet. Changes in fair value are recorded in income in each period, consistent with recording changes
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
to the mark-to-market value of the underlying hedged asset or liability in income. Changes in the mark-to-market value of the effective portion of interest rate swaps utilized by the Company to swap a portion of its fixed rate interest rate risk to floating rate risk are recognized as a component of Interest expense, net of capitalized interest .
The fair value of all derivative contracts that do not qualify as hedges are reflected as assets or liabilities, with the change in fair value recorded in Other income, net .
Stock Based Compensation
Compensation cost recognized in 2006 includes: a) compensation cost for all share-based payments granted prior to, but not yet vested as of January 1, 2006, based on the grant-date fair value estimated in accordance with the original provisions of FAS 123, and b) compensation cost for all share-based payments granted subsequent to January 1, 2006, based on the grant-date fair value estimated in accordance with the provisions of FAS 123(R).
Prior to 2006, the Company accounted for share-based payments under the recognition and measurement provisions of APB Opinion No. 25, Accounting for Stock Issued to Employees , and related Interpretations, as permitted by FASB Statement No. 123, Accounting for Stock-Based Compensation . In accordance with APB 25, no compensation cost was required to be recognized for options granted that had an exercise price equal to the market value of the underlying common stock on the date of grant.
Net Income per Common Share
Basic and diluted earnings per share are presented for Net income and for Income from continuing operations . Basic earnings per share is computed by dividing Net income or Income from continuing operations by the weighted-average number of outstanding common shares for the period, including the exchangeable shares (see Note 10). Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts that may require the issuance of common shares in the future were converted. Diluted earnings per share is computed by increasing the weighted-average number of outstanding common shares to include the additional common shares that would be outstanding after conversion and adjusting net income for changes that would result from the conversion. Only those securities or other contracts that result in a reduction in earnings per share are included in the calculation.
Comprehensive Income
In addition to Net income, Comprehensive income includes all changes in equity during a period, such as adjustments to minimum pension liabilities, foreign currency translation adjustments, the effective portion of changes in fair value of derivative instruments that qualify as cash flow hedges and cumulative unrecognized changes in fair value of marketable securities available-for-sale or other investments, except those resulting from investments by and distributions to owners.
Reclassifications
Certain amounts in prior years have been reclassified to conform to the 2006 presentation. The most significant reclassifications were to reclassify the balance sheet amounts and the income statement results from the historical presentation to Assets and Liabilities of operations held for sale on the Consolidated Balance Sheets and to (Loss) income from discontinued operations in the Consolidated Statements of Income for all periods presented. The Consolidated Statements of Cash Flows have been reclassified for assets held for sale and discontinued operations for all periods presented.
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
Recent Accounting Pronouncements
Income Taxes
In June 2006, the FASB issued FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes,” (“FIN 48”) an interpretation of FASB Statement No. 109, “Accounting for Income Taxes.” FIN 48 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FIN 48 requires that the Company recognize in its financial statements, the impact of a tax position, if that position is more likely than not of being sustained on audit, based on the technical merits of the position. FIN 48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods and disclosure. The provisions of FIN 48 are effective beginning January 1, 2007 with the cumulative effect of the change in accounting principle recorded as an adjustment to the opening balance of retained earnings, goodwill, deferred income taxes and income taxes payable in the Consolidated Balance Sheets. The Company is currently evaluating the impact of adopting FIN 48 on the Company’s consolidated financial position, results of operations and disclosures.
Fair Value Measurements
In September 2006, the FASB issued FASB Statement No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. The provisions of FAS 157 are effective for the Company’s fiscal year beginning January 1, 2008. The Company is currently evaluating the impact that the adoption of this statement will have on the Company’s consolidated financial position, results of operations or cash flows.
NOTE 3    ACCOUNTING DEVELOPMENTS
Pensions
As of December 31, 2006, the Company adopted the provisions of FASB Statement No. 158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans—an amendment of FASB Statements No. 87, 88, 106, and 132(R)” (“FAS 158”). FAS 158 required employers that sponsor one or more defined benefit plans to (i) recognize the funded status of a benefit plan in its statement of financial position, (ii) recognize the gains or losses and prior service costs or credits that arise during the period as a component of other comprehensive income, net of tax, (iii) measure the defined benefit plan assets and obligations as of the date of the employer’s fiscal year-end statement of financial position, and (iv) disclose in the notes to the financial statements additional information about certain effects on net periodic cost for the next fiscal year that arise from delayed recognition of the gains or losses, prior service costs or credits, and transition asset or obligation. The impact of adopting FAS 158 on the Consolidated Balance Sheets was as follows:

 	  	Before
Application of
FAS 158	  	Adjustment	 	 	After
Application of
FAS 158	
Other long-term assets	  	$	193	  	$	(15	)	 	$	178	
Total assets	  	$	15,616	  	$	(15	)	 	$	15,601	
Employee pension and other benefits	  	$	229	  	$	27	 	 	$	256	
Deferred income taxes	  	$	717	  	$	(14	)	 	$	703	
Accumulated other comprehensive income	  	$	700	  	$	(27	)	 	$	673	
Total stockholders’ equity	  	$	9,364	  	$	(27	)	 	$	9,337	
 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
Stock Based Compensation
On January 1, 2006, the Company adopted the fair value recognition provisions of FASB Statement No. 123(R), “ Share-Based Paymen t” (“FAS 123(R)”). The Company adopted FAS 123(R) using the modified prospective transition method. Under this method, compensation cost recognized in 2006 includes: a) compensation cost for all share-based payments granted prior to, but not yet vested as of January 1, 2006, based on the grant-date fair value estimated in accordance with the original provisions of FAS 123, and b) compensation cost for all share-based payments granted subsequent to January 1, 2006, based on the grant-date fair value estimated in accordance with the provisions of FAS 123(R).
As a result of adopting FAS 123(R), the Company’s Income from continuing operations and Net income for 2006 is $19 ($0.04 per share) lower, than if we had continued to account for share-based compensation under APB 25 as we did in the comparable prior year periods. Prior to the adoption of FAS 123(R), cash retained as a result of tax deductions relating to stock-based compensation was included in operating cash flows, along with other tax cash flows. FAS 123(R) requires tax benefits relating to the deductibility of increases in the equity instruments issued under share-based compensation arrangements that are not included in Costs applicable to sales (“excess tax benefits”) to be presented in the Statement of Cash Flows as financing cash inflows. The benefit realized for tax deductions from option exercises totaled $3 in 2006.
Deferred Stripping Costs
On January 1, 2006 the Company adopted Emerging Issues Task Force Issue No. 04-06 (“EITF 04-06”), “Accounting for Stripping Costs Incurred during Production in the Mining Industry.” EITF 04-06 addresses the accounting for stripping costs incurred during the production phase of a mine and refers to these costs as variable production costs that should be included as a component of inventory to be recognized in Costs applicable to sales in the same period as the revenue from the sale of inventory. As a result, capitalization of post-production stripping costs is appropriate only to the extent product inventory exists at the end of a reporting period. The guidance required the recognition of a cumulative effect adjustment to opening retained earnings in the period of adoption, with no charge to earnings in the period of adoption for prior periods. The cumulative effect adjustment reduced retained earnings by $81 (net of tax and minority interests) and eliminated the $71 net deferred stripping asset from the balance sheet. Adoption of EITF 04-06 had no impact on the Company’s cash position or net cash from operations.
Prior to 2006 at some of the Company’s mining operations, deferred stripping costs were charged to Costs applicable to sales as gold or copper was produced and sold using the units of production method based on estimated recoverable quantities of proven and probable gold or copper reserves, using a stripping ratio calculated as the ratio of total tons to be moved to total proven and probable ore reserves, which resulted in the recognition of the costs of waste removal activities over the life of the mine as gold or copper was produced. The application of the deferred stripping accounting method generally resulted in an asset (deferred stripping costs), although a liability (advanced stripping costs) arose when the actual stripping ratio incurred to date was less than the expected stripping ratio over the life of the mine. The Advanced stripping costs primarily pertained to the Batu Hijau operation.
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
Movements in the net deferred stripping cost balance were as follows:

 	  	Years Ended December 31,	 	
 	  	    2006    	 	 	    2005    	 	 	    2004    	 	
Opening balance	  	$	71	 	 	$	19	 	 	$	90	 	
Cumulative effect adjustment	  	 	(71	)	 	 	—	  	 	 	—	  	
Consolidation of Batu Hijau	  	 	—	  	 	 	—	  	 	 	(67	)	
Disposition of Ovacik	  	 	—	  	 	 	(4	)	 	 	—	  	
Additions	  	 	—	  	 	 	160	 	 	 	148	 	
Amortization	  	 	—	  	 	 	(104	)	 	 	(152	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Closing balance	  	$	—	  	 	$	71	 	 	$	19	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
The deferred and advanced stripping cost balances are presented in the balance sheet as of December 31, 2005 as follows:

Deferred stripping costs:	  			
Current	  	$	78	
Long-term	  	 	100	
	  	 	 	
	  	 	178	
	  	 	 	
Advanced stripping costs (included in other liabilities):	  			
Current	  	$	14	
Long-term	  	 	93	
	  	 	 	
	  	 	107	
	  	 	 	
Deferred stripping, net	  	$	71	
	  	 	 	
Consolidation of Batu Hijau
In December 2003, the FASB issued FASB Interpretation No. 46R (“FIN 46R”), which provides guidance on the identification and reporting for entities over which control is achieved through means other than voting rights. FIN 46R defines such entities as variable interest entities (“VIEs”). Newmont identified the Nusa Tenggara Partnership (“NTP”) and P.T. Newmont Nusa Tenggara (“PTNNT”) (collectively, “Batu Hijau”) as VIEs. Therefore, as of January 1, 2004, the Company has fully consolidated Batu Hijau in its Consolidated Financial Statements.
Under the Batu Hijau Contract of Work, a portion of the project must be offered for sale to the Indonesian government or to Indonesian nationals. Therefore, it is possible that future changes in the Company’s economic ownership interest in Batu Hijau would result in the Company accounting for its investment in Batu Hijau using the equity method of accounting, significantly impacting the Company’s Consolidated Financial Statements. In this case, Batu Hijau revenues, expenses, assets, liabilities, minority interests and cash flows would no longer be individually reported in the Company’s Consolidated Financial Statements. The Company’s share of Batu Hijau net income would be reported as Equity income of affiliates in the Statements of Consolidated Income, the net investment in Batu Hijau would be included in Investments in the Consolidated Balance Sheets and dividends received from Batu Hijau would be reported in Operating activities in the Statements of Consolidated Cash Flows.
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
Upon consolidation of Batu Hijau, effective January 1, 2004, certain adjustments were recorded to the opening balance sheet of PTNNT to conform to Newmont’s accounting policies. These adjustments were recorded to change from units-of-production depreciation of processing plant and mining facilities to straight-line depreciation of such facilities and to change from allocating costs to stockpile inventories based on mining costs per ton to allocating costs based on recoverable pounds of copper equivalent contained in the various categories of stockpiles. The impact of these adjustments was a charge of $47, net of income tax expense and minority interest which has been recorded in Cumulative effect of a change in accounting principle, net of tax in the 2004 Statement of Consolidated Income.
NOTE 4    WRITE-DOWN OF LONG-LIVED ASSETS
Write-down of long-lived assets totaled $3, $43 and $39 for 2006, 2005 and 2004, respectively. The 2006 write-down primarily related to equipment. The 2005 write-down primarily related to the Martabe exploration project in Indonesia and exploration tenements in Australia. The 2004 write-down related to the Ovacik mine in Turkey, exploration tenements in Australia, mineral interests at Pajingo, and processing facilities at Yanacocha.
NOTE 5    OTHER EXPENSE, NET

 	  	Years Ended December 31,	 	
 	  	    2006    	  	    2005    	 	 	    2004    	 	
Reclamation and remediation	  	$	47	  	$	38	 	 	$	(11	)	
Peruvian royalty	  	 	22	  	 	—	  	 	 	—	  	
Buyat Bay settlement and other (Note 29)	  	 	22	  	 	56	 	 	 	7	 	
Peruvian worker’s participation reserves	  	 	15	  	 	—	  	 	 	—	  	
Yanacocha leach pad repair	  	 	10	  	 	—	  	 	 	—	  	
Other	  	 	33	  	 	18	 	 	 	38	 	
	  	 	 	  	 	 	 	 	 	 	 	
	  	$	149	  	$	112	 	 	$	34	 	
	  	 	 	  	 	 	 	 	 	 	 	
NOTE 6    OTHER INCOME, NET

 	  	Years Ended December 31,	 	
 	  	    2006    	 	 	    2005    	 	 	    2004    	 	
Gain on sale of Alberta Oil Sands project	  	$	266	 	 	$	—	  	 	$	—	  	
Royalty and dividend income, net	  	 	120	 	 	 	79	 	 	 	64	 	
Interest income	  	 	67	 	 	 	59	 	 	 	23	 	
Gain on sale of Martabe project	  	 	30	 	 	 	—	  	 	 	—	  	
Income from development projects, net	  	 	19	 	 	 	—	  	 	 	—	  	
Gain (loss) on investments, net	  	 	13	 	 	 	54	 	 	 	(39	)	
Gain on sale of property, plant and equipment	  	 	12	 	 	 	11	 	 	 	20	 	
Foreign currency exchange gains	  	 	5	 	 	 	8	 	 	 	7	 	
Gain on sale of other assets, net	  	 	6	 	 	 	37	 	 	 	8	 	
Gain on QMC debt guarantee	  	 	—	  	 	 	9	 	 	 	11	 	
Loss on early extinguishment of debt	  	 	(40	)	 	 	—	  	 	 	—	  	
(Loss) gain on ineffective portion of derivative investments, net	  	 	(60	)	 	 	2	 	 	 	2	 	
Other	  	 	13	 	 	 	10	 	 	 	6	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
	  	$	451	 	 	$	269	 	 	$	102	 	

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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
During the third quarter of 2006, Newmont sold its Alberta Oil Sands project to the Korean National Oil Corporation and its Martabe gold project in Indonesia to Agincourt Resources Limited (“Agincourt”). Newmont received net cash proceeds of $271 for the Alberta Oil Sands project. Newmont received net cash proceeds of $42 and approximately 43 million Agincourt shares valued at $37 for the Martabe project.
In September 2006, Newmont settled its remaining obligations under the prepaid forward gold sales contract and forward gold purchase contract for which it was required to deliver 17,951 ounces of gold in December 2006 and 179,062 ounces of gold in June 2007. This settlement resulted in cash payments of $96, and included a $48 reduction to the current portion of long-term debt and a $40 pre-tax loss on extinguishment of debt.
The 2006 loss on ineffective portion of derivative instruments, net was primarily related to the ineffective portion of copper collar instruments designated as cash flow hedges.
In March 2005, the Mezcala project was sold for cash proceeds of $31 and the Company recorded a gain of $31, which is included in gain on sale of other  assets, net.
NOTE 7    INCOME TAXES
The Company’s Income tax (expense) benefit consisted of:

 	  	Years Ended December 31,	 	
 	  	    2006    	 	 	    2005    	 	 	    2004    	 	
Current:	  				 				 				
United States	  	$	(8	)	 	$	(22	)	 	$	(10	)	
Foreign	  	 	(471	)	 	 	(303	)	 	 	(241	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
	  	 	(479	)	 	 	(325	)	 	 	(251	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Deferred:	  				 				 				
United States	  	 	3	 	 	 	9	 	 	 	61	 	
Foreign	  	 	52	 	 	 	6	 	 	 	(134	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
	  	 	55	 	 	 	15	 	 	 	(73	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
	  	$	(424	)	 	$	(310	)	 	$	(324	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
The Company’s Pre-tax income (loss) before minority interest, equity income and impairment of affiliates and cumulative effect of a change in accounting principle consisted of:

 	  	Years Ended December 31,	
 	  	    2006    	  	    2005    	 	 	    2004    	
United States	  	$	252	  	$	(68	)	 	$	183	
Foreign	  	 	1,373	  	 	1,114	 	 	 	885	
	  	 	 	  	 	 	 	 	 	 	
	  	$	1,625	  	$	1,046	 	 	$	1,068	

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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
The Company’s income tax expense differed from the amounts computed by applying the United States statutory corporate income tax rate for the following reasons:

 	  	Years Ended December 31,	 	
 	  	    2006    	 	 	    2005    	 	 	    2004    	 	
Pre-tax income before minority interest, equity income and impairment of affiliates and cumulative effect of change in accounting principle	  	$	1,625	 	 	$	1,046	 	 	$	1,068	 	
United States statutory corporate income tax rate	  	 	35	%	 	 	35	%	 	 	35	%	
	  	 	 	 	 	 	 	 	 	 	 	 	
Income tax expense computed at United States statutory corporate income tax rate	  	 	(569	)	 	 	(366	)	 	 	(374	)	
Reconciling items:	  				 				 				
Percentage depletion and Canadian Resource Allowance	  	 	83	 	 	 	47	 	 	 	47	 	
Change in valuation allowance on deferred tax assets	  	 	27	 	 	 	(22	)	 	 	58	 	
Effect of foreign earnings, net of allowable credits	  	 	(9	)	 	 	(12	)	 	 	(25	)	
U.S. tax effect of minority interest attributable to non-U.S. investees	  	 	15	 	 	 	15	 	 	 	7	 	
Rate differential for foreign earnings indefinitely reinvested	  	 	(79	)	 	 	(8	)	 	 	(61	)	
Resolution of tax issues associated with prior years	  	 	4	 	 	 	12	 	 	 	—	  	
Foreign currency translation of monetary assets	  	 	2	 	 	 	14	 	 	 	13	 	
Tax effect of changes in tax laws	  	 	22	 	 	 	24	 	 	 	51	 	
Tax effect of impairment of goodwill	  	 	––	 	 	 	(14	)	 	 	(17	)	
U.S. tax payable and book/tax basis analysis	  	 	27	 	 	 	—	  	 	 	—	  	
Non-U.S. tax effect attributable to capital gains	  	 	––	 	 	 	—	  	 	 	(9	)	
Change in Australia’s functional currency for tax reporting	  	 	48	 	 	 	—	  	 	 	––	 	
Other	  	 	5	 	 	 	––	 	 	 	(14	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Income tax expense	  	$	(424	)	 	$	(310	)	 	$	(324	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Components of the Company’s deferred income tax assets (liabilities) are as follows:

 	  	At December 31,	 	
 	  	    2006    	 	 	    2005    	 	
Deferred income tax assets:	  				 				
Exploration costs	  	$	63	 	 	$	55	 	
Depreciation	  	 	147	 	 	 	69	 	
Net operating losses and tax credits	  	 	649	 	 	 	720	 	
Retiree benefit and vacation accrual costs	  	 	114	 	 	 	101	 	
Remediation and reclamation costs	  	 	141	 	 	 	101	 	
Derivative instruments	  	 	––	 	 	 	26	 	
Other	  	 	217	 	 	 	116	 	
	  	 	 	 	 	 	 	 	
	  	 	1,331	 	 	 	1,188	 	
Valuation allowances	  	 	(517	)	 	 	(523	)	
	  	 	 	 	 	 	 	 	
	  	 	814	 	 	 	665	 	
	  	 	 	 	 	 	 	 	
Deferred income tax liabilities:	  				 				
Net undistributed earnings of subsidiaries	  	 	(37	)	 	 	(32	)	
Unrealized gain on investments	  	 	(135	)	 	 	(77	)	
Depletable and amortizable costs associated with mineral rights	  	 	(358	)	 	 	(310	)	
Derivative instruments	  	 	(15	)	 	 	—	  	
Foreign currency exchange	  	 	(26	)	 	 	(23	)	
	  	 	 	 	 	 	 	 	
	  	 	(571	)	 	 	(442	)	
	  	 	 	 	 	 	 	 	
Net deferred income tax assets	  	$	243	 	 	$	223	 	

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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
Net deferred income tax assets consist of:

 	  	At December 31,	 	
 	  	    2006    	 	 	    2005    	 	
Current deferred income tax assets	  	$	156	 	 	$	159	 	
Long-term deferred income tax assets	  	 	799	 	 	 	515	 	
Current deferred income tax liabilities	  	 	(9	)	 	 	(5	)	
Long-term deferred income tax liabilities	  	 	(703	)	 	 	(446	)	
	  	 	 	 	 	 	 	 	
	  	$	243	 	 	$	223	 	
	  	 	 	 	 	 	 	 	
These balances include net deferred income tax assets that have been reclassified to Assets and Liabilities of Operations Held for Sale of:

 	  	At December 31,	 	
 	  	    2006    	 	 	    2005    	 	
Current deferred income tax assets	  	$
 	—
 	 
  	 	$	2	 	
Long-term deferred income tax liabilities	  	 	—	  	 	 	(19	)	
	  	 	 	 	 	 	 	 	
	  	$
 	—
 	 
  	 	$	(17	)	
	  	 	 	 	 	 	 	 	
Newmont intends to indefinitely reinvest earnings from certain foreign operations. Accordingly, U.S. and non-U.S. income and withholding taxes for which deferred taxes might otherwise be required, have not been provided on a cumulative amount of temporary differences (including, for this purpose, any difference between the tax basis in the stock of a consolidated subsidiary and the amount of the subsidiary’s net equity determined for financial reporting purposes) related to investments in foreign subsidiaries of approximately $844 and $1,013 as of December 31, 2006 and 2005, respectively. The additional U.S. and non-U.S. income and withholding tax that would arise on the reversal of the temporary differences could be offset in part, by tax credits. Because the determination of the amount of available tax credits and the limitations imposed on the annual utilization of such credits are subject to a highly complex series of calculations and expense allocations, it is impractical to estimate the amount of net income and withholding tax that might be payable if a reversal of temporary differences occurred.
As of December 31, 2006 and December 31, 2005, the Company had (i) $830 and $949 of net operating loss carry forwards, respectively; and (ii) $155 and $155 of tax credit carry forwards, respectively. Of the amounts of net operating loss carry forwards, $47 and $74, respectively, are attributable to acquired mining operations conducted in the United States and will begin expiring in 2013 if not utilized before then. As of December 31, 2006 and 2005, $509 and $618, respectively, of net operating loss carry forwards are attributable to acquired mining operations in Australia for which current tax law provides no expiration period. The remaining net operating losses available are attributable to acquired entities and have various temporal and other limitations that may restrict the ultimate realization of the tax benefits of such tax attributes.
Tax credit carry forwards for 2006 and 2005 of $135 and $147 consist of foreign tax credits available in the United States; substantially all such credits not utilized will expire at the end of 2011. Other credit carry forwards at the end of 2006 and 2005 in the amounts of $20 and $8, respectively, represent alternative minimum tax credits attributable to the Company’s U.S. operations for which the current tax law provides no period of expiration.
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
During 2006 the Company completed a reconciliation of its U.S. book and tax basis assets and liabilities as well as a detailed analysis of its income taxes payable. This exercise identified differences of $27. The entire adjustment was recognized as a tax benefit in 2006. The Company also recognized a net tax benefit of $16 due to an adjustment on the interest accrued on tax contingencies.
The Company decreased the valuation allowance related to deferred tax assets by $27 during 2006. The decrease resulted partially from the utilization of capital losses in Australia from capital gain transactions occurring in the current year. Previously, the Company had placed a full valuation allowance on these capital losses because of a lack of sufficient positive evidence to support the future realization of these deferred tax assets. The remaining net decrease in valuation allowance is primarily attributable to increased expected realization of foreign tax credits reduced by an increase in the valuation allowance recorded due to the lack of sufficient positive evidence concerning the ability of certain non-U.S. subsidiaries to generate sufficient taxable income to realize the tax loss carryforwards. The valuation allowance remaining at the end of 2006 primarily is attributable to non-U.S. subsidiaries tax loss carryforwards. Of the total $517 and $523 valuation allowance recorded as of December 31, 2006 and 2005, $78 in 2006 and $89 in 2005 are attributable to deferred tax assets for which any subsequently recognized tax benefits will be allocated to reduce goodwill related to prior acquisitions.
The breakdown of the Company’s net deferred tax assets between the United States and foreign taxing jurisdictions is as follows:

 	  	Years Ended December 31,	 	
 	  	    2006    	 	 	    2005    	 	
United States	  	$	550	 	 	$	496	 	
Foreign	  	 	(307	)	 	 	(273	)	
	  	 	 	 	 	 	 	 	
	  	$	243	 	 	$	223	 	
	  	 	 	 	 	 	 	 	
In December, the Company entered into an in-principle Heads of Agreement (“HOA”) with the Australian Taxation Office (“ATO”). The HOA specifies the terms of a proposed settlement of the outstanding audit issues relating to Normandy Mining Limited (“Normandy”, now known as Newmont Australia Limited) for the tax years 1994-1999. These issues relate to years before the Company acquired Normandy. At the date of the business combination, Normandy had recorded no income tax liability with respect to the tax positions taken in reporting certain transactions, therefore the Company’s initial best estimate of the FAS 5 income tax contingency relating to these issues was recorded as a tax liability at the date of acquisition, February 15, 2002, by increasing the purchase price of Normandy. As of December 31, 2006, the long-term income tax liability balance relating to this proposed settlement was reclassified to current income taxes payable.
The breakdown of the Company’s income and mining taxes between the United States and foreign taxing jurisdictions is as follows:

 	  	Years Ended December 31,	
 	  	    2006    	  	    2005    	
United States	  	$	27	  	$	19	
Foreign	  	 	337	  	 	58	
	  	 	 	  	 	 	
	  	$	364	  	$	77	

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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
NOTE 8    EQUITY INCOME (LOSS) OF AFFILIATES

 	  	Years Ended December 31,	 	
 	  	    2006    	 	 	    2005    	 	 	    2004    	 	
European Gold Refineries	  	$	3	 	 	$	6	 	 	$	1	 	
AGR Matthey Joint Venture	  	 	1	 	 	 	(2	)	 	 	1	 	
Regis Resources NL	  	 	(2	)	 	 	—	  	 	 	—	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
	  	$	  2	 	 	$	4	 	 	$	2	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
European Gold Refineries
Newmont holds a 50% interest in the European Gold Refineries SA joint venture (“EGR”), with Swiss residents holding the remaining 50%. EGR owns 100% of Valcambi SA (“Valcambi”), a gold refining business, and 66.65% of Finorafa SA (“Finorafa”), a gold distribution business. Newmont has no guarantees related to these investments. Newmont has not received dividends from EGR in 2006, 2005 and 2004. Valcambi is a London Gold Delivery precious metals refiner and manufacturer of semi-finished products for the Swiss luxury watch industry, and Finorafa is a distributor and financier of gold products in the Italian market. See also Note 24 for details of Newmont’s transactions with EGR and Finorafa.
AGR Matthey Joint Venture
Newmont holds a 40% interest in the AGR Matthey Joint Venture (“AGR”), with Johnson Matthey (Australia) Ltd. and the West Australian Mint holding the remaining interests. Newmont has no guarantees related to this investment. Newmont received dividends of $1, $nil and $2 during 2006, 2005 and 2004, respectively, from its interests in AGR. See also Note 24 for details of Newmont’s transactions with AGR.
Regis Resources NL
Newmont holds a 49% interest in Regis Resources NL, which is primarily a gold exploration company with substantial landholding in Western Australia. Newmont has no guarantees related to this investment.
NOTE 9    DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE
In July 2006, Newmont’s Board of Directors approved a plan to sell the Company’s 50% interest in the Zarafshan-Newmont Joint Venture. However, as a result of the Uzbekistan government’s expropriation of the Company’s assets in August 2006, a pre-tax impairment loss of $101 was recognized in the third quarter of 2006. The Company will continue to challenge the Uzbekistan government’s actions through international arbitration.
During the fourth quarter of 2005, Newmont committed to plans to divest Holloway. In September 2006, Newmont reached an agreement with St. Andrew Goldfields Ltd. to sell Holloway for cash proceeds of $40 plus certain royalties. The sale was completed in November 2006, resulting in a $13 pre-tax gain.
In 2005, Newmont sold Golden Grove in Western Australia to Oxiana Limited (“Oxiana”) for cash of $147 and 82 million Oxiana shares, resulting in a $6 pre-tax gain.
The 2005 pre-tax loss from impairment included in discontinued operations of $42 was comprised of a $39 impairment of Golden Grove and a $3 impairment of Holloway.
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
Newmont has accounted for these dispositions in accordance with FAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets.” The Company has reclassified the balance sheet amounts and the income statement results from the historical presentation to Assets and Liabilities of operations held for sale on the Consolidated Balance Sheets and to Loss from discontinued operations in the Consolidated Statements of Income for all periods presented. The 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 (Loss) income from discontinued operations in the consolidated statements of income:

 	  	Years Ended December 31,	 	
 	  	    2006    	 	 	    2005    	 	 	    2004    	 	
Sales—gold, net	  	$	52	 	 	$	84	 	 	$	113	 	
Sales—base metals, net	  	 	—	  	 	 	38	 	 	 	85	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
	  	$	52	 	 	$	122	 	 	$	198	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from operations	  	$	6	 	 	$	(14	)	 	$	31	 	
Loss from impairment	  	 	(101	)	 	 	(42	)	 	 	—	  	
Gain on sale of operation	  	 	13	 	 	 	6	 	 	 	—	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Pre-tax (loss) income	  	 	(82	)	 	 	(50	)	 	 	31	 	
Income tax benefit	  	 	33	 	 	 	12	 	 	 	48	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
(Loss) income from discontinued operations	  	$	(49	)	 	$	(38	)	 	$	79	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
The major classes of Assets and Liabilities of operations held for sale in the consolidated balance sheet as of December 31, 2005 are as follows:

Assets:	  			
Accounts receivable	  	$	2	
Inventories	  	 	20	
Stockpiles and ore on leach pads	  	 	18	
Property, plant and mine development	  	 	129	
Other assets	  	 	13	
	  	 	 	
	  	$	182	
	  	 	 	
Liabilities:	  			
Accounts payable	  	$	7	
Reclamation and remediation	  	 	5	
Other liabilities	  	 	35	
	  	 	 	
	  	$	47	
	  	 	 	
NOTE 10    STOCKHOLDERS’ EQUITY AND EARNINGS PER SHARE
Newmont Common Stock
In January 2004, Newmont filed a shelf registration statement on Form S-3 under which it can issue debt and equity securities from time-to-time having an aggregate offering price of up to $1,000. Newmont also filed a shelf registration statement on Form S-4 under which it can issue, from time-to-time in connection with future acquisitions of businesses, properties or assets, common stock and common stock warrants having an aggregate offering price up to $200. These registration statements were declared effective on February 4, 2004.
The Company paid common stock dividends of $0.40 per share in 2006 and 2005 and $0.30 per share in 2004.
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
Treasury Stock
Treasury stock is acquired by the Company when certain restricted stock vests (see Note 21). At vesting, a participant has a tax liability and, pursuant to the participant’s award agreement, may elect withholding of restricted stock to satisfy tax withholding obligations. The withheld stock is accounted for as treasury stock and carried at the par value of the related common stock.
E xchangeable Shares
In connection with the acquisition of Franco-Nevada in February 2002, certain holders of Franco-Nevada common stock received 0.8 of an exchangeable share of Newmont Mining Corporation of Canada Limited (formerly Franco-Nevada) for each share of common stock held. These exchangeable shares are convertible, at the option of the holder, into shares of Newmont common stock on a one-for-one basis, and entitle holders to dividends and other rights economically equivalent to holders of Newmont common stock. As of December 31, 2006 and 2005, the value of these no-par shares was included in Additional paid-in capital .
Net Income per Common Share
Basic income per common share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for 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.

 	  	Years Ended December 31,	 	
 	  	    2006    	 	 	    2005    	 	 	    2004    	 	
Numerator:	  				 				 				
Income from continuing operations	  	$	840	 	 	$	360	 	 	$	411	 	
(Loss) income from discontinued operations	  	 	(49	)	 	 	(38	)	 	 	79	 	
Cumulative effect of a change in accounting principle	  	 	—	  	 	 	—	  	 	 	(47	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	791	 	 	$	322	 	 	$	443	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Denominator:	  				 				 				
Basic	  	 	450	 	 	 	446	 	 	 	443	 	
Effect of employee stock-based awards	  	 	2	 	 	 	3	 	 	 	4	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Diluted	  	 	452	 	 	 	449	 	 	 	447	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Income per common share	  				 				 				
Basic:	  				 				 				
Income from continuing operations	  	$	1.87	 	 	$	0.81	 	 	$	0.93	 	
(Loss) income from discontinued operations	  	 	(0.11	)	 	 	(0.09	)	 	 	0.18	 	
Cumulative effect of a change in accounting principle	  	 	—	  	 	 	—	  	 	 	(0.11	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	1.76	 	 	$	0.72	 	 	$	1.00	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Diluted:	  				 				 				
Income from continuing operations	  	$	1.86	 	 	$	0.80	 	 	$	0.92	 	
(Loss) income from discontinued operations	  	 	(0.11	)	 	 	(0.08	)	 	 	0.18	 	
Cumulative effect of a change in accounting principle	  	 	—	  	 	 	—	  	 	 	(0.11	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	1.75	 	 	$	0.72	 	 	$	0.99	 	

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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
Options to purchase 1.1 million, 3.4 million and 2.7 million shares of common stock at average exercise prices of $48.48, $48.97 and $50.70 were outstanding as of December 31, 2006, 2005 and 2004, respectively, but were not included in the computation of diluted weighted average number of common shares because their effect would  have been anti-dilutive.
NOTE 11    ACCUMULATED OTHER COMPREHENSIVE INCOME

 	  	At December 31,	 	
 	  	    2006    	 	 	    2005    	 	
Unrealized gain on marketable equity securities, net of $142 and $94 tax expense, respectively	  	$	678	 	 	$	406	 	
Foreign currency translation adjustments	  	 	43	 	 	 	57	 	
Pension liability adjustments, net of $44 and $31 tax benefit, respectively	  	 	(80	)	 	 	(59	)	
Other post-retirement benefit adjustments, net of $6 and $nil tax expense, respectively	  	 	11	 	 	 	—	  	
Changes in fair value of cash flow hedge instruments, net of tax and minority interests of $(13) and $(32), respectively	  	 	21	 	 	 	(26	)	
	  	 	 	 	 	 	 	 	
	  	$	673	 	 	$	378	 	
	  	 	 	 	 	 	 	 	
In 2006, Accumulated other comprehensive income decreased by $38, net of $20 tax benefit, related to employee pension and increased by $11, net of $6 tax expense, related to other post retirement benefits with the adoption of FAS 158. See Note 3.
NOTE 12    ACQUISITIONS
In September 2006, Newmont acquired a 40% interest in Shore Gold Inc.’s Fort a la Corne unincorporated joint venture diamond project in Saskatchewan, Canada for cash consideration $152.
In March 2006, Newmont acquired Newcrest Mining Limited’s 22.22% interest in the Boddington unincorporated joint venture, bringing its interest in the project to 66.67%, for cash consideration of $173.
In January 2006, Newmont acquired the remaining 15% interest in the Akyem project for cash consideration of $23, bringing its interest in the project to 100%.
NOTE 13    SALES CONTRACTS, COMMODITY AND FINANCIAL INSTRUMENTS
Newmont generally avoids gold hedging. Newmont’s philosophy is to provide shareholders with leverage to gold prices by selling its gold production at market prices. Newmont has entered into derivative contracts to protect the selling price for certain anticipated gold and copper production and to manage risks associated with sales contracts, commodities, interest rates, and foreign currency. Newmont is not required to place collateral with respect to commodity instruments and there are no margin calls associated with such contracts. During 2005 and 2006, Newmont entered into copper option collar contracts and $/IDR forward purchase contracts. As of December 31, 2006, approximately 13 million pounds of copper are hedged by the copper option collar contracts, which have been designated as cash flow hedges of forecasted copper sales, and as such, changes in the fair value related to the effective portion of the hedges have been recorded in Accumulated other comprehensive income . As of December 31, 2006, approximately 89 million pounds of copper option collar contracts are accounted for
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
on a mark-to-market basis currently through earnings. The $/IDR forward purchase contracts have been designated as cash flow hedges of future IDR expenditures, and as such, changes in the market value have been recorded in Accumulated other comprehensive income .
For 2006, 2005 and 2004, net losses of $60 and net gains of $2 and $2, respectively, were included in Other income, net for the ineffective portion of derivative instruments designated as cash flow hedges. The amount to be reclassified from Accumulated other comprehensive income (loss) , net of tax to income for derivative instruments during the next 12 months is a loss of approximately $1. The maximum period over which hedged forecasted transactions are expected to occur is 5 years.

