NEWMONT MINING CORP /DE/, 10-Q filed on 7/26/2012
Quarterly Report
Document and Entity Information
6 Months Ended
Jun. 30, 2012
Jul. 18, 2012
Document and Entity Information [Abstract]
 
 
Entity Registrant Name
NEWMONT MINING CORP /DE/ 
 
Entity Central Index Key
0001164727 
 
Document Type
10-Q 
 
Document Period End Date
Jun. 30, 2012 
 
Amendment Flag
false 
 
Document Fiscal Year Focus
2012 
 
Document Fiscal Period Focus
Q2 
 
Current Fiscal Year End Date
--12-31 
 
Entity Well-known Seasoned Issuer
Yes 
 
Entity Voluntary Filers
No 
 
Entity Current Reporting Status
Yes 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
491,247,996 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) [Abstract]
 
 
 
 
Sales
$ 2,229 
$ 2,384 
$ 4,912 
$ 4,849 
Costs and expenses
 
 
 
 
Costs applicable to sales
1,002 1
917 1
2,019 1
1,857 1
Amortization
248 
250 
479 
506 
Reclamation and remediation
16 
43 
32 
57 
Exploration
106 
89 
194 
151 
Advanced projects, research and development
82 
86 
184 
154 
General and administrative
57 
50 
111 
95 
Other expense, net
126 
87 
246 
160 
Total costs and expenses
1,637 
1,522 
3,265 
2,980 
Other income (expense)
 
 
 
 
Other income, net
36 
48 
69 
79 
Interest expense, net
(71)
(63)
(123)
(128)
Total other income (expense)
(35)
(15)
(54)
(49)
Income before income and mining tax and other items
557 
847 
1,593 
1,820 
Income and mining tax expense
(175)
(187)
(518)
(492)
Equity income (loss) of affiliates
(11)
0 
(30)
2 
Income from continuing operations
371 
660 
1,045 
1,330 
Loss from discontinued operations
0 
(136)
(71)
(136)
Net income
371 
524 
974 
1,194 
Net income attributable to noncontrolling interests
(92)
(137)
(205)
(293)
Net income attributable to Newmont stockholders
279 
387 
769 
901 
Net income attributable to Newmont stockholders:
 
 
 
 
Continuing operations
279 
523 
840 
1,037 
Discontinued operations
0 
(136)
(71)
(136)
Net income attributable to Newmont stockholders
$ 279 
$ 387 
$ 769 
$ 901 
Income per common share, basic
 
 
 
 
Continuing operations
$ 0.56 
$ 1.06 
$ 1.69 
$ 2.10 
Discontinued operations
$ 0 
$ (0.28)
$ (0.14)
$ (0.28)
Income per common share, basic
$ 0.56 
$ 0.78 
$ 1.55 
$ 1.82 
Income per common share, diluted
 
 
 
 
Continuing operations
$ 0.56 
$ 1.04 
$ 1.67 
$ 2.07 
Discontinued operations
$ 0 
$ (0.27)
$ (0.14)
$ (0.27)
Income per common share, diluted
$ 0.56 
$ 0.77 
$ 1.53 
$ 1.80 
Cash dividends declared per common share
$ 0.35 
$ 0.20 
$ 0.70 
$ 0.35 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Statement of Income and Comprehensive Income [Abstract]
 
 
 
 
Net income
$ 371 
$ 524 
$ 974 
$ 1,194 
Other comprehensive income (loss):
 
 
 
 
Unrealized loss on marketable securities, net of $18, $108, $(5) and $80 tax benefit and (expense), respectively
(273)
(243)
(313)
(75)
Foreign currency translation adjustments
(10)
38 
0 
127 
Change in pension and other post-retirement benefits, net of $2, $2, $4 and $3 tax expense, respectively
4 
4 
8 
8 
Change in fair value of cash flow hedge instruments, net of $8, $163, $(18) and $152 tax benefit (expense), respectively
 
 
 
 
Net change from periodic revaluations
4 
162 
73 
217 
Net amount reclassified to income
(24)
(39)
(59)
(72)
Net unrecognized gain on derivatives
(20)
123 
14 
145 
Other comprehensive income
(299)
(78)
(291)
205 
Comprehensive income
72 
446 
683 
1,399 
Comprehensive income attributable to:
 
 
 
 
Newmont stockholders
(18)
308 
478 
1,103 
Noncontrolling interests
90 
138 
205 
296 
Comprehensive income
$ 72 
$ 446 
$ 683 
$ 1,399 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Operating activities:
 
 
Net income
$ 974 
$ 1,194 
Adjustments:
 
 
Amortization
479 
506 
Loss from discontinued operations
71 
136 
Reclamation and remediation
32 
57 
Deferred income taxes
12 
(38)
Stock based compensation and other non-cash benefits
36 
44 
Impairment of marketable securities
32 
1 
Gain on asset sales, net
(10)
(53)
Other operating adjustments and write-downs
106 
96 
Net change in operating assets and liabilities (Note 23)
(768)
(540)
Net cash provided from continuing operations
964 
1,403 
Net cash used in discontinued operations
(8)
(2)
Net cash provided from operations
956 
1,401 
Investing activities:
 
 
Additions to property, plant and mine development
(1,578)
(1,020)
Sale of marketable securities
106 
55 
Purchases of marketable securities
(196)
(15)
Acquisitions, net
(22)
(2,291)
Proceeds from sale of other assets
13 
6 
Other
(37)
(15)
Net cash used in investing activities
(1,714)
(3,280)
Financing activities:
 