 	  	Expected
Maturity Date	  	Fair Value
At December 31,	 	
 	  	2007	  	    2006    	 	 	    2005    	 	
Gold Put Option Contracts:	  			  				 				
Ounces (thousands)	  	 	20	  	$	(1	)	 	$	(3	)	
Average price	  	$	397	  				 				
Copper Collar Contracts: (1)	  			  				 				
Pounds (millions)	  	 	102	  	$	(149	) (2)	 	$	(261	) (3)	
Average cap price	  	$	1.40	  				 				
Average floor price	  	$	1.10	  				 				
$/IDR Forward Purchase Contracts: (1)	  			  				 				
$ (millions)	  	$	58	  	$	4	 	 	$	—	  	
Average rate (IDR/$)	  	 	9,693	  				 				

(1)	56.25% guaranteed by Newmont, 43.75% guaranteed by an affiliate of Sumitomo Corporation.	

(2)	The fair value does not include amounts payable ($24) on derivative contracts that have been closed out in December 2006 with the net settlement due and paid in January 2007.	

(3)	The fair value does not include amounts payable ($36) on derivative contracts that had been closed out in December 2005 with the net settlement due and paid in January 2006.	
Provisional Copper and Gold Sales
The Company’s sales based on a provisional sales price 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 concentrates at the forward London Metal Exchange price 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. As of December 31, 2006 and 2005, respectively, the Company had consolidated embedded copper derivatives on 180 million pounds and 223 million pounds, recorded at an average price of $2.87 and $2.01 per pound, respectively.
For 2006 and 2005, the Company recorded the following gross revenues before treatment and refining charges, which were subject to final price adjustments as of December 31, 2006, 2005 and 2004, as follows:

 	  	At December 31,	
 	  	    2006    	  	    2005    	  	    2004    	
Gross revenue subject to final price adjustments	  			  			  			
Copper	  	$	535	  	$	447	  	$	325	
Gold	  	$	44	  	$	19	  	$	29	
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
The average final price adjustments realized were as follows:

 	  	Years Ended December 31,	 	
 	  	    2006    	 	 	    2005    	 	 	    2004    	 	
Average final price adjustments	  			 			 			
Copper	  	31.2	%	 	12.1	%	 	13.8	%	
Gold	  	2.6	%	 	1.4	%	 	0.9	%	
Price-Capped Forward Sales Contracts
In 2001, Newmont entered into transactions that closed out certain call options. The options were replaced with a series of forward sales contracts requiring physical delivery of the same quantity of gold over slightly extended future periods. Under the terms of the contracts, Newmont will realize the lower of the spot price on the delivery date or the capped price ranging from $381 to $392 per ounce. The initial fair value of the forward sales contracts was recorded as deferred revenue. As of December 31, 2006, $47 remained in deferred revenue and will be included in revenue as delivery occurs. The forward sales contracts are accounted for as normal sales contracts under FAS No. 133 “Accounting for Derivative Instruments and Hedging Activities” and FAS No. 138 “Accounting for Certain Derivative Instruments and Certain Hedging Activities-an Amendment to FAS No. 133.”
Newmont had the following price-capped forward sales contracts outstanding as of December 31, 2006:

 	  	Expected Maturity Date or Transaction Date	  	Fair Value
At December 31,	 	
 	  	    2008    	  	    2009    	  	    2011    	  	Total
  Average  	  			
	  		  		  		  		  	    2006    	 	 	    2005    	 	
Ounces (thousands)	  	 	1,000	  	 	600	  	 	250	  	 	1,850	  	$	(534	)	 	$	(338	)	
Average price	  	$	384	  	$	381	  	$	392	  	$	384	  				 				
Interest Rate Swap Contracts
As of December 31, 2006, Newmont had $100 fixed to floating swap contracts designated as a hedge against a portion of its $275 8  5 / 8 % debentures. In 2001, Newmont entered into contracts to hedge a portion of the interest rate risk exposure on a portion of its $275 8  5 / 8 % debentures expiring in 2011 and its $200 8  3 / 8 % debentures which expired in 2005. Under the $275 8  5 / 8 % debentures hedge contract terms, the Company receives fixed-rate interest payments at 8.625% and pays floating-rate interest amounts based on periodic London Interbank Offered Rate (“LIBOR”) settings plus a spread, ranging from 2.60% to 3.49%. Prior to expiration of the $200 8  3 / 8 % debentures and the associated hedge contracts, Newmont received fixed-rate interest payments of 8.375% and paid floating-rate interest amounts based on periodic LIBOR settings plus a spread, ranging from 3.41% to 4.25%. These transactions resulted in a reduction in interest expense of $nil, $3 and $6 for the years ended December 31, 2006, 2005 and 2004, respectively. The fair value of the interest rate swaps was $1 and $2 as of December 31, 2006 and 2005, respectively.
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
NOTE 14    INVESTMENTS

 	  	At December 31, 2006	
 	  	Cost/Equity
Basis	  	Unrealized	 	 	Fair/Equity
Basis	
 	  		  	Gain	 	 	Loss	 	 		
Current:	  			  				 				 			
Marketable Debt Securities:	  			  				 				 			
Auction rate securities	  	$	10	  	$	—	  	 	$	—	  	 	$	10	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	
Marketable Equity Securities:	  			  				 				 			
Agincourt Resources	  	 	37	  	 	10	 	 	 	—	  	 	 	47	
Other	  	 	10	  	 	33	 	 	 	—	  	 	 	43	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	
	  	 	47	  	 	43	 	 	 	—	  	 	 	90	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	
Other investments, at cost	  	 	9	  	 	—	  	 	 	—	  	 	 	9	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	
	  	$	66	  	$	43	 	 	$	—	 	 	$	109	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	
Long-term:	  			  				 				 			
Marketable Equity Securities:	  			  				 				 			
Canadian Oil Sands Trust	  	$	265	  	$	603	 	 	$	—	  	 	$	868	
Gabriel Resources, Ltd.	  	 	69	  	 	104	 	 	 	—	  	 	 	173	
Shore Gold, Inc.	  	 	90	  	 	—	  	 	 	—	  	 	 	90	
Miramar Mining Corporation	  	 	28	  	 	57	 	 	 	—	  	 	 	85	
Other	  	 	34	  	 	17	 	 	 	(4	)	 	 	47	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	
	  	 	486	  	 	781	 	 	 	(4	)	 	 	1,263	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	
Other investments, at cost	  	 	12	  	 	—	  	 	 	—	  	 	 	12	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	
Investment in Affiliates:	  			  				 				 			
European Gold Refineries (Note 8)	  	 	17	  	 	—	  	 	 	—	  	 	 	17	
AGR Matthey Joint Venture (Note 8)	  	 	16	  	 	—	  	 	 	—	  	 	 	16	
Regis Resources NL (Note 8)	  	 	11	  	 	—	  	 	 	—	  	 	 	11	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	
	  	 	44	  	 	—	  	 	 	—	  	 	 	44	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	
	  	$	542	  	$	781	 	 	$	(4	)	 	$	1,319	

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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

 	  	At December 31, 2005	
 	  	Cost/Equity
Basis	  	Unrealized	 	 	Fair/Equity
Value	
 	  		  	Gain	 	 	Loss	 	 		
Current:	  			  				 				 			
Marketable Debt Securities:	  			  				 				 			
Auction rate securities	  	$	785	  	$	—	  	 	$
 	—
 	 
  	 	$	785	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	
Marketable Equity Securities:	  			  				 				 			
Other	  	 	11	  	 	12	 	 	 	—	  	 	 	23	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	
Other investments, at cost	  	 	9	  	 	—	  	 	 	—	  	 	 	9	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	
	  	$	805	  	$	12	 	 	$
 	—
 	 
  	 	$	817	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	
Long-term:	  			  				 				 			
Marketable Equity Securities:	  			  				 				 			
Canadian Oil Sands Trust	  	$	240	  	$	410	 	 	$
 	—
 	 
  	 	$	650	
Gabriel Resources, Ltd.	  	 	53	  	 	29	 	 	 	—	  	 	 	82	
Shore Gold, Inc.	  	 	89	  	 	22	 	 	 	—	  	 	 	111	
Miramar Mining Corporation	  	 	27	  	 	19	 	 	 	—	  	 	 	46	
Other	  	 	20	  	 	8	 	 	 	—	  	 	 	28	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	
	  	 	429	  	 	488	 	 	 	—	  	 	 	917	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	
Other investments, at cost	  	 	10	  	 	—	  	 	 	—	  	 	 	10	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	
Investment in Affiliates:	  			  				 				 			
European Gold Refineries (Note 8)	  	 	15	  	 	—	  	 	 	—	  	 	 	15	
AGR Matthey Joint Venture (Note 8)	  	 	13	  	 	—	  	 	 	—	  	 	 	13	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	
	  	 	28	  	 	—	  	 	 	—	  	 	 	28	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	
	  	$	467	  	$	488	 	 	$
 	—
 	 
  	 	$	955	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	
The following table presents 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 as of December 31, 2006 and 2005:

  	  	2006	  	2005	 	
 	  	Fair Value	  	Unrealized
Losses	  	Fair Value	 	 	Unrealized
Losses	 	
Marketable equity securities	  	$	104	  	$	4	  	$	—	  	 	$	—	  	
The unrealized loss of $4 in 2006 is primarily related to the Company’s investments in two long-term marketable equity securities. While the fair value of both of these investments has fallen below their respective cost, the Company views these declines as temporary. The Company’s policy is to treat a decline in the investment’s quoted market value that has lasted continuously for more than six months as an other-than-temporary decline in value, and the fair values of these investments have not been continuously below cost for the past six months. The Company continues to monitor these investments.
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
The realized Gain (loss) on investments, net for 2006, 2005 and 2004 were as follows:

 	  	Years Ended December 31,	 	
 	  	    2006    	 	 	    2005    	 	 	    2004    	 	
Gain on sale of Oxiana Limited	  	$	—	  	 	$	25	 	 	$	—	 	
Gain on sale of Kinross Gold Corporation	  	 	—	  	 	 	20	 	 	 	—	  	
Impairment of Kinross Gold Corporation	  	 	—	  	 	 	—	  	 	 	(39	)	
Gain on sale of other securities	  	 	13	 	 	 	9	 	 	 	—	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Gain (loss) on investments, net	  	$	13	 	 	$	54	 	 	$	(39	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Marketable Securities of Oxiana Limited
In the first quarter of 2005, Newmont sold approximately 10 million shares of Oxiana Limited (“Oxiana”) and recognized a pre-tax gain of $6. In the third quarter of 2005, Newmont received approximately 82 million shares of Oxiana (with a fair value of $61), as part of the proceeds for the sale of Golden Grove (see Note 9). These shares were sold in the fourth quarter of 2005 for a gain of $19.
Marketable Securities of Kinross Gold Corporation
In June 2004, Newmont recognized a $39 impairment of its investment in Kinross Gold Corporation (“Kinross”) for an other-than-temporary decline in value in accordance with FAS No. 115, “Accounting for Certain Investments in Debt and Equity Securities.” During the third quarter of 2005, Newmont sold its remaining 14 million Kinross shares for cash proceeds of $111 and recorded a gain of $20.
NOTE 15    INVENTORIES

 	  	At December 31,	
 	  	    2006    	  	    2005    	
In-process	  	$	61	  	$	72	
Concentrate	  	 	6	  	 	3	
Precious metals	  	 	43	  	 	3	
Materials, supplies and other	  	 	272	  	 	226	
	  	 	 	  	 	 	
	  	$	382	  	$	304	
	  	 	 	  	 	 	
The Company recorded aggregate write-downs of $2, $nil and $12 for 2006, 2005 and 2004, respectively, to reduce the carrying value of inventories to net realizable value. Write-downs in 2006 were related to Golden Giant. Write-downs in 2004 were related to Tanami and Pajingo. Inventory write-downs are classified as components of Costs applicable to sales .
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
NOTE 16    STOCKPILES AND ORE ON LEACH PADS

 	  	At December 31,	
 	  	    2006    	  	    2005    	
Current:	  			  			
Stockpiles	  	$	216	  	$	128	
Ore on leach pads	  	 	162	  	 	113	
	  	 	 	  	 	 	
	  	$	378	  	$	241	
	  	 	 	  	 	 	
Long-term:	  			  			
Stockpiles	  	$	527	  	$	404	
Ore on leach pads	  	 	285	  	 	195	
	  	 	 	  	 	 	
	  	$	812	  	$	599	
	  	 	 	  	 	 	
The Company recorded aggregate write-downs of $2, $10 and $10 for 2006, 2005 and 2004, respectively, to reduce the carrying value of stockpiles to net realizable value. The write-down in 2006 was related to Jundee. Stockpile write-downs in 2005 were largely related to Nevada, Jundee and Tanami. Stockpile write-downs in 2004 were largely related to Tanami and Ovacik. The Company also recorded aggregate write-downs of $3 in 2004 to reduce the carrying value of ore on leach pads to net realizable value, primarily related to Kori Kollo. Stockpile and ore on leach pads  write-downs are classified as components of Costs applicable to sales .
NOTE 17    PROPERTY, PLANT AND MINE DEVELOPMENT

 	  	 	 	 	At December 31, 2006	  	At December 31, 2005	
 	  	Depreciable
Life	 	 	Cost	  	Accumulated
Depreciation
and
Depletion	 	 	Net Book
Value	  	Cost	  	Accumulated
Depreciation
and
Depletion	 	 	Net Book
Value	
 	  	(in years)	 	 	 	
Land	  	—	  	 	$	88	  	$	—	  	 	$	88	  	$	82	  	$	—	  	 	$	82	
Buildings and equipment	  	1–25	 	 	 	6,899	  	 	(3,873	)	 	 	3,026	  	 	6,447	  	 	(3,689	)	 	 	2,758	
Mine development	  	1–25	 	 	 	1,810	  	 	(815	)	 	 	995	  	 	1,739	  	 	(915	)	 	 	824	
Mineral interests	  	1–30	 	 	 	1,785	  	 	(623	)	 	 	1,162	  	 	1,474	  	 	(560	)	 	 	914	
Asset retirement cost	  	1–25	 	 	 	292	  	 	(144	)	 	 	148	  	 	212	  	 	(120	)	 	 	92	
Construction-in-progress	  	—	  	 	 	1,428	  	 	—	  	 	 	1,428	  	 	911	  	 	—	  	 	 	911	
	  			 	 	 	  	 	 	 	 	 	 	  	 	 	  	 	 	 	 	 	 	
	  			 	$	12,302	  	$	(5,455	)	 	$	6,847	  	$	10,865	  	$	(5,284	)	 	$	5,581	
	  			 	 	 	  	 	 	 	 	 	 	  	 	 	  	 	 	 	 	 	 	
Leased assets included above in property, plant and mine development	  	2–10	 	 	$	389	  	$	(251	)	 	$	138	  	$	387	  	$	(231	)	 	$	156	

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

 	  	 	 	 	At December 31, 2006	  	At December 31, 2005	
Mineral Interests	  	Amortization
Period	 	 	Gross
Carrying
Value	  	Accumulated
Amortization	 	 	Net Book
Value	  	Gross
Carrying
Value	  	Accumulated
Amortization	 	 	Net Book
Value	
 	  	(in years)	 	 	 	
Working interests:	  			 			  				 			  			  				 			
Production stage	  	1–25	 	 	$	754	  	$	(506	)	 	$	248	  	$	744	  	$	(455	)	 	$	289	
Development stage	  	—	  	 	 	402	  	 	(3	)	 	 	399	  	 	252	  	 	—	  	 	 	252	
Exploration stage	  	—	  	 	 	302	  	 	(9	)	 	 	293	  	 	144	  	 	(11	)	 	 	133	
	  			 	 	 	  	 	 	 	 	 	 	  	 	 	  	 	 	 	 	 	 	
	  			 	 	1,458	  	 	(518	)	 	 	940	  	 	1,140	  	 	(466	)	 	 	674	
	  			 	 	 	  	 	 	 	 	 	 	  	 	 	  	 	 	 	 	 	 	
Royalties:	  			 			  				 			  			  				 			
Production stage	  	1–25	 	 	 	227	  	 	(74	)	 	 	153	  	 	227	  	 	(64	)	 	 	163	
Development stage	  	—	  	 	 	10	  	 	—	  	 	 	10	  	 	9	  	 	—	  	 	 	9	
Exploration stage	  	—	  	 	 	5	  	 	(1	)	 	 	4	  	 	5	  	 	(1	)	 	 	4	
	  			 	 	 	  	 	 	 	 	 	 	  	 	 	  	 	 	 	 	 	 	
	  			 	 	242	  	 	(75	)	 	 	167	  	 	241	  	 	(65	)	 	 	176	
	  			 	 	 	  	 	 	 	 	 	 	  	 	 	  	 	 	 	 	 	 	
Oil and gas:	  			 			  				 			  			  				 			
Producing property	  	10–30	 	 	 	70	  	 	(30	)	 	 	40	  	 	76	  	 	(29	)	 	 	47	
Exploration stage	  	—	  	 	 	15	  	 	—	  	 	 	15	  	 	17	  	 	—	  	 	 	17	
	  			 	 	 	  	 	 	 	 	 	 	  	 	 	  	 	 	 	 	 	 	
	  			 	 	85	  	 	(30	)	 	 	55	  	 	93	  	 	(29	)	 	 	64	
	  			 	 	 	  	 	 	 	 	 	 	  	 	 	  	 	 	 	 	 	 	
	  			 	$	1,785	  	$	(623	)	 	$	1,162	  	$	1,474	  	$	(560	)	 	$	914	
	  			 	 	 	  	 	 	 	 	 	 	  	 	 	  	 	 	 	 	 	 	
Construction-in-progress during 2006 of $1,428 included $989 at Nevada primarily related to the construction of the power plant and the Leeville project, $191 at Yanacocha primarily related to the construction of the gold mill and additional leach pads, $138 at Australia primarily related to the Boddington project, and $90 at Africa primarily due to the Akyem project. Construction-in-progress during 2005 of $911 included $510 at Nevada primarily related to the Phoenix and Leeville projects and the construction of the power plant, $77 at Yanacocha primarily related to the construction of  additional leach pads, and $274 at Africa primarily due to the Ahafo project.
NOTE 18    GOODWILL
The carrying amount of goodwill by reporting unit as of December 31, 2006 and 2005 and changes in the carrying amount of goodwill are summarized in the following table:

 	  	Nevada	 	 	Australia/
New Zealand	 	 	Exploration	 	 	Merchant
Banking	 	 	Consolidated	 	
Balance at January 1, 2004	  	$	41	 	 	$	247	 	 	$	1,129	 	 	$	1,593	 	 	$	3,010	 	
Change in estimate of pre-acquisition tax contingencies	  	 	—	  	 	 	(4	)	 	 	—	  	 	 	40	 	 	 	36	 	
Pajingo impairment charge	  	 	—	  	 	 	(52	)	 	 	—	  	 	 	—	  	 	 	(52	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at December 31, 2004	  	 	41	 	 	 	191	 	 	 	1,129	 	 	 	1,633	 	 	 	2,994	 	
Change in estimate of pre-acquisition tax contingencies	  	 	—	  	 	 	—	  	 	 	—	  	 	 	(74	)	 	 	(74	)	
Nevada impairment charge	  	 	(41	)	 	 	—	  	 	 	—	  	 	 	—	  	 	 	(41	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at December 31, 2005	  	 	—	  	 	 	191	 	 	 	1,129	 	 	 	1,559	 	 	 	2,879	 	
Change in estimate of pre-acquisition tax contingencies	  	 	—	  	 	 	—	  	 	 	—	  	 	 	102	 	 	 	102	 	
Boddington purchase	  	 	—	  	 	 	23	 	 	 	—	  	 	 	—	  	 	 	23	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at December 31, 2006	  	$	—	  	 	$	214	 	 	$	1,129	 	 	$	1,661	 	 	$	3,004	 	

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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
In 2006, the Company reached an agreement in principle to settle certain pre-existing tax contingencies established as part of the purchase price allocation related to the acquisition of Normandy (see Note 29). Accordingly, Merchant Banking goodwill was adjusted.
In 2005, annual testing for impairment pursuant to FAS No. 142 (comparison of implied goodwill value to carrying value) resulted in an impairment charge against goodwill for the Nevada Segment of $41. The impairment resulted from a reevaluation of future production and operating costs that indicated higher future operating and capital costs. The Company also adjusted the tax basis of certain assets originally recorded as part of the purchase price allocation for the acquisition of Normandy. The adjustment to goodwill in the Merchant Banking Segment reflects the resolution of certain tax contingencies established as part of the purchase price allocation relating to the acquisition of Franco-Nevada.
In 2004, annual testing for impairment pursuant to FAS No. 142 (comparison of implied goodwill value to carrying value) resulted in an impairment charge against goodwill for the Pajingo operation (Australia/New Zealand Segment) of $52. The impairment resulted from a reevaluation of future production and operating costs that indicated lower grade material and higher future operating costs. The Company also adjusted valuation allowances, originally recorded as part of the purchase price allocation for the acquisitions of Normandy and Franco-Nevada, for deferred tax assets related to capital loss carry-forwards in the Australia/New Zealand Segment for the Tanami operation and in the Merchant Banking Segment.
NOTE 19    DEBT

 	  	At December 31,	 	
 	  	2006	 	 	2005	 	
 	  	Current	 	 	Non-Current	 	 	Current	 	 	Non-Current	 	
Sale-leaseback of refractory ore treatment plant	  	$	21	 	 	$	235	 	 	$	19	 	 	$	256	 	
5  7 / 8 % notes, net of discount	  	 	—	  	 	 	597	 	 	 	—	  	 	 	597	 	
8  5 / 8 % debentures, net of discount	  	 	—	  	 	 	217	 	 	 	—	  	 	 	218	 	
Newmont Australia 7  5 / 8 % guaranteed notes, net of premium	  	 	—	  	 	 	120	 	 	 	—	  	 	 	120	 	
Prepaid forward sales obligation	  	 	—	  	 	 	—	  	 	 	48	 	 	 	48	 	
PTNNT project financing facility	  	 	87	 	 	 	393	 	 	 	87	 	 	 	479	 	
PTNNT shareholder loans	  	 	36	 	 	 	—	  	 	 	39	 	 	 	—	  	
Yanacocha credit facility	  	 	10	 	 	 	90	 	 	 	—	  	 	 	—	  	
Yanacocha bonds	  	 	—	  	 	 	100	 	 	 	—	  	 	 	—	  	
Project financings, capital leases and other	  	 	5	 	 	 	—	  	 	 	2	 	 	 	5	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	$	159	 	 	$	1,752	 	 	$	195	 	 	$	1,723	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Scheduled minimum debt repayments are $159 in 2007, $243 in 2008, $125 in 2009, $133 in 2010, $104 in 2011and $1,147 thereafter.
Sale-Leaseback of Refractory Ore Treatment Plant
In September 1994, the Company entered into a sale and leaseback agreement for its refractory ore treatment plant located in Carlin, Nevada. The lease term is 21 years and aggregate future minimum lease payments, which include interest, were $335 and $371 as of December 31, 2006 and 2005, respectively. Future minimum lease payments are $36 in the years 2007 and 2008, $37 in 2009, $36 in 2010, $39 in 2011 and $151
 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
thereafter. The lease includes purchase options during and at the end of the lease at predetermined prices. The interest rate on this sale-leaseback transaction is 6.36%. In connection with this transaction, the Company entered into certain interest rate hedging contracts that were settled for a gain of $11, which is recognized as a reduction of interest expense over the term of the lease. Including this gain, the effective interest rate on the borrowing is 6.15%. The related asset is specialized, therefore it is not practicable to estimate the fair value of this debt.
5  7 / 8 % Notes
In March 2005, Newmont issued uncollateralized notes with a principal amount of $600 due April 2035 bearing an annual interest rate of 5  7 / 8 %. Interest on the notes is paid semi-annually in April and October. Using prevailing interest rates on similar instruments, the estimated fair value of these notes was $556 and $588 as of December 31, 2006 and 2005, respectively. The foregoing fair value estimate was prepared by an independent third party and may or may not reflect the actual trading value of this debt.
8  5 / 8 % Debentures
Newmont has outstanding uncollateralized debentures with a principal amount of $223 due May 2011 bearing an annual interest rate of 8.625%. Interest is paid semi-annually in May and November and the debentures are redeemable prior to maturity under certain conditions. Newmont has contracts to hedge the interest rate risk exposure on $100 of these debentures. The Company receives fixed-rate interest payments at 8.625% and pays floating-rate interest based on periodic London Interbank Offered Rate (“LIBOR”) settings plus a spread, ranging from 2.60% to 3.49%. See Note 13. Using prevailing interest rates on similar instruments, the estimated fair value of these debentures was $244 and $251 as of December 31, 2006, and 2005, respectively. The foregoing fair value estimate was prepared by an independent third party and may or may not reflect the actual trading value of this debt.
Newmont Australia 7  5 / 8 % Notes
Newmont Finance Limited (“NFL”) a subsidiary of Newmont Australia Limited (“NAL”) has outstanding notes with a principal amount of $119 due July 2008 bearing an annual interest rate of 7  5 / 8 % guaranteed by NAL. Interest on the notes is paid semi-annually in arrears in January and July. The estimated fair value of these notes approximates the carrying value as of December 31, 2006 and 2005. The foregoing fair value estimate was prepared by an independent third party and may or may not reflect the actual trading value of this debt.
Prepaid Forward Sales Obligation
During June 2006 and June 2005, Newmont delivered 161,111 ounces in connection with the prepaid forward sales obligation, resulting in a non-cash reduction in debt of $48 each year. Newmont settled its remaining prepaid forward sales obligation in September 2006 resulting in cash payments of $96, and included a $48 reduction to the current portion of long-term debt and a $40 pre-tax loss on extinguishment of debt.
PTNNT Shareholder Loans
PTNNT has shareholder subordinated loan agreements (“Shareholder Loans”) with Newmont Indonesia Limited (“NIL”), a wholly-owned subsidiary of Newmont, and Nusa Tenggara Mining Corporation (“NTMC”), an affiliate of Sumitomo Corporation, with substantially the same terms for each shareholder. Total principal outstanding under these Shareholder Loans was approximately $83 and $89 as of December 31, 2006 and 2005, respectively. Of these amounts, 43.75% or approximately $36 and $39 as of December 31, 2006 and 2005,
 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
respectively, was due to NTMC, an unrelated third-party, and is non-recourse to Newmont, with the remainder payable to a subsidiary consolidated by Newmont. Payments of $3 and $14 were made to NTMC during 2006 and 2005, respectively. Borrowings under the Shareholder Loans are guaranteed by NTP and are payable on demand, subject to the Senior Debt subordination terms. The Shareholder Loans are based on the six-month Singapore Interbank Offering Rate (“SIBOR”) plus 3% for principal and SIBOR rate plus 4% for any unpaid accrued interest. The weighted average interest rates were 8.2%, 6.3% and 7.6% during 2006, 2005 and 2004, respectively, and the interest rates were 8.4% and 7.6% as of December 31, 2006 and 2005, respectively. The fair market value cannot be practicably determined due to the lack of available market information for this type of debt.
Newmont and NTMC provide a contingent support line of credit to PTNNT. No funding was required in 2006. Available additional support from NTP’s partners was $65, of which Newmont’s pro-rata share was $37, as of December 31, 2006.
Project Financings
PTNNT Project Financing Facility
PTNNT has a project financing facility with a syndicate of banks. The scheduled repayments of this debt are semi-annual installments of $43 through November 2010 and $22 from May 2011 through November 2013. Amounts outstanding under the project financing were $480 and $566 as of December 31, 2006 and 2005.
The project financing facility is non-recourse to Newmont and substantially all of PTNNT’s assets are pledged as collateral. The carrying value of the property, plant and mine development was $1,456 and $1,449 as of December 31, 2006 and 2005, respectively. Under the terms of the project financing facility, PTNNT maintains an escrow account for the next interest and principal installment due. Such amount totaled $61 and $62 as of December 31, 2006 and 2005, respectively, and was included in Other long-term assets . The facility contains certain covenants that limit indebtedness and restricted payments to partners, among others. In addition, PTNNT must maintain certain financial ratios. As of December 31, 2006, PTNNT was in compliance with these covenants.
The interest rate is based on blended fixed and floating rates and at market rates on December 31, 2006, the weighted average interest rate approximated LIBOR plus 1.6%. The weighted average interest rates were 6.7%, 5.7% and 5.1% during 2006, 2005 and 2004, respectively, and the interest rates were 7.0% and 6.5% as of December 31, 2006 and 2005, respectively. The fair market value cannot be practicably determined due to the lack of available market information for this type of debt.
Yanacocha
$100 Credit Facility.     During 2006, Yanacocha entered into an uncollateralized $100 bank financing with a syndicate of Peruvian commercial banks. Quarterly repayments begin in May 2007 with final maturity May 2014. Borrowings under the facility bear interest at a rate of LIBOR plus 1.875%. The loan is non-recourse to Newmont.
$100 Bond Program.     During 2006, Yanacocha issued $100 of bonds into the Peruvian capital markets under a $200 bond program. The issuance is comprised of $42 of floating interest rate bonds bearing interest at a rate of LIBOR plus 1.4375% and $58 of fixed rate bonds bearing an annual interest of 7.0%. Quarterly repayments begin in July 2010 for six years. The bonds are uncollateralized and are non-recourse to Newmont.
 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
Ahafo
Proposed financing.     In June 2006, Newmont Ghana Gold Limited (“NGGL”), a wholly-owned subsidiary, entered into a $125 project financing with the International Finance Corporation (“IFC”). The financing is comprised of a $75 A-loan funded by the IFC; and a $50 B-loan funded by a syndicate of commercial lenders. The financing contains certain Conditions of Disbursement that must be completed prior to funds being made available. NGGL anticipates meeting the Conditions of Disbursement during the first half of 2007. Amounts borrowed under the financing will be collateralized by the assets of the Ahafo project and will be guaranteed by Newmont pending the successful completion of requirements associated with the Project Financial Completion Certificate (“Project Financial Completion”). The loans will require semi-annual payments beginning in April 2007. The A-loan has a final maturity of October 2018 and borrowings will be subject to an interest rate of LIBOR plus 1.125% pre-completion, and LIBOR plus 2.00% following Project Financial Completion. The B-loan has a final maturity of October 2017 and borrowings will be subject to an interest rate of LIBOR plus 0.80% pre-completion, and LIBOR plus 1.40% post-completion for the first 4-years. The interest rate on the B-loan then increases to LIBOR plus 1.70% (years 5-7); LIBOR plus 1.90% (years 8-9) and LIBOR plus 2.00% (thereafter).
Corporate Revolving Credit Facilities
The Company has an uncollateralized $1,250 revolving credit facility with a syndicate of commercial banks, which matures in July 2010. The facility contains a letter of credit sub-facility. Interest rates and facility fees vary based on the credit ratings of the Company’s senior, uncollateralized, long-term debt. Borrowings under the facilities bear interest at an annual interest rate of the greater of LIBOR plus a margin ranging from 0.22% to 1.00%, the federal funds rate plus 0.5% or the lead bank’s prime interest rate. Facility fees accrue at an annual rate ranging from 0.080% to 0.250% of the aggregate commitments. The Company also pays a utilization fee of 0.10% on the amount of revolving credit loans and letters of credit outstanding under the facility for each day on which the sum of such loans and letters of credit exceed 50% of the commitments under the facility. As of December 31, 2006 and 2005, the facility fees were 0.09% of the commitment. There was $321 and $275 outstanding under the letter of credit sub-facility as of December 31, 2006 and 2005, respectively.
Debt Covenants
The 5  7 / 8 % notes, Newmont Australia 7  5 / 8 % notes, 8  5 / 8 % debentures, and sale-leaseback of the refractory ore treatment plant debt facilities contain various common public debt covenants and default provisions including payment defaults, limitation on liens, limitation on sales and leaseback agreements and merger restrictions.
In addition to the covenants noted above, the corporate revolving credit facility contains financial ratio covenants requiring the Company to maintain a net debt to EBITDA (earnings before interest expense, income taxes, depreciation and amortization) ratio of less than or equal to 4.0 and a net debt (total debt net of cash and cash equivalents) to total capitalization ratio of less than or equal to 62.5%. Furthermore, the corporate revolving credit facility contains covenants limiting the sale of all or substantially all of the Company’s assets, certain change of control provisions and a negative pledge on certain assets.
Certain of the Company’s project debt facilities contain debt covenants and default provisions including limitations on dividends subject to certain debt service cover ratios, limitations on sales of assets, negative pledges on certain assets, change of control provisions and limitations of additional permitted debt.
As of December 31, 2006, the Company and its related entities were in compliance with all debt covenants and default provisions.
 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
NOTE 20    EMPLOYEE-RELATED BENEFITS

 	  	At December 31,	
 	  	    2006    	  	    2005    	
Current:	  			  			
Employee pension benefits	  	$	21	  	$	30	
Accrued payroll and withholding taxes	  	 	76	  	 	81	
Workers’ participation	  	 	54	  	 	40	
Accrued severance	  	 	5	  	 	3	
Other employee-related payables	  	 	26	  	 	22	
	  	 	 	  	 	 	
	  	$	182	  	$	176	

 	  	At December 31,	
 	  	2006	  	2005	
Long-term:	  			  			
Employee pension benefits	  	$	156	  	$	103	
Other post-retirement benefit plans	  	 	79	  	 	94	
Workers’ participation	  	 	14	  	 	19	
Accrued severance	  	 	31	  	 	27	
Other employee-related payables	  	 	29	  	 	30	
	  	 	 	  	 	 	
	  	$	309	  	$	273	
	  	 	 	  	 	 	
Pension Plans
The Company’s pension plans include: (1) two qualified non-contributory defined benefit plans (for salaried employees and substantially all domestic hourly union employees); (2) one non-qualified plan (for salaried employees whose benefits under the qualified plan are limited by federal legislation); (3) two qualified plans for salaried and hourly Canadian employees; (4) one non-qualified plan for employees of PTNNT and (5) an international plan for select employees who are not eligible to participate in the U.S.-based plans because of citizenship. The vesting period for plans identified in (1) and (2) is five years of service. These plans’ benefit formulas are based on an employee’s years of credited service and either (i) such employee’s highest consecutive five years average pay (salaried plan) or (ii) a flat dollar amount adjusted by a service-weighted multiplier (hourly plan). The Canadian plan provides for full vesting of benefits upon remittance and the benefit formula is based on a percentage of annual pay. The PTNNT plan is based on Indonesian Labor Law and provides for benefits to employees at age 55 or if employment is terminated at mine closing. The benefits formula under the Indonesian Labor Law is based on an employee’s current salary and years of service prior to retirement or termination of employment at mine closing. The international retirement plan’s basic and savings accounts have a graded vesting schedule and are fully vested after four years of service. The international retirement plan’s supplemental account is vested after attaining age 55 with 10 years of service or attaining age 62. The plan’s benefit formula is based on a percentage of compensation as defined in the plan document.
Pension costs are determined annually by independent actuaries and pension contributions to the qualified plans are made based on funding standards established under the Employee Retirement Income Security Act of 1974.
Other Benefit Plans
The Company provides defined medical and life insurance benefits to selected qualified U.S. and Canadian retirees (generally salaried employees and to a limited extent their eligible dependents). In general, participants
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
become eligible for these benefits upon retirement directly from the Company if they are at least 55 years old and, for U.S. employees, the combination of their age and years of service with the Company equals 75 or more. This benefit is not provided to employees who joined the Company after January 1, 2003.
Defined medical benefits cover most of the reasonable and customary charges for hospital, surgical, diagnostic and physician services and prescription drugs. Life insurance benefits are based on a percentage of final base annual salary and decline over time after retirement commences. The majority of the costs of these medical and life insurance benefits are paid by the Company. In 2003, the Company began a strategy to more equitably share costs with retirees; by 2008, 75% of retiree medical coverage cost will be paid by the Company. Qualified retirees that become eligible after January 1, 2003 are required to contribute additional amounts to the medical coverage.
Under the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the “Act”), beginning in 2006, the Act provides a prescription drug benefit under Medicare Part D, as well as a federal subsidy to plan sponsors of retiree healthcare plans that provide a prescription drug benefit to their participants that is at least actuarially equivalent to the benefit that is available under Medicare. The Company sponsors retiree health care plans that provide prescription drug benefits to eligible retirees that our plan actuaries have determined are actuarially equivalent to Medicare Part D. The effect of the Act was to decrease post-retirement projected benefit obligation by $8 in 2006.
As of December 31, 2006, the Company adopted the provisions of FASB Statement No. 158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans—an amendment of FASB Statements No. 87, 88, 106, and 132(R)” (“FAS 158”). FAS 158 required employers that sponsor one or more defined benefit plans to (i) recognize the funded status of a benefit plan in its statement of financial position, (ii) recognize the gains or losses and prior service costs or credits that arise during the period as a component of other comprehensive income, net of tax, (iii) measure the defined benefit plan assets and obligations as of the date of the employer’s fiscal year-end statement of financial position, and (iv) disclose in the notes to the financial statements additional information about certain effects on net periodic cost for the next fiscal year that arise from delayed recognition of the gains or losses, prior service costs or credits, and transition asset or obligation. The impact of adopting FAS 158 on the Consolidated Balance Sheets was as follows:

 	  	Before
Application of
FAS 158	  	Adjustment	 	 	After
Application of
FAS 158	
Other long-term assets	  	$	193	  	$	(15	)	 	$	178	
Total assets	  	$	15,616	  	$	(15	)	 	$	15,601	
Employee pension and other benefits	  	$	229	  	$	27	 	 	$	256	
Deferred income taxes	  	$	717	  	$	(14	)	 	$	703	
Accumulated other comprehensive income	  	$	700	  	$	(27	)	 	$	673	
Total stockholders’ equity	  	$	9,364	  	$	(27	)	 	$	9,337	
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
The following tables provide a reconciliation of changes in the plans’ benefit obligations and assets’ fair values for the two-year period ended December 31, 2006:

 	  	Pension Benefits	 	 	Other Benefits	 	
 	  	    2006    	 	 	    2005    	 	 	    2006    	 	 	    2005    	 	
Change in Benefit Obligation:	  				 				 				 				
Benefit obligation at beginning of year	  	$	409	 	 	$	343	 	 	$	86	 	 	$	82	 	
Service cost-benefits earned during the year	  	 	18	 	 	 	15	 	 	 	3	 	 	 	5	 	
Interest cost	  	 	24	 	 	 	19	 	 	 	4	 	 	 	5	 	
Amendments	  	 	9	 	 	 	5	 	 	 	(2	)	 	 	—	  	
Actuarial loss (gain)	  	 	(8	)	 	 	43	 	 	 	(9	)	 	 	(3	)	
Foreign currency exchange loss	  	 	1	 	 	 	—	  	 	 	—	  	 	 	—	  	
Settlement payments	  	 	—	  	 	 	4	 	 	 	—	  	 	 	—	  	
Benefits paid	  	 	(16	)	 	 	(20	)	 	 	(3	)	 	 	(3	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Benefit obligation at end of year	  	$	437	 	 	$	409	 	 	$	79	 	 	$	86	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Accumulated Benefit Obligation	  	$	389	 	 	$	361	 	 	 	N/A	 	 	 	N/A	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Change in Fair Value of Assets:	  				 				 				 				
Fair value of assets at beginning of year	  	$	227	 	 	$	217	 	 	$	—	  	 	$	—	  	
Actual return on plan assets	  	 	28	 	 	 	17	 	 	 	—	  	 	 	—	  	
Employer contributions	  	 	23	 	 	 	13	 	 	 	3	 	 	 	3	 	
Settlement payments	  	 	(2	)	 	 	—	  	 	 	—	  	 	 	—	  	
Benefits paid	  	 	(16	)	 	 	(20	)	 	 	(3	)	 	 	(3	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fair value of assets at end of year	  	$	260	 	 	$	227	 	 	$	—	  	 	$	—	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
The Company’s qualified pension plans are funded with cash contributions in compliance with Internal Revenue Service (“IRS”) rules and regulations. The Company’s non-qualified and other benefit plans are currently not funded, but exist as general corporate obligations. The information contained in the above tables indicates the combined funded status of qualified and non-qualified plans, in accordance with accounting pronouncements. Assumptions used for IRS purposes differ from those used for accounting purposes. The funded status shown above compares the projected benefit obligation (“PBO”) of all plans, which is an actuarial present value of obligations that takes into account assumptions as to future compensation levels of plan participants, to the fair value of the assets held in trust for the qualified plans. Accounting pronouncements also prescribe a computation for the plans’ accumulated benefit obligation (“ABO”), which is an actuarial present value of benefits (whether vested or nonvested) attributed to employees based on employee service and compensation prior to the end of the period presented. The Company is currently planning to contribute $65 to its retirement benefit programs in 2007.
The following plans have an ABO in excess of the market value of plan assets:

 	  	2006	 	 	2005	 	
 	  	  PBO  	  	  ABO  	  	Market value
  of plan assets  	 	 	  PBO  	  	  ABO  	  	  Market value  
of plan assets	 	
Qualified plan—salaried employees	  	$	318	  	$	274	  	$	226	 	 	$	309	  	$	266	  	$	197	 	
Non-qualified plan—salaried employees	  	 	49	  	 	46	  	 	—	  	 	 	45	  	 	42	  	 	—	  	
Qualified plan—hourly employees	  	 	42	  	 	42	  	 	33	 	 	 	40	  	 	39	  	 	26	 	
Other plans	  	 	28	  	 	27	  	 	1	 	 	 	15	  	 	14	  	 	4	 	
	  	 	 	  	 	 	  	 	 	 	 	 	 	  	 	 	  	 	 	 	
	  	$	437	  	$	389	  	$	260	 	 	$	409	  	$	361	  	$	227	 	

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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
The following table provides the net amounts recognized in the consolidated balance sheets as of December 31:

 	  	Pension Benefits	 	 	Other Benefits	 	
 	  	    2006    	 	 	    2005    	 	 	    2006    	 	 	    2005    	 	
Intangible asset	  	$	—	  	 	$	12	 	 	$	—	 	 	$	—	 	
Accrued employee benefit liability	  	$	177	 	 	$	133	 	 	$	79	 	 	$	94	 	
Accumulated other comprehensive income:	  				 				 				 				
Net actuarial loss (gain)	  	$	113	 	 	$	90	 	 	$	(17	)	 	$	—	 	
Prior service cost	  	$	11	 	 	$	—	  	 	$	—	  	 	$	—	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	124	 	 	 	90	 	 	 	(17	)	 	 	—	  	
Less: Income taxes	  	 	(44	)	 	 	(31	)	 	 	6	 	 	 	—	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	$	80	 	 	$	59	 	 	$	(11	)	 	$	—	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
The following table provides the components of the net periodic pension and other benefit costs for the years ended December 31:

 	  	Pension Benefit Costs	 	 	Other Benefit Costs	 	
 	  	    2006    	 	 	    2005    	 	 	    2004    	 	 	    2006    	 	 	    2005    	 	 	    2004    	 	
Service cost	  	$	18	 	 	$	15	 	 	$	14	 	 	$	3	 	 	$	5	 	 	$	3	 	
Interest cost	  	 	24	 	 	 	19	 	 	 	18	 	 	 	4	 	 	 	5	 	 	 	4	 	
Expected return on plan assets	  	 	(18	)	 	 	(15	)	 	 	(13	)	 	 	—	  	 	 	—	  	 	 	—	  	
Amortization of loss (gain)	  	 	8	 	 	 	6	 	 	 	4	 	 	 	—	  	 	 	—	  	 	 	—	  	
Amortization of prior service cost (credit)	  	 	1	 	 	 	1	 	 	 	1	 	 	 	(1	)	 	 	(1	)	 	 	(1	)	
Amendments	  	 	9	 	 	 	—	  	 	 	—	  	 	 	(2	)	 	 	—	  	 	 	—	  	
Settlements	  	 	—	  	 	 	4	 	 	 	—	  	 	 	—	  	 	 	—	  	 	 	—	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	$	42	 	 	$	30	 	 	$	24	 	 	$	4	 	 	$	9	 	 	$	6	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
For the pension plans, prior service costs are amortized on a straight-line basis over the average remaining service period of active participants. Gains and losses in excess of 10% of the greater of the benefit obligation or the market-related value of assets are amortized over the average remaining service period of active participants. Pension and postretirement benefits are accrued during an employee’s service to the Company.
The following table provides the components of the expected recognition in 2007 of amounts in accumulated other comprehensive income:

 	  	Pension Benefits	  	Other Benefits	 	
Net actuarial loss (gain)	  	$	8	  	$	—	  	
Prior service cost	  	 	1	  	 	(1	)	
	  	 	 	  	 	 	 	
	  	$	9	  	$	(1	)	

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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
Significant assumptions were as follows:

 	 	Pension Benefits	 	 	Other Benefits	 	
 	 	As of December 31,	 	 	As of December 31,	 	
 	 	    2006    	 	 	    2005    	 	 	    2006    	 	 	    2005    	 	
Weighted-average assumptions used in measuring the Company’s benefit obligation:	 			 			 			 			
Discount rate	 	5.90	%	 	5.75	%	 	5.90	%	 	5.75	%	
Rate of compensation increase	 	4.00	%	 	4.00	%	 	4.00	%	 	4.00	%	

 	 	Pension Benefits	 	 	Other Benefits	 	
 	 	Years Ended December 31,	 	 	Years Ended December 31,	 	
 	 	    2006    	 	 	    2005    	 	 	    2004    	 	 	    2006    	 	 	    2005    	 	 	    2004    	 	
Weighted-average assumptions used in measuring the net periodic pension benefit cost:	 			 			 			 			 			 			
Discount long-term rate	 	5.75	%	 	5.75	%	 	6.25	%	 	5.75	%	 	5.75	%	 	6.25	%	
Expected return on plan assets	 	8.00	%	 	8.00	%	 	8.00	%	 	N/A	 	 	N/A	 	 	N/A	 	
Rate of compensation increase	 	4.00	%	 	4.00	%	 	4.00	%	 	4.00	%	 	4.00	%	 	4.00	%	
Yield curves matching our benefit obligations were derived using a cash flow analysis under the Citigroup pension discount curve. The Citigroup pension discount curve shows the relationship between interest rates and duration for hypothetical zero coupon investments. Under this approach, Treasury par curve data is used to set the shape of the yield curve and calculate the AA corporate spot yield at each maturity. The resulting curve was used to identify a discount rate for the Company of 5.9% and 5.75% in 2006 and 2005, respectively, based on the timing of future benefit payments. The decision to use 8% as the expected long-term return on plan assets was made based on an analysis of the actual plan asset returns over multiple time horizons and review of assumptions used by other U.S. corporations with defined benefit plans of similar size and investment strategy and is reviewed periodically by the audit committee. The average actual return on plan assets during the 18 years ended December 31, 2006 approximated 10%.
The pension plan employs several independent investment firms which invest the assets of the plan in certain approved funds that correspond to specific asset classes with associated target allocations. Depending upon actual sector performance, the assets in the plan are periodically rebalanced to match the established target levels for the asset classes. The goal of the pension fund investment program is to achieve expected rates of return consistent with the investment risk associated with the approved investment portfolio. The investment performance of the plan and that of the individual investment firms is measured against recognized market indices. This performance is monitored by an investment committee comprised of members of the Company’s management, which is advised by an independent investment consultant. The performance of the plan is reviewed annually with the Audit Committee of the Company’s board of directors. The following is a summary of the target asset allocations for 2006 and the actual asset allocation for 2006.

   	  	Target	 	 	Actual at
December 31,
2006	 	
Asset Allocation	  			 			
U.S. equity investments	  	45	%	 	45	%	
International equity investments	  	20	%	 	21	%	
Fixed income investments	  	35	%	 	34	%	
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
The assumed health care cost trend rate to measure the expected cost of benefits was 10% for 2007, 9% for 2008, 8% for 2009, 7% for 2010, 6% for 2011 and 5% each year thereafter. Assumed health care cost trend rates have a significant effect on amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects:

 	  	One-percentage-
point Increase	  	One-percentage-
point Decrease	 	
Effect on total of service and interest cost components of net periodic postretirement health care benefit cost	  	$	2	  	$	(1	)	
Effect on the health care component of the accumulated postretirement benefit obligation	  	$	13	  	$	(10	)	
Cash Flows
Benefit payments expected to be paid to plan participants are as follows:

 	  	Pension
Benefits	  	Other Benefit
Plans	
2007	  	$	30	  	$	3	
2008	  	 	15	  	 	3	
2009	  	 	17	  	 	3	
2010	  	 	22	  	 	3	
2011	  	 	18	  	 	3	
2012 through 2015	  	 	135	  	 	23	
	  	 	 	  	 	 	
	  	$	237	  	$	38	
	  	 	 	  	 	 	
Savings Plans
The Company has two qualified defined contribution savings plans, one that covers salaried and non-union hourly employees and one that covers substantially all hourly union employees. In addition, the Company has one non-qualified supplemental savings plan for salaried employees whose benefits under the qualified plan are limited by federal regulations. When an employee meets eligibility requirements, the Company matches 100% of employee contributions of up to 6% and 5% of base salary for the salaried (including non-union hourly employees) and hourly plans, respectively. Matching contributions are made with Newmont stock; however, no holding restrictions are placed on such contributions, which totaled $11 in 2006, $10 in 2005 and $9 in 2004.
NOTE 21    STOCK BASED COMPENSATION
Employee Stock Options
The Company has a Stock Incentive Plan (“Stock Plan”) for executives and eligible employees. Under this Stock Plan, options to purchase shares of stock can be granted with exercise prices not less than fair market value of the underlying stock at the date of grant. Fair market value of a share of common stock as of the grant date is the average of the high and low sales prices for a share of the Company’s common stock on the New York Stock Exchange. The Company also maintains prior stock plans, but no longer grants awards under these plans. Options granted under the Company’s stock plans vest over periods ranging from two to four years and are exercisable over a period of time not to exceed 10 years from grant date. As of December 31, 2006, 17,551,234 shares were available for future grants under the Stock Plan. During 2006, 2005 and 2004, 1,238,750, 2,002,638 and 2,030,722 stock option awards were granted, respectively.
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
The value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires the input of subjective assumptions, including the expected term of the option award and stock price volatility. The expected term of options granted is derived from historical data on employee exercise and post-vesting employment termination experience. Expected volatility is based on the historical volatility of our stock. These estimates involve inherent uncertainties and the application of management judgment. In addition, we are required to estimate the expected forfeiture rate and only recognize expense for those options expected to vest. As a result, if other assumptions had been used, our recorded and pro forma stock-based compensation expense could have been different from that reported. The Black-Scholes option-pricing model used the following assumptions:

 	 	    2006    	 	 	    2005    	 	 	    2004    	 	 	    2003    	 	 	    2002    	 	
Weighted-average risk-free interest rates	 	4.9	%	 	4.2	%	 	3.4	%	 	3.7	%	 	3.4	%	
Dividend yields	 	0.7	%	 	1.0	%	 	0.8	%	 	0.5	%	 	0.5	%	
Expected lives in years	 	5	 	 	4	 	 	4	 	 	8	 	 	9	 	
Volatility	 	34	%	 	38	%	 	41	%	 	44	%	 	51	%	
The following table summarizes annual activity for all stock options for each of the three years ended December 31:

 	  	2006	  	2005	  	2004	
 	  	Number of
Shares	 	 	Weighted
Average
Exercise
Price	  	Number of
Shares	 	 	Weighted
Average
Exercise
Price	  	Number of
Shares	 	 	Weighted
Average
Exercise
Price	
Outstanding at beginning of year	  	 	9,433,669	 	 	$	35.90	  	 	9,209,914	 	 	$	34.11	  	 	10,629,449	 	 	$	30.02	
Granted	  	 	1,238,750	 	 	$	57.71	  	 	2,002,638	 	 	$	41.67	  	 	2,030,722	 	 	$	43.16	
Exercised	  	 	(2,397,816	)	 	$	31.50	  	 	(1,517,601	)	 	$	44.40	  	 	(3,053,688	)	 	$	24.80	
Forfeited and expired	  	 	(770,995	)	 	$	53.23	  	 	(261,282	)	 	$	49.40	  	 	(396,569	)	 	$	47.77	
	  	 	 	 	 			  	 	 	 	 			  	 	 	 	 			
Outstanding at end of year	  	 	7,503,608	 	 	$	39.08	  	 	9,433,669	 	 	$	35.90	  	 	9,209,914	 	 	$	34.11	
	  	 	 	 	 			  	 	 	 	 			  	 	 	 	 			
Options exercisable at year end	  	 	5,333,035	 	 	$	34.60	  	 	5,920,180	 	 	$	32.58	  	 	5,577,335	 	 	$	30.51	
Weighted-average fair value of options granted during the year	  	$	19.76	 	 			  	$	14.39	 	 			  	$	14.05	 	 			
	  	 	 	 	 			  	 	 	 	 			  	 	 	 	 			
The following table summarizes information about stock options outstanding as of December 31, 2006, with exercise prices equal to the fair market value on the date of grant with no restrictions on exercisability after vesting:

 	  	Options Outstanding	  	 	  	Options Exercisable	
Range of Exercise Prices	  	Number
Outstanding	  	Weighted-
average
Remaining
Contractual
Life
(in years)	  	Weighted-
average
Exercise
Price	  	Number
Exercisable	  	Weighted
Average
Exercise
Price	
$0 to $20	  	968,231	  	2.4	  	$	18.55	  	968,231	  	$	18.55	
$20 to $30	  	1,487,364	  	4.9	  	$	25.96	  	1,487,364	  	$	25.96	
$30 to $40	  	910,501	  	7.4	  	$	37.59	  	438,622	  	$	37.09	
$40 to $50	  	2,958,409	  	4.8	  	$	45.47	  	2,357,977	  	$	45.43	
$50+	  	1,179,103	  	9.1	  	$	57.63	  	80,841	  	$	56.46	
	  	 	  		  			  	 	  			
	  	7,503,608	  	6.7	  	$	39.08	  	5,333,035	  	$	34.60	

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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
As of December 31, 2006, there was $25 of unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized over a weighted-average period of approximately 1.9 years. The total intrinsic value of options exercised in 2006, 2005 and 2004 was $54, $25 and $58, respectively.
The following stock options vested in each of the three years ended December 31:

 	  	2006	  	2005	  	2004	
Stock options vested	  	 	2,175,307	  	 	2,147,485	  	 	1,732,352	
Weighted-average exercise price	  	$	40.10	  	$	38.55	  	$	32.48	
The following table illustrates the effect on net income and earnings per share if we had applied the fair value recognition provisions of FAS 123(R) to options granted under our stock option plans in 2005 and 2004:

 	 	Years Ended December 31,	 	
 	 	    2005    	 	 	    2004    	 	
Net income, as reported	 	$	322	 	 	$	443	 	
Less: Compensation expense determined under the fair value method, net of tax	 	 	(19	)	 	 	(15	)	
	 	 	 	 	 	 	 	 	
Pro forma net income	 	$	303	 	 	$	428	 	
	 	 	 	 	 	 	 	 	
Net income per common share, basic:	 				 				
As reported	 	$	0.72	 	 	$	1.00	 	
Pro forma net income	 	$	0.68	 	 	$	0.97	 	
Net income per common share, diluted:	 				 				
As reported	 	$	0.72	 	 	$	0.99	 	
Pro forma net income	 	$	0.68	 	 	$	0.96	 	
Other Stock-Based Compensation
The Company grants restricted stock to certain employees upon achievement of certain financial and operating thresholds at fair market value on the grant date. Prior to vesting, these shares of restricted stock are subject to certain restrictions related to ownership and transferability. Holders of restricted stock are entitled to vote the shares and to receive any dividends declared on the shares. In 2006, 2005, and 2004, 102,491, 169,661, and 285,155 shares of restricted stock, respectively, were granted and issued, at the weighted-average fair market value of $58, $45, and $42, respectively. As of December 31, 2006, 100,258, 99,924 and 77,004 shares remained unvested for the 2006, 2005 and 2004 grants, respectively. The shares of restricted stock vest in three equal increments over three years.
Restricted stock units are granted upon achievement of certain financial and operating thresholds to employees in certain foreign jurisdictions. In 2006, 2005, and 2004 the Company granted 19,181, 27,386, and 18,788 restricted stock units, respectively, at the weighted-average fair market value of $58, $45 and $42, respectively, per underlying share of the Company’s common stock. As of December 31, 2006, 13,193, 11,791 and 1,214 shares remain unvested for the 2006, 2005 and 2004 grants, respectively. These restricted stock units vest in three equal increments over three years. Prior to vesting, holders of restricted stock units are not entitled to vote the underlying shares or receive dividends. Upon vesting, the employee is entitled to receive for each restricted stock unit one share of the Company’s common stock and an amount equivalent to accrued dividends.
The Company grants deferred stock awards to certain other employees. The deferred stock awards vest over periods between two to three years. In 2006, 2005 and 2004, the Company granted deferred stock awards of 237,946, 165,251, and 158,219 shares of the Company’s common stock, respectively, at weighted-average fair
 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
market values of $58, $41, and $43 per share, respectively. As of December 31, 2006 215,199, 116,207 and 577 shares remained unvested for the 2006, 2005 and 2004 awards, respectively. Prior to vesting, holders of deferred stock are not entitled to vote the underlying shares or receive dividends. Upon vesting, the employee is entitled to receive the number of shares of the Company’s common stock specified in the deferred stock award.
Compensation expense recorded for other stock-based compensation was $8, $15 and $15 in 2006, 2005 and 2004, respectively. The total fair value of other stock-based compensation awards that vested in 2006, 2005 and 2004 was $20, $15 and $15, respectively.
NOTE 22    OTHER LIABILITIES

 	  	At December 31,	
 	  	    2006    	 	 	    2005    	
Other current liabilities:	  				 			
Accrued operating costs	  	$	156	 	 	$	78	
Accrued capital expenditures	  	 	128	 	 	 	78	
Reclamation and remediation costs	  	 	77	 	 	 	63	
Royalties	  	 	39	 	 	 	26	
Interest	  	 	34	 	 	 	42	
Taxes other than income and mining	  	 	22	 	 	 	18	
Deferred revenue	  	 	9	 	 	 	17	
Advanced stripping costs (Note 3)	  	 	—	  	 	 	14	
Other	  	 	55	 	 	 	58	
	  	 	 	 	 	 	 	
	  	$	520	 	 	$	394	
	  	 	 	 	 	 	 	
Other long-term liabilities:	  				 			
Income taxes (Note 29)	  	$	54	 	 	$	220	
Deferred revenue from the sale of future product	  	 	47	 	 	 	47	
Derivative instruments	  	 	—	  	 	 	30	
Advanced stripping costs (Note 3)	  	 	—	  	 	 	93	
Other	  	 	34	 	 	 	25	
	  	 	 	 	 	 	 	
	  	$	135	 	 	$	415	
	  	 	 	 	 	 	 	
NOTE 23    RECLAMATION AND REMEDIATION (ASSET RETIREMENT OBLIGATIONS)
The Company’s 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. 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.
As of December 31, 2006 and 2005, $520 and $428, respectively, were accrued for reclamation obligations relating to currently or recently producing mineral properties. In addition, the Company is involved in several matters concerning environmental obligations associated with former, primarily historic, mining activities.
 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
Generally, these matters concern developing and implementing remediation plans at the various sites involved. As of December 31, 2006 and 2005, $85 and $77, respectively, were accrued for such obligations. These amounts are also included in Reclamation and remediation liabilities .
The following is a reconciliation of the total liability for reclamation and remediation:

Balance January 1, 2005	  	$	468	 	
Additions, change in estimates and other	  	 	65	 	
Liabilities settled	  	 	(47	)	
Disposition of liability	  	 	(8	)	
Accretion expense	  	 	27	 	
	  	 	 	 	
Balance December 31, 2005	  	 	505	 	
Additions, change in estimates and other	  	 	122	 	
Liabilities settled	  	 	(60	)	
Acquisition/Disposition of liability, net	  	 	7	 	
Accretion expense	  	 	31	 	
	  	 	 	 	
Balance December 31, 2006	  	$	605	 	
	  	 	 	 	
The current portions of Reclamation and remediation liabilities of $77 and $63 as of December 31, 2006 and 2005, respectively, are included in Other current liabilities .
The Company recorded $47, $38 and $(11) of reclamation expense for 2006, 2005 and 2004, respectively, for properties associated with former mining activities.
Additions to reclamation in 2006 of $122 include additions at Batu Hijau of $31 primarily due to increased waste dump reclamation areas due to mine expansion, additions at Yanacocha of $22 primarily due to mine expansion and post closure water management activities, additions at Nevada of $39 primarily due to changes in mine plans and additional waste dump reclamation areas, additions at Australia of $7 primarily related to water management and other additions of $23 primarily related to mine  expansion.
NOTE 24    RELATED PARTY TRANSACTIONS
Newmont had transactions with EGR, AGR and Finorafa, a subsidiary of EGR, as follows:

 	  	Years Ended December 31,	 	
 	  	    2006    	 	 	    2005    	 	 	    2004    	 	
Gold sales:	  				 				 				
Finorafa	  	$	66	 	 	$	—	  	 	$	—	  	
AGR	  	 	—	  	 	 	—	  	 	 	32	 	
Refining fees paid:	  				 				 				
EGR	  	 	3	 	 	 	3	 	 	 	2	 	
AGR	  	 	1	 	 	 	1	 	 	 	1	 	
See Note 8 for a discussion of Newmont’s investment in EGR and AGR.
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
NOTE 25    SUPPLEMENTAL CASH FLOW INFORMATION

 	  	Years Ended December 31,	 	
 	  	    2006    	 	 	    2005    	 	 	    2004    	 	
Income taxes, net of refunds	  	$	403	 	 	$	292	 	 	$	277	 	
Interest, net of amounts capitalized	  	$	96	 	 	$	84	 	 	$	92	 	
Non-cash settlement of prepaid forward sales obligation	  	$	48	 	 	$	48	 	 	$	—	  	
Non-cash extinguishment of infrastructure bonds	  	$	—	  	 	$	—	  	 	$	124	 	
Capital Leases
In 2004, Newmont entered into certain leases that resulted in non-cash increases to Property, plant and mine development, net and Long-term debt of $7.
NOTE 26    OPERATING LEASE COMMITMENTS
The Company leases certain assets, such as equipment and facilities, under operating leases expiring at various dates through 2012. Future minimum annual lease payments are $6 in 2007, and range from $2 to $3 in each of the following four years, totaling $16. Rent expense for 2006, 2005 and 2004 was $17, $12 and $13, respectively.
NOTE 27    SEGMENT AND RELATED INFORMATION
Newmont predominantly operates in a single industry, namely exploration for and production of gold. Newmont’s major operations include Nevada, Yanacocha, Australia/New Zealand, Batu Hijau and Africa. Newmont also has an Exploration Segment and a Merchant Banking Segment.
The Exploration Segment is responsible for all activities, regardless of location, associated with the Company’s efforts to discover new mineralized material that will advance into proven and probable reserves.
Merchant Banking activities include the development of value optimization strategies for operating and non- operating assets, managing the equity investment portfolio, business development activities related to potential merger and acquisition analysis and negotiations, managing and building the royalty business, managing the investments in the down-stream gold refining and distribution business, mobilizing and monetizing inactive exploration properties, capitalizing on Newmont’s proprietary technology know-how and acting as an internal resource for other corporate divisions to improve and maximize business outcomes. For segment reporting purposes, the Merchant Banking Segment is considered to be a separate operating segment because it engages in activities from which it earns revenues and incurs expenses and its operating results are regularly and separately reviewed by the Chief Operating Decision Maker.
The Company identifies its reportable segments as those consolidated mining operations or functional groups that represent more than 10% of the combined revenue, profit or loss or total assets of all reported operating segments. Consolidated mining operations or functional groups not meeting this threshold are aggregated at the applicable geographic or corporate level for segment reporting purposes. Earnings from operations do not reflect general corporate expenses, interest (except project-specific interest) or income taxes (except for equity investments). Intercompany revenue and expense amounts have been eliminated within each segment in order to report on the basis that management uses internally for evaluating segment performance.
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
During 2006, Newmont made certain reclassifications in its segment reporting presentation for 2005 and 2004 to conform to changes in presentation reflected in internal management reporting. Newmont’s segments have been presented for 2006, 2005 and 2004 as follows:
 
 	•	 	The Other Operations reportable segment includes the Golden Giant, La Herradura, Kori Kollo, Minahasa and Ovacik gold operations.	
 