 
Proceeds from debt, net
3,343 
775 
Repayment of debt
(1,941)
(973)
Payment of conversion premium on debt
(172)
0 
Dividends paid to common stockholders
(347)
(173)
Dividends paid to noncontrolling interests
(3)
(17)
Proceeds from stock issuance, net
15 
8 
Other
(1)
0 
Net cash provided from (used in) financing activities
894 
(380)
Effect of exchange rate changes on cash
1 
58 
Net change in cash and cash equivalents
137 
(2,201)
Cash and cash equivalents at beginning of period
1,760 
4,056 
Cash and cash equivalents at end of period
$ 1,897 
$ 1,855 
CONDENSED CONSOLIDATED BALANCE SHEET (unaudited) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
ASSETS
 
 
Cash and cash equivalents
$ 1,897 
$ 1,760 
Trade receivables
290 
300 
Accounts receivable
359 
320 
Investments
132 
94 
Inventories
803 
714 
Stockpiles and ore on leach pads
798 
671 
Deferred income tax assets
255 
396 
Other current assets
738 
1,133 
Current assets
5,272 
5,388 
Property, plant and mine development, net
16,936 
15,881 
Investments
1,185 
1,472 
Stockpiles and ore on leach pads
2,579 
2,271 
Deferred income tax assets
1,686 
1,605 
Other long-term assets
1,002 
857 
Total assets
28,660 
27,474 
LIABILITIES
 
 
Debt
40 
689 
Accounts payable
574 
561 
Employee-related benefits
293 
307 
Income and mining taxes
173 
250 
Other current liabilities
1,287 
2,133 
Current liabilities
2,367 
3,940 
Debt
6,088 
3,624 
Reclamation and remediation liabilities
1,270 
1,169 
Deferred income tax liabilities
2,056 
2,147 
Employee-related benefits
487 
459 
Other long-term liabilities
403 
364 
Total liabilities
12,671 
11,703 
Commitments and Contingencies
   
   
EQUITY
 
 
Common stock
786 
784 
Additional paid-in capital
8,291 
8,408 
Accumulated other comprehensive income
361 
652 
Retained earnings
3,474 
3,052 
Newmont stockholders' equity
12,912 
12,896 
Noncontrolling interests
3,077 
2,875 
Total equity
15,989 
15,771 
Total liabilities and equity
$ 28,660 
$ 27,474 
Basis of Presentation
BASIS OF PRESENTATION

NOTE 1    BASIS OF PRESENTATION

 

The interim Condensed Consolidated Financial Statements (“interim statements”) of Newmont Mining Corporation and its subsidiaries (collectively, “Newmont” or the “Company”) are unaudited. In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these interim statements have been included. The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year. These interim statements should be read in conjunction with Newmont's Consolidated Financial Statements for the year ended December 31, 2011 filed February 24, 2012 on Form 10-K. The year-end balance sheet data was derived from the audited financial statements and, in accordance with the instructions to Form 10-Q, certain information and footnote disclosures required by United States generally accepted accounting principles (“GAAP”) have been condensed or omitted.

 

References to “A$” refer to Australian currency, “C$” to Canadian currency, “NZ$” to New Zealand currency and “$” to United States currency.

 

Summary of Significant Accounting Policies
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Recently Adopted Accounting Pronouncements

Goodwill Impairment

In September 2011, ASC guidance was issued related to goodwill impairment. Under the updated guidance, an entity will have the option to first assess qualitatively whether it is necessary to perform the two-step goodwill impairment test. If the Company believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required. The update does not change how the Company performs the two-step impairment test under previous guidance. The Company's January 1, 2012 adoption of the guidance had no impact on the Company's consolidated financial position, results of operations or cash flows.

Fair Value Accounting

 

In May 2011, ASC guidance was issued related to disclosures around fair value accounting. The updated guidance clarifies different components of fair value accounting including the application of the highest and best use and valuation premise concepts, measuring the fair value of an instrument classified in a reporting entity's shareholders' equity and disclosing quantitative information about the unobservable inputs used in fair value measurements that are categorized in Level 3 of the fair value hierarchy. The Company's January 1, 2012 adoption of the updated guidance had no impact on the Company's consolidated financial position, results of operations or cash flows.

 

 

 

 

 

Segment Information
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
SEGMENT INFORMATION

NOTE 3    SEGMENT INFORMATION

 

     Costs    Advanced   
     Applicable to    Projects and Pre-Tax
   Sales Sales Amortization Exploration Income (Loss)
Three Months Ended June 30, 2012             
Nevada$571 $258 $47 $43 $217
La Herradura 93  33  6  11  46
Other North America -  -  -  1  (54)
 North America 664  291  53  55  209
                 
Yanacocha 614  177  62  18  333
Conga -  -  -  12  (12)
Other South America -  -  -  19  (19)
 South America 614  177  62  49  302
                 
Boddington:              
 Gold 264  157  49  NA  NA
 Copper 42  38  12  NA  NA
  Total 306  195  61  2  37
Batu Hijau:              
 Gold 18  11  3  NA  NA
 Copper 88  70  14  NA  NA
  Total 106  81  17  7  (16)
Other Australia/New Zealand 331  182  33  18  101
Other Asia Pacific -  -  2  4  (9)
 Asia Pacific 743  458  113  31  113
                 
Ahafo 208  76  16  11  100
Akyem -  -  -  5  (5)
Other Africa -  -  -  3  (2)
 Africa 208  76  16  19  93
                 
Corporate and Other -  -  4  34  (160)
Consolidated$2,229 $1,002 $248 $188 $557

                      
     Costs    Advanced Pre-Tax    
   Sales Applicable to Sales Amortization Projects and Exploration Income (Loss) Total Assets Capital Expenditures(1)
Six Months Ended June 30, 2012                   
Nevada$1,294 $525 $100 $77 $586 $7,280 $370
La Herradura 186  65  11  17  91  353  29
Other North America -  -  -  1  (106)  199  -
 North America 1,480  590  111  95  571  7,832  399
                       