 	•	 	The Golden Grove copper operation and the Holloway and Zarafshan gold operations have been reclassified to discontinued operations for all periods presented.	
Year Ended December 31, 2006

 	  	Nevada	 	 	Yanacocha	 	 	Australia/
New
Zealand	 	 	Batu
Hijau	 	 	Africa	 	 	Other
Operations	 	
Sales, net:	  				 				 				 				 				 				
Gold	  	$	1,441	 	 	$	1,543	 	 	$	814	 	 	$	264	 	 	$	124	 	 	$	160	 	
Copper	  	$	—	  	 	$	—	  	 	$	—	  	 	$	671	 	 	$	—	  	 	$	—	  	
Cost applicable to sales:	  				 				 				 				 				 				
Gold	  	$	980	 	 	$	498	 	 	$	519	 	 	$	91	 	 	$	60	 	 	$	59	 	
Copper	  	$	—	  	 	$	—	  	 	$	—	  	 	$	308	 	 	$	—	  	 	$	—	  	
Depreciation, depletion and amortization:	  				 				 				 				 				 				
Gold	  	$	180	 	 	$	172	 	 	$	119	 	 	$	20	 	 	$	19	 	 	$	18	 	
Copper	  	$	—	  	 	$	—	  	 	$	—	  	 	$	66	 	 	$	—	  	 	$	—	  	
Other	  	$	—	  	 	$	—	  	 	$	3	 	 	$	—	  	 	$	—	  	 	$	1	 	
Exploration	  	$	—	  	 	$	—	  	 	$	—	  	 	$	—	  	 	$	—	  	 	$	—	  	
Advanced projects, research and development	  	$	10	 	 	$	6	 	 	$	2	 	 	$	2	 	 	$	28	 	 	$	1	 	
Write-down of assets	  	$	—	  	 	$	2	 	 	$	—	  	 	$	—	  	 	$	—	  	 	$	—	  	
Other income	  	$	22	 	 	$	19	 	 	$	7	 	 	$	(45	)	 	$	1	 	 	$	46	 	
Interest expense, net	  	$	—	  	 	$	12	 	 	$	—	  	 	$	44	 	 	$	(1	)	 	$	1	 	
Pre-tax income (loss) before minority interest and equity income of affiliates	  	$	270	 	 	$	808	 	 	$	150	 	 	$	357	 	 	$	19	 	 	$	105	 	
Equity income of affiliates	  	$	—	  	 	$	—	  	 	$	(2	)	 	$	—	  	 	$	—	  	 	$	—	  	
Capital expenditures	  	$	705	 	 	$	269	 	 	$	200	 	 	$	106	 	 	$	234	 	 	$	11	 	
Goodwill	  	$	—	  	 	$	—	  	 	$	214	 	 	$	—	  	 	$	—	  	 	$	—	  	
Total assets	  	$	2,652	 	 	$	1,827	 	 	$	1,333	 	 	$	2,441	 	 	$	964	 	 	$	163	 	
 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

 	  	Total
Operations	 	 	Exploration	 	 	Merchant
Banking	 	 	Corporate
and
Other	 	 	Consolidated	
Sales, net:	  				 				 				 				 			
Gold	  	$	4,346	 	 	$	—	  	 	$	—	  	 	$	(30	)	 	$	4,316	
Copper	  	$	671	 	 	$	—	  	 	$	—	  	 	$	—	  	 	$	671	
Cost applicable to sales:	  				 				 				 				 			
Gold	  	$	2,207	 	 	$	—	  	 	$	—	  	 	$	—	  	 	$	2,207	
Copper	  	$	308	 	 	$	—	  	 	$	—	  	 	$	—	  	 	$	308	
Depreciation, depletion and amortization:	  				 				 				 				 			
Gold	  	$	528	 	 	$	—	  	 	$	—	  	 	$	—	  	 	$	528	
Copper	  	$	66	 	 	$	—	  	 	$	—	  	 	$	—	  	 	$	66	
Other	  	$	4	 	 	$	3	 	 	$	19	 	 	$	16	 	 	$	42	
Exploration	  	$	—	  	 	$	170	 	 	$	—	  	 	$	—	  	 	$	170	
Advanced projects, research and development	  	$	49	 	 	$	—	  	 	$	14	 	 	$	31	 	 	$	94	
Write-down of assets	  	$	2	 	 	$	—	  	 	$	—	  	 	$	1	 	 	$	3	
Other income	  	$	50	 	 	$	6	 	 	$	433	 	 	$	(38	)	 	$	451	
Interest expense, net	  	$	56	 	 	$	—	  	 	$	—	  	 	$	41	 	 	$	97	
Pre-tax income (loss) before minority interest and equity income of affiliates	  	$	1,709	 	 	$	(168	)	 	$	394	 	 	$	(310	)	 	$	1,625	
Equity income of affiliates	  	$	(2	)	 	$	—	  	 	$	4	 	 	$	—	  	 	$	2	
Capital expenditures	  	$	1,525	 	 	$	—	  	 	$	6	 	 	$	20	 	 	$	1,551	
Goodwill	  	$	214	 	 	$	1,129	 	 	$	1,661	 	 	$	—	  	 	$	3,004	
Total assets	  	$	9,380	 	 	$	1,296	 	 	$	3,080	 	 	$	1,845	 	 	$	15,601	
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
Year Ended December 31, 2005

 	  	Nevada	 	 	Yanacocha	 	 	Australia/
New
Zealand	 	 	Batu
Hijau	 	 	Africa	 	 	Other
Operations	 	
Sales, net:	  				 				 				 				 				 				
Gold	  	$	1,053	 	 	$	1,490	 	 	$	718	 	 	$	318	 	 	$	—	  	 	$	153	 	
Copper	  	$	—	  	 	$	—	  	 	$	—	  	 	$	672	 	 	$	—	  	 	$	—	  	
Cost applicable to sales:	  				 				 				 				 				 				
Gold	  	$	807	 	 	$	487	 	 	$	508	 	 	$	109	 	 	$	—	  	 	$	79	 	
Copper	  	$	—	  	 	$	—	  	 	$	—	  	 	$	303	 	 	$	—	  	 	$	—	  	
Depreciation, depletion and amortization:	  				 				 				 				 				 				
Gold	  	$	124	 	 	$	205	 	 	$	118	 	 	$	34	 	 	$	—	  	 	$	20	 	
Copper	  	$	—	  	 	$	—	  	 	$	—	  	 	$	87	 	 	$	—	  	 	$	—	  	
Other	  	$	—	  	 	$	—	  	 	$	3	 	 	$	—	  	 	$	1	 	 	$	2	 	
Exploration	  	$	—	  	 	$	—	  	 	$	—	  	 	$	—	  	 	$	—	  	 	$	—	  	
Advanced projects, research and development	  	$	—	  	 	$	8	 	 	$	—	  	 	$	2	 	 	$	20	 	 	$	7	 	
Write-down of assets	  	$	41	 	 	$	—	  	 	$	2	 	 	$	—	  	 	$	—	  	 	$	38	 	
Other income	  	$	8	 	 	$	9	 	 	$	7	 	 	$	7	 	 	$	—	  	 	$	6	 	
Interest expense, net	  	$	—	  	 	$	1	 	 	$	—	  	 	$	43	 	 	$	—	  	 	$	—	  	
Pre-tax income (loss) before minority interest and equity income of affiliates	  	$	61	 	 	$	799	 	 	$	81	 	 	$	419	 	 	$	(21	)	 	$	7	 	
Equity income of affiliates	  	$	—	  	 	$	—	  	 	$	—	  	 	$	—	  	 	$	—	  	 	$	—	  	
Amortization of deferred (advanced) stripping, net	  	$	(47	)	 	$	—	  	 	$	(7	)	 	$	1	 	 	$	—	  	 	$	(3	)	
Capital expenditures	  	$	479	 	 	$	225	 	 	$	98	 	 	$	65	 	 	$	276	 	 	$	24	 	
Deferred stripping	  	$	149	 	 	$	—	  	 	$	19	 	 	$	(107	)	 	$	—	  	 	$	10	 	
Goodwill	  	$	—	  	 	$	—	  	 	$	191	 	 	$	—	  	 	$	—	  	 	$	—	  	
Total assets	  	$	2,073	 	 	$	1,575	 	 	$	1,060	 	 	$	2,251	 	 	$	640	 	 	$	144	 	
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

 	  	Total
Operations	 	 	Exploration	 	 	Merchant
Banking	 	 	Corporate
and Other	 	 	Consolidated	 	
Sales, net:	  				 				 				 				 				
Gold	  	$	3,732	 	 	$	—	  	 	$	—	  	 	$	(52	)	 	$	3,680	 	
Copper	  	$	672	 	 	$	—	  	 	$	—	  	 	$	—	  	 	$	672	 	
Cost applicable to sales:	  				 				 				 				 				
Gold	  	$	1,990	 	 	$	—	  	 	$	—	  	 	$	—	  	 	$	1,990	 	
Copper	  	$	303	 	 	$	—	  	 	$	 	 	 	$	—	  	 	$	303	 	
Depreciation, depletion and amortization:	  				 				 				 				 				
Gold	  	$	501	 	 	$	—	  	 	$	—	  	 	$	—	  	 	$	501	 	
Copper	  	$	87	 	 	$	—	  	 	$	—	  	 	$	—	  	 	$	87	 	
Other	  	$	6	 	 	$	4	 	 	$	21	 	 	$	16	 	 	$	47	 	
Exploration	  	$	—	  	 	$	147	 	 	$	—	  	 	$	—	  	 	$	147	 	
Advanced projects, research and development	  	$	37	 	 	$	—	  	 	$	16	 	 	$	20	 	 	$	73	 	
Write-down of assets	  	$	81	 	 	$	—	  	 	$	—	  	 	$	3	 	 	$	84	 	
Other income	  	$	37	 	 	$	—	  	 	$	174	 	 	$	58	 	 	$	269	 	
Interest expense, net	  	$	44	 	 	$	—	  	 	$	—	  	 	$	53	 	 	$	97	 	
Pre-tax income (loss) before minority interest and equity income of affiliates	  	$	1,346	 	 	$	(147	)	 	$	136	 	 	$	(289	)	 	$	1,046	 	
Equity income of affiliates	  	$	—	  	 	$	—	  	 	$	4	 	 	$	—	  	 	$	4	 	
Amortization of deferred (advanced) stripping, net	  	$	(56	)	 	$	—	  	 	$	—	  	 	$	—	  	 	$	(56	)	
Capital expenditures	  	$	1,167	 	 	$	—	  	 	$	4	 	 	$	49	 	 	$	1,220	 	
Deferred stripping	  	$	71	 	 	$	—	  	 	$	—	  	 	$	—	  	 	$	71	 	
Goodwill	  	$	191	 	 	$	1,129	 	 	$	1,559	 	 	$	—	  	 	$	2,879	 	
Total assets from continuing operations	  	$	7,743	 	 	$	1,134	 	 	$	2,672	 	 	$	2,261	 	 	$	13,810	 	
Assets held for sale	  				 				 				 				 	$	182	 	
	  				 				 				 				 	 	 	 	
Total assets	  				 				 				 				 	$	13,992	 	

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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
Year Ended December 31, 2004

 	  	Nevada	 	 	Yanacocha	 	 	Australia/
New
Zealand	 	 	Batu
Hijau	 	 	Africa	 	 	Other
Operations	 	
Sales, net:	  				 				 				 				 				 				
Gold	  	$	1,037	 	 	$	1,250	 	 	$	779	 	 	$	288	 	 	$	—	  	 	$	179	 	
Copper	  	$	—	  	 	$	—	  	 	$	—	  	 	$	786	 	 	$	—	  	 	$	—	  	
Cost applicable to sales:	  				 				 				 				 				 				
Gold	  	$	716	 	 	$	432	 	 	$	528	 	 	$	91	 	 	$	—	  	 	$	111	 	
Copper	  	$	—	  	 	$	—	  	 	$	—	  	 	$	305	 	 	$	—	  	 	$	—	  	
Depreciation, depletion and amortization:	  				 				 				 				 				 				
Gold	  	$	127	 	 	$	198	 	 	$	126	 	 	$	28	 	 	$	—	  	 	$	37	 	
Copper	  	$	—	  	 	$	—	  	 	$	—	  	 	$	90	 	 	$	—	  	 	$	—	  	
Other	  	$	—	  	 	$	—	  	 	$	4	 	 	$	—	  	 	$	1	 	 	$	3	 	
Exploration	  	$	—	  	 	$	—	  	 	$	—	  	 	$	—	  	 	$	—	  	 	$	—	  	
Advanced projects, research and development	  	$	6	 	 	$	16	 	 	$	—	  	 	$	—	  	 	$	16	 	 	$	13	 	
Write-down of assets	  	$	—	  	 	$	4	 	 	$	66	 	 	$	—	  	 	$	—	  	 	$	18	 	
Other income	  	$	7	 	 	$	4	 	 	$	18	 	 	$	3	 	 	$	—	  	 	$	—	  	
Interest expense, net	  	$	—	  	 	$	1	 	 	$	—	  	 	$	43	 	 	$	—	  	 	$	—	  	
Pre-tax income (loss) before minority interest and equity income of affiliates	  	$	199	 	 	$	601	 	 	$	64	 	 	$	524	 	 	$	(22	)	 	$	(22	)	
Equity income of affiliates	  	$	—	  	 	$	—	  	 	$	—	  	 	$	—	  	 	$	—	  	 	$	—	  	
Cumulative effect of a change in accounting principle, net of tax	  	$	—	  	 	$	—	  	 	$	—	  	 	$	(84	)	 	$	—	  	 	$	—	  	
Amortization of deferred (advanced) stripping, net	  	$	(39	)	 	$	—	  	 	$	8	 	 	$	38	 	 	$	—	  	 	$	(3	)	
Capital expenditures	  	$	169	 	 	$	232	 	 	$	89	 	 	$	35	 	 	$	92	 	 	$	19	 	
Deferred stripping	  	$	101	 	 	$	—	  	 	$	12	 	 	$	(105	)	 	$	—	  	 	$	11	 	
Goodwill	  	$	41	 	 	$	—	  	 	$	191	 	 	$	—	  	 	$	—	  	 	$	—	  	
Total assets from continuing operations	  	$	1,614	 	 	$	1,201	 	 	$	1,066	 	 	$	2,134	 	 	$	353	 	 	$	244	 	
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

 	  	Total
Operations	 	 	Exploration	 	 	Merchant
Banking	 	 	Corporate
and Other	 	 	Consolidated	 	
Sales, net:	  				 				 				 				 				
Gold	  	$	3,533	 	 	$	—	  	 	$	—	  	 	$	7	 	 	$	3,540	 	
Copper	  	$	786	 	 	$	—	  	 	$	—	  	 	$	—	  	 	$	786	 	
Cost applicable to sales:	  				 				 				 				 				
Gold	  	$	1,878	 	 	$	—	  	 	$	—	  	 	$	—	  	 	$	1,878	 	
Copper	  	$	305	 	 	$	—	  	 	$	 	 	 	$	—	  	 	$	305	 	
Depreciation, depletion and amortization:	  				 				 				 				 				
Gold	  	$	516	 	 	$	—	  	 	$	—	  	 	$	—	  	 	$	516	 	
Copper	  	$	90	 	 	$	—	  	 	$	—	  	 	$	—	  	 	$	90	 	
Other	  	$	8	 	 	$	3	 	 	$	24	 	 	$	11	 	 	$	46	 	
Exploration	  	$	—	  	 	$	107	 	 	$	—	  	 	$	—	  	 	$	107	 	
Advanced projects, research and development	  	$	51	 	 	$	—	  	 	$	7	 	 	$	22	 	 	$	80	 	
Write-down of assets	  	$	88	 	 	$	—	  	 	$	1	 	 	$	2	 	 	$	91	 	
Other income	  	$	32	 	 	$	—	  	 	$	41	 	 	$	29	 	 	$	102	 	
Interest expense, net	  	$	44	 	 	$	—	  	 	$	—	  	 	$	53	 	 	$	97	 	
Pre-tax income (loss) before minority interest and equity income of affiliates	  	$	1,344	 	 	$	(108	)	 	$	6	 	 	$	(174	)	 	$	1,068	 	
Equity income of affiliates	  	$	—	  	 	$	—	  	 	$	2	 	 	$	—	  	 	$	2	 	
Cumulative effect of a change in accounting principle, net of tax	  	$	(84	)	 	$	—	  	 	$	—	  	 	$	37	 	 	$	(47	)	
Amortization of deferred (advanced) stripping, net	  	$	4	 	 	$	—	  	 	$	—	  	 	$	—	  	 	$	4	 	
Capital expenditures	  	$	636	 	 	$	—	  	 	$	5	 	 	$	33	 	 	$	674	 	
Deferred stripping	  	$	19	 	 	$	—	  	 	$	—	  	 	$	—	  	 	$	19	 	
Goodwill	  	$	232	 	 	$	1,129	 	 	$	1,633	 	 	$	—	  	 	$	2,994	 	
Total assets from continuing operations	  	$	6,612	 	 	$	1,147	 	 	$	2,514	 	 	$	2,116	 	 	$	12,389	 	
Assets held for sale	  				 				 				 				 	$	382	 	
	  				 				 				 				 	 	 	 	
Total assets	  				 				 				 				 	$	12,771	 	
	  				 				 				 				 	 	 	 	
Revenues from export and domestic sales were as follows:

 	  	Years Ended December 31,	
 	  	    2006    	 	 	    2005    	 	 	    2004    	
Europe	  	$	4,053	 	 	$	3,378	 	 	$	3,598	
India	  	 	76	 	 	 	277	 	 	 	22	
Indonesia	  	 	85	 	 	 	96	 	 	 	71	
Japan	  	 	355	 	 	 	267	 	 	 	312	
Korea	  	 	154	 	 	 	172	 	 	 	168	
United States	  	 	—	  	 	 	—	  	 	 	97	
Other	  	 	264	 	 	 	162	 	 	 	58	
	  	 	 	 	 	 	 	 	 	 	 	
	  	$	4,987	 	 	$	4,352	 	 	$	4,326	

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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
Long-lived assets, excluding deferred tax assets, in the United States and other countries are as follows:

 	  	At December 31,	
 	  	    2006    	  	    2005    	  	    2004    	
United States (1)	  	$	6,545	  	$	5,605	  	$	5,023	
Australia	  	 	935	  	 	700	  	 	925	
Canada	  	 	379	  	 	316	  	 	157	
Indonesia	  	 	1,869	  	 	1,808	  	 	1,858	
Peru	  	 	1,227	  	 	1,110	  	 	1,008	
Ghana	  	 	1,021	  	 	629	  	 	346	
Other	  	 	184	  	 	309	  	 	291	
	  	 	 	  	 	 	  	 	 	
	  	$	12,160	  	$	10,477	  	$	9,608	

(1)	Goodwill allocated to Exploration and Merchant Banking (see Note 18) is global in nature and has been allocated to the United States, the Company’s headquarters.	
The Company is not economically dependent on a limited number of customers for the sale of its product because gold can be sold through numerous gold market traders worldwide. In 2006, sales to one customer, Bank of Nova Scotia, totaled approximately $894 or 21% of total gold sales. In 2005, sales to one customer, Bank of Nova Scotia, totaled approximately $1,214 or 33% of total gold sales. In 2004, sales to two customers, Bank of Nova Scotia and Barclays, totaled approximately $1,056 and $1,137, respectively, or 30% and 32% of total gold sales, respectively.
 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
NOTE 28    CONSOLIDATING FINANCIAL STATEMENTS
The following Consolidating Financial Statements are presented to satisfy disclosure requirements of Rule 3-10(e) of Regulation S-X resulting from the inclusion of Newmont USA Limited (“Newmont USA”), a wholly-owned subsidiary of Newmont, as a co-registrant with Newmont on a shelf registration statement on Form S-3 filed under the Securities Act of 1933 under which securities of Newmont (including debt securities which may be guaranteed by Newmont USA) may be issued from time to time (the “Shelf Registration Statement”). To the extent Newmont issues debt securities under the Shelf Registration Statement, it is expected that Newmont USA will provide a guarantee of that debt. In accordance with Rule 3-10(e) of Regulation S-X, Newmont USA, as the subsidiary guarantor, is 100% owned by Newmont, the guarantee will be full and unconditional, and it is not expected that any other subsidiary of Newmont will guarantee any security issued under the Shelf Registration Statement. There are no significant restrictions on the ability of Newmont USA to obtain funds from its subsidiaries by dividend or loan.

 	  	For the Year Ended December 31, 2006	 	
Condensed Consolidating Statement of Income	  	Newmont
Mining
Corporation	 	 	Newmont
USA	 	 	Other
Subsidiaries	 	 	Eliminations	 	 	Newmont
Mining
Corporation
Consolidated	 	
Revenues	  				 				 				 				 				
Sales—gold, net	  	$	—	  	 	$	3,429	 	 	$	887	 	 	$	—	  	 	$	4,316	 	
Sales—copper, net	  	 	—	  	 	 	671	 	 	 	—	  	 	 	—	  	 	 	671	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	—	  	 	 	4,100	 	 	 	887	 	 	 	—	  	 	 	4,987	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs and expenses	  				 				 				 				 				
Costs applicable to sales (exclusive of depreciation, depletion and amortization shown separately below)	  				 				 				 				 				
Gold	  	 	—	  	 	 	1,660	 	 	 	556	 	 	 	(9	)	 	 	2,207	 	
Copper	  	 	—	  	 	 	308	 	 	 	—	  	 	 	—	  	 	 	308	 	
Depreciation, depletion and amortization	  	 	—	  	 	 	486	 	 	 	150	 	 	 	—	  	 	 	636	 	
Exploration	  	 	—	  	 	 	123	 	 	 	47	 	 	 	—	  	 	 	170	 	
Advanced projects, research and development	  	 	—	  	 	 	48	 	 	 	46	 	 	 	—	  	 	 	94	 	
General and administrative	  	 	—	  	 	 	135	 	 	 	6	 	 	 	8	 	 	 	149	 	
Write-down of goodwill	  	 	—	  	 	 	—	  	 	 	—	  	 	 	—	  	 	 	—	  	
Write-down of long-lived assets	  	 	—	  	 	 	3	 	 	 	—	  	 	 	—	  	 	 	3	 	
Other expense	  	 	37	 	 	 	123	 	 	 	(10	)	 	 	(1	)	 	 	149	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	37	 	 	 	2,886	 	 	 	795	 	 	 	(2	)	 	 	3,716	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other income (expense)	  				 				 				 				 				
Other income	  	 	97	 	 	 	20	 	 	 	335	 	 	 	(1	)	 	 	451	 	
Interest income—intercompany	  	 	121	 	 	 	79	 	 	 	—	  	 	 	(200	)	 	 	—	  	
Interest expense—intercompany	  	 	(7	)	 	 	—	  	 	 	(193	)	 	 	200	 	 	 	—	  	
Interest expense, net	  	 	(26	)	 	 	(63	)	 	 	(8	)	 	 	—	  	 	 	(97	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	185	 	 	 	36	 	 	 	134	 	 	 	(1	)	 	 	354	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations before taxes, minority interest and equity income of affiliates	  	 	148	 	 	 	1,250	 	 	 	226	 	 	 	1	 	 	 	1,625	 	
Income tax expense	  	 	(54	)	 	 	(332	)	 	 	(38	)	 	 	—	  	 	 	(424	)	
Minority interest in income of subsidiaries	  	 	—	  	 	 	(365	)	 	 	(16	)	 	 	18	 	 	 	(363	)	
Equity income of affiliates	  	 	697	 	 	 	2	 	 	 	108	 	 	 	(805	)	 	 	2	 	
	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	
Income from continuing operations	  	 	791	 	 	 	555	 	 	 	280	 	 	 	(786	)	 	 	840	 	
Loss from discontinued operations	  	 	—	  	 	 	(50	)	 	 	1	 	 	 	—	  	 	 	(49	)	
	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	
Net income (loss)	  	$	791	 	 	$	505	 	 	$	281	 	 	$	(786	)	 	$	791	 	

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

 	  	For the Year Ended December 31, 2005	 	
Condensed Consolidating Statement of Income	  	Newmont
Mining
Corporation	 	 	Newmont
USA	 	 	Other
Subsidiaries	 	 	Eliminations	 	 	Newmont
Mining
Corporation
Consolidated	 	
Revenues	  				 				 				 				 				
Sales—gold, net	  	$	—	  	 	$	3,005	 	 	$	675	 	 	$	—	  	 	$	3,680	 	
Sales—copper, net	  	 	—	  	 	 	672	 	 	 	—	  	 	 	—	  	 	 	672	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	—	  	 	 	3,677	 	 	 	675	 	 	 	—	  	 	 	4,352	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs and expenses	  				 				 				 				 				
Costs applicable to sales (exclusive of depreciation, depletion and amortization shown separately below)	  				 				 				 				 				
Gold	  	 	—	  	 	 	1,512	 	 	 	485	 	 	 	(7	)	 	 	1,990	 	
Copper	  	 	—	  	 	 	303	 	 	 	—	  	 	 	—	  	 	 	303	 	
Depreciation, depletion and amortization	  	 	—	  	 	 	498	 	 	 	137	 	 	 	—	  	 	 	635	 	
Exploration	  	 	—	  	 	 	99	 	 	 	48	 	 	 	—	  	 	 	147	 	
Advanced projects, research and development	  	 	—	  	 	 	29	 	 	 	44	 	 	 	—	  	 	 	73	 	
General and administrative	  	 	—	  	 	 	123	 	 	 	7	 	 	 	4	 	 	 	134	 	
Write-down of goodwill	  	 	—	  	 	 	41	 	 	 	—	  	 	 	—	  	 	 	41	 	
Write-down of long-lived assets	  	 	—	  	 	 	2	 	 	 	41	 	 	 	—	  	 	 	43	 	
Other	  	 	—	  	 	 	101	 	 	 	11	 	 	 	—	  	 	 	112	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	—	  	 	 	2,708	 	 	 	773	 	 	 	(3	)	 	 	3,478	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other income (expense)	  				 				 				 				 				
Other income	  	 	10	 	 	 	95	 	 	 	164	 	 	 	—	  	 	 	269	 	
Interest income—intercompany	  	 	118	 	 	 	45	 	 	 	1	 	 	 	(164	)	 	 	—	  	
Interest expense—intercompany	  	 	(7	)	 	 	—	  	 	 	(157	)	 	 	164	 	 	 	—	  	
Interest expense, net	  	 	(30	)	 	 	(57	)	 	 	(10	)	 	 	—	  	 	 	(97	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	91	 	 	 	83	 	 	 	(2	)	 	 	—	  	 	 	172	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations before taxes, minority interest and equity income of affiliates	  	 	91	 	 	 	1,052	 	 	 	(100	)	 	 	3	 	 	 	1,046	 	
Income tax (expense) benefit	  	 	(12	)	 	 	(397	)	 	 	99	 	 	 	—	  	 	 	(310	)	
Minority interest in income of subsidiaries	  	 	—	  	 	 	(384	)	 	 	(4	)	 	 	8	 	 	 	(380	)	
Equity income of affiliates	  	 	243	 	 	 	(2	)	 	 	66	 	 	 	(303	)	 	 	4	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations	  	 	322	 	 	 	269	 	 	 	61	 	 	 	(292	)	 	 	360	 	
Loss from discontinued operations	  	 	—	  	 	 	(4	)	 	 	(34	)	 	 	—	  	 	 	(38	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	$	322	 	 	$	265	 	 	$	27	 	 	$	(292	)	 	$	322	 	

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

 	  	For the Year Ended December 31, 2004	 	
Condensed Consolidating Statement of Income	  	Newmont
Mining
Corporation	 	 	Newmont
USA	 	 	Other
Subsidiaries	 	 	Eliminations	 	 	Newmont
Mining
Corporation
Consolidated	 	
Revenues	  				 				 				 				 				
Sales—gold, net	  	$	—	  	 	$	2,761	 	 	$	779	 	 	$	—	  	 	$	3,540	 	
Sales—copper, net	  	 	—	  	 	 	786	 	 	 	—	  	 	 	—	  	 	 	786	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	—	  	 	 	3,547	 	 	 	779	 	 	 	—	  	 	 	4,326	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs and expenses	  				 				 				 				 				
Costs applicable to sales (exclusive of depreciation, depletion and amortization shown separately below)	  				 				 				 				 				
Gold	  	 	—	  	 	 	1,358	 	 	 	532	 	 	 	(12	)	 	 	1,878	 	
Copper	  	 	—	  	 	 	305	 	 	 	—	  	 	 	—	  	 	 	305	 	
Depreciation, depletion and amortization	  	 	—	  	 	 	488	 	 	 	164	 	 	 	—	  	 	 	652	 	
Exploration	  	 	—	  	 	 	72	 	 	 	35	 	 	 	—	  	 	 	107	 	
Advanced projects, research and development	  	 	—	  	 	 	46	 	 	 	34	 	 	 	—	  	 	 	80	 	
General and administrative	  	 	—	  	 	 	96	 	 	 	11	 	 	 	9	 	 	 	116	 	
Write-down of goodwill	  	 	—	  	 	 	53	 	 	 	(1	)	 	 	—	  	 	 	52	 	
Write-down of long-lived assets	  	 	—	  	 	 	5	 	 	 	34	 	 	 	—	  	 	 	39	 	
Other	  	 	—	  	 	 	—	  	 	 	34	 	 	 	—	  	 	 	34	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	—	  	 	 	2,423	 	 	 	843	 	 	 	(3	)	 	 	3,263	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other income (expense)	  				 				 				 				 				
Other income	  	 	6	 	 	 	26	 	 	 	72	 	 	 	(2	)	 	 	102	 	
Interest income - intercompany	  	 	106	 	 	 	45	 	 	 	2	 	 	 	(153	)	 	 	—	  	
Interest expense - intercompany	  	 	(7	)	 	 	—	  	 	 	(146	)	 	 	153	 	 	 	—	  	
Interest expense, net	  	 	(3	)	 	 	(84	)	 	 	(10	)	 	 	—	  	 	 	(97	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	102	 	 	 	(13	)	 	 	(82	)	 	 	(2	)	 	 	5	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations before taxes, minority interest and equity income of affiliates	  	 	102	 	 	 	1,111	 	 	 	(146	)	 	 	1	 	 	 	1,068	 	
Income tax (expense) benefit	  	 	—	  	 	 	(316	)	 	 	(8	)	 	 	—	  	 	 	(324	)	
Minority interest in income of subsidiaries	  	 	—	  	 	 	(339	)	 	 	(10	)	 	 	14	 	 	 	(335	)	
Equity income of affiliates	  	 	341	 	 	 	(1	)	 	 	95	 	 	 	(433	)	 	 	2	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations	  	 	443	 	 	 	455	 	 	 	(69	)	 	 	(418	)	 	 	411	 	
Loss from discontinued operations	  	 	—	  	 	 	40	 	 	 	39	 	 	 	—	  	 	 	79	 	
Cumulative effect of a change in accounting principle, net of tax	  	 	—	  	 	 	(47	)	 	 	—	  	 	 	—	  	 	 	(47	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	$	443	 	 	$	448	 	 	$	(30	)	 	$	(418	)	 	$	443	 	

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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

 	 	At December 31, 2006	
Condensed Consolidating Balance Sheets	 	Newmont
Mining
Corporation	 	Newmont
USA	 	 	Other
Subsidiaries	 	Eliminations	 	 	Newmont
Mining
Corporation
Consolidated	
Assets	 			 				 			 				 			
Cash and cash equivalents	 	$	—	 	$	1,040	 	 	$	126	 	$	—	 	 	$	1,166	
Marketable securities and other short-term investments	 	 	1	 	 	28	 	 	 	80	 	 	—	 	 	 	109	
Trade receivables	 	 	—	 	 	139	 	 	 	3	 	 	—	 	 	 	142	
Accounts receivable	 	 	1,817	 	 	587	 	 	 	646	 	 	(2,834	)	 	 	216	
Inventories	 	 	—	 	 	296	 	 	 	86	 	 	—	 	 	 	382	
Stockpiles and ore on leach pads	 	 	—	 	 	339	 	 	 	39	 	 	—	 	 	 	378	
Deferred income tax assets	 	 	—	 	 	100	 	 	 	56	 	 	—	 	 	 	156	
Other current assets	 	 	—	 	 	66	 	 	 	27	 	 	—	 	 	 	93	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Current assets	 	 	1,818	 	 	2,595	 	 	 	1,063	 	 	(2,834	)	 	 	2,642	
Property, plant and mine development, net	 	 	—	 	 	4,740	 	 	 	2,123	 	 	(16	)	 	 	6,847	
Investments	 	 	—	 	 	281	 	 	 	1,038	 	 	—	 	 	 	1,319	
Investments in subsidiaries	 	 	6,046	 	 	111	 	 	 	4,347	 	 	(10,504	)	 	 	—	
Long-term stockpiles and ore on leach pads	 	 	—	 	 	756	 	 	 	56	 	 	—	 	 	 	812	
Deferred income tax assets	 	 	43	 	 	482	 	 	 	274	 	 	—	 	 	 	799	
Other long-term assets	 	 	1,749	 	 	1,104	 	 	 	198	 	 	(2,873	)	 	 	178	
Goodwill	 	 	—	 	 	—	 	 	 	3,004	 	 	—	 	 	 	3,004	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	 	$	9,656	 	$	10,069	 	 	$	12,103	 	$	(16,227	)	 	$	15,601	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Liabilities	 			 				 			 				 			
Current portion of long-term debt	 	$	—	 	$	154	 	 	$	5	 	$	—	 	 	$	159	
Accounts payable	 	 	47	 	 	2,376	 	 	 	750	 	 	(2,833	)	 	 	340	
Employee related benefits	 	 	—	 	 	147	 	 	 	35	 	 	—	 	 	 	182	
Derivative instruments	 	 	—	 	 	173	 	 	 	1	 	 	—	 	 	 	174	
Income and mining taxes	 	 	85	 	 	(54	)	 	 	333	 	 	—	 	 	 	364	
Other current liabilities	 	 	9	 	 	360	 	 	 	152	 	 	(1	)	 	 	520	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Current liabilities	 	 	141	 	 	3,156	 	 	 	1,276	 	 	(2,834	)	 	 	1,739	
Long-term debt	 	 	597	 	 	1,035	 	 	 	120	 	 	—	 	 	 	1,752	
Reclamation and remediation liabilities	 	 	—	 	 	408	 	 	 	120	 	 	—	 	 	 	528	
Deferred income tax liabilities	 	 	53	 	 	187	 	 	 	438	 	 	25	 	 	 	703	
Employee-related benefits	 	 	1	 	 	283	 	 	 	25	 	 	—	 	 	 	309	
Other long-term liabilities	 	 	258	 	 	145	 	 	 	2,752	 	 	(3,020	)	 	 	135	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	 	 	1,050	 	 	5,214	 	 	 	4,731	 	 	(5,829	)	 	 	5,166	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Minority interest in subsidiaries	 	 	—	 	 	1,140	 	 	 	343	 	 	(385	)	 	 	1,098	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Stockholders’ equity	 			 				 			 				 			
Preferred stock	 	 	—	 	 	—	 	 	 	61	 	 	(61	)	 	 	—	
Common stock	 	 	677	 	 	—	 	 	 	—	 	 	—	 	 	 	677	
Additional paid-in capital	 	 	5,972	 	 	2,219	 	 	 	5,167	 	 	(6,655	)	 	 	6,703	
Accumulated other comprehensive income (loss)	 	 	673	 	 	19	 	 	 	427	 	 	(446	)	 	 	673	
Retained earnings	 	 	1,284	 	 	1,477	 	 	 	1,374	 	 	(2,851	)	 	 	1,284	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total stockholders’ equity	 	 	8,606	 	 	3,715	 	 	 	7,029	 	 	(10,013	)	 	 	9,337	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities and stockholders’ equity	 	$	9,656	 	$	10,069	 	 	$	12,103	 	$	(16,227	)	 	$	15,601	