Yanacocha 1,208  338  112  35  682  2,775  243
Conga -  -  -  39  (39)  1,462  342
Other South America -  -  -  44  (44)  44  -
 South America 1,208  338  112  118  599  4,281  585
                       
Boddington:                    
 Gold 562  294  81  N/A  N/A  N/A  N/A
 Copper 103  68  18  N/A  N/A  N/A  N/A
  Total 665  362  99  5  180  4,640  52
Batu Hijau:                    
 Gold 52  30  6  N/A  N/A  N/A  N/A
 Copper 260  155  30  N/A  N/A  N/A  N/A
  Total 312  185  36  14  32  3,651  61
Other Australia/New Zealand 758  372  69  33  280  1,348  137
Other Asia Pacific -  -  3  10  (4)  606  8
 Asia Pacific 1,735  919  207  62  488  10,245  258
                       
Ahafo 489  172  40  22  250  1,328  108
Akyem -  -  -  9  (10)  750  189
Other Africa -  -  -  5  (4)  9  -
 Africa 489  172  40  36  236  2,087  297
                       
Corporate and Other -  -  9  67  (301)  4,215  37
Consolidated$4,912 $2,019 $479 $378 $1,593 $28,660 $1,576
                       
 (1)Includes a decrease in accrued capital expenditures of $2; consolidated capital expenditures on a cash basis were $1578.
SEGMENT INFORMATION
      Costs    Advanced   
      Applicable to    Projects and Pre-Tax
   Sales Sales Amortization Exploration Income (Loss)
Three Months Ended June 30, 2011              
Nevada$529 $224 $56 $38 $195
La Herradura 81  27  5  3  44
Other North America -  -  4  53  (8)
 North America 610  251  65  94  231
                 
Yanacocha 524  190  66  11  232
Conga -  -  1  7  (7)
Other South America -  -  -  7  (9)
 South America 524  190  67  25  216
                 
Boddington:              
 Gold 269  117  31  N/A  N/A
 Copper 54  27  7  N/A  N/A
  Total 323  144  38  2  140
Batu Hijau:              
 Gold 92  30  7  N/A  N/A
 Copper 242  79  18  N/A  N/A
  Total 334  109  25  1  186
Other Australia/New Zealand 375  158  31  10  168
Other Asia Pacific -  -  -  5  (34)
 Asia Pacific 1,032  411  94  18  460
                 
Ahafo 218  65  20  8  119
Akyem -  -  -  1  (1)
Other Africa -  -  -  3  (5)
 Africa 218  65  20  12  113
                 
Corporate and Other  -  -  4  26  (173)
Consolidated$2,384 $917 $250 $175 $847

                       
      Costs    Advanced Pre-Tax    
   Sales Applicable to Sales Amortization Projects and Exploration Income (Loss) Total Assets Capital Expenditures(1)
Six Months Ended June 30, 2011                    
Nevada$1,111 $496 $128 $55 $411 $6,797 $228
La Herradura 146  45  9  9  80  260  41
Other North America -  -  7  97  (58)  2,294  27
 North America 1,257  541  144  161  433  9,351  296
                       
Yanacocha 886  343  119  17  381  2,634  127
Conga -  -  1  10  (11)  562  251
Other South America -  -  -  14  (15)  37  -
 South America 886  343  120  41  355  3,233  378
                       
Boddington:                    
 Gold 501  217  59  N/A  N/A  N/A  N/A
 Copper 107  55  14  N/A  N/A  N/A  N/A
  Total 608  272  73  3  244  4,419  75
Batu Hijau:                    
 Gold 232  64  14  N/A  N/A  N/A  N/A
 Copper 611  168  38  N/A  N/A  N/A  N/A
  Total 843  232  52  1  509  3,513  88
Other Australia/New Zealand 790  324  66  22  365  1,124  134
Other Asia Pacific -  -  1  6  (34)  625  4
 Asia Pacific 2,241  828  192  32  1,084  9,681  301
                       
Ahafo 465  145  42  15  255  1,037  37
Akyem -  -  -  2  (2)  351  67
Other Africa -  -  -  3  (6)  6  -
 Africa 465  145  42  20  247  1,394  104
                       
Corporate and Other  -  -  8  51  (299)  4,979  18
Consolidated$4,849 $1,857 $506 $305 $1,820 $28,638 $1,097
                       
 (1)Includes an increase in accrued capital expenditures of $77; consolidated capital expenditures on a cash basis were $1020.
Reclamation and Remediation
RECLAMATION AND REMEDIATION

NOTE 4    RECLAMATION AND REMEDIATION

 

At June 30, 2012 and December 31, 2011, $1,145 and $1,070, respectively, were accrued for reclamation obligations relating to mineral properties. In addition, the Company is involved in several matters concerning environmental obligations associated with former, primarily historic, mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. At June 30, 2012 and December 31, 2011, $191 and $170, respectively, were accrued for such obligations. These amounts are also included in Reclamation and remediation liabilities.

 

The following is a reconciliation of Reclamation and remediation liabilities:

 

   Six Months Ended June 30, 
   2012 2011 
 Balance at beginning of period   $1,240 $1,048 
 Additions, changes in estimates and other    105  32 
 Liabilities settled    (41)  (15) 
 Accretion expense    32  29 
 Balance at end of period   $1,336 $1,094 

The current portion of Reclamation and remediation liabilities of $66 and $71 at June 30, 2012 and December 31, 2011, respectively, are included in Other current liabilities (see Note 22).

 

The Company's reclamation and remediation expenses consisted of:

 

   Three Months Ended June 30, Six Months Ended June 30, 
   2012 2011 2012 2011 
 Reclamation $- $28 $- $28 
 Accretion - operating    13  13  27  25 
 Accretion - non-operating  3  2  5  4 
   $16 $43 $32 $57 
               
Other Expense, Net
OTHER EXPENSE, NET

NOTE 5    OTHER EXPENSE, NET

 

   Three Months Ended June 30, Six Months Ended June 30, 
   2012 2011 2012 2011 
 Hope Bay care and maintenance $52 $- $102 $- 
 Community development    20  23  51  40 
 Regional administration  29  21  50  37 
 Acquisiton costs  12  20  12  21 
 Western Australia power plant    4  5  8  9 
 Indonesian value added tax settlement  -  -  -  21 
 Other    9  18  23  32 
   $126 $87 $246 $160 
Other Income, Net
OTHER INCOME, NET

NOTE 6    OTHER INCOME, NET

 

    Three Months Ended June 30, Six Months Ended June 30, 
    2012 2011 2012 2011 
 Income (loss) from developing projects, net $19 $(4) $33 $20 
 Reduction of allowance for loan receivable  -  -  21  - 
 Canadian Oil Sands  11  10  20  16 
 Gain on asset sales, net  -  -  10  3 
 Refinery income, net  2  -  7  - 
 Interest  2  2  7  6 
 Gain on sale of investments, net  -  50  -  50 
 Foreign currency exchange, net  12  (18)  (3)  (29) 
 Impairment of marketable securities  (8)  (1)  (32)  (1) 
 Other    (2)  9  6  14 
    $36 $48 $69 $79 
Employee Pension and Other Benefit Plans
EMPLOYEE PENSION AND OTHER BENEFIT PLANS

NOTE 7    EMPLOYEE PENSION AND OTHER BENEFIT PLANS

 

    Three Months Ended June 30, Six Months Ended June 30, 
    2012 2011 2012 2011 
 Pension benefit costs, net              
  Service cost   $8 $6 $15 $12 
  Interest cost    11  10  21  20 
  Expected return on plan assets    (11)  (11)  (22)  (21) 
  Amortization  8  7  14  12 
    $16 $12 $28 $23 
                
    Three Months Ended June 30, Six Months Ended June 30, 
    2012 2011 2012 2011 
 Other benefit costs, net              
  Service cost   $- $- $1 $1 
  Interest cost    2  1  3  2 
    $2 $1 $4 $3 
Stock Based Compensation
STOCK BASED COMPENSATION

NOTE 8    STOCK BASED COMPENSATION

 

   Three Months Ended June 30, Six Months Ended June 30, 
   2012 2011 2012 2011 
 Stock options   $3 $7 $7 $10 
 Restricted stock units  6  11  11  21 
 Performance leveraged stock units  3  1  6  3 
 Strategic stock units  1  -  1  - 
   $13 $19 $25 $34 
Income and Mining Taxes
INCOME AND MINING TAXES

NOTE 9    INCOME AND MINING TAXES

 

During the second quarter of 2012, the Company recorded estimated income and mining tax expense of $175 resulting in an effective tax rate of 32%. Estimated income and mining tax expense during the second quarter of 2011 was $187 for an effective tax rate of 22%. During the first half of 2012, estimated income and mining tax expense was $518 resulting in an effective tax rate of 33%. Estimated income and mining tax expense during the first half of 2011 was $492 for an effective tax rate of 27%. The higher effective tax rate in the second quarter and first half of 2012 is a result of the following: (i) valuation allowances recorded on our Canadian deferred tax assets generated in 2012 due to care and maintenance expenditures at Hope Bay, (ii) an increase in mining taxes included in Income and mining tax expense, primarily related to Nevada and Peru, and (iii) a $65 non-recurring tax benefit in the second quarter and first half of 2011, recorded in connection with the conversion of non-U.S. tax-paying entities to entities currently subject to U.S. income tax which resulted in an increase in net deferred tax assets.

The Company operates in numerous countries around the world and accordingly it is subject to, and pays annual income taxes under, the various income tax regimes in the countries in which it operates. Some of these tax regimes are defined by contractual agreements with the local government, and others are defined by the general corporate income tax laws of the country. The Company has historically filed, and continues to file, all required income tax returns and pay the income taxes reasonably determined to be due. The tax rules and regulations in many countries are highly complex and subject to interpretation. From time to time the Company is subject to a review of its historic income tax filings and in connection with such reviews, disputes can arise with the taxing authorities over the interpretation or application of certain rules to the Company's business conducted within the country involved.

At June 30, 2012, the Company's total unrecognized tax benefit was $245 for uncertain income tax positions taken or expected to be taken on income tax returns. Of this, $28 represents the amount of unrecognized tax benefits that, if recognized, would affect the Company's effective income tax rate.

 

As a result of the statute of limitations that expire in the next 12 months in various jurisdictions, and possible settlements of audit-related issues with taxing authorities in various jurisdictions with respect to which none of the issues are individually significant, the Company believes that it is reasonably possible that the total amount of its net unrecognized income tax benefits will decrease by approximately $20 to $25 in the next 12 months.

 

The Company's income and mining tax expense differed from the amounts computed by applying the United States statutory corporate income tax rate for the following reasons:

    Three Months Ended June 30, Six Months Ended June 30,
    2012 2011 2012 2011
Income before income and mining                        
 tax and other items    $557    $847    $1,593    $1,820
                         
Tax on income at statutory rate 35%  195 35%  296 35%  558 35%  637
Reconciling items:                        
 Tax benefit generated on change                        
   in form of a non-U.S. subsidiary      - (8)%  (65)     - (4)%  (65)
 Percentage depletion   (6)%  (34) (7)%  (56) (7)%  (108) (6)%  (111)
 Change in valuation allowance on                         
  deferred tax assets 2%  13     - 3%  46     -
 Other   1%  1 2%  12 2%  22 2%  31
Income and mining tax expense 32% $175 22% $187 33% $518 27% $492
Discontinued Operations
DISCONTINUED OPERATIONS

NOTE 10    DISCONTINUED OPERATIONS

 

Discontinued operations include Holloway Mining Company, which owned the Holt-McDermott property (“Holt property”) and was sold to St. Andrew Goldfields Ltd. (“St. Andrew”) in 2006. In 2009, the Superior Court issued a decision finding Newmont Canada Corporation (“Newmont Canada”) liable for a sliding scale royalty on production from the Holt property, which was upheld in 2011 by the Ontario Court of Appeal. During the first half of 2012, the Company recorded an additional $71 charge, net of tax benefits of $4, to reflect an increase in future expected production at the Holt property due to new reserve and resource estimates published by St. Andrew and a higher gold price. 