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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

 	 	At December 31, 2005	
Condensed Consolidating Balance Sheets	 	Newmont
Mining
Corporation	 	 	Newmont
USA	 	 	Other
Subsidiaries	 	Eliminations	 	 	Newmont
Mining
Corporation
Consolidated	
Assets	 				 				 			 				 			
Cash and cash equivalents	 	$	1	 	 	$	979	 	 	$	102	 	$	—	 	 	$	1,082	
Marketable securities and other short-term investments	 	 	—	 	 	 	794	 	 	 	23	 	 	—	 	 	 	817	
Trade receivables	 	 	—	 	 	 	93	 	 	 	1	 	 	—	 	 	 	94	
Accounts receivable	 	 	1,733	 	 	 	263	 	 	 	561	 	 	(2,422	)	 	 	135	
Inventories	 	 	—	 	 	 	262	 	 	 	42	 	 	—	 	 	 	304	
Stockpiles and ore on leach pads	 	 	—	 	 	 	215	 	 	 	26	 	 	—	 	 	 	241	
Deferred stripping costs	 	 	—	 	 	 	67	 	 	 	11	 	 	—	 	 	 	78	
Deferred income tax assets	 	 	—	 	 	 	139	 	 	 	20	 	 	—	 	 	 	159	
Other current assets	 	 	3	 	 	 	72	 	 	 	15	 	 	—	 	 	 	90	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Current assets	 	 	1,737	 	 	 	2,884	 	 	 	801	 	 	(2,422	)	 	 	3,000	
Property, plant and mine development, net	 	 	(11	)	 	 	4,078	 	 	 	1,514	 	 	—	 	 	 	5,581	
Investments	 	 	—	 	 	 	198	 	 	 	757	 	 	—	 	 	 	955	
Investments in subsidiaries	 	 	5,180	 	 	 	111	 	 	 	3,979	 	 	(9,270	)	 	 	—	
Long-term stockpiles and ore on leach pads	 	 	—	 	 	 	562	 	 	 	37	 	 	—	 	 	 	599	
Deferred stripping costs	 	 	—	 	 	 	92	 	 	 	8	 	 	—	 	 	 	100	
Deferred income tax assets	 	 	12	 	 	 	407	 	 	 	96	 	 	—	 	 	 	515	
Other long-term assets	 	 	1,646	 	 	 	850	 	 	 	188	 	 	(2,503	)	 	 	181	
Goodwill	 	 	—	 	 	 	—	 	 	 	2,879	 	 	—	 	 	 	2,879	
Assets of operations held for sale	 	 	—	 	 	 	134	 	 	 	48	 	 	—	 	 	 	182	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	 	$	8,564	 	 	$	9,316	 	 	$	10,307	 	$	(14,195	)	 	$	13,992	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Liabilities	 				 				 			 				 			
Current portion of long-term debt	 	$	—	 	 	$	194	 	 	$	1	 	$	—	 	 	$	195	
Accounts payable	 	 	50	 	 	 	2,165	 	 	 	437	 	 	(2,425	)	 	 	227	
Employee related benefits	 	 	—	 	 	 	151	 	 	 	25	 	 	—	 	 	 	176	
Derivative instruments	 	 	—	 	 	 	267	 	 	 	3	 	 	—	 	 	 	270	
Income and mining taxes	 	 	29	 	 	 	—	 	 	 	48	 	 	—	 	 	 	77	
Other current liabilities	 	 	9	 	 	 	296	 	 	 	90	 	 	(1	)	 	 	394	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Current liabilities	 	 	88	 	 	 	3,073	 	 	 	604	 	 	(2,426	)	 	 	1,339	
Long-term debt	 	 	597	 	 	 	1,002	 	 	 	124	 	 	—	 	 	 	1,723	
Reclamation and remediation liabilities	 	 	—	 	 	 	330	 	 	 	112	 	 	—	 	 	 	442	
Deferred income tax liabilities	 	 	52	 	 	 	231	 	 	 	138	 	 	25	 	 	 	446	
Employee-related benefits	 	 	—	 	 	 	252	 	 	 	21	 	 	—	 	 	 	273	
Other long-term liabilities	 	 	247	 	 	 	241	 	 	 	2,550	 	 	(2,623	)	 	 	415	
Liabilities of operations held for sale	 	 	—	 	 	 	30	 	 	 	21	 	 	(4	)	 	 	47	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	 	 	984	 	 	 	5,159	 	 	 	3,570	 	 	(5,028	)	 	 	4,685	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Minority interest in subsidiaries	 	 	—	 	 	 	971	 	 	 	326	 	 	(366	)	 	 	931	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Stockholders’ equity	 				 				 			 				 			
Preferred stock	 	 	—	 	 	 	—	 	 	 	61	 	 	(61	)	 	 	—	
Common stock	 	 	666	 	 	 	—	 	 	 	—	 	 	—	 	 	 	666	
Additional paid-in capital	 	 	5,782	 	 	 	2,220	 	 	 	5,180	 	 	(6,604	)	 	 	6,578	
Accumulated other comprehensive income (loss)	 	 	378	 	 	 	(78	)	 	 	231	 	 	(153	)	 	 	378	
Retained earnings	 	 	754	 	 	 	1,044	 	 	 	939	 	 	(1,983	)	 	 	754	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total stockholders’ equity	 	 	7,580	 	 	 	3,186	 	 	 	6,411	 	 	(8,801	)	 	 	8,376	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities and stockholders’ equity	 	$	8,564	 	 	$	9,316	 	 	$	10,307	 	$	(14,195	)	 	$	13,992	

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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

 	 	For the Year Ended December 31, 2006	 	
Condensed Consolidating Statement of Cash Flows	 	Newmont
Mining
Corporation	 	 	Newmont
USA	 	 	Other
Subsidiaries	 	 	Eliminations	 	 	Newmont
Mining
Corporation
Consolidated	 	
Operating activities:	 				 				 				 				 				
Net income (loss)	 	$	791	 	 	$	505	 	 	$	281	 	 	$	(786	)	 	$	791	 	
Adjustments to reconcile net income to net cash provided by operating activities	 	 	(826	)	 	 	854	 	 	 	(62	)	 	 	786	 	 	 	752	 	
Change in operating assets and liabilities	 	 	64	 	 	 	(321	)	 	 	(49	)	 	 	—	 	 	 	(306	)	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided from continuing operations	 	 	29	 	 	 	1,038	 	 	 	170	 	 	 	—	 	 	 	1,237	 	
Net cash used in discontinued operations	 	 	—	 	 	 	(12	)	 	 	—	 	 	 	—	 	 	 	(12	)	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided from operations	 	 	29	 	 	 	1,026	 	 	 	170	 	 	 	—	 	 	 	1,225	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Investing activities:	 				 				 				 				 				
Additions to property, plant and mine development	 	 	—	 	 	 	(1,116	)	 	 	(435	)	 	 	—	 	 	 	(1,551	)	
Investments in marketable debt and equity securities	 	 	—	 	 	 	(1,471	)	 	 	(32	)	 	 	—	 	 	 	(1,503	)	
Proceeds from sale of marketable debt and equity securities	 	 	4	 	 	 	2,218	 	 	 	2	 	 	 	—	 	 	 	2,224	 	
Acquisitions	 	 	—	 	 	 	—	 	 	 	(348	)	 	 	—	 	 	 	(348	)	
Proceeds from sale of assets	 	 	44	 	 	 	11	 	 	 	279	 	 	 	—	 	 	 	334	 	
Other	 	 	—	 	 	 	(3	)	 	 	9	 	 	 	—	 	 	 	6	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash (used in) provided by investing activities of continuing operations	 	 	48	 	 	 	(361	)	 	 	(525	)	 	 	—	 	 	 	(838	)	
Net cash used in investing activities of discontinued operations	 	 	—	 	 	 	34	 	 	 	—	 	 	 	—	 	 	 	34	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash (used in) provided by investing activities	 	 	48	 	 	 	(327	)	 	 	(525	)	 	 	—	 	 	 	(804	)	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Financing activities:	 				 				 				 				 				
Net borrowings (repayments)	 	 	6	 	 	 	(311	)	 	 	392	 	 	 	—	 	 	 	87	 	
Early extinguishment of prepaid forward sales obligation	 	 	—	 	 	 	(48	)	 	 	—	 	 	 	—	 	 	 	(48	)	
Dividends paid to common stockholders	 	 	(168	)	 	 	—	 	 	 	(12	)	 	 	—	 	 	 	(180	)	
Dividends paid to minority interests	 	 	—	 	 	 	(264	)	 	 	—	 	 	 	—	 	 	 	(264	)	
Proceeds from stock issuance	 	 	78	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	78	 	
Change in restricted cash and other	 	 	6	 	 	 	(12	)	 	 	—	 	 	 	—	 	 	 	(6	)	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash (used in) provided from financing activities of continuing operations	 	 	(78	)	 	 	(635	)	 	 	380	 	 	 	—	 	 	 	(333	)	
Net cash used in financing activities of discontinued operations	 	 	—	 	 	 	(7	)	 	 	—	 	 	 	—	 	 	 	(7	)	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash (used in) provided from financing activities	 	 	(78	)	 	 	(642	)	 	 	380	 	 	 	—	 	 	 	(340	)	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Effect of exchange rate changes on cash	 	 	—	 	 	 	4	 	 	 	(1	)	 	 	—	 	 	 	3	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net change in cash and cash equivalents	 	 	(1	)	 	 	61	 	 	 	24	 	 	 	—	 	 	 	84	 	
Cash and cash equivalents at beginning of period	 	 	1	 	 	 	979	 	 	 	102	 	 	 	—	 	 	 	1,082	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents at end of period	 	$	—	 	 	$	1,040	 	 	$	126	 	 	$	—	 	 	$	1,166	 	

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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

 	  	For the Year Ended December 31, 2005	 	
Condensed Consolidating Statement of Cash Flows	  	Newmont
Mining
Corporation	 	 	Newmont
USA	 	 	Other
Subsidiaries	 	 	Eliminations	 	 	Newmont
Mining
Corporation
Consolidated	 	
Operating activities:	  				 				 				 				 				
Net income (loss)	  	$	322	 	 	$	265	 	 	$	27	 	 	$	(292	)	 	$	322	 	
Adjustments to reconcile net income to net cash provided by operating activities	  	 	(253	)	 	 	1,081	 	 	 	(13	)	 	 	292	 	 	 	1,107	 	
Change in operating assets and liabilities	  	 	8	 	 	 	(169	)	 	 	(25	)	 	 	—	  	 	 	(186	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided from continuing operations	  	 	77	 	 	 	1,177	 	 	 	(11	)	 	 	—	  	 	 	1,243	 	
Net cash used in discontinued operations	  	 	—	  	 	 	(4	)	 	 	4	 	 	 	—	  	 	 	—	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash from operations	  	 	77	 	 	 	1,173	 	 	 	(7	)	 	 	—	  	 	 	1,243	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Investing activities:	  				 				 				 				 				
Additions to property, plant and mine development	  	 	—	  	 	 	(848	)	 	 	(372	)	 	 	—	  	 	 	(1,220	)	
Investments in marketable debt and equity securities	  	 	—	  	 	 	(3,146	)	 	 	(155	)	 	 	—	  	 	 	(3,301	)	
Proceeds from sale of marketable debt and equity securities	  	 	—	  	 	 	3,145	 	 	 	213	 	 	 	—	  	 	 	3,358	 	
Investments in affiliates	  	 	(49	)	 	 	—	  	 	 	—	  	 	 	49	 	 	 	—	  	
Other	  	 	—	  	 	 	38	 	 	 	32	 	 	 	—	  	 	 	70	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash (used in) provided by investing activities of continuing operations	  	 	(49	)	 	 	(811	)	 	 	(282	)	 	 	49	 	 	 	(1,093	)	
Net cash used in investing activities of discontinued operations	  	 	—	  	 	 	(10	)	 	 	126	 	 	 	—	  	 	 	116	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash (used in) provided by investing activities	  	 	(49	)	 	 	(821	)	 	 	(156	)	 	 	49	 	 	 	(977	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Financing activities:	  				 				 				 				 				
Net borrowings (repayments)	  	 	98	 	 	 	127	 	 	 	141	 	 	 	—	  	 	 	366	 	
Dividends paid to common stockholders	  	 	(169	)	 	 	—	  	 	 	(10	)	 	 	—	  	 	 	(179	)	
Dividends paid to minority interests	  	 	—	  	 	 	(186	)	 	 	—	  	 	 	—	  	 	 	(186	)	
Proceeds from stock issuance	  	 	43	 	 	 	—	  	 	 	49	 	 	 	(49	)	 	 	43	 	
Change in restricted cash and other	  	 	—	  	 	 	—	  	 	 	(5	)	 	 	—	  	 	 	(5	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash (used in) provided from financing activities of continuing operations	  	 	(28	)	 	 	(59	)	 	 	175	 	 	 	(49	)	 	 	39	 	
Net cash used in financing activities of discontinued operations	  	 	—	  	 	 	(1	)	 	 	—	  	 	 	—	  	 	 	(1	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash (used in) provided from financing activities	  	 	(28	)	 	 	(60	)	 	 	175	 	 	 	(49	)	 	 	38	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Effect of exchange rate changes on cash	  	 	—	  	 	 	(3	)	 	 	—	  	 	 	—	  	 	 	(3	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net change in cash and cash equivalents	  	 	—	  	 	 	289	 	 	 	12	 	 	 	—	  	 	 	301	 	
Cash and cash equivalents at beginning of period	  	 	1	 	 	 	690	 	 	 	90	 	 	 	—	  	 	 	781	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents at end of period	  	$	1	 	 	$	979	 	 	$	102	 	 	$	—	  	 	$	1,082	 	

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

 	  	For the Year Ended December 31, 2004	 	
Condensed Consolidating Statement of Cash Flows	  	Newmont
Mining
Corporation	 	 	Newmont
USA	 	 	Other
Subsidiaries	 	 	Eliminations	 	 	Newmont
Mining
Corporation
Consolidated	 	
Operating activities:	  				 				 				 				 				
Net income (loss)	  	$	435	 	 	$	448	 	 	$	(31	)	 	$	(409	)	 	$	443	 	
Adjustments to reconcile net income to net cash provided by operating activities	  	 	(332	)	 	 	1,024	 	 	 	61	 	 	 	410	 	 	 	1,163	 	
Change in operating assets and liabilities	  	 	—	  	 	 	(196	)	 	 	94	 	 	 	(1	)	 	 	(103	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided from continuing operations	  	 	103	 	 	 	1,276	 	 	 	124	 	 	 	—	  	 	 	1,503	 	
Net cash used in discontinued operations	  	 	—	  	 	 	49	 	 	 	5	 	 	 	—	  	 	 	54	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash from operations	  	 	103	 	 	 	1,325	 	 	 	129	 	 	 	—	  	 	 	1,557	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Investing activities:	  				 				 				 				 				
Additions to property, plant and mine development	  	 	—	  	 	 	(487	)	 	 	(187	)	 	 	—	  	 	 	(674	)	
Investments in marketable debt and equity securities	  	 	(40	)	 	 	(1,497	)	 	 	(183	)	 	 	—	  	 	 	(1,720	)	
Proceeds from sale of marketable debt and equity securities	  	 	—	  	 	 	899	 	 	 	—	  	 	 	—	  	 	 	899	 	
Cash recorded upon consolidation of Batu Hijau	  	 	—	  	 	 	82	 	 	 	—	  	 	 	—	  	 	 	82	 	
Other	  	 	—	  	 	 	14	 	 	 	11	 	 	 	—	  	 	 	25	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash (used in) provided by investing activities of continuing operations	  	 	(40	)	 	 	(989	)	 	 	(359	)	 	 	—	  	 	 	(1,388	)	
Net cash used in investing activities of discontinued operations	  	 	—	  	 	 	(14	)	 	 	(30	)	 	 	—	  	 	 	(44	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash (used in) provided by investing activities	  	 	(40	)	 	 	(1,003	)	 	 	(389	)	 	 	—	  	 	 	(1,432	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Financing activities:	  				 				 				 				 				
Net borrowings (repayments)	  	 	(16	)	 	 	(438	)	 	 	258	 	 	 	—	  	 	 	(196	)	
Dividends paid to common stockholders	  	 	(122	)	 	 	—	  	 	 	(11	)	 	 	—	  	 	 	(133	)	
Dividends paid to minority interests	  	 	—	  	 	 	(237	)	 	 	—	  	 	 	—	  	 	 	(237	)	
Proceeds from stock issuance	  	 	78	 	 	 	—	  	 	 	—	  	 	 	—	  	 	 	78	 	
Change in restricted cash and other	  	 	(2	)	 	 	18	 	 	 	(1	)	 	 	—	  	 	 	15	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash (used in) provided from financing activities of continuing operations	  	 	(62	)	 	 	(657	)	 	 	246	 	 	 	—	  	 	 	(473	)	
Net cash used in financing activities of discontinued operations	  	 	—	  	 	 	(2	)	 	 	—	  	 	 	—	  	 	 	(2	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash (used in) provided from financing activities	  	 	(62	)	 	 	(659	)	 	 	246	 	 	 	—	  	 	 	(475	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Effect of exchange rate changes on cash	  	 	—	  	 	 	(1	)	 	 	3	 	 	 	—	  	 	 	2	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net change in cash and cash equivalents	  	 	1	 	 	 	(338	)	 	 	(11	)	 	 	—	  	 	 	(348	)	
Cash and cash equivalents at beginning of period	  	 	—	  	 	 	1,028	 	 	 	101	 	 	 	—	  	 	 	1,129	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents at end of period	  	$	1	 	 	$	690	 	 	$	90	 	 	$	—	  	 	$	781	 	

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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
NOTE 29    COMMITMENTS AND CONTINGENCIES
General
The Company follows FAS No. 5, “Accounting for Contingencies,” 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 been 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 27. Except as noted in this paragraph, all of the Company’s commitments and contingencies specifically described in this Note 29 relate to the Corporate and Other reportable segment. The Nevada Operations matters under Newmont USA Limited relate to the Nevada reportable segment. The PT Newmont Minahasa Raya matters relate to the Other Operations reportable segment. The Yanacocha matters relate to the Yanacocha reportable segment. The Newmont Yandal Operations Pty Limited and the Newmont Australia Limited matters relate to the Australia/New Zealand 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. As of December 31, 2006 and December 31, 2005, $520 and $428, respectively, were accrued for reclamation costs relating to mineral properties in accordance with FAS No. 143, “Accounting for Asset Retirement Obligations,” of which $67 is classified as current liabilities expected to be spent in 2007. See Note 23.
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, $85 and $77 were accrued for such obligations as of December 31, 2006 and December 31, 2005, 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 89% greater or 27% lower than the amount accrued as of December 31, 2006. The amounts accrued for these matters are reviewed periodically based upon facts and circumstances available at the time. Changes in estimates are recorded in Other expense, net in the period estimates are revised.
 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
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”).
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 under CERCLA (“RI/FS”). In October 2005, the EPA issued the RI/FS on this property in which it indicated a preferred remedy 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. Newmont intends to vigorously contest any claims as to its liability.
Newmont cannot reasonably predict the likelihood or outcome of this lawsuit or 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 state approval for a revised closure plan that expedites the reclamation process at the site. The currently approved plan for the site is guaranteed by Newmont.
Idarado Mining Company (“Idarado”)—80.1% Newmont Owned
In July 1992, Newmont and Idarado signed a consent decree with the State of Colorado (“State”), which was agreed to by the U.S. District Court of Colorado, to settle a lawsuit brought by the State under CERCLA.
Idarado agreed in the consent decree to undertake specified remediation work at its former mining site in the Telluride/Ouray area of Colorado. Remediation work at this property is substantially complete. If the remediation does not achieve specific performance objectives defined in the consent decree, the State may require Idarado to implement supplemental activities at the site, also as defined in the consent decree. Idarado and Newmont obtained a $6 reclamation bond to secure their potential obligations under the consent decree. In addition, Idarado settled natural resources damages and past and future response costs, and agreed to habitat enhancement work under the consent decree. All of this work is substantially complete.
 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
Newmont Capital Limited—100% Newmont Owned
In February 1999, the EPA placed the Lava Cap mine site in Nevada County, California on the National Priorities List under CERCLA. The EPA then initiated a Remedial Investigation/Feasibility Study under CERCLA to determine environmental conditions and remediation options at the site.
Newmont Capital, formerly known as Franco-Nevada Mining Corporation, Inc., owned the property for approximately three years from 1984 to 1986 but never mined or conducted exploration at the site. The EPA asserts that Newmont Capital is responsible for clean up costs incurred at the site. Newmont Capital and the EPA have entered into an agreement tolling the statute of limitations until December 31, 2007 to facilitate on-going settlement negotiations with respect to potential claims under CERCLA. Based on Newmont Capital’s limited involvement at Lava Cap, it does not believe it has any liability for environmental conditions at the site, and intends to vigorously defend any formal claims by the EPA. Newmont cannot reasonably predict the likelihood or outcome of any future action arising from this matter.
Newmont USA Limited—100% Newmont Owned
Pinal Creek.     Newmont is a defendant in a lawsuit brought on November 5, 1991 in U.S. District Court in Arizona by the Pinal Creek Group, alleging that the company and others are responsible for some portion of costs incurred to address groundwater contamination emanating from copper mining operations located in the area of Globe and Miami, Arizona. Two former subsidiaries of Newmont, Pinto Valley Copper Corporation and Magma Copper Company (now known as BHP Copper Inc.), owned some of the mines in the area between 1983 and 1987. The court has dismissed plaintiffs’ claims seeking to hold Newmont liable for the acts or omissions of its former subsidiaries. Based on information presently available, Newmont believes it has strong defenses to plaintiffs’ remaining claims, including, without limitation, that Newmont’s agents did not participate in any pollution causing activities; that Newmont’s liabilities, if any, were contractually transferred to one of the plaintiffs; that portions of plaintiffs’ claimed damages are not recoverable; and that Newmont’s equitable share of liability, if any, would be immaterial. While Newmont has denied liability and is vigorously defending these claims, we cannot reasonably predict the final outcome of this lawsuit.
Nevada Operations.     On November 19, 2002, Great Basin Mine Watch and the Mineral Policy Center (Appellants) filed suit in U.S. District Court in Nevada against the Department of the Interior and the Bureau of Land Management (BLM), challenging and seeking to enjoin the BLM’s July 2002 Record of Decision approving the Company’s amended Plan of Operations covering the Gold Quarry South Layback Project, and the BLM’s September 2002 Record of Decision approving a new Plan of Operations for the Leeville Mine. Appellants sought a declaration that the BLM’s decisions were unlawful and an injunction prohibiting Newmont’s approved activities. Newmont intervened in this action on behalf of the government defendants and filed an answer denying all of Appellants’ claims. In March 2004, the Court granted summary judgment in favor of the government and Newmont on all claims, thus ending the U.S. District Court proceedings. In June 2004, Appellants appealed the U.S. District Court’s decision to the U.S. Ninth Circuit Court of Appeals. On August 1, 2006, the Ninth Circuit affirmed the U.S. District Court’s decision in all respects except one, remanding the case to the District Court to address the need for additional cumulative impact studies, including air emissions and hazardous waste disposal. In January, 2007, the parties entered into a stipulation ending their dispute in this matter and requiring BLM to prepare supplemental environmental impact statements evaluating the cumulative impacts of these projects. On January 16, 2007, the Court, pursuant to the parties' request, entered final judgment to reflect this agreement.
On October 16, 2002, Great Basin Mine Watch filed an appeal with the Nevada State Environmental Commission, challenging the Nevada Division of Environmental Protection’s (NDEP) renewal of the Clean
 
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NEWMONT MINING CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
Water Act discharge permit for Newmont’s Gold Quarry Mine. This permit governs the conditions under which Newmont may discharge mine-dewatering water in connection with its ongoing mining operations. Great Basin Mine Watch alleged that the terms of the renewed permit violate the Clean Water Act and Nevada water quality laws. Newmont intervened in this action on behalf of the NDEP. A hearing before the Nevada State Environmental Commission was held in June 2003 in Elko, Nevada. At the end of the hearing, the Commission ruled in favor of NDEP on all claims and affirmed NDEP’s renewal of the Clean Water Act discharge permit. Great Basin Mine Watch appealed this decision in the Nevada District Court in Carson City, Nevada. In September 2004, the Nevada District Court ruled in favor of NDEP on most issues but ruled in favor of Great Basin Mine Watch with respect to certain proposed permit amendments. Newmont and NDEP filed an appeal with the Nevada Supreme Court, seeking to uphold these proposed amendments. The Nevada District Court stayed its decision pending this appeal and Gold Quarry continued to operate under its new permit. On December 5, 2006, a panel of the Nevada Supreme Court affirmed the original decision of NDEP to grant the discharge permit. Newmont will now continue to operate under the new permit.
Grass Valley .    On February 3, 2004, the City of Grass Valley, California brought suit against Newmont under CERCLA in the U.S. District Court for the Northern District of California. This matter involves an abandoned mine adit on property previously owned by a predecessor of Newmont and currently owned by the City of Grass Valley. The complaint alleges that the adit is discharging metals-bearing water into a stream on the property, in concentrations in excess of current EPA drinking water standards. Newmont cannot reasonably predict the likely outcome of this matter.
Gray 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.
PT Newmont Minahasa Raya (“PTNMR”)—80% Newmont Owned
In July 2004, a criminal complaint was filed against PTNMR, the Newmont subsidiary that operated the Minahasa mine in Indonesia, alleging environmental pollution relating to submarine tailings placement into nearby Buyat Bay. The Indonesian police detained five PTNMR employees during September and October of 2004. The police investigation and the detention of PTNMR’s employees was declared illegal by the South Jakarta District Court in December 2004, but in March 2005, the Indonesian Supreme Court upheld the legality of the police investigation, and the police turned their evidence over to the local prosecutor. In July 2005, the prosecutor filed an indictment against PTNMR and its President Director, alleging environmental pollution at Buyat Bay. After the court rejected motions to dismiss the proceeding, the trial proceeded and all evidence, including that of the defense, was presented in court as of September 2006. In November 2006 the prosecution filed its charge, seeking a three-year jail sentence for PTNMR’s President Director plus a nominal fine. In addition, the prosecution has recommended a nominal fine against PTNMR. The defense filed responses in January 2007 and after final briefing a verdict is expected in the second quarter of 2007.
On March 9, 2005, the Indonesian Ministry of the Environment filed a civil lawsuit against PTNMR and its President Director in relation to these allegations, seeking in excess of $100 in monetary damages. In October 2005, PTNMR filed an objection to the court’s jurisdiction, contending that the Government previously agreed to resolve any disputes through out-of-court conciliation or arbitration. The Court upheld PTNMR’s objection and
 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
dismissed the case in November 2005. The Government filed a notice of appeal of this ruling. On February 16, 2006, PTNMR and the Government of the Republic of Indonesia signed an agreement settling the civil lawsuit. Under the terms of the agreement, the Government and PTNMR will nominate members to an independent scientific panel that will develop and implement a ten-year environmental monitoring and assessment program to make a definitive, scientific conclusion regarding the condition of Buyat Bay. PTNMR is required to fund specific remedial measures if, as a result of its mining operations, pollution has occurred. The agreement also provides for enhanced community development programs in North Sulawesi. PTNMR will provide initial funding of $12 to cover the cost of the monitoring and community development programs which is included in Other current liabilities as of December 31, 2006 and 2005. Over a ten year period, PTNMR will contribute an additional $18. The present value of $13 and $12 is included in Other long-term liabilities as of December 31, 2006 and 2005, respectively. The funds will be managed by an organization governed by interested stakeholders. Accountability for the fund will be ensured through yearly reports that will be made available to the public. The transparency of the scientific panel’s activities will also be assured through annual reports to the public. Pursuant to the agreement, the civil lawsuit against PTNMR has been terminated. The scientific panel held its first meeting in February 2007.
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 and will continue to vigorously defend itself against these allegations. However, Newmont cannot predict the outcome of the criminal proceeding or whether additional legal actions may occur. This matter could adversely affect our ability to operate in Indonesia.
Resurrection Mining Company (“Resurrection”)—100% Newmont Owned
Newmont, Resurrection and other defendants were named in lawsuits filed by the State of Colorado under CERCLA in 1983, which were subsequently consolidated with a lawsuit filed by EPA in 1986. These proceedings sought to compel the defendants to remediate the impacts of pre-existing, historic mining activities near Leadville, Colorado, which date back to the mid-1800s, and which the government agencies claim were causing substantial environmental problems in the area.
In 1988 and 1989, the EPA issued administrative orders with respect to one area on the site and the defendants have collectively implemented those orders by constructing a water treatment plant, which was placed in operation in early 1992. Remaining remedial work for this area consists of water treatment plant operation and continuing environmental monitoring and maintenance activities. Newmont and Resurrection are currently responsible for 50% of these costs, but their share of such costs could increase in the event other defendants become unable to pay their share of such costs. On August 9, 2005, ASARCO LLC, the party responsible for the other 50% of these costs, filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of Texas. The company is evaluating the effect that the ASARCO bankruptcy could have on its obligations.
The parties also have entered into a consent decree with respect to the remaining areas at the site, which apportions liabilities and responsibilities for these areas. The EPA has approved remedial actions for selected components of Resurrection’s portion of the site, which were initiated in 1995. The EPA has not yet selected the final remedy for the site. Accordingly, Newmont cannot yet determine the full extent or cost of its share of the remedial action that will be required. The government agencies may also seek to recover for damages to natural resources. In March 1999, the parties entered into a Memorandum of Understanding (“MOU”) to facilitate the
 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
settlement of natural resources damages claims under CERCLA for the upper Arkansas River Basin. In January 2004, an MOU report was issued that evaluated the extent of natural resource damages and possible restoration activities that might be required, which Resurrection and other parties could potentially be required to fund.
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.
Yanacocha, various wholly-owned subsidiaries of Newmont, and other defendants have been named in lawsuits filed by approximately 1,100 Peruvian citizens in Denver District Court for the State of Colorado. These actions seek compensatory and punitive damages based on claims associated with the elemental mercury spill incident. In February 2005, Yanacocha and the various Newmont defendants answered the complaint in the Denver District Court. The parties in these cases have agreed to submit these matters to binding arbitration.
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 September 2006, the Peruvian Supreme Court issued contradictory opinions on the validity of these settlement agreements. Subsequent lower court decisions have upheld the validity of these settlement agreements, discharging a number of the lawsuits. In 2005, Yanacocha entered into settlement agreements with approximately 350 additional plaintiffs.
Neither Newmont nor Yanacocha can reasonably predict the final outcome of any of the above-described lawsuits.
Conga.     Yanacocha is involved in a dispute with the Provincial Municipality of Celendin regarding the authority of that governmental body to regulate the development of the Conga ore deposit. In the fourth quarter of 2004, the Municipality of Celendin enacted an ordinance declaring the area around Conga to be a mining-free reserve and naturally protected area. Yanacocha has challenged this ordinance on the grounds that, under Peruvian law, local governments lack authority to create such areas and deny the rights granted by Yanacocha’s mining concessions. Based on legal precedent established by Peru's Constitutional Tribunal, it is reasonable to believe that Yanacocha’s mining rights will be upheld.
Yanacocha has carefully evaluated the social issues and dynamics of the communities in and around the area of Conga. Yanacocha has engaged in extensive community and external affairs efforts at this early stage of the Conga project. It is Yanacocha’s current assessment that a significant percentage of the population in the communities immediately surrounding the Conga area support the project. Yanacocha will continue to engage
 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
actively with these communities during the process of permitting the project, and will expand its outreach efforts to communities in the surrounding region. It will continually monitor and evaluate conditions in the area and any resulting impact on Yanacocha’s ability to successfully permit and develop the Conga deposit.
Newmont Mining Corporation
On June 8, 2005, UFCW Local 880—Retail Food Employers Joint Pension Fund filed a putative class action in the federal district court in Colorado purportedly on behalf of purchasers of Newmont Mining Corporation (“Newmont”) publicly traded securities between July 28, 2004 and April 26, 2005. The action named Newmont, Wayne W. Murdy, Pierre Lassonde and Bruce D. Hansen as defendants. Substantially similar purported class actions were filed in the same court on June 15, 2005 by John S. Chapman and on June 20, 2005 by Zoe Myerson. In November 2005, the court consolidated these cases and, in March 2006, appointed a lead plaintiff. In April 2006, the lead plaintiff filed a consolidated amended complaint naming David Francisco, Russell Ball, Thomas Enos and Robert Gallagher as additional defendants. It alleged, among other things, that Newmont and the individual defendants violated certain antifraud provisions of the federal securities laws by failing to disclose alleged operating deficiencies and sought unspecified monetary damages and other relief. On October 20, 2006, the lead plaintiff, on behalf of a settlement class consisting of all purchasers of Newmont securities from November 1, 2003, through and including March 23, 2006 (except defendants and certain related persons), entered into a Stipulation of Settlement with defendants. If approved by the Court, the Settlement (a) would release all claims asserted, or that could have been asserted, in the action; (b) would provide for a payment by Newmont of $15 million to be distributed to class members pursuant to a plan of allocation developed by the lead plaintiff; and (c) would provide that all defendants deny any wrongdoing or liability with respect to the settled matters. The parties have moved for preliminary approval of the settlement, but the court has not ruled on the motion. Gideon Minerals, U.S.A., Inc. (“Gideon”) has sought to intervene to bring a claim alleging that Gideon has an interest in the Batu Hijau mine in Indonesia; the court has denied that motion. Gideon subsequently filed a substantially similar motion and moved for default judgment; the court has not ruled on these motions.
On June 14, 2005, June 30, 2005 and July 1, 2005, purported derivative actions were filed, on behalf of Newmont, by Doris Staehr, Frank J. Donio and Jack G. Blaz, respectively, in the federal district court in Colorado against certain of Newmont’s current and former directors and officers. Each action alleged that certain defendants breached their fiduciary duties by engaging in insider trading and misappropriation of information, and that all defendants breached their fiduciary duties and engaged in conduct that constituted abuse of control, gross mismanagement, waste of corporate assets and unjust enrichment in connection with, among other things, failing to disclose alleged operating deficiencies and failing to prevent alleged violations of environmental laws in Indonesia. The plaintiffs seek, on behalf of Newmont, among other remedies, all damages sustained by the Company as a result of the allegedly improper conduct. In November 2005, the court consolidated these cases and in December 2005 the court appointed a lead plaintiff. On April 10, 2006, the lead plaintiff filed a consolidated amended complaint. This action has been administratively closed without prejudice to any party filing a motion to reopen prior to June 19, 2007. The defendants deny the claims made and, should the case be re-opened, intend to vigorously defend against them. The Company cannot reasonably predict the final outcome of these cases. In a related development, on January 13, 2006, a purported Newmont shareholder sent to the Board of Directors a letter demanding the Company take action against the defendants in the purported derivative actions with respect to the matters alleged in the derivative complaints. The Board has taken the demand under consideration. Counsel for plaintiffs in the derivative actions, counsel for the demanding shareholder and the Company have agreed to settle the action and related disputes on the basis of certain revisions to the Company's corporate governance arrangements, and are currently negotiating an attorneys' fee to be paid by the Company.
 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
Newmont Yandal Operations Pty Ltd (“NYOL”)—100% Newmont Owned
On September 3, 2003, J. Aron & Co. commenced proceedings in the Supreme Court of New South Wales (Australia) against NYOL, its subsidiaries and the administrator in relation to the completed voluntary administration of the NYOL group. J. Aron & Co., an NYOL creditor, initially sought injunctive relief that was denied by the court on September 8, 2003. On October 30, 2003, J. Aron & Co. filed a statement of claim alleging various deficiencies in the implementation of the voluntary administration process and seeking damages and other relief against NYOL and other parties. Newmont cannot reasonably predict the final outcome of this lawsuit.
Zarafshan-Newmont Joint Venture—50% Newmont Owned
In June 2006, an economic court in Uzbekistan ruled in favor of tax authorities and against the Zarafshan-Newmont Joint Venture (“ZNJV”), which is 50% owned by the Company, on two claims to collect approximately $48 in taxes other than income taxes. The tax authorities argued that Decree 151, which protected ZNJV from changes in tax laws and provided other financial and operational benefits, became ineffective and that the taxes and penalties claimed were owed for the period 2002-2005. Decree 151 had been granted by the Republic of Uzbekistan in 1992 as an incentive for the Company’s investment in ZNJV. The benefits it provided, including the stability of the tax and legal regime in effect at that time, were guaranteed to remain in effect for so long as ZNJV had ongoing operations.
On July 26, 2006, the Republic of Uzbekistan caused the seizure of gold, silver and unfinished product belonging to ZNJV. On August 14, 2006, the Company received notice that the economic court had accepted the petition of an agency of the Republic of Uzbekistan to institute a bankruptcy proceeding against ZNJV. Neither ZNJV nor the Company received advance notice that the petition was filed or that a hearing would be held. The court ordered “supervisory measures” restricting normal operations, including the export of gold or repayment of loans, without the approval of a court-appointed temporary administrator, who has been overseeing all operations of ZNJV.
At a September 19, 2006 meeting of the ZNJV creditor’s committee, which was principally composed of government representatives, the committee voted to liquidate ZNJV. On September 29, 2006, the economic court concluded that ZNJV was insolvent and ordered ZNJV to be liquidated by December 29, 2006. At this hearing, representatives of ZNJV and the Company were denied an opportunity to present the case against liquidation. The remaining assets of ZNJV are anticipated to be liquidated to pay the tax liabilities that have been imposed on ZNJV by the Republic of Uzbekistan, resulting in the effective transfer to the Republic of Uzbekistan of the Company’s interest in ZNJV. The liquidation sale has been postponed two times, and is now scheduled for early March 2007. Despite the Company’s demands for compensation for the losses it has suffered, the Republic of Uzbekistan has refused to provide such compensation. On October 31, 2006, the Company filed demands for arbitration against the Republic of Uzbekistan in two separate international venues on the basis that the Republic of Uzbekistan repudiated its obligations to the Company under Decree 151, Uzbek and international law, and various agreements. The Company and the defendants are in the process of appointing arbitrators. As of September 30, 2006, the Company has written off the book value of its ownership interest in ZNJV. The ultimate outcome of this matter cannot be determined at this time.
Income Taxes
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 to pay the taxes reasonably determined to be due. The tax rules and regulations in many
 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
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. As of December 31, 2006 and December 31, 2005, the Company has accrued income taxes (and related interest and penalties, if applicable) in the amount of $54 and $220, respectively, classified in other long-term liabilities . In December, the Company entered into an in-principle HOA with the ATO. The HOA specifies the terms of a proposed settlement of the outstanding audit issues relating to Normandy for the tax years 1994-1999. These issues relate to years before the Company acquired Normandy. At the date of the business combination, Normandy had recorded no income tax liability with respect to the tax positions taken in reporting certain transactions, therefore the Company’s initial best estimate of the FAS 5 income tax contingency relating to these issues was recorded as a tax liability at the date of acquisition, February 15, 2002, by increasing the purchase price of Normandy. As of December 31, 2006, the long-term income tax liability balance relating to this proposed settlement was reclassified to current income taxes payable.
Other Commitments and Contingencies
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 $8 for 2007, $13 for 2008, $2 in 2009 and 2010, $18 in 2011 and $98 thereafter.
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. As of December 31, 2006 and December 31, 2005, there were $445 and $386, 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.
 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 
Under the Batu Hijau Contract of Work with the Indonesian government, beginning in 2005, and continuing through 2010, a portion of each foreign shareholders’ equity interest in the project must be offered for sale to the Indonesian government or to Indonesian nationals. The price at which such interest must be offered for sale to the Indonesian parties is the highest of the then-current replacement cost, the price at which shares of the project company would be accepted for listing on the Jakarta Stock Exchange, or the fair market value of such interest in the project company as a going concern. Pursuant to this provision of the Batu Hijau Contract of Work, it is possible that the ownership interest of the Newmont/Sumitomo partnership in Batu Hijau could be reduced to 49% by the end of 2010.
A company owned by an Indonesian national currently owns a 20% equity interest in Batu Hijau, and the Newmont/Sumitomo partnership was required to offer a 3% interest in 2006. An offer to sell a 3% interest was made to the government of Indonesia. While the central government declined to participate, local governments in the area in which the mine is located have expressed interest in acquiring shares, as have various Indonesian nationals. The Newmont/Sumitomo partnership continues discussions with various interested parties to meet its divestiture obligations. Under the terms of the Contract of Work, an additional 7% interest in Batu Hijau must be offered for sale in 2007.
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 30    UNAUDITED SUPPLEMENTARY DATA
Quarterly Data
The following is a summary of selected quarterly financial information (unaudited):

 	  	2006	
 	  	Three Months Ended	
 	  	March 31	 	 	June 30	  	September 30	 	 	December 31	
Revenues	  	$	1,132	 	 	$	1,293	  	$	1,102	 	 	$	1,460	
Gross profit (1)	  	$	433	 	 	$	513	  	$	358	 	 	$	532	
Income from continuing operations	  	$	208	 	 	$	153	  	$	264	 	 	$	215	
Income (loss) from discontinued operations	  	$	2	 	 	$	7	  	$	(66	)	 	$	8	
Net income applicable to common shares	  	$	210	 	 	$	160	  	$	198	 	 	$	223	
Income from continuing operations, per common share, basic	  	$	0.47	 	 	$	0.34	  	$	0.59	 	 	$	0.48	
Income (loss) from discontinued operations, per common share, basic	  	$	—	  	 	$	0.02	  	$	(0.15	)	 	$	0.02	
	  	 	 	 	 	 	 	  	 	 	 	 	 	 	
Net income per common share, basic	  	$	0.47	 	 	$	0.36	  	$	0.44	 	 	$	0.50	
	  	 	 	 	 	 	 	  	 	 	 	 	 	 	
Income from continuing operations, per common share, diluted	  	$	0.46	 	 	$	0.34	  	$	0.59	 	 	$	0.47	
Income (loss) from discontinued operations, per common share, diluted	  	$	—	  	 	$	0.02	  	$	(0.15	)	 	$	0.02	
	  	 	 	 	 	 	 	  	 	 	 	 	 	 	
Net income per common share, diluted	  	$	0.46	 	 	$	0.36	  	$	0.44	 	 	$	0.49	
	  	 	 	 	 	 	 	  	 	 	 	 	 	 	
Basic weighted-average shares outstanding	  	 	448	 	 	 	449	  	 	450	 	 	 	450	
Diluted weighted-average shares outstanding	  	 	451	 	 	 	452	  	 	452	 	 	 	452	
Dividends declared per common share	  	$	0.10	 	 	$	0.10	  	$	0.10	 	 	$	0.10	
Closing price of common stock	  	$	51.89	 	 	$	52.93	  	$	42.75	 	 	$	45.15	
 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

 	  	2005	 	
 	  	Three Months Ended	 	
 	  	March 31	  	June 30	 	 	September 30	 	 	December 31	 	
Revenues	  	$	930	  	$	984	 	 	$	1,146	 	 	$	1,292	 	
Gross profit (1)	  	$	240	  	$	288	 	 	$	403	 	 	$	493	 	
Income from continuing operations	  	$	80	  	$	85	 	 	$	125	 	 	$	70	 	
Income (loss) from discontinued operations	  	$	4	  	$	(35	)	 	$	1	 	 	$	(8	)	
Net income applicable to common shares	  	$	84	  	$	50	 	 	$	126	 	 	$	62	 	
Income from continuing operations, per common share, basic	  	$	0.18	  	$	0.19	 	 	$	0.28	 	 	$	0.16	 	
Income (loss) from discontinued operations, per common share, basic	  	$	0.01	  	$	(0.08	)	 	$	—	  	 	$	(0.02	)	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Net income per common share, basic	  	$	0.19	  	$	0.11	 	 	$	0.28	 	 	$	0.14	 	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations, per common share, diluted	  	$	0.18	  	$	0.19	 	 	$	0.28	 	 	$	0.15	 	
Income (loss) from discontinued operations, per common share, diluted	  	$	0.01	  	$	(0.08	)	 	$	—	  	 	$	(0.01	)	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Net income per common share, diluted	  	$	0.19	  	$	0.11	 	 	$	0.28	 	 	$	0.14	 	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Basic weighted-average shares outstanding	  	 	446	  	 	446	 	 	 	446	 	 	 	446	 	
Diluted weighted-average shares outstanding	  	 	448	  	 	449	 	 	 	449	 	 	 	449	 	
Dividends declared per common share	  	$	0.10	  	$	0.10	 	 	$	0.10	 	 	$	0.10	 	
Closing price of common stock	  	$	42.25	  	$	39.03	 	 	$	47.17	 	 	$	53.40	 	

(1)	Revenues less Costs applicable to sales and Depreciation, depletion and amortization	
Significant after-tax adjustments were as follows:
Fourth quarter 2006: (i) a $29 ($0.06 per share, basic) reclamation estimate charge; (ii) a $27 ($0.06 per share, basic) net tax benefit from a reconciliation of the Company’s U.S. book and tax basis assets and liabilities as well as a detailed analysis of income taxes payable. The differences were identified as affecting the years 1998 to 2005 although the amount applicable to any one year is not material. As the amounts are not material to the current year or the year in which they arose, the entire adjustment was recognized as a tax benefit during the fourth quarter of 2006; (iii) a $16 ($.03 per share, basic) net tax benefit due to an adjustment in the interest accrued on tax contingencies and (iv) an $8 ($0.02 per share, basic) net gain on the sale of Holloway;
Third quarter 2006: (i) a $173 ($0.39 per share, basic) net gain on the sale of the Alberta Oil Sands project; (ii) a $66 ($0.15 per share, basic) loss on the expropriation of Zarafshan; (iii) a $57 ($0.13 per share, basic) tax expense for repatriation of cash from the sale of Black Gold (iv) a $26 ($0.06 per share, basic) loss on the early extinguishment of debt; and (vi) a $20 ($0.05 per share, basic) net gain on the sale of the Martabe project;
Second quarter 2006: none;
First quarter 2006: (i) a $48 ($0.11 per share, basic) net tax benefit from changes in Australia’s functional currency for tax reporting;
Fourth quarter 2005: (i) a $41 ($0.09 per share, basic) goodwill impairment charge at Nevada; (ii) a $26 ($0.06 per share, basic) non-cash write-own of long-lived assets; (iii) an $18 ($0.04 per share, basic) charge for
 
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(dollars in millions, except per share, per ounce and per pound amounts)
 
litigation costs and settlement provision; (iv) a $16 ($0.03 per share, basic) reclamation estimate charge; (v) an $11 ($0.02 per share, basic) net gain on the sale of Oxiana shares; and (vi) a $6 ($0.01 per share, basic) net gain adjustment to the QMC loan receivable valuation allowance;
Third quarter 2005: (i) a $25 ($0.06 per share, basic) gain on the sale of the Kinross Gold Corporation stock; and (ii) a $15 ($0.03 per share, basic) expense for environmental litigation and reclamation costs at Minahasa in Indonesia;
Second quarter 2005: a $30 ($0.07 per share, basic) impairment charge at Golden Grove in Australia;
First quarter 2005: (i) a $20 ($0.04 per share, basic) gain on the sale of the Mezcala property in Mexico; and (ii) a $19 ($0.04 per share, basic) net tax benefit from changes in Australian tax law.
 
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 ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	
None.
 
 ITEM 9A.	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.
There has been no change in the Company’s internal control over financial reporting during the most recent fiscal quarter that has materially affected, or that is reasonably likely to materially affect, the Company’s internal control over financial reporting.
Management’s report on internal control over financial reporting and the attestation report on management’s assessment are included in Item 8 of this annual report on Form 10-K.
 
 ITEM 9B.	OTHER INFORMATION	
None.
 
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PART III
 
 ITEM 10.	DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT	
Information concerning Newmont’s directors, Audit Committee, Compliance with Section 16(a) of the Exchange Act and Code of Ethics is contained in Newmont’s definitive Proxy Statement, filed pursuant to Regulation 14A promulgated under the Securities Exchange Act of 1934 for the 2007 Annual Meeting of Stockholders and is incorporated herein by reference. Information concerning Newmont’s executive officers is set forth under Item 4A of this report.
 
 ITEM 11.	EXECUTIVE COMPENSATION	
Information concerning this item is contained in Newmont’s definitive Proxy Statement, filed pursuant to Regulation 14A promulgated under the Securities Exchange Act of 1934 for the 2007 Annual Meeting of Stockholders and is incorporated herein by reference.
 
 ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	
Information concerning this item is contained in Newmont’s definitive Proxy Statement, filed pursuant to Regulation 14A promulgated under the  Securities Exchange Act of 1934 for the 2007 Annual Meeting of Stockholders and incorporated herein by reference.
Equity Compensation Plan Information
The following table sets forth as of December 31, 2006 information regarding Newmont’s Common Stock that may be issued under Newmont’s equity compensation plans:

Plan Category	  	Number of Securities to be
issued upon exercise of
outstanding options,
warrants and rights
(a)	 	 	Weighted-average
exercise price of
outstanding options,
warrants and rights
(b) (1)	  	Number of securities
remaining available for
future issuance under equity
compensation
plans (excluding securities
reflected in column (a))
(c)	 	
Equity compensation plans approved by security holders (2)	  	6,644,509	(3)	 	$	42.10	  	17,551,234	(4)	
Equity compensation plans not approved by security holders	  	808,455	(5)	 	$	23.92	  	—	 	
TOTAL	  	7,452,964	 	 	$	40.05	  	17,551,234	 	

(1)	The weighted average exercise price does not take into account the shares issuable upon vesting of director stock units and restricted stock units.	

(2)	Newmont’s 2005 Stock Incentive Plan was approved by the stockholders on April 27, 2005. A maximum of 20,000,000 shares of Newmont’s Common Stock were authorized to be issued under this plan. Out of this maximum number of shares, no more than 10,000,000 shares may be awarded as restricted stock and other stock-based awards and no more than 1,000,000 shares may be awarded as non-employee director stock awards. In addition, no more than 1,000,000 shares may be awarded without agreements providing for vesting in full in three years or more, subject to certain exceptions such as shares subject to performance-based conditions.	

(3)	This number does not include 429,294 shares of common stock issuable upon exercise of outstanding options granted under certain equity plans assumed by Newmont in acquisitions. The weighted average exercise price of outstanding options granted under the assumed plans as of December 31, 2006 was $23.06. Newmont cannot grant any additional options or awards under these assumed plans.	

(4)	Securities remaining available for future issuance under the 2005 Stock Incentive Plan. No additional grants or awards will be made under any of the Company’s other plans.	
 
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(5)	Shares of common stock issuable upon exercise of outstanding options granted under the 1999 Employees Stock Plan. Options have a term of 10 years and vest in periods ranging from two to four years. Restricted stock units awarded under the 1999 Employees Stock Plan are also listed in the table. Restricted stock units are awarded to employees in certain foreign jurisdictions. Prior to vesting, a holder of restricted stock units does not have the right to vote the underlying shares or receive any dividends. The restricted stock units vest in three equal increments over three years. Upon vesting, the holder of restricted stock units is entitled to receive one share of Newmont common stock for each restricted stock unit and accrued dividends.	
 
 ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS	
Information concerning this item is contained in Newmont’s definitive Proxy Statement, filed pursuant to Regulation 14A promulgated under the Securities Exchange Act of 1934 for the 2007 Annual Meeting of Stockholders and incorporated herein by reference.
 
 ITEM 14.	PRINCIPAL ACCOUNTANT FEES AND SERVICES	
Information concerning this item is contained in Newmont’s definitive Proxy Statement, filed pursuant to Regulation 14A promulgated under the Securities Exchange Act of 1934 for the 2007 Annual Meeting of Stockholders and incorporated herein by reference.
 
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PART IV
 
 ITEM 15.	EXHIBITS AND FINANCIAL STATEMENT SCHEDULES	
The following documents are filed as a part of this report:
(a) Financial Statements
The Consolidated Financial Statements, together with the report thereon of PricewaterhouseCoopers LLP dated February 23, 2007, are included as part of Item 8, Financial Statements and Supplementary Data, commencing on page 68 above.

 	  	Page	
Report of Independent Registered Public Accounting Firm	  	84	
Statements of Consolidated Income	  	86	
Consolidated Balance Sheets	  	87	
Statements of Consolidated Changes in Stockholders’ Equity	  	88	
Statements of Consolidated Comprehensive Income	  	88	
Statements of Consolidated Cash Flows	  	89	
Notes to Consolidated Financial Statements	  	90	
(d) Exhibits
Reference is made to the Exhibit Index beginning on page E-1 hereof.
 
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Table of Contents
 SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Annual Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized.

NEWMONT MINING CORPORATION	
		
By:	 	/s/    B RITT D. B ANKS        	
 	 	Britt D. Banks
Executive Vice President, Legal and External Affairs 	
February 23, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated on February 23, 2007.

Signature	  	Title	
*
Wayne W. Murdy	  	Chairman of the Board and Chief Executive Officer (Principal Executive Officer)	
		
*
Richard T. O’Brien	  	Executive Vice President and Chief Financial Officer (Principal Financial Officer)	
		
*
Russell Ball	  	Vice President and Controller
(Principal Accounting Officer)	
		
Glen A. Barton*	  	Director	
Vincent A. Calarco*	  	Director	
Noreen Doyle*	  	Director	
Veronica M. Hagen*	  	Director	
Michael S. Hamson*	  	Director	
Pierre Lassonde*	  	Director	
Robert J. Miller*	  	Director	
Robin A. Plumbridge*	  	Director	
John B. Prescott*	  	Director	
Donald C. Roth*	  	Director	
Seymour Schulich*	  	Director	
James V. Taranik*	  	Director	

*By:	 	/s/    B RITT D. B ANKS        	
	 	Britt D. Banks
Attorney-in-Fact 	
 
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Table of Contents
 EXHIBIT INDEX

Exhibit
Number	 	 	Description	
		
1	 	 	—Underwriting Agreement, dated as of March 17, 2005, among Registrant, Newmont USA Limited, Citigroup Capital Markets Inc. and J.P. Morgan Securities Inc. Incorporated by reference to Exhibit 1.1 to Registrant’s Form 8-K filed with the Securities and Exchange Commission on March 22, 2005.	
		
2	(a)	 	—Arrangement Agreement, dated as of November 14, 2001, by and between Franco-Nevada Mining Corporation Limited and Newmont Mining Corporation (now known as “Newmont USA Limited”). Incorporated by reference to Exhibit 2.1 to the Registrant’s Form 8-K filed with the Securities and Exchange Commission on March 1, 2002.	
		
2	(b)	 	—Deeds of Undertaking, dated as of November 14, 2001, November 14, 2001, and December 10, 2001, by and between Newmont Mining Corporation (now known as “Newmont USA Limited”) and Normandy Mining Limited. Incorporated by reference to Exhibit 2.2 to Registrant’s Form 8-K filed with the Securities and Exchange Commission on March 1, 2002.	
		
2	(c)	 	—Agreement and Plan of Merger, dated as of January 8, 2002, by and among Newmont Mining Corporation (now known as “Newmont USA Limited”), the Registrant and Delta Acquisitionco Corp. Incorporated by reference to Exhibit 2.3 to the Registrant’s Form 8-K filed with the Securities and Exchange Commission on March 1, 2002.	
		
3	(a)	 	—Certificate of Incorporation of Registrant. Incorporated herein by reference to Appendix F to the Registrant’s Registration Statement on Form S-4 (File No. 333-76506), filed with the Securities and Exchange Commission on January 10, 2002.	
		
3	(b)	 	—Certificate of Designations of Special Voting Stock. Incorporated herein by reference to Exhibit 3.3 to the Registrant’s Registration Statement on Form 8-A relating to the registration of its common stock, filed with the Securities and Exchange Commission on February 15, 2002.	
		
3	(c)	 	—Certificate of Amendment to the Certificate of Incorporation of Registrant. Incorporated herein by reference to Exhibit 3.4 to the Registrant’s Registration Statement on Form 8-A relating to the registration of its common stock, filed with the Securities and Exchange Commission on February 15, 2002.	
		
3	(d)	 	—Certificate of Designations of $3.25 Convertible Preferred Stock of Registrant. Incorporated herein by reference to Exhibit 3.6 to the Registrant’s Registration Statement on Form 8-A relating to the registration of its $3.25 convertible preferred stock, filed with the Securities and Exchange Commission on February 15, 2002.	
		
3	(e)	 	—By-laws, as amended and restated effective January 1, 2007 of the Registrant. Incorporated by reference to Exhibit 3.1 to Registrant’s Form 8-K filed with the Securities and Exchange Commission on December 18, 2006.	
		
4	(a)	 	—Indenture, dated as of March 22, 2005, among Newmont Mining Corporation, Newmont USA Limited and Citibank, N.A. Incorporated by reference to Exhibit 4.1 to Registrant’s Form 8-K filed with the Securities and Exchange Commission on March 22, 2005.	
		
4	(b)	 	—Form of 5.875% Note due 2035 issued pursuant to Indenture, dated as of March 22, 2005, among Registrant, Newmont USA Limited and Citibank, N.A. Incorporated by reference to Exhibit 4.2 to Registrant’s Form 8-K filed with the Securities and Exchange Commission on March 22, 2005.	
 
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Table of Contents

Exhibit
Number	 	 	Description	
		
4	(c)	 	—Pass Through Trust Agreement dated as of July 15, 1994, between Newmont Gold Company (now known as “Newmont USA Limited”) and The First National Bank of Chicago relating to the Pass Through Certificates, Series 1994-A1. (The front cover of this Exhibit indicates the material differences between such Exhibit and the substantially similar (except for price-related information) Pass-Through Agreement between Newmont Gold Company (now known as “Newmont USA Limited”) and The First National Bank of Chicago relating to the Pass-Through Certificates, Series 1994-A2.) Incorporated by reference to Exhibit 4.1 to Newmont Gold Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 1994.	
		
4	(d)	 	—Lease dated as of September 30, 1994, between Newmont Gold Company (now known as “Newmont USA Limited”) and Shawmut Bank Connecticut, National Association relating to Trust No. 1 and a 75% undivided interest in Newmont Gold Company’s refractory gold ore treatment facility. (The front cover of this Exhibit indicates the material differences between such Exhibit and the substantially similar (except for price-related information) entered into on the same date relating to the remaining 25% undivided interest in the facility.) Incorporated by reference to Exhibit 4.2 to Newmont Gold Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 1994.	
		
4	(e)	 	—Trust Indenture and Security Agreement dated as of July 15, 1994, between Shawmut Bank Connecticut, National Association and The First National Bank of Chicago relating to Trust No. 1 and a 75% undivided interest in Newmont Gold Company’s (now known as “Newmont USA Limited”) refractory gold ore treatment facility. (The front cover of this Exhibit indicates the material differences between such Exhibit and the substantially similar (except for price-related information) entered into on the same date relating to the remaining 25% undivided interest in the facility.) Incorporated by reference to Exhibit 4.3 to Newmont Gold Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 1994.	
		
4	(f)	 	—See footnote (1).	
		
10	(a)	 	—Savings Equalization Plan, amended and restated, of Newmont USA Limited, a wholly owned subsidiary of the Registrant, effective January 1, 2005 and dated July 12, 2005. Incorporated by reference to Exhibit 10.1 of Registrant’s Form 8-K filed with the Securities and Exchange Commission on July 18, 2005.	
		
10	(b)	 	—Pension Equalization Plan, amended and restated, of Newmont USA Limited, a wholly owned subsidiary of the Registrant, effective January 1, 2005 and dated July 12, 2005. Incorporated by referenced to Exhibit 10.2 of Registrant’s Form 8-K filed with the Securities and Exchange Commission on July 18, 2005.	
		
10	(c)	 	—1996 Employees Stock Plan amended and restated effective as of March 17, 1999. Incorporated by reference to Exhibit 10(d) to Newmont Mining Corporation’s Annual Report on Form 10-K for the year ended December 31, 1998.	
		
10	(d)	 	—1999 Employees Stock Plan. Incorporated by reference to Exhibit 10(e) to Newmont Mining Corporation’s Annual Report on Form 10-K for the year ended December 31, 1998.	
		
10	(e)	 	—2005 Stock Incentive Plan, amended and restated effective October 26, 2005. Incorporated by reference to Exhibit 10.1 of Registrant’s Form 8-K filed with the Securities and Exchange Commission on October 31, 2005.	
		
10	(f)	 	—Form of Award Agreement used for Executive Officers to grant stock options pursuant to Registrant’s 1996 Employees Stock Plan. Incorporated herein by reference to Exhibit 99.2 of Registrant’s Form 8-K filed with the Securities and Exchange Commission on December 13, 2004.	
 
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Table of Contents

Exhibit
Number	 	 	Description	
		
10	(g)	 	—Form of Award Agreement used for Executive Officers to grant stock options pursuant to Registrant’s 1999 Employees Stock Plan. Incorporated herein by reference to Exhibit 10.1 of Registrant’s Form 8-K filed with the Securities and Exchange Commission on March 2, 2005.	
		
10	(h)	 	—Form of Award Agreement used for Executive Officers to grant restricted stock pursuant to Registrant’s 1999 Employees Stock Plan. Incorporated herein by reference to Exhibit 10.1 of Registrant’s Form 8-K filed with the Securities and Exchange Commission on March 2, 2005.	
		
10	(i)	 	—Form of Award Agreement used for Executive Officers to grant restricted stock units pursuant to Registrant’s 1999 Employees Stock Plan. Incorporated herein by reference to Exhibit 10.2 of Registrant’s Form 8-K filed with the Securities and Exchange Commission on March 2, 2005.	
		
10	(j)	 	—Form of Award Agreement used for Executive Officers to grant stock options pursuant to Registrant’s 2005 Stock Incentive Plan. Incorporated herein by reference to Exhibit 10.2 of Registrant’s Form 8-K filed with the Securities and Exchange Commission on October 31, 2005.	
		
10	(k)	 	—Form of Award Agreement used for Executive Officers to grant restricted stock pursuant to Registrant’s 2005 Stock Incentive Plan. Incorporated herein by reference to Exhibit 10.3 of Registrant’s Form 8-K filed with the Securities and Exchange Commission on October 31, 2005.	
		
10	(l)	 	—Form of Award Agreement used for Executive Officers to grant restricted stock units pursuant to Registrant’s 2005 Stock Incentive Plan. Incorporated herein by reference to Exhibit 10.1 of Registrant’s Form 8-K filed with the Securities and Exchange Commission on March 1, 2006.	
		
10	(m)	 	—Form of Award Agreement used for non-employee directors to grant director stock units pursuant to the 2005 Stock Incentive Plan. Incorporated herein by reference to Exhibit 10.1 of Registrant’s Form 8-K filed with the Securities and Exchange Commission on June 17, 2005.	
		
10	(n)	 	—Annual Incentive Compensation Payroll Practice of the Registrant, amended and restated effective January 1, 2006. Incorporated by reference to Exhibit 10.1 to Registrant’s Form 10-Q for the period March 30, 2006, filed with the Securities and Exchange Commission on April 28, 2006.	
		
10	(o)	 	—Employee Performance Incentive Compensation Payroll Practice of Registrant, amended and restated effective January 1, 2006. Incorporated herein by reference to Exhibit 10.2 to Registrant’s Annual Report on Form 10-K for the period December 31, 2006, filed with the Securities and Exchange Commission on April 28, 2006.	
		
10	(p)	 	—Amended and Restated Officers’ Death Benefit Plan effective January 1, 2004 of Newmont USA Limited, a wholly owned subsidiary of Registrant. Incorporated herein by reference to Exhibit 10.1 to Registrant’s Form 8-K filed with the Securities and Exchange Commission on December 22, 2004.	
		
10	(q)	 	—Amended and Restated Executive Change of Control Plan effective January 1, 2004 of Newmont USA Limited, a wholly owned subsidiary of Registrant. Incorporated herein by reference to Exhibit 10.2 of Registrant’s Form 8-K filed with the Securities and Exchange Commission on December 22, 2004.	
		
10	(r)	 	—Amendment One to the Executive Change of Control Plan effective January 1, 2006 of Newmont USA Limited, a wholly owned subsidiary of Registrant, filed herewith.	
		
10	(s)	 	—Newmont Mining Corporation 2000 Non-Employee Directors Stock Plan, as Amended and Restated as of May 17, 2000. Incorporated by reference to Exhibit 10 to Newmont Mining Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2000.	
 
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Table of Contents

Exhibit
Number	 	 	Description	
		
10	(t)	 	—Agreement dated September 15, 1999, among Newmont Mining Corporation, Newmont Gold Company and Bruce D. Hansen. Incorporated by reference to Exhibit 10(a) to Newmont Mining Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, 1999.	
		
10	(u)	 	—Amendment to Employment Agreement effective July 28, 2005 between Newmont Mining Corporation and Bruce D. Hansen. Incorporated by reference to Exhibit 10.1 to Registrant’s Quarterly Report on 10-Q for the period June 30, 2005, filed with the Securities and Exchange Commission on August 1, 2005.	
		
10	(v)	 	—Transitional Consulting Agreement effective November 17, 2006 between Newmont USA Limited and Bruce Hansen filed herewith.	
		
10	(w)	 	—Severance Release and Waiver effective November 17, 2006 between Newmont USA Limited and Bruce Hansen, filed herewith.	
		
10	(x)	 	—Letter Agreement dated May 6, 1993, between Newmont Gold Company and Wayne W. Murdy. Incorporated by reference to Exhibit 10 to Newmont Gold Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 1993.	
		
10	(y)	 	—Letter Agreement dated March 23, 2001, between Wayne W. Murdy and Newmont Mining Corporation. Incorporated by reference as Exhibit 10(v) to Newmont Mining Corporation’s Annual Report on Form 10-K for the year ended December 31, 2000.	
		
10	(z)	 	—Amendment to Employment Agreement effective July 28, 2005 between Newmont Mining Corporation and Wayne W. Murdy. Incorporated by reference to Exhibit 10.2 to Registrant’s Quarterly Report on 10-Q, for the period June 30, 2005, filed with the Securities and Exchange Commission on August 1, 2005.	
		
10	(aa)	 	—Termination of Employment Agreement effective November 10, 2006 between Newmont Mining Corporation and Wayne W. Murdy, filed herewith.	
		
10	(bb)	 	—Employment Agreement effective, as of February 16, 2002, between Newmont Global Employment Limited Partnership and Pierre Lassonde. Incorporated by reference to Exhibit 10(a) to Newmont Mining Corporation’s Quarterly Report on Form 10-Q for period ended June 30, 2002, filed August 14, 2002.	
		
10	(cc)	 	—Amendment of Employment Agreement effective, as of February 16, 2004, between Newmont Global Employment Limited Partnership and Pierre Lassonde. Incorporated by reference to Exhibit 10(q) to Newmont Mining Corporation’s Annual Report on Form 10-K for the year ended December 31, 2003.	
		
10	(dd)	 	—Amendment to Employment Agreement effective July 28, 2005 between Newmont Mining Corporation and Pierre Lassonde. Incorporated by reference to Exhibit 10.3 to Registrant’s Quarterly Report on Form 10-Q for the period June 30, 2005, filed with the Securities and Exchange Commission on August 1, 2005.	
		
10	(ee)	 	—Employment Agreement effective January 1, 2007 between Newmont Global Employment Limited Partnership and Pierre Lassonde, filed herewith.	
		