 

Net operating cash used in discontinued operations of $8 in the first half of 2012 relates to payments on the Holt property royalty.

 

Net Income Attributable to Noncontrolling Interests
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

NOTE 11    NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

   Three Months Ended June 30, Six Months Ended June 30, 
   2012 2011 2012 2011 
 Yanacocha   $97 $72 $195 $126 
 Batu Hijau    (5)  64  8  166 
 Other    -  1  2  1 
   $92 $137 $205 $293 

At June 30, 2012, Newmont had a 48.5% effective economic interest in PT Newmont Nusa Tenggara (“PTNNT”). PTNNT operates the Batu Hijau copper and gold mine in Indonesia. Based on ASC guidance for variable interest entities, Newmont consolidates PTNNT in its Condensed Consolidated Financial Statements.

 

Newmont has a 51.35% ownership interest in Minera Yanacocha S.R.L. (“Yanacocha”), with the remaining interests held by Compañia de Minas Buenaventura, S.A.A. (43.65%) and the International Finance Corporation (5%).

Income Per Common Share
INCOME PER COMMON SHARE

NOTE 12    INCOME PER COMMON SHARE

 

Basic income per common share is computed by dividing income available to Newmont common stockholders by the weighted average number of common shares outstanding during the period. Diluted income per common share is computed similarly to basic income per common share except that weighted average common shares is increased to include the potential issuance of dilutive common shares.

 

     Three Months Ended June 30, Six Months Ended June 30, 
     2012 2011 2012 2011 
                 
 Net income attributable to Newmont             
  stockholders             
    Continuing operations  $279 $523 $840 $1,037 
    Discontinued operations   -  (136)  (71)  (136) 
     $279 $387 $769 $901 
                 
 Weighted average common shares:            
  Basic   496  494  496  494 
  Effect of employee stock-based awards   1  1  1  1 
  Effect of convertible notes 1  6  5  6 
  Diluted   498  501  502  501 
                 
 Income per common share            
   Basic:            
    Continuing operations  $0.56 $1.06 $1.69 $2.10 
    Discontinued operations   -  (0.28)  (0.14)  (0.28) 
     $0.56 $0.78 $1.55 $1.82 
   Diluted:            
    Continuing operations  $0.56 $1.04 $1.67 $2.07 
    Discontinued operations   -  (0.27)  (0.14)  (0.27) 
     $0.56 $0.77 $1.53 $1.80 

Options to purchase 2 and 3 million shares of common stock at average exercise prices of $58 and $57 were outstanding at June 30, 2012 and 2011, respectively, but were not included in the computation of diluted weighted average common shares because their effect would have been anti-dilutive.

 

Under its convertible note indentures, Newmont is required to settle the principal amount of its 2014 and 2017 Convertible Senior Notes in cash and may elect to settle the remaining conversion premium (Newmont average share price in excess of the conversion price), if any, in cash, shares or a combination thereof. The effect of contingently convertible instruments on diluted earnings per share is calculated under the net share settlement method in accordance with ASC guidance. The average price of the Company's common stock exceeded the conversion prices for all periods presented, resulting in additional shares included in the computation of diluted weighted average common shares.

 

In February 2012, the holders of the Company's 2012 Convertible Senior Notes exercised their election to convert the notes. The Company elected to pay the $172 conversion premium with cash, and as a result no common shares were issued.

 

Changes in Equity
CHANGES IN EQUITY

NOTE 13    CHANGES IN EQUITY

 

     Six Months Ended June 30, 
     2012 2011 
 Common stock:       
  At beginning of period $784 $778 
   Stock based awards   2  2 
  At end of period    786  780 
           
 Additional paid-in capital:       
  At beginning of period    8,408  8,279 
   Stock based awards   55  52 
   Conversion premium on convertible notes  (172)  0 
   Shares issued in exchange for exchangeable shares    0  (1) 
  At end of period    8,291  8,330 
           
 Accumulated other comprehensive income:       
  At beginning of period    652  1,108 
   Other comprehensive income   (291)  202 
  At end of period    361  1,310 
           
 Retained earnings:       
  At beginning of period    3,052  3,180 
   Net income attributable to Newmont stockholders    769  901 
   Dividends paid     (347)  (173) 
  At end of period    3,474  3,908 
           
 Noncontrolling interests:       
  At beginning of period    2,875  2,371 
   Net income attributable to noncontrolling interests    205  293 
   Dividends paid   (3)  (2) 
   Other comprehensive income     -   3 
  At end of period    3,077  2,665 
 Total equity   $15,989 $16,993 
           
Acquisitions
ACQUISITIONS

NOTE 14    ACQUISITIONS

       

On April 6, 2011, Newmont completed the acquisition of Fronteer Gold, Inc. (“Fronteer”). Under the Arrangement, shareholders of Fronteer received C$14.00 in cash and one-fourth common share in Pilot Gold, which retained certain exploration assets of Fronteer, for each common share of Fronteer. In connection with the acquisition, Newmont incurred transaction costs of $21, which were recorded in Other Expense, net in the first half of 2011.

 

On June 25, 2009 the Company completed the acquisition of the remaining 33.33% interest in Boddington from AngloGold Ashanti Australia Limited (“AngloGold”), with a transaction that included maximum contingent consideration of $100, based on an operating margin royalty. Since the completion of the acquisition, the Company has accrued the maximum royalty, of which $12 was accrued in the current quarter.

Fair Value Accounting
FAIR VALUE ACCOUNTING

NOTE 15    FAIR VALUE ACCOUNTING

 

Fair value accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:

 

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

 

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

 

Level 3       Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

 

The following table sets forth the Company's assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

 

    Fair Value at June 30, 2012 
    Total Level 1 Level 2 Level 3 
 Assets:            
  Cash equivalents  $503 $503 $- $- 
  Marketable equity securities:              
   Extractive industries 1,110  1,110  -  - 
   Other 10  10  -  - 
  Marketable debt securities:            
   Asset backed commercial paper   19  -  -  19 
   Corporate 98  -  98  - 
   Auction rate securities   5  -  -  5 
  Trade receivable from provisional copper             
   and gold concentrate sales, net  179  179  -  - 
  Derivative instruments, net:              
   Foreign exchange forward contracts 223  -  223  - 
    $2,147 $1,802 $321 $24 
 Liabilities:            
  Diesel forward contracts 8  -  8  - 
  Boddington contingent consideration 44  -  -  44 
  Holt property royalty 243  -  -  243 
    $295 $- $8 $287 

 

The Company's cash equivalent instruments are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The cash equivalent instruments that are valued based on quoted market prices in active markets are primarily money market securities and U.S. Treasury securities.

 

The Company's marketable equity securities are valued using quoted market prices in active markets and as such are classified within Level 1 of the fair value hierarchy. The securities are segregated based on industry. The fair value of the marketable equity securities is calculated as the quoted market price of the marketable equity security multiplied by the quantity of shares held by the Company.

 

The Company's corporate marketable debt securities are valued using quoted market prices in non-active markets and as such are classified within Level 2 of the fair value hierarchy.The Company's marketable debt securities include investments in auction rate securities and asset backed commercial paper. The Company reviews the fair value for auction rate securities and asset backed commercial paper on a quarterly basis. The auction rate securities are traded in markets that are not active, trade infrequently and have little price transparency. The Company estimated the fair value of the auction rate securities based on weighted average risk calculations using cash flow assumptions discounted approximately 42%, which reflects an estimated discount for lack of marketability. The Company estimated the fair value of its asset backed commercial paper using a probability of return ranging from 13%-74% for each class of notes, which is reflective of information reviewed regarding the separate classes of securities. As a result of utilizing the unobservable inputs noted above in its fair value estimation of the Company's auction rate securities and asset backed commercial paper, both fair value estimates are classified within Level 3 of the fair value hierarchy.

 

The Company's net trade receivable from provisional copper and gold concentrate sales, subject to final pricing, is valued using quoted market prices based on forward curves and, as such, is classified within Level 1 of the fair value hierarchy.

 

The Company's derivative instruments are valued using pricing models and the Company generally uses similar models to value similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices, yield curves, credit spreads, measures of volatility, and correlations of such inputs. The Company's derivatives trade in liquid markets, and as such, model inputs can generally be verified and do not involve significant management judgment. Such instruments are classified within Level 2 of the fair value hierarchy.

 

The estimated value of the Boddington contingent royalty was determined using a Monte Carlo valuation model which simulates future gold and copper prices and costs applicable to sales. This contingent royalty is capped at $100, and at June 30, 2012, the Company has accrued the maximum of $100. At June 30, 2012 the Company used the following long-term price assumptions: 1) $1,500 per ounce gold price, 2) $3.50 per pound copper price, 3) $90 per barrel of oil, and 4) a $1.00 A$/US$ exchange rate. The Company used an approximate 4% discount rate in the model. The contingent royalty liability is classified within Level 3 of the fair value hierarchy.

 

The estimated fair value of the Holt sliding scale royalty was determined using a Monte Carlo valuation model to simulate future gold prices utilizing a long-term gold price assumption of $1,500 per ounce, various gold production scenarios based on publicly available reserve and resource information for the Holt property and an approximate 4% weighted average discount rate. The sliding scale royalty liability is classified within Level 3 of the fair value hierarchy.

 

The table below sets forth a summary of changes in the fair value of the Company's Level 3 financial assets and liabilities for the six months ended June 30, 2012:

 

    Auction Rate Securities Asset Backed Commercial Paper Total Assets Boddington Contingent Royalty Holt Property Royalty Total Liabilities 
 Balance at beginning of period   $5 $19 $24 $54 $176 $230 
  Settlements  -  -  -  (22)  (8)  (30) 
  Revaluation  -  -  -  12  75  87 
 Balance at end of period   $5 $19 $24 $44 $243 $287 

At June 30, 2012, assets and liabilities classified within Level 3 of the fair value hierarchy represent 1% and 97%, respectively, of total assets and liabilities measured at fair value.

 

Derivative Instruments
DERIVATIVE INSTRUMENTS

NOTE 16    DERIVATIVE INSTRUMENTS

The Company's strategy is to provide shareholders with leverage to changes in gold and copper prices by selling its production at spot market prices. Consequently, the Company does not hedge its gold and copper sales. The Company continues to manage certain risks associated with commodity input costs, interest rates and foreign currencies using the derivative market. All of the derivative instruments described below were transacted for risk management purposes and qualify as cash flow or fair value hedges.

Cash Flow Hedges

The foreign currency, diesel and forward starting swap contracts are designated as cash flow hedges, and as such, the effective portion of unrealized changes in market value have been recorded in Accumulated other comprehensive income and are reclassified to income during the period in which the hedged transaction affects earnings. Gains and losses from hedge ineffectiveness are recognized in current earnings.