10	(ff)	 	—Consulting Agreement effective January 1, 2007 between Newmont Mining Corporation and Pierre Lassonde, filed herewith.	
		
10	(gg)	 	—Consulting Agreement effective as of April 1, 2002, between Newmont Capital Limited and Seymour Schulich. Incorporated by reference as Exhibit 10(x) to Newmont Mining Corporation’s Annual Report on Form 10-K for the year ended December 31, 2002.	
 
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Table of Contents

Exhibit
Number	 	Description	
		
10(hh)	 	—Amendment to Consulting Agreement effective as of April 1, 2005 and dated December 7, 2004, between Newmont Capital Limited and Seymour Schulich. Incorporated by reference as Exhibit 99.1 to Registrant’s Form 8-K filed with the Securities and Exchange Commission on December 13, 2004.	
		
10(ii)	 	—Amendment No. 2 to Consulting Agreement effective July 28, 2005, between Newmont Capital Limited and Seymour Schulich. Incorporated by reference to Exhibit 10.5 to Registrant’s Form 10-Q for the period June 30, 2005, filed with the Securities and Exchange Commission on August 1, 2005.	
		
10(jj)	 	—Amendment to Consulting Agreement dated October 31, 2005, and effective as of April 26, 2006, between Newmont Capital Limited and Seymour Schulich. Incorporated by reference as Exhibit 10.5 to Registrant’s Form 8-K filed with the Securities and Exchange Commission on October 31, 2005.	
		
10(kk)	 	—Credit Agreement dated as of July 30, 2004, as amended and restated as of July 28, 2005, among Newmont Mining Corporation, Newmont USA Limited, JP Morgan Chase Bank, N.A., Australia and New Zealand Banking Group Limited, Banco Bilbao Vizcaya SA, Bank of Montreal Chicago Branch, The Bank of New York, The Bank of Nova Scotia, The Bank of Tokyo-Mitsubishi, Ltd., BNP Paribas, Calyon New York Branch, CIBC Inc., Citicorp USA Inc., Commonwealth Bank of Australia New York Branch, Deutsche Bank AG New York Branch, HSBC Bank USA, National Association, Mizuho Corporate Bank, Ltd., Royal Bank of Canada, The Royal Bank of Scotland, plc, Societe Generale, Sumitomo Mitsui Banking Corporation, UBS Loan Finance LLC, US Bank N.A., Wells Fargo Bank, N.A. and Westbag New York Branch. Incorporated by reference as Exhibit 10.11 to Registrant’s Quarterly Report on Form 10-Q for the period June 30, 2005, filed with the Securities and Exchange Commission on August 1, 2005.	
		
10(ll)	 	—Canadian Oil Sands Trust (“COST”) Agreement as of May 10, 2004 between Pierre Lassonde and Newmont Mining Corporation. Incorporated by reference as Exhibit 10(w) to Registrant’s Annual Report on Form 10-K for the period December 31, 2004, filed with the Securities and Exchange Commission on March 15, 2005.	
		
10(mm)	 	—Canadian Oil Sands Trust (“COST”) Agreement as of May 10, 2004 between Seymour Schulich and Newmont Mining Corporation. Incorporated by reference as Exhibit 10(x) to Registrant’s Annual Report on Form 10-K for the period December 31, 2004, filed with the Securities and Exchange Commission on March 15, 2005.	
		
10(nn)	 	—Summary of Non-Employee Director Compensation and Benefits. Incorporated by reference as Exhibit 10.2 to Registrant’s for 8-K filed with the Securities and Exchange Commission on March 1, 2006.	
		
10(oo)	 	—Sale Agreement dated June 23, 2005 by and among Newmont Golden Grove Operations Pty Ltd, Newmont Wownaminya Pty Ltd, Newmont Australia Limited, Oxiana Golden Grove Pty Ltd and Oxiana Limited. Incorporated by reference to Exhibit 10.1 to Newmont Mining Corporation’s current report on Form 8-K filed with the Securities and Exchange Commission on June 29, 2005.	
		
12.1	 	—Statement re Computation of Ratio of Earnings to Fixed Charges and Preferred Dividends, filed herewith.	
		
12.2	 	—Statement re Computation of Ratio of Earnings to Fixed Charges, filed herewith.	
		
21	 	—Subsidiaries of Newmont Mining Corporation, filed herewith.	
		
23.1	 	—Consent of PricewaterhouseCoopers LLP, filed herewith.	
		
24	 	—Power of Attorney, filed herewith.	
 
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Table of Contents

Exhibit
Number	  	Description	
		
31.1	  	—Certification Pursuant to Rule 13A-14 or 15D-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 15D-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 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, furnished herewith.	
		
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, furnished herewith.	

(1)	In reliance upon Item 601(b)(4)(iii) of Regulation S-K, various instruments defining the rights of holders of long-term debt of the Newmont Mining Corporation are not being filed herewith because the total of securities authorized under each such instrument does not exceed 10% of the total assets of Newmont Mining Corporation. Newmont Mining Corporation hereby agrees to furnish a copy of any such instrument to the Commission upon request.	
 
E-6
 
Exhibit 10(r)
AMENDMENT ONE
TO THE
EXECUTIVE CHANGE OF CONTROL PLAN OF NEWMONT
WHEREAS, the Executive Change of Control Plan of Newmont (the “Plan”) was adopted by Newmont USA Limited (the “Plan Sponsor”) effective January 1, 2004;
WHEREAS, the Plan Sponsor wishes to amend the Plan effective January 1, 2006; and
WHEREAS, Section 10.02 of the Plan authorizes the Plan Sponsor to amend the Plan from time to time;
NOW, THEREFORE, the Plan is hereby amended by adding Section 3.06, “Payment Due at the Time of Death,” is hereby added as follows:
Section 3.06.    Payment Due at the Time of Death .    In the event a Salaried Employee who is entitled to benefits pursuant to the Plan dies prior to the full payment of such benefits, any unpaid benefits shall be paid to his beneficiary designated to receive life insurance proceeds under the Group Life and Accidental Death and Dismemberment Plan of Newmont. In the event there is no such beneficiary designated, any amounts owed to the deceased Salaried Employee pursuant to the Plan shall be paid to his estate.
The Administration Committee or its delegate is hereby authorized to take all action necessary to implement this amendment.
The foregoing was adopted this 27 day of December, 2006.

NEWMONT USA LIMITED	
	
/s/ Darla R. Caudle	
Title: Senior Vice President,
Human Resources	
 
Exhibit 10(v)
TRANSITIONAL CONSULTING AGREEMENT
This Transitional Consulting Agreement (this “Agreement”) is entered into and effective as of November 17, 2006 (the “Effective Date”) by and between NEWMONT USA LIMITED, a Delaware corporation with offices at 1700 Lincoln Street, Denver, Colorado 80203 (“Newmont”), and Bruce Hansen (“Contractor”).
In consideration of the mutual promises and conditions contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
 
1.	TERM	
This Agreement shall be effective from the Effective Date to May 16, 2007 (the “Term”). The Term may only be extended by a written agreement between the parties.
 
2.	STATEMENT OF SERVICES	
During the Term, Contractor shall provide consultation and transitional services to Newmont (“Services”), as requested by Newmont. Contractor shall not have an office with Newmont, nor shall Contractor have daily duties or responsibilities. Contractor shall be available to Newmont during the Term of this Agreement for Services, as determined in the sole discretion of Newmont.
 
3.	COMPENSATION FOR SERVICES	
As compensation for the performance of the Services hereunder, Newmont shall pay Contractor a lump sum amount of $458,626.97 in 2007, and no later than January 15, 2007.
 
4.	OWNERSHIP AND SUBMISSION OF INFORMATION AND RECORDS	
All records, reports, data, work product, and other information, and all copyrightable subject matter, and all copies of any of the foregoing and notes related thereto, prepared, generated, researched, developed, compiled, or obtained from any source whatsoever in performance of the Services, including but not limited to drawings, databases, deliverables, sketches, specifications, tracings, diagrams, evaluations, calculations, data books, schedules, operating instructions, and requisitions (the “Data”) shall remain the sole property of Newmont.
This Section shall survive the expiration or termination of this Agreement.

5.	NONDISCLOSURE/NON-USE	
A. Contractor shall not disclose to third parties or use for purposes other than performing the Services, any information that relates to the technical, legal, or business affairs, interests or activities of Newmont or its Affiliates which was provided to or otherwise made available to Contractor by Newmont or any of its Affiliates in connection with entering into this Agreement or the performance of the Services (collectively, “Confidential Information”), without the prior written consent of Newmont, unless said information:
(i) is, or shall have been, in the possession of Contractor and not subject to a confidentiality obligation prior to Contractor’s acquisition thereof in connection with the performance of the Services;
(ii) through no act or omission of Contractor, becomes published or otherwise available to the public under circumstances such that the public may utilize the same without any direct or indirect confidentiality obligation to Newmont or its Affiliates; or
(iii) is acquired by Contractor from any third party rightfully in possession of the same and having no direct or indirect confidentiality obligation to Newmont or its Affiliates with respect to the same.
B. As used in this Agreement, an “Affiliate” of Newmont means each and every entity that directly, or indirectly through one or more intermediaries, is controlled by, is under common control with, or controls, the party, with “control” and “controls” meaning the ownership of or exercise of voting control or direction over shares, securities or other voting instruments of such entity carrying fifty percent (50%) or more of the unrestricted voting rights attached to all outstanding shares, securities or other voting instruments of such entity, or ownership or exercise of other rights or powers entitling the holder thereof to direct (or to cause the direction of) or to manage the affairs and business of such entity.
C. All Confidential Information shall be delivered to Newmont upon the termination or expiration of this Agreement, or at any other time upon Newmont’s request. Contractor shall not retain copies of Confidential Information without Newmont’s express written authorization.
D. This Section shall survive the expiration or termination of this Agreement.
 
6.	STATUS OF CONTRACTOR; TAXES	
A. Contractor shall perform the Services as an independent contractor in accordance with its own methods, the terms of this Agreement, and applicable laws and regulations. Contractor shall not be deemed for any purpose to be an employee, agent, servant, worker, or representative of Newmont and shall not have authority to enter into agreements on behalf of Newmont or otherwise bind Newmont in any manner. Contractor shall not be eligible for any retirement plan, insurance program, or any other employee or social benefits provided to employees of Newmont. CONTRACTOR IS NOT ENTITLED TO ANY BENEFITS ON ACCOUNT OF
 
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OCCUPATIONAL ACCIDENTS NOR TO ANY OTHER WORKERS’ COMPENSATION, LABOR RIGHTS BENEFITS, OR SIMILAR BENEFITS PROVIDED BY NEWMONT TO ITS EMPLOYEES. It is not the intent of the parties to create, nor shall this Agreement be construed as creating, a partnership, joint venture, employment relationship, agency relationship, or association, or to render the parties liable as partners, co-venturers, or principals.
B. CONTRACTOR SHALL BE RESPONSIBLE FOR ALL INCOME AND OTHER TAXES LEVIED UPON THE REMUNERATIONS EARNED HEREUNDER. For purposes of the foregoing sentence, Contractor hereby accepts any and all withholdings that Newmont may be obliged to make, pursuant to applicable laws, from payments to Contractor as compensation for the Services. Contractor represents that Contractor is fully aware of the applicable tax regulations currently in force and undertakes to comply with the same, and accepts that if during the Term such tax regulations are amended, complemented, or substituted, Contractor shall comply with the new provisions so enacted.
 
7.	NO ASSIGNMENT	
This Agreement is a contract for Contractor’s unique services and, therefore, Contractor may not assign or subcontract this Agreement to any third.
 
8.	ENTIRE AGREEMENT; SEVERABILITY	
This Agreement constitutes the complete and entire agreement and understanding between the parties with respect to the subject matter hereof and supersedes, merges, and voids all negotiations, prior discussions, and prior agreements and understandings, whether written or oral, relating to the subject matter hereof. This Agreement may not be altered or amended except by a written document executed by each party. Should any clause or provision of this Agreement be held or deemed unenforceable or illegal by any court or other final authority, the remaining clauses and provisions of this Agreement shall survive and be fully enforceable as if the unenforceable or illegal provision was never included herein.
 
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9.	GOVERNING LAW	
This Agreement shall be governed by and interpreted in accordance with the laws of the State of Colorado.

Newmont USA Limited	  		  	Bruce Hansen	
(“Newmont”)	  		  	(“Contractor”)	

By:	  	/s/ Sharon E. Thomas	  		  		 	/s/ Bruce D. Hansen	
Title:	  	Vice President and Secretary	  		  		 		
Date:	  	November 17, 2006	  		  	Date:	 	November 17, 2006	
 
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Exhibit 10(w)
SEVERANCE RELEASE AND WAIVER
I. RECITALS
A. This AGREEMENT , which is effective on the EFFECTIVE DATE , is by and between Newmont USA Limited and Bruce Hansen (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 Severance 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 Age Discrimination in Employment Act of 1967, as amended; claims under 42 U.S.C. § 1981, § 1981a, § 1983, § 1985, or § 1988; claims under the Family and Medical Leave Act of 1993; claims under the Americans with Disabilities Act of 1990, as amended; claims under the Fair Labor Standards Act of 1938, 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.
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 is now or may subsequently come into the public domain 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. “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 Director of Employee Services, Newmont, 1700 Lincoln Street, Denver, CO 80203; and (4) any CLAIMS by EMPLOYEE have been withdrawn and dismissed with prejudice.
E. “EMPLOYEE” means Bruce Hansen.
F. “NEWMONT” means Newmont USA 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.
G. “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.
III. COVENANTS
A. Separation from Employment . EMPLOYEE shall be separated from employment with NEWMONT , effective November 20, 2006 (“Separation Date”).
B. Severance Benefits to EMPLOYEE . Contingent upon execution of this AGREEMENT on or after November 17, 2006, without revocation, NEWMONT will: 1) provide to EMPLOYEE a payment in the gross amount of $1,296,891.21, less all applicable local, state, and federal withholding taxes, and benefits pursuant to the provisions of the Severance Plan of Newmont, and; 2) Newmont shall vest any unvested restricted stock granted to EMPLOYEE , as of November 20, 2006. The amount stated in section III.B.(1) of this paragraph shall be paid within thirty (30) days after the EFFECTIVE DATE of this AGREEMENT , and the vesting of the unvested restricted stock stated in section III.B.(2) of this paragraph shall be done as soon as practicable after the EFFECTIVE DATE of this AGREEMENT . For the vesting of restricted stock stated in section III.B.(2) of this paragraph, NEWMONT shall issue EMPLOYEE a form 1099 for tax purposes.
C. No Other Payments . Payment of all sums set forth in this AGREEMENT shall discharge all obligations of NEWMONT to EMPLOYEE for anything related to EMPLOYEE’S employment with NEWMONT and the termination thereof, and 
 
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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 the matters identified in section III.H of this AGREEMENT .
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 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 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 , provided, however, that use or possession of COMPANY INFORMATION pursuant to and in accordance with the terms of the separate Transitional Consulting Agreement shall not be a breach of this AGREEMENT .
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 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 date of execution of this AGREEMENT , excluding claims or rights listed in section III.H of this AGREEMENT . 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 knowingly and voluntarily waives his or her right to seek individual relief on his or her own behalf.
F. 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 .
 
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G. Confidentiality . EMPLOYEE and NEWMONT agree that except as otherwise specifically provided in this AGREEMENT , they will not disclose (in whole or in part) any of the terms or provisions of this AGREEMENT , or characterize any of the terms or provisions of this AGREEMENT , to any other person or entity. It shall not be a breach of this AGREEMENT for NEWMONT to disclose the terms and provisions of this AGREEMENT to its officers, directors, and employees with a need to know, for EMPLOYEE to disclose the terms and provisions of this AGREEMENT to his spouse, or for either party to disclose the terms and provisions of this AGREEMENT to their attorneys, accountants, tax advisors, or as compelled by law.
H. Exclusions from Release. Notwithstanding any language in this AGREEMENT to the contrary, the waiver in section III.C and the release of claims in section III.E by EMPLOYEE shall not apply to: 1) any vested rights pursuant to any applicable pension or retirement savings plan of NEWMONT ; 2) any rights to indemnification, insurance coverage, or payment of defense costs to which EMPLOYEE may be entitled as a result of EMPLOYEE’S status as a former officer of NEWMONT; 3) EMPLOYEE’S rights as an owner of shares of stock in NEWMONT and EMPLOYEE’S rights with respect to any stock options which are vested as of the Separation Date; and 4) EMPLOYEE’S rights to continuation of health insurance coverage pursuant to COBRA. Any stock options are governed by the applicable award agreement.
I. Release of Claims By NEWMONT . As a material inducement to EMPLOYEE to enter into this AGREEMENT, NEWMONT , as a free and voluntary act, hereby forever releases and discharges EMPLOYEE from, and covenants not to sue EMPLOYEE for, CLAIMS which NEWMONT might have or assert against EMPLOYEE (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 date of execution of this AGREEMENT , provided, however, that Newmont does not release any rights or claims related to or arising out of the following two pending civil actions to which EMPLOYEE is a party: UFCW Local 880-Retail Food Employers Joint Pension Fund, Pompano Beach Police & Firefighters’ Retirement System, and Kamel Aoudid v. Newmont Mining Corp., Wayne W. Murdy, Pierre Lassonde, Bruce D. Hansen, David H. Francisco, Thomas L. Enos, Russell Ball and Robert J. Gallagher , Consolidated Civil Action No. 05-CV-1046-MSK-BNB, In the United States District Court for the District of Colorado: Jack G. Blaz, Derivatively on Behalf of Newmont Mining Corporation, v. Wayne Murdy, Bruce D. Hansen, Pierre Lassonde, Glen A. Barton, Vincent A. Calarco, Michael S. Hamson, Leo I. Higdon, Jr., Robert J. Miller, Robin A. Plumbridge, John B. Prescott, Michael K. Reilly, Donald C. Roth, Seymour Schulich, and James V. Taranik and Newmont Mining Corporation (nominal defendant) , Civil Action No. 05-CV-01084-WDM-MJW, In the United States District Court for the District of Colorado.
 
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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 shall make himself or herself 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. Unless EMPLOYEE’S assistance under this section IV.A is provided during the term of the separate Transitional Consulting Agreement between the parties, EMPLOYEE shall be compensated at the rate of $250 per hour for such assistance, and EMPLOYEE’S obligation to provide such assistance shall be limited to ten hours per week, unless otherwise agreed. 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 with respect to EMPLOYEE’S employment with NEWMONT and the termination thereof. This AGREEMENT constitutes the entire agreement between the parties, with respect to EMPLOYEE’S employment with NEWMONT and the termination thereof, 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 .
 
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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 forty-five (45) 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 forty-five (45) 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 Director of Employee Services, Newmont, 1700 Lincoln Street, Denver, CO 80203, 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/ Sharon E. Thomas	 		 	/s/ Bruce D. Hansen	
Title:	 	Vice President and Secretary	 		 		
Date:	 	November 17, 2006	 		 	Date: November 17, 2006	
 
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Exhibit 10(aa)
TERMINATION OF EMPLOYMENT AGREEMENT
This Termination of Employment Agreement (“Termination Agreement”) is made effective as of November 10, 2006 (the “Effective Date”), by and between Newmont Mining Corporation, a Delaware corporation (“Newmont”) and Wayne W. Murdy (“Executive”).
I.   RECITALS
A.    Newmont, Newmont Gold Company and Executive entered into an Employment Agreement having an effective date of February 1, 1999 (“Agreement”).
B.    Newmont, Newmont Gold Company and Executive amended the Agreement July 28, 2005 and the Agreement together with the July 28, 2005 amendment of the Agreement shall be referred to collectively as the “Agreement” hereafter.
C.    As a result of the Agreement, Executive was not eligible to participate in the Executive Change of Control Plan of Newmont.
D.    In consideration of the promises contained in this Termination Agreement, Newmont and Executive agree as follows:
II.   COVENANTS
1.     Consideration .  Newmont and Executive agree to terminate the Agreement as of the Effective Date. In exchange, Executive shall be eligible to participate in the Executive Change of Control Plan of Newmont, pursuant to the terms of such plan and any amendments to such plan.
2.     Entire Agreement .  This Termination Agreement supersedes all prior written and verbal promises and agreements between the parties regarding the subject matter hereof. This Termination 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 Termination Agreement.

NEWMONT EXECUTIVE	 		 		 	EXECUTIVE	
					
By:	 	/s/ Sharon E. Thomas	 		 		 	/s/ Wayne W. Murdy	
	 	Sharon E. Thomas
Vice President and Secretary
Date: December 15, 2006	 		 		 	Wayne W. Murdy
Date: December 15, 2006	
 
Exhibit 10(ee)
EMPLOYMENT AGREEMENT
This Employment Agreement (this “Agreement”) is entered into and effective as of January 1, 2007, (the “Effective Date”) by and between Newmont Global Employment Limited Partnership, a Bermuda Exempted Partnership, having its principal executive offices in Denver, Colorado (“Newmont”), and Pierre Lassonde (“Executive”).
I.  RECITALS
A.    Newmont and Executive entered into an Employment Agreement having an effective date of February 16, 2003, and Newmont and Executive subsequently amended the February 16, 2003 Employment Agreement on February 16, 2004 and July 28, 2005.
B.    Newmont and Executive desire to terminate the February 16, 2003 Employment Agreement and the February 16, 2004 and July 28, 2005 amendments of such Employment Agreement.
II.  COVENANTS
In consideration of the mutual promises and conditions contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
A.     Termination of Prior Employment Agreement :  Newmont and Executive hereby agree to the termination of the February 16, 2003 Employment Agreement and the February 16, 2004 and July 28, 2005 amendments of such Employment Agreement, as of the Effective Date of this Agreement.
B.     Term of Employment and Secondment :  This Agreement shall be effective from the Effective Date to April 30, 2007 (the “Term”). The Term may only be extended by a written agreement between the parties. The Executive acknowledges and agrees that Newmont, in its sole discretion, may second the Executive to the Company’s indirect parent Corporation, Newmont Mining Corporation, a Delaware Corporation, and/or Newmont’s affiliate, Newmont USA Limited, and/or to any other affiliate of Newmont Mining Corporation, with or without a written secondment agreement, for all of any part of the term of this Agreement. In the event of such secondment, the Executive will operate as a seconded employee of seconding affiliate.
C.     Position and Duties :  The Executive shall serve as Vice Chairman of Newmont Mining Corporation and shall perform duties subject to the overall policies and directions of Newmont Mining Corporation’s Chief Executive Officer. In performing his duties hereunder, the Executive shall comply with all laws, regulations, decrees, codes, ordinances, resolutions, and other acts of any governmental authority, including without limitation those addressing the preservation of health, safety, and the environment, the U.S. Foreign Corrupt Practices Act (which prohibits the direct or indirect delivery of anything of value to government officials to secure an improper advantage), and other laws that are applicable to this Agreement or the Executive’s performance of his duties hereunder.
D.     Prohibited Competitive Activities :  As of the Effective Date, Executive shall not directly or indirectly render services of a business or professional, or commercial nature to any person or firm other than for Newmont or any of its affiliates, whether for compensation or otherwise, without the prior express authorization of the Chief Executive Officer of Newmont.
 
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E.     Compensation and Benefits :
1.     Salary :  Newmont shall pay the Executive a base salary at a monthly rate of twenty-thousand eight-hundred and thirty-four United States dollars (U.S. $20,834), converted into Canadian dollars. Such salary shall be earned and shall be payable in periodic installments in accordance with Newmont’s general payroll practices. Executive’s monthly salary shall be reduced by standard withholding taxes and other legally authorized deductions.
2.     Health and Welfare Benefit Plans :  Executive shall be entitled to participate in health, dental, vision and disability plans maintained by Newmont USA Limited, or plans of any of its affiliates during the Term and following the Term pursuant to the terms of the applicable plans.
3.     Stock and Bonus Pay Practices :  Executive shall not participate in any cash bonus or stock bonus practices of Newmont USA Limited, or any of its affiliates during the Term, including the Annual Incentive Compensation Practice, Employee Performance Incentive Compensation Payroll Practice or stock option grant practice.
4.     Executive Change of Control Plan :  Executive shall not participate in the Executive Change of Control Plan of Newmont.
5.     Severance Plan :  Executive shall not participate in the Severance Plan of Newmont.
6.     Life Insurance :  Executive is entitled to participate in the Officers’ Death Benefit Plan of Newmont, pursuant to the terms of such plan.
7.     Retirement Benefits :  Executive shall continue to participate in the International Retirement Plan during the Term.
8.     Club Memberships :  Newmont will provide reimbursement to Executive for business club memberships such as the University Club or the Brown Palace Club.
9.     Expenses :  Newmont shall reimburse Executive for reasonable expenses for parking at Newmont’s business offices in Denver, Colorado, cellular telephone usage, travel, meals, lodging and similar items incurred in the conduct of the business of Newmont and its affiliates. Newmont shall reimburse such expenses in accordance with Newmont’s general expense reimbursement policies.
10.     Office Space and Assistance :  Newmont shall provide Executive with office space as well as access to secretarial assistance.
11.     Tax Preparation Services :  Newmont shall not reimburse Executive or pay for the costs of any tax preparation services for the 2007 tax year.
F.     Termination of Employment By Company :  The Company may terminate the Executive’s employment for Cause, as defined below. Cause shall mean:
1.    the willful and continued failure of the Executive to perform substantially the Executive’s duties with the Company or one of its affiliated entities (other than any such failure resulting from incapacity due to physical or mental illness) or his failure to follow policies, directions or the Company’s code of conduct, after a written demand for substantial performance is delivered to the Executive by the Board of its delegate. Such written demand shall identify the manner in which the Board or its delegate believes that the Executive has not substantially performed the Executive’s duties. Notwithstanding the foregoing, written demand for substantial performance shall not be required if the Board or its delegate determines that immediate action, including termination of the Executive, is necessary to avoid potential injury or harm to the Company or any person; or
2.    the engaging by the Executive in illegal conduct or gross negligence or willful misconduct which is potentially injurious to the Company or any affiliated entity; provided that if the Executive acts in accordance with an authorized written opinion of the Company’s or an affiliated entity’s legal counsel, such action will not constitute “Cause” under this definition; or
 
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3.    any dishonest or fraudulent activity by the Executive or the reasonable belief by the Company of the Executive’s breach of any contract, agreement or representation with the Company or an affiliated entity.
In the event the Company determines that Cause exists and the Company terminates executive’s employment, the Company shall have no contractual payment or other contractual obligations to Executive pursuant to the terms of this Agreement.
G.     Termination of Employment by Executive :  Executive may terminate the Executive’s employment with the Company at any time for any reason. In the event the Executive does terminate employment with the Company for any reason, Company shall have no contractual payment or other contractual obligations to Executive pursuant to the terms of this Agreement.
H.     Resignation, Retirement or End of Term :  On and as of the date of the termination of employment of Executive, either at the initiation of the Executive or the Company for any reason, or upon the end of the Term, the Executive shall resign from his position as an employee of the Company and from all other positions he holds with the Company or with third parties at the request of the Company; provided, however, that the Executive’s position as director of Newmont Mining Corporation shall not be subject to this requirement and the Executive shall remain in such position subject to the normal terms and conditions of such directorship.
I.     Exclusive Remedy :  Except for the payments and benefits provided in this Agreement, upon expiration of the Term or termination of employment for any reason, the Executive shall have no other claims against, or be entitled to no other payments or benefits from the Company pursuant to the Company’s policies, plans or other arrangements.
J.     Confidential Information :  During and after the Term of employment, the Executive shall not use or disclose any secret, confidential or proprietary information, knowledge or data relating to the Company or any of its affiliates, present and future, and their respective businesses, which were obtained by the Executive during his employment with the Company, unless such information is within the public knowledge at the time of the disclosure by the Executive (other than by acts of the Executive or his representatives in violation of this Agreement). However, nothing in this Agreement shall restrict or preclude Executive from, or otherwise influence Executive in, testifying fully and truthfully in legal or administrative proceedings against Company, as required by law or formal legal process.
K.     Non-Compete :  Other than performing duties for the Company and any of its affiliates during the Term and for a period of one (1) year immediately following Executive’s separation of employment from Company, the Executive shall not compete, directly or indirectly, with any business then being conducted or developed by the Company or any of its affiliates without the prior written consent of the Company and the applicable Board. For purposes of this provision, the term “compete” shall mean the Executive rendering any advice or service, whether in association with or as an employee, stockholder, director, officer, consultant, independent contractor, partner, co-venturer, or investor (excluding any interest of Executive through investment of up to an aggregate of 3% in the equity or debt securities or equivalent partnership or other equity interest of any entity required to register under Section 12(g) of the Securities Exchange Act of 1934) to or on behalf of any organization conducting any business then competitive to that of the Company or any of its affiliates.
L.     Relief for Non-Compete :  The executive acknowledges that there is no adequate remedy at law for the breach of his obligations under paragraph II.K of this Agreement, and that the Company and/or its affiliates will suffer irreparable harm as a result of any such breach. Therefore, Executive agrees that the Company and/or its affiliates, as applicable, shall be entitled to equitable relief, including temporary and permanent injunctive relief without the obligation of posting bond (cash or otherwise), in the event of actual or threatened breach by the Executive of paragraph II.K.
 
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M.     Successorship :  This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns and any such successor or assignee shall be deemed substituted for the Company under the terms of this Agreement for all purposes. As used herein, “successor” and “assignee” shall mean any person, firm, corporation, or other business entity (i) which, at any time, whether by purchase, merger, or otherwise, directly or indirectly acquires the stock of the Company, or (ii) if the successor or assignee is an affiliate of the Company, a general reorganization of the corporate structure of the Company and its affiliates.
N.     Governing Law :  This Agreement shall be governed by and interpreted in accordance with the laws of the Province of Ontario, Canada.
O.     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.
P.     Waiver or Breach :  No waiver or any breach of any term or provision of this Agreement shall be construed to be, nor shall be, a waiver of any other breach of this Agreement. No waiver shall be binding unless in writing and signed by the party waiving the breach.
Q.     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 the Company shall modify or otherwise affect the terms and provisions of this Agreement.
R.     No Assignment :  Executive acknowledges that his services are unique and personal. Accordingly, the Executive may not assign his rights or delegate his duties or obligations under this Agreement to any person or entity; provided, however that payments may be made to the Executive’s estate or beneficiaries if any such payments are due following death of Executive.
S.     Construction :  Each party has cooperated in the drafting and preparation of this Agreement. Any construction of this Agreement shall not be made against any party on the basis that the party was the drafter.
T.     Notices :  Notices and all other communications provided for in this Agreement shall be in writing and shall be delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid, or sent by facsimile or prepaid overnight courier to the parties at the addresses set for below.

Company :	  	Newmont Global Employment Limited Partnership
1700 Lincoln Street
Denver, CO 80203
Attn: Chief Executive Officer
Fax: (303) 837-6100	
		
Executive :	  	Mr. Pierre Lassonde
9 Jackes Avenue, Suite 201
Toronto, Ontario
M4T 1E2	
 
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U.     Representation :  The Executive represents that he is knowledgeable and sophisticated as to the business matters, including the subject matter of this Agreement, that he has read this Agreement, and that he understands its terms. The Executive acknowledges that prior to assenting to the terms of this Agreement that he has been given a reasonable time to review it, to consult with counsel of his choice, and to negotiate at arm’s length with the Company as to its contents. The language used in this Agreement is the language chosen by the parties to express their mutual intent, and they have entered into this Agreement freely and voluntarily and without pressure or coercion from anyone.

Newmont Global Employment	 		 	Pierre Lassonde	
Limited Partnership	 		 		
(“Newmont”)	 		 	(“Executive”)	
				
By:	 	/s/ Sharon E. Thomas	 		 	/s/ Pierre Lassonde	
	 	Title: Vice President, Newmont USA Limited	 		 		 		
	 	Date: February 6, 2007	 		 	Date: February 6, 2007	
 
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Exhibit 10(ff)
CONSULTING AGREEMENT
This Consulting Agreement (this “Agreement”) is entered into and effective as of May 1, 2007 (the “Effective Date”) by and between Newmont Mining Corporation of Canada Limited, a Canada corporation with offices at 20 Eglinton Avenue West, Toronto, Ontario, Canada M4R 1K8 (“Newmont”), and Pierre Lassonde (“Contractor”).
In consideration of the mutual promises and conditions contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
I.  RECITALS
A.    Contractor currently serves on the Board of Directors of Newmont Mining Corporation, a Delaware Corporation (“NMC”). Contractor shall receive compensation consistent with the compensation practices for Directors of the NMC board.
B.    In addition to the services provided to NMC by Contractor in his position as Director of NMC, Contractor possesses certain other business and financial skills and experience which may be beneficial to Newmont and, in relation thereto, Newmont desires to engage Contractor to provide certain consulting services to Newmont.
C.    In consideration of the mutual promises and conditions contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
II.  COVENANTS
A.     TERM :  This Agreement shall be effective from the Effective Date to April 30, 2008, and shall automatically renew in one year increments (“Term”), unless terminated earlier as provided below.
B.     STATEMENT OF SERVICES :  During the Term, Contractor shall provide general merchant banking advice and guidance to Newmont and, upon Newmont’s request, to certain Newmont affiliates, including but not limited to structuring acquisitions and sales properties and equity positions and the development and maintenance of a healthy treasury (“Services”). Contractor shall be available to perform Services on an as-requested basis, for approximately 50% of his working time. In performing his duties hereunder, the Contractor shall comply with all laws, regulations, decrees, codes, ordinances, resolutions, and other acts of any governmental authority, including without limitation those addressing the preservation of health, safety, and the environment, the U.S. Foreign Corrupt Practices Act (which prohibits the direct or indirect delivery of anything of value to government officials to secure an improper advantage), and other laws that are applicable to this Agreement or the Contractor’s performance of his duties hereunder. Contractor shall not have authority to enter into agreements on behalf of Newmont or otherwise bind Newmont in any manner
C.     COMPENSATION FOR SERVICES
1.    As compensation for the performance of the Services hereunder, Newmont shall pay Contractor a monthly amount of twenty-four thousand five-hundred and twenty-five Canadian dollars (Cdn $24,525), payable in arrears in monthly installments.
 