Foreign Currency Contracts

 

Newmont utilizes foreign currency contracts to reduce the variability of the US dollar amount of forecasted foreign currency expenditures caused by changes in exchange rates. Newmont hedges a portion of the Company's A$ and NZ$ denominated operating expenditures which results in a blended rate realized each period. The hedging instruments are fixed forward contracts with expiration dates ranging up to five years from the date of issue. The principal hedging objective is reduction in the volatility of realized period-on-period $/A$ and $/NZ$ rates, respectively.

 

In June 2011, Newmont began hedging a portion of the Company's A$ denominated capital expenditures related to the construction of the Akyem project in Africa utilizing foreign currency contracts. The hedging instruments are fixed forward contracts with expiration dates ranging up to two years.

 

In July 2011, Newmont began hedging a portion of the Company's A$ denominated capital expenditures related to the construction of a mine shaft at Tanami in Australia utilizing foreign currency contracts. The hedging instruments are fixed forward contracts with expiration dates ranging up to three years.

 

Newmont had the following foreign currency derivative contracts outstanding at June 30, 2012:

    Expected Maturity Date 
                Total/ 
    2012 2013 2014 2015 2016 2017 Average 
 A$ Operating Fixed Forward Contracts:                       
  A$ notional (millions)    641  1,048  762  471  244  28  3,194 
  Average rate ($/A$)    0.93  0.93  0.90  0.89  0.90  0.88  0.91 
  Expected hedge ratio  78% 68% 50% 33% 17% 4%   
 A$ Capital Fixed Forward Contracts:                       
  A$ notional (millions)    27  51  22  -  -  -  100 
  Average rate ($/A$)    1.00  0.98  0.96  -  -  -  0.98 
  Expected hedge ratio  37% 28% 40% -  -  -    
 NZ$ Operating Fixed Forward Contracts:                       
  NZ$ notional (millions)    41  37  4  -  -  -  82 
  Average rate ($/NZ$)    0.78  0.78  0.78  -  -  -  0.78 
  Expected hedge ratio  60% 29% 8% -  -  -    

Diesel Fixed Forward Contracts

Newmont hedges a portion of its operating cost exposure related to diesel consumed at its Nevada operations to reduce the variability in realized diesel prices. The hedging instruments consist of a series of financially settled fixed forward contracts with expiration dates ranging up to three years from the date of issue.

Newmont had the following diesel derivative contracts outstanding at June 30, 2012:

    Expected Maturity Date 
             Total/ 
    2012 2013 2014 2015 Average 
 Diesel Fixed Forward Contracts:                 
  Diesel gallons (millions)    16  22  10  1  49 
  Average rate ($/gallon)    2.91  2.92  2.88  2.85  2.91 
  Expected hedge ratio  71% 50% 24% 8%   

Forward Starting Swap Contracts

During 2011, Newmont entered into forward starting interest rate swap contracts with a total notional value of $2,000. These contracts hedged movements in treasury rates related to a debt issuance that occurred in the first quarter of 2012. On March 8, 2012, Newmont closed its sale of $2,500 senior notes consisting of 3.5% senior notes due 2022 in the principal amount of $1,500 (10-year notes), and 4.875% senior notes due 2042 in the principal amount of $1,000 (30-year notes). As a result, the forward-starting interest rate swaps were settled for $362, of which $349 represented the effective portion of the hedging instrument included in Accumulated other comprehensive income. The net proceeds from the debt issuance were adjusted by the settlement amount of the swap contracts and included as a financing activity in the Condensed Consolidated Statements of Cash Flow.

 

Fair Value Hedges

Interest Rate Swap Contracts

Newmont had $222 fixed to floating swap contracts designated as a hedge against 8 5/8% debentures which matured in May 2011.

Derivative Instrument Fair Values

Newmont had the following derivative instruments designated as hedges at June 30, 2012 and December 31, 2011:

   Fair Value 
   At June 30, 2012 
   Other Current Assets Other Long-Term Assets Other Current Liabilities Other Long-Term Liabilities 
 Foreign currency exchange contracts:            
  A$ operating fixed forwards  $102 $121 $2 $1 
  A$ capital fixed forwards   1  1  -  - 
  NZ$ operating fixed forwards 1  -  -  - 
 Diesel fixed forwards 1  -  6  3 
 Total derivative instruments (Note ##OthAssetsNote and ##OthLiabNote)$105 $122 $8 $4 
               
   Fair Value 
   At December 31, 2011 
   Other Current Assets Other Long-Term Assets Other Current Liabilities Other Long-Term Liabilities 
 Foreign currency exchange contracts:            
  A$ operating fixed forwards  $121  112  6  4 
  A$ capital fixed forwards -  -  -  1 
  NZ$ operating fixed forwards   2  -  1  - 
 Diesel fixed forwards 4  -  2  1 
 Forward starting interest rate swaps -  -  399  - 
 Total derivative instruments (Note ##OthAssetsNote and ##OthLiabNote)$127 $112 $408 $6 

The following tables show the location and amount of gains (losses) reported in the Company's Condensed Consolidated Financial Statements related to the Company's cash flow and fair value hedges and the gains (losses) recorded for the hedged item related to the fair value hedges.

   Foreign Currency Exchange Contracts Diesel Forward Contracts Forward Starting Swap Contracts
               
   2012 2011 2012 2011 2012 2011
 For the three months ended June 30,                 
 Cash flow hedging relationships:                 
  Gain (loss) recognized in other comprehensive income (effective portion)  $23 $126 $(16) $(5) $- $-
  Gain (loss) reclassified from Accumulated other comprehensive income into income (effective portion) (1)?  38  49  1  5  (3)  -
                    
 For the six months ended June 30,                 
 Cash flow hedging relationships:                 
  Gain (loss) recognized in other comprehensive income (effective portion)  $85 $193 $(4) $10 $36 $-
  Gain(loss) reclassified from Accumulated other comprehensive income into income (effective portion) (1)?  85  91  4  9  (4)  -
  Gain reclassified from Accumulated other comprehensive income into income (ineffective portion) (2)?  -  -  -  -  2  -

(1) The gain (loss) for the effective portion of the foreign exchange and diesel cash flow hedges reclassified from Accumulated other comprehensive income is included in Costs applicable to sales. The loss for the effective portion of the forward starting swaps reclassified from Accumulated other comprehensive income is included in Interest Expense.