1

2.    Newmont shall provide to Contractor office space in Toronto, Canada and access to secretarial services in such office.
3.    Newmont shall reimburse Contractor for reasonable and necessary expenses incurred in the performance of Services in accordance with Newmont’s general expense reimbursement policies.
D.     OWNERSHIP AND SUBMISSION OF INFORMATION AND RECORDS:   All records, reports, data, work product, and other information, and all copyrightable subject matter, and all copies of any of the foregoing and notes related thereto, prepared, generated, researched, developed, compiled, or obtained from any source whatsoever in performance of the Services, including but not limited to drawings, databases, deliverables, sketches, specifications, tracings, diagrams, evaluations, calculations, data books, schedules, operating instructions, and requisitions (“Data”) shall remain the sole property of Newmont. Upon Newmont’s request, Contractor shall promptly execute and deliver to Newmont any document necessary to transfer legal title in such property to Newmont. Within 15 days after expiration or termination of this Agreement, Contractor shall submit all Data to Newmont without retaining copies thereof, unless written approval to retain copies has been given by Newmont to Contractor. This Section shall survive the expiration or termination of this Agreement.
E.     NONDISCLOSURE/NON-USE
1.    Contractor shall not disclose to third parties or use for purposes other than performing the Services, any information that relates to the technical, legal, or business affairs, interests or activities of Newmont or its Affiliates which was provided to or otherwise made available to Contractor by Newmont or any of its Affiliates in connection with entering into this Agreement or the performance of the Services (collectively, “Confidential Information”), without the prior written consent of Newmont, unless said information:
(a)    is, or shall have been, in the possession of Contractor and not subject to a confidentiality obligation prior to Contractor’s acquisition thereof in connection with the performance of the Services;
(b)    through no act or omission of Contractor, becomes published or otherwise available to the public under circumstances such that the public may utilize the same without any direct or indirect confidentiality obligation to Newmont or its Affiliates; or
(c)    is acquired by Contractor from any third party rightfully in possession of the same and having no direct or indirect confidentiality obligation to Newmont or its Affiliates with respect to the same.
2.    As used in this Agreement, an “Affiliate” of Newmont means each and every entity that directly, or indirectly through one or more intermediaries, is controlled by, is under common control with, or controls, the party, with “control” and “controls” meaning the ownership of or exercise of voting control or direction over shares, securities or other voting instruments of such entity carrying fifty percent (50%) or more of the unrestricted voting rights attached to all outstanding shares, securities or other voting instruments of such entity, or ownership or exercise of other rights or powers entitling the holder thereof to direct (or to cause the direction of) or to manage the affairs and business of such entity.
3.    All Confidential Information shall be delivered to Newmont upon the termination or expiration of this Agreement, or at any other time upon Newmont’s request. Contractor shall not retain copies of Confidential Information without Newmont’s express written authorization.
4.    This Section shall survive the expiration or termination of this Agreement.
F.     STATUS OF CONTRACTOR; TAXES   
1.    Contractor shall perform the Services as an independent contractor in accordance with its own methods, the terms of this Agreement, and applicable laws and regulations. Contractor shall not be deemed for any purpose to be an employee, agent, servant, worker, or representative of Newmont and shall not have
 
2

authority to enter into agreements on behalf of Newmont or otherwise bind Newmont in any manner. Contractor shall not be eligible for any benefits under any retirement plan, insurance program, or any other employee or social benefits provided to employees of Newmont for the period Contractor performs Services pursuant to this Agreement. CONTRACTOR IS NOT ENTITLED TO ANY BENEFITS ON ACCOUNT OF OCCUPATIONAL ACCIDENTS NOR TO ANY OTHER WORKERS’ COMPENSATION, LABOR RIGHTS BENEFITS, OR SIMILAR BENEFITS PROVIDED BY NEWMONT TO ITS EMPLOYEES. It is not the intent of the parties to create, nor shall this Agreement be construed as creating, a partnership, joint venture, employment relationship, agency relationship, or association, or to render the parties liable as partners, co-venturers, or principals.
2.    CONTRACTOR SHALL BE RESPONSIBLE FOR ALL INCOME AND OTHER TAXES LEVIED UPON THE REMUNERATIONS EARNED HEREUNDER. For purposes of the foregoing sentence, Contractor hereby accepts any and all withholdings that Newmont may be obliged to make, pursuant to applicable laws, from payments to Contractor as compensation for the Services. Contractor represents that Contractor is fully aware of the applicable tax regulations currently in force and undertakes to comply with the same, and accepts that if during the Term such tax regulations are amended, complemented, or substituted, Contractor shall comply with the new provisions so enacted.
G.     INDEMNITY:   Contractor shall indemnify, defend, and hold harmless Newmont, its Affiliates, and their respective directors, officers, employees, representatives, and agents against and from any and all losses, claims, orders, prosecutions, charges, debts, actions, suits (including costs and reasonable lawyer’s fees and disbursements), and damages to the extent the same arise out of or are in any way connected with or materially contributed to by Contractor’s breach of this Agreement or Contractor’s negligence or willful misconduct. Neither Newmont nor Contractor shall be liable to the other for any loss of or damage to property resulting from or occurring in the course of the Services to the extent that reimbursement shall be made for any such loss or damage through or by reason of insurance provided for that purpose. This section shall survive the expiration or termination of this Agreement.
H.     TERMINATION:   Newmont or Contractor may terminate this Agreement at any time and for any reason by giving written notice of termination to the other party. Upon receipt of notice of termination from Newmont to Contractor, the Contractor shall stop all work on the date specified in the notice. In the event of termination by either party, Newmont shall pay Contractor for Services performed and expenses incurred to the date of such termination and Newmont shall also pay Contractor a one-time lump sum amount of $882,960 Canadian dollars following termination of this Agreement. Termination of this Agreement shall not effect Contractor’s position as director of Newmont Mining Corporation and Contractor shall remain in such position subject to the normal terms and conditions of such directorship.
I.     NO ASSIGNMENT
This Agreement is a contract for Contractor’s unique services and, therefore, Contractor may not assign or subcontract this Agreement to any third.
J.     ENTIRE AGREEMENT; SEVERABILITY
This Agreement constitutes the complete and entire agreement and understanding between the parties with respect to the subject matter hereof and supersedes, merges, and voids all negotiations, prior discussions, and prior agreements and understandings, whether written or oral, relating to the subject matter hereof. This Agreement may not be altered or amended except by a written document executed by each party. Should any clause or provision of this Agreement be held or deemed unenforceable or illegal by any court or other final authority, the remaining clauses and provisions of this Agreement shall survive and be fully enforceable as if the unenforceable or illegal provision was never included herein.
 
3

K.     NOTICES:   Notices and all other communications provided for in this Agreement shall be in writing and shall be delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid, or sent by facsimile or prepaid overnight courier to the parties at the addresses set for below.

Company:	  	Newmont Mining Corporation of Canada	
	  	1700 Lincoln Street	
	  	Denver, CO 80203	
	  	Attn: Chief Executive Officer	
	  	Fax: (303) 837-6100	
		
Executive:	  	Mr. Pierre Lassonde	
	  	9 Jackes Avenue, Unit 201	
	  	Toronto, Ontario	
	  	M4T 1E2	
L.     GOVERNING LAW
This Agreement shall be governed by and interpreted in accordance with the laws of the Province of Ontario.
									
Newmont Mining Corporation	 		 	Pierre Lassonde	
of Canada Limited	 		 		
(“Newmont”)	 		 	(“Contractor”)	
				
By:	 	/s/ Sharon E. Thomas	 		 	/s/ Pierre Lassonde	
	 	Title: Vice President	 		 		 		
	 	Date: February 6, 2007	 		 	Date: February 6, 2007	
 
4
 
Exhibit 12.1
NEWMONT MINING CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
(Amounts in millions except ratio)
The ratio of earnings to fixed charges represents income from continuing operations before income taxes, minority interest, equity income (loss) of affiliates and cumulative effect of changes in accounting principles, divided by interest expense. Interest expense includes amortization of capitalized interest and the portion of rent expense representative of interest. The financial information of all prior periods has been reclassified to reflect discontinued operations.

 	  	Years Ended December 31,	 	
 	  	2006	 	 	2005	 	 	2004	 	 	2003	 	 	2002	 	
Earnings:	  				 				 				 				 				
Income (loss) from continuing operations before income tax expense and accounting change (1)	  	$	1,625	 	 	$	1,046	 	 	$	1,068	 	 	$	896	 	 	$	178	 	
Adjustments:	  				 				 				 				 				
Fixed charges added to earnings	  	 	103	 	 	 	101	 	 	 	101	 	 	 	91	 	 	 	132	 	
Dividends from equity affiliates	  	 	1	 	 	 	—	  	 	 	2	 	 	 	2	 	 	 	—	  	
Preferred dividends	  	 	—	  	 	 	—	  	 	 	—	  	 	 	—	  	 	 	(6	)	
Amortization of capitalized interest	  	 	13	 	 	 	16	 	 	 	16	 	 	 	9	 	 	 	9	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	$	1,742	 	 	$	1,163	 	 	$	1,187	 	 	$	998	 	 	$	313	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fixed Charges:	  				 				 				 				 				
Net interest expense (2)	  	$	97	 	 	$	97	 	 	$	97	 	 	$	88	 	 	$	129	 	
Portion of rental expense representative of interest	  	 	6	 	 	 	4	 	 	 	4	 	 	 	3	 	 	 	3	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fixed charges added to earnings	  	 	103	 	 	 	101	 	 	 	101	 	 	 	91	 	 	 	132	 	
Capitalized interest	  	 	57	 	 	 	39	 	 	 	13	 	 	 	9	 	 	 	5	 	
Preferred dividends	  	 	—	  	 	 	—	  	 	 	—	  	 	 	—	  	 	 	6	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	$	160	 	 	$	140	 	 	$	114	 	 	$	100	 	 	$	143	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of earnings to fixed charges	  	 	10.9	 	 	 	8.3	 	 	 	10.4	 	 	 	10.0	 	 	 	2.2	 	

(1)	Income (loss) from continuing operations before income tax expense, minority interest, equity income (loss) of affiliates and cumulative effect of a change in accounting principle.	

(2)	Includes interest expense of majority-owned subsidiaries and amortization of debt issuance costs.	
 
Exhibit 12.2
NEWMONT MINING CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in millions except ratio)
The ratio of earnings to fixed charges represents income from continuing operations before income taxes, minority interest, equity income (loss) of affiliates and cumulative effect of changes in accounting principles, divided by interest expense. Interest expense includes amortization of capitalized interest and the portion of rent expense representative of interest. The financial information of all prior periods has been reclassified to reflect discontinued operations.

 	  	Years Ended December 31,	 	
 	  	2006	  	2005	 	 	2004	  	2003	  	2002	 	
Earnings:	  			  				 			  			  				
Income (loss) from continuing operations before income tax expense and accounting change (1)	  	$	1,625	  	$	1,046	 	 	$	1,068	  	$	896	  	$	178	 	
Adjustments:	  			  				 			  			  				
Fixed charges added to earnings	  	 	103	  	 	101	 	 	 	101	  	 	91	  	 	132	 	
Dividends from equity affiliates	  	 	1	  	 	—	  	 	 	2	  	 	2	  	 	—	  	
Amortization of capitalized interest	  	 	13	  	 	16	 	 	 	16	  	 	9	  	 	9	 	
	  	 	 	  	 	 	 	 	 	 	  	 	 	  	 	 	 	
	  	$	1,742	  	$	1,163	 	 	$	1,187	  	$	998	  	$	319	 	
	  	 	 	  	 	 	 	 	 	 	  	 	 	  	 	 	 	
Fixed Charges:	  			  				 			  			  				
Net interest expense (2)	  	$	97	  	$	97	 	 	$	97	  	$	88	  	$	129	 	
Portion of rental expense representative of interest	  	 	6	  	 	4	 	 	 	4	  	 	3	  	 	3	 	
	  	 	 	  	 	 	 	 	 	 	  	 	 	  	 	 	 	
Fixed charges added to earnings	  	 	103	  	 	101	 	 	 	101	  	 	91	  	 	132	 	
Capitalized interest	  	 	57	  	 	39	 	 	 	13	  	 	9	  	 	5	 	
	  	 	 	  	 	 	 	 	 	 	  	 	 	  	 	 	 	
	  	$	160	  	$	140	 	 	$	114	  	$	100	  	$	137	 	
	  	 	 	  	 	 	 	 	 	 	  	 	 	  	 	 	 	
Ratio of earnings to fixed charges	  	 	10.9	  	 	8.3	 	 	 	10.4	  	 	10.0	  	 	2.3	 	

(1)	Income (loss) from continuing operations before income tax expense, minority interest, equity income (loss) of affiliates and cumulative effect of a change in accounting principle.	

(2)	Includes interest expense of majority-owned subsidiaries and amortization of debt issuance costs.	
  
Exhibit 21
NEWMONT MINING CORPORATION AND SUBSIDIARIES
As of December 31, 2006

Name	  	State/Country of Incorporation	  	Ownership
Percentage	 	
Newmont Mining Corporation	  	Delaware, USA	  			
Dacia Exploration S.R.L.  	  	Romania	  	100	%	
D’Africo (Overseas) Ltd	  	Cyprus	  	100	%	
Moydow Limited	  	Isle of Man	  	100	%	
Moydow Limited	  	Ghana	  	100	%	
Newmont Australia Holdings Pty Ltd	  	Victoria, Australia	  	100	%	
Newmont Australia Limited	  	Victoria, Australia	  	80.14	%	
Bardini Pty Ltd	  	Western Australia	  	100	%	
Linfast Pty Ltd	  	Western Australia	  	100	%	
Newmont Mining Holdings Pty Ltd	  	South Australia	  	18.69	%	
Newmont Yandal Operations Pty Ltd	  	Victoria, Australia	  	27.806895	%	
Clave Pty Ltd	  	Western Australia	  	100	%	
Newmont Mining Holdings Pty Ltd	  	South Australia	  	18.81	%	
National Shareholder Services Pty Ltd	  	Western Australia	  	100	%	
Newmont Capital Pty Ltd	  	New South Wales, Australia	  	100	%	
Pacific-Nevada Mining Pty Ltd	  	Australian Capital Territory	  	100	%	
Newmont Metals Pty Ltd	  	Australian Capital Territory	  	100	%	
Newmont Golden Grove Operations Pty Ltd	  	Western Australia	  	100	%	
Newmont Wownaminya Pty Ltd	  	New South Wales, Australia	  	100	%	
Newmont Midas Holdings Limited	  	Nevada, USA	  	9.1	%	
Newmont Midas Operations Inc.  	  	Nevada, USA	  	100	%	
Newmont Mining Finance Pty Ltd	  	Australian Capital Territory	  	100	%	
Newmont Mining Holdings Pty Ltd	  	South Australia	  	60.64	%	
Newmont ACM Pty Ltd	  	Victoria, Australia	  	100	%	
Australian Consolidated Minerals Pty Ltd.  	  	Western Australia	  	100	%	
Newmont Exploration Pty Ltd	  	South Australia	  	100	%	
Newmont Gold Pty Ltd	  	Western Australia	  	100	%	
GMK Investments Pty Ltd	  	South Australia	  	100	%	
GMKI Pty Ltd	  	Australia Capital Territory	  	100	%	
GPS Finance Pty Ltd	  	Australia Capital Territory	  	100	%	
Newmont Power Pty Ltd	  	South Australia	  	100	%	
NP Kalgoorlie Pty Ltd	  	South Australia	  	100	%	
Goldfields Power Pty Ltd	  	Western Australia	  	50	%	
Newmont Yandal Operations Pty Ltd	  	Victoria, Australia	  	12.557049	%	
Clynton Court Pty Ltd	  	Victoria, Australia	  	100	%	
Great Central Holdings Pty Ltd	  	Victoria, Australia	  	100	%	
Eagle Mining Pty Ltd	  	Western Australia	  	100	%	
Hunter Resources Pty Ltd	  	Queensland, Australia	  	100	%	
Quotidian No. 117 Pty Ltd	  	Victoria, Australia	  	100	%	
Matlock Mining Pty Ltd	  	Western Australia	  	46.5	%	
Matlock Mining Pty Ltd	  	Western Australia	  	53.5	%	
Australian Metals Corporation Pty Ltd	  	Western Australia	  	100	%	
Great Central Mines Pty Ltd	  	Western Australia	  	100	%	
Matlock Castellano Pty Ltd	  	Western Australia	  	100	%	
 
1

						
Name	  	State/Country of Incorporation	  	Ownership
Percentage	 	
Great Central Investments Pty Ltd	  	Victoria, Australia	  	100	%	
Newmont Wiluna Mines Pty Ltd	  	Western Australia	  	100	%	
Newmont Wiluna Gold Pty Ltd	  	Queensland, Australia	  	100	%	
Newmont Wiluna Metals Pty Ltd	  	Western Australia	  	100	%	
Newmont Finance Limited	  	South Australia	  	100	%	
Newmont GMK Holdings Pty Ltd	  	Western Australia	  	100	%	
Kalgoorlie Lake View Pty Ltd	  	Victoria, Australia	  	100	%	
ACM Gold Pty Ltd	  	Western Australia	  	100	%	
Kalgoorlie Consolidated Gold Mines Pty Ltd	  	Western Australia	  	50	%	
Norkal Pty Ltd	  	Western Australia	  	100	%	
North Kalgurli Mines Pty Ltd	  	Western Australia	  	100	%	
Newmont Gold Exploration Pty Ltd	  	Western Australia	  	100	%	
Newmont Gold Marketing & Finance Pty Ltd	  	South Australia	  	100	%	
Australian Gold Alliance Pty Ltd	  	South Australia	  	100	%	
AGR Management Services Pty Ltd	  	Western Australia	  	40	%	
AGR Matthey (NZ) Limited	  	New Zealand	  	40	%	
Newmont Gold Treasury Pty Ltd	  	South Australia	  	100	%	
Newmont Group Finance Pty Ltd	  	South Australia	  	100	%	
Newmont NGL Holdings Pty Ltd	  	Northern Territory, Australia	  	100	%	
Newmont Boddington Holdings Pty Ltd	  	South Australia	  	100	%	
Newmont Boddington Investments Pty Ltd	  	South Australia	  	100	%	
Newmont Boddington Pty Ltd	  	South Australia	  	100	%	
BGM Management Company Pty Ltd	  	Western Australia	  	100	%	
Newmont Kaltails Pty Ltd	  	Victoria, Australia	  	100	%	
Newmont Pajingo Pty Ltd	  	Western Australia	  	100	%	
Newmont Tanami Pty Ltd	  	South Australia	  	57.39	%	
Otter Gold Mines Pty Ltd	  	Victoria, Australia	  	100	%	
Lode Development Pty Ltd	  	Victoria	  	100	%	
Otter Gold Pty Ltd	  	New South Wales, Australia	  	100	%	
Resource Investments Australasia Pty Ltd	  	Victoria, Australia	  	100	%	
Wirralie Gold Mines Pty Ltd	  	Queensland, Australia	  	100	%	
Newmont Pacific Energy Pty Ltd	  	New South Wales, Australia	  	100	%	
Yandal Gold Holdings Pty Ltd	  	Australian Capital Territory	  	100	%	
Yandal Gold Pty Ltd	  	Western Australia	  	100	%	
Newmont Yandal Operations Pty Ltd	  	Victoria, Australia	  	59.63605	%	
Newmont International Exploration Pty Ltd	  	South Australia	  	100	%	
Newmont Asia Pty Ltd	  	South Australia	  	100	%	
Kepala Burung Offshore Pty Ltd	  	Victoria, Australia	  	36.11	%	
Newmont Vietnam Pty Ltd	  	South Australia	  	100	%	
Newmont International Holdings Pty Ltd	  	South Australia	  	100	%	
Newmont Mining Investments Pty Ltd	  	South Australia	  	100	%	
Newmont Mining Services Pty Ltd	  	South Australia	  	100	%	
Newmont Pacific Pty Ltd	  	New South Wales, Australia	  	100	%	
NIM Overseas Pty Ltd	  	New South Wales, Australia	  	100	%	
Newmont Service SAS	  	France	  	100	%	
Newmont Parkeston Pty Ltd	  	Western Australia, Australia	  	100	%	
Newmont Tanami Pty Ltd	  	South Australia	  	42.61	%	
Newmont Woodcutters Pty Ltd	  	New South Wales, Australia	  	100	%	
Newmont Yandal Operations Pty Ltd	  	Victoria, Australia	  	.000006	%	
Oberon Oil Pty Ltd	  	Western Australia	  	100	%	
 
2

						
Name	  	State/Country of Incorporation	  	Ownership
Percentage	 	
Newmont Mining Holdings Pty Ltd	  	South Australia	  	1.86	%	
Newmont Capital Limited	  	Nevada, USA	  	88.6544	%	
Newmont Australia Limited	  	Victoria, Australia	  	14.89	%	
Newmont USA Limited	  	Delaware, USA	  	100	%	
Balkhash Mining and Exploration Inc.  	  	Delaware, USA	  	100	%	
Battle Mountain Gold Company	  	Nevada, USA	  	100	%	
Battle Mountain Exploration Company	  	Texas, USA	  	100	%	
Battle Mountain (Irian Jaya) Ltd.  	  	Nevada, USA	  	100	%	
PT Iriana Mutiara Mining	  	Indonesia	  	80	%	
Battle Mountain Resources Inc.  	  	Nevada, USA	  	100	%	
Empresa Minera Inti Raymi S.A.  	  	Bolivia	  	60.5	%	
Minera BMG	  	Nevada, USA	  	100	%	
Minera Choluteca S.A. de C.V.  	  	Honduras	  	50	%	
Newmont Australia Investment Limited	  	Delaware, USA	  	100	%	
Pajingo Gold Mine Pty Ltd	  	Australia	  	100	%	
Newmont Bolivia Limited	  	Nevada, USA	  	100	%	
Empresa Minera Inti Raymi S.A.  	  	Bolivia	  	27.5	%	
Empresa Minera La Joya S.R.L.  	  	Bolivia	  	75.5	%	
Newmont Canada Limited	  	Ontario, Canada	  	11.86	%	
Grupo BMG S.A. de C.V.  	  	Mexico	  	100	%	
Minas de Oro BMG S.A. de C.V.  	  	Mexico	  	100	%	
PT Newmont Minahasa Raya	  	Indonesia	  	80	%	
Silidor Mines Inc.  	  	Quebec	  	100	%	
Newmont McCoy Cove Limited	  	Nevada, USA	  	100	%	
Newmont Nova Scotia ULC	  	Nova Scotia, Canada	  	100	%	
Newmont Canada Limited	  	Ontario, Canada	  	.98	%	
Canmont Mining Properties Limited	  	Delaware, USA	  	100	%	
Newmont Altin Madencilik Limited Sirketi	  	Turkey	  	1	%	
Newmont Global Employment Limited Partnership	  	Bermuda	  	1	%	
Compania Minera Normandy Chile Limitada	  	Chile	  	99.99	%	
Dawn Mining Company LLC	  	Delaware, USA	  	51	%	
Elko Land and Livestock Company	  	Nevada, USA	  	100	%	
Hospah Coal Company	  	Delaware	  	100	%	
Idarado Mining Company	  	Delaware, USA	  	100	%	
Idarado Legacy, LLC	  	Colorado, USA	  	80	%	
Minera El Bermejal S. de R.L. de C.V.  	  	Mexico	  	44	%	
Minera Newmont Chile Limitada	  	Chile	  	99	%	
Minera Penmont S. de R.L. de C.V.  	  	Mexico	  	44	%	
N. I. Limited	  	Bermuda	  	100	%	
New Verde Mines LLC	  	Delaware, USA	  	100	%	
Newmont de Mexico S.A. de C.V.  	  	Mexico	  	99	%	
Newmont Exploration of Canada Ltd.  	  	Canada	  	100	%	
Newmont Global Employment Limited	  	Bermuda	  	99	%	
Newmont Gold Company	  	Delaware, USA	  	100	%	
Newmont GTR LLC	  	Nevada, USA	  	100	%	
Newmont Indonesia Investment Limited	  	Delaware, USA	  	100	%	
Newmont Indonesia Limited	  	Delaware, USA	  	100	%	
Nusa Tenggara Partnership	  	Netherlands	  	56.25	%	
PT Newmont Nusa Tenggara	  	Indonesia	  	80	%	
PT Bhinneka Investama Indonesia	  	Indonesia	  	27.56	%	
 
3

						
Name	  	State/Country of Incorporation	  	Ownership
Percentage	 	
Newmont International Services Limited	  	Delaware, USA	  	100	%	
PT Newmont Pacific Nusantara	  	Indonesia	  	1	%	
Newmont Kazakstan Gold Limited	  	Delaware, USA	  	100	%	
Newmont Latin America Limited	  	Delaware, USA	  	100	%	
Compania Minera Normandy Chile Limitada	  	Chile	  	.01	%	
Minera Los Tapados S.A.  	  	Peru	  	.0144	%	
Minera Newmont Chile Limitada	  	Chile	  	1	%	
Newmont de Mexico S.A. de C.V.  	  	Mexico	  	1	%	
Newmont Midas Holdings Limited	  	Nevada, USA	  	90.9	%	
Newmont Midas Operations Inc.  	  	Nevada, USA	  	100	%	
Newmont Nevada Energy Investment LLC	  	Delaware, USA	  	100	%	
Newmont North America Exploration Limited	  	Delaware, USA	  	100	%	
Newmont Overseas Exploration Limited	  	Delaware, USA	  	100	%	
Newmont Altin Madencilik Limited Sirketi	  	Turkey	  	99	%	
PT Newmont Pacific Nusantara	  	Indonesia	  	99	%	
PT Newmont Horas Nauli	  	Indonesia	  	5	%	
Suriname Gold Company, LLC	  	Delaware, USA	  	50	%	
Newmont Peru Limited	  	Delaware, USA	  	100	%	
Minera Ayacucho S.R.L.  	  	Peru	  	55	%	
Minera Chaupiloma Dos de Cajamarca S.R.L.  	  	Peru	  	40	%	
Minera Coshuro S.R.L.  	  	Peru	  	54.1	%	
Minera La Zanja S.R.L.  	  	Peru	  	46.944	%	
Minera Los Tapados S.A.  	  	Peru	  	99.9856	 	
Newmont Investment Holdings LLC	  	Delaware, USA	  	100	%	
Newmont Perú S.R.L.  	  	Peru	  	.00026	%	
Newmont Perú S.R.L.  	  	Peru	  	99.99974	%	
Newmont Realty Company	  	Delaware, USA	  	100	%	
Newmont Russia Limited	  	Delaware, USA	  	100	%	
Newmont Second Capital Corporation	  	Delaware, USA	  	100	%	
Minas Conga S.R.L.  	  	Peru	  	40	%	
Minera Yanacocha S.R.L.  	  	Peru	  	51.35	%	
Newmont Mines Limited	  	Delaware, USA	  	100	%	
Newmont Technologies Limited	  	Nevada, USA	  	100	%	
Newmont (Uzbekistan) Limited	  	Cyprus	  	60	%	
Resurrection Mining Company	  	Delaware, USA	  	100	%	
San Juan Basin Coal Holding Company	  	Delaware, USA	  	100	%	
Santa Fe Pacific Gold Corporation	  	Delaware, USA	  	100	%	
The Rosebud Mining Company LLC	  	Delaware, USA	  	48.64	%	
Yandal Bond Company Limited	  	Delaware, USA	  	100	%	
Newmont Holdings ULC	  	Nova Scotia, Canada	  	100	%	
Newmont Mining Corporation of Canada Limited	  	Canada	  	100	%	
Newmont Canada Limited	  	Ontario, Canada	  	87.16	%	
Newmont Capital Limited	  	Nevada, USA	  	1.1146	%	
Newmont Latin America Holdings	  	Cayman Islands	  	100	%	
NGF Limited	  	Cayman Islands	  	100	%	
Compania Minera LJB Normandy Peru SA	  	Peru	  	99.99	%	
Redstone Resources Inc.  	  	Ontario, Canada	  	100	%	
Newmont Australia Limited	  	Western Australia	  	4.97	%	
Newmont Capital Limited	  	Nevada, USA	  	10.231	%	
Newmont Insurance (Singapore) Pte Ltd	  	Singapore	  	100	%	
 
4

						
Name	  	State/Country of Incorporation	  	Ownership
Percentage	 	
Newmont LaSource SAS	  	France	  	.05	%	
Autin Investments BV	  	Netherlands	  	100	%	
Euronimba Ltd	  	Jersey, U.K.	  	43.5	%	
Societe Des Mines de Fer de Guinee	  	Guinea	  	95	%	
Gold Discovery Company	  	Cayman Islands	  	55	%	
Golden Ridge Resources Ltd	  	Ghana	  	85	%	
Newmont Ghana Gold Limited	  	Ghana	  	100	%	
Societe Miniere de Sabodala	  	Senegal	  	50.6	%	
Newmont Mineral Holdings B.V.  	  	Netherlands	  	100	%	
European Gold Refineries Holding SA	  	Switzerland	  	50	%	
Finorafa S.A.  	  	Switzerland	  	66.65	%	
Valcambi S.A.  	  	Switzerland	  	100	%	
Newmont Mineral Exploration B.V.  	  	Netherlands	  	100	%	
Newmont Ventures Limited	  	Delaware	  	100	%	
Newmont (Guyana) Incorporated	  	Guyana	  	100	%	
Newmont Waihi Gold Limited	  	New Zealand	  	100	%	
Waihi Gold Company Limited	  	New Zealand	  	100	%	
Newmont (Uzbekistan) Limited	  	Cyprus	  	40	%	
Normandy Overseas Holding Company Sdn Bhd	  	Malaysia	  	100	%	
Normandy Company (Malaysia) Sdn Bhd	  	Malaysia	  	100	%	
Newmont International Group BV	  	Netherlands	  	100	%	
Newmont Latin America Inc.  	  	Canada	  	100	%	
Newmont LaSource SAS	  	France	  	99.95	%	
Newmont Mining Services (Canada) Inc.  	  	Canada	  	100	%	
 
5
 
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the incorporation by reference in the Registration Statement on Form S-3 Nos. 333-112142 and 333-124862, Registration Statement S-4 No. 333-112143 and Registration Statements S-8 Nos. 333-69145, 333-124653, 333-75993, 333-64795, 333-01461, 333-49872, 333-69147, 333-38178, 333-38184, 333-140819, 333-19335-01 and 333-118693 of Newmont Mining Corporation of our report dated February 23, 2007 relating to the financial statements, management’s assessment of the effectiveness of internal control over financial reporting and the effectiveness of internal control over financial reporting which appears in this Form 10-K.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Denver Colorado
February 23, 2007
 
Exhibit 24
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Richard T. O’Brien, Britt D. Banks, and Sharon E. Thomas each of them acting individually, his or her true and lawful attorney-in-fact and agent, with full power of substitution and revocation, in his or her name and on his or her behalf, to do any and all acts and things and to execute any and all instruments which said attorney-in-fact and agent may deem necessary or advisable to enable Newmont Mining Corporation to comply with the Securities Exchange Act of 1934, as amended (the “Act”), and any rules, regulations or requirements of the Securities and Exchange Commission in respect thereof, including, without limitation, the power and authority to sign his or her name in any and all capacities (including his or her capacity as a Director and/or Officer of Newmont Mining Corporation) to the Annual Report on Form 10-K of Newmont Mining Corporation for the fiscal year ended December 31, 2006 and any amendments thereto and the undersigned hereby ratifies and confirms all that said attorney-in-fact and agent shall lawfully do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned have subscribed these presents as of the 7 th day of February, 2007.

Signature	  	Title	
/s/    G LEN A. B ARTON        	  	Director	
Glen A. Barton	  		
		
/s/    V INCENT A. C ALARCO        
Vincent A. Calarco	  	Director	
		
/s/    N OREEN D OYLE        
Noreen Doyle	  	Director	
		
/s/    V ERONICA M. H AGEN        
Veronica M. Hagen	  	Director	
		
/s/    M ICHAEL S. H AMSON        
Michael S. Hamson	  	Director	
		
/s/    P IERRE L ASSONDE        
Pierre Lassonde	  	Director	
		
/s/    R OBERT J. M ILLER        
Robert J. Miller	  	Director	
		
/s/    W AYNE W. M URDY        
Wayne W. Murdy	  	Chairman of the Board and Chief Executive Officer
(Principal Executive Officer)	
		
/s/    R OBIN A. P LUMBRIDGE        
Robin A. Plumbridge	  	Director	
		
/s/    J OHN B. P RESCOTT        
John B. Prescott	  	Director	
		
/s/    D ONALD C. R OTH        
Donald C. Roth	  	Director	

			
Signature	  	Title	
/s/    S EYMOUR S CHULICH        
Seymour Schulich	  	Director	
		
/s/    J AMES V. T ARANIK        
James V. Taranik	  	Director	
		
/s/    R ICHARD T. O’B RIEN        
Richard T. O’Brien	  	Executive Vice President and Chief Financial Officer
(Principal Financial Officer)	
		
/s/    R USSELL D. B ALL        
Russell D. Ball	  	Vice President and Controller
(Principal Accounting Officer)	
 
Exhibit 31.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
(Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002)
I, Wayne W. Murdy, certify that:
1. I have reviewed this Annual Report on Form 10-K 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; and
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;
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/    W AYNE W. M URDY        	
Wayne W. Murdy	
Chief Executive Officer	
February 23, 2007
 
Exhibit 31.2
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
(Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002)
I, Richard T. O’Brien, certify that:
1. I have reviewed this Annual Report on Form 10-K 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; and
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;
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/    R ICHARD T. O’B RIEN        	
Richard T. O’Brien	
Chief Financial Officer	
February 23, 2007
 
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 Annual Report on Form 10-K for the year ended December 31, 2006 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, Wayne W. Murdy, 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/    W AYNE W. M URDY        	
Wayne W. Murdy	
Chief Executive Officer	
February 23, 2007
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 Annual Report on Form 10-K for the year ended December 31, 2006 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 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 /    R ICHARD T. O’B RIEN          	
Richard T. O’Brien
Chief Financial Officer 	
February 23, 2007
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.