(2) The ineffective portion recognized for cash flow hedges is included in Other Income, net.

 

 

 

   Interest Rate 8 5/8% Debentures 
  Swap Contracts(Hedged Portion) 
   2012 2011 2012 2011 
 For the three months ended June 30,            
 Fair value hedging relationships:            
  Gain (loss) recognized in income (effective portion) (1)?$- $1 $- $(1) 
  (Loss) recognized in income (ineffective portion) (2)? -  (1)  -  - 
               
 For the six months ended June 30,            
 Fair value hedging relationships:            
  Gain (loss) recognized in income (effective portion) (1)?$- $3 $- $(6) 
  (Loss) recognized in income (ineffective portion) (2)? -  (2)  -  - 

(1) The gain (loss) recognized for the effective portion of fair value hedges and the underlying hedged debt is included in Interest expense, net.

(2) The ineffective portion recognized for fair value hedges and the underlying hedged debt is included in Other income, net.

 

The amount to be reclassified from Accumulated other comprehensive income, net of tax to income for derivative instruments during the next 12 months is a gain of approximately $49.

 

Provisional Copper and Gold Sales

 

The Company's provisional copper and gold sales contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the gold and copper concentrates at the prevailing indices' prices at the time of sale. The embedded derivative, which does not qualify for hedge accounting, is marked to market through earnings each period prior to final settlement.

 

London Metal Exchange (“LME”) copper prices averaged $3.57 per pound during the three months ended June 30, 2012, compared with the Company's recorded average provisional price of $3.52 per pound before mark-to-market adjustments and treatment and refining charges. LME copper prices averaged $3.67 per pound during the six months ended June 30, 2012, compared with the Company's recorded average provisional price of $3.65 per pound before mark-to-market adjustments and treatment and refining charges. During the three and six months ended June 30, 2012, changes in copper prices resulted in a provisional pricing mark-to-market loss of $18 ($0.40 per pound) and gain of $13 ($0.12 per pound), respectively. At June 30, 2012, Newmont had copper sales of 40 million pounds priced at an average of $3.44 per pound, subject to final pricing over the next several months.

 

The average London P.M. fix for gold was $1,609 per ounce during the three months ended June 30, 2012, compared with the Company's recorded average provisional price of $1,607 per ounce before mark-to-market adjustments and treatment and refining charges. The average London P.M. fix for gold was $1,651 per ounce during the six months ended June 30, 2012, compared to the Company's recorded average provisional price of $1,651 per ounce before mark-to-market adjustments and treatment and refining charges. During the three and six months ended June 30, 2012, changes in gold prices resulted in a provisional pricing mark-to-market loss of $2 ($2 per ounce) and gain of $4 ($1 per ounce), respectively. At June 30, 2012, Newmont had gold sales of 74,000 ounces priced at an average of $1,600 per ounce, subject to final pricing over the next several months.

 

Investments
6 Months Ended 12 Months Ended
Jun. 30, 2012
Dec. 31, 2011
INVESTMENTS

NOTE 17    INVESTMENTS

 

     At June 30, 2012 
     Cost/Equity Unrealized Fair/Equity 
     Basis Gain Loss Basis 
 Current:              
  Marketable Equity Securities:             
   Paladin Energy Ltd. $60 $7 $- $67 
   Other  14  6  (3)  17 
      74  13  (3)  84 
  Marketable Debt Securities:             
   Corporate    48  -  -  48 
     $122 $13 $(3) $132 
                 
 Long-term:              
  Marketable Debt Securities:             
   Asset backed commercial paper  $25 $- $(6) $19 
   Auction rate securities    8  -  (3)  5 
   Corporate    48  2  -  50 
      81  2  (9)  74 
  Marketable Equity Securities:              
   Canadian Oil Sands Ltd.  303  296  -  599 
   Gabriel Resources Ltd.    76  1  -  77 
   Regis Resources Ltd.  36  260  -  296 
   Other    68  8  (12)  64 
      483  565  (12)  1,036 
                 
  Other investments, at cost     12  -  -  12 
                 
  Investment in Affiliates:             
   Euronimba Ltd.  2  -  -  2 
   Minera La Zanja S.R.L.  61  -  -  61 
     $639 $567 $(21) $1,185 
                 

Included in Investments at June 30, 2012 and December 31, 2011 are $7 and $11 of long-term marketable debt securities, respectively, and $10 and $4 of long-term marketable equity securities, respectively, that are legally pledged for purposes of settling asset retirement obligations related to the San Jose Reservoir at Yanacocha.

 

During the three and six months ended June 30, 2012, the Company recognized impairments for other-than-temporary declines in value of $8 and $32 for marketable equity securities.

 

During the first half of 2012, the Company made net purchases of corporate marketable debt securities of $91.

 

The following tables present the gross unrealized losses and fair value of the Company's investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by length of time that the individual securities have been in a continuous unrealized loss position:

 

  Less than 12 Months  12 Months or Greater  Total
At June 30, 2012 Fair Value  Unrealized Losses  Fair Value  Unrealized Losses  Fair Value  Unrealized Losses
Marketable equity securities$ 34 $ 14 $ - $ - $ 34 $ 14
Asset backed commercial paper   -   -   19   6   19   6
Auction rate securities    -   -   5   3   5   3
 $ 34 $ 14 $ 24 $ 9 $ 58 $ 23
                  
                  
                  
  Less than 12 Months  12 Months or Greater  Total
At December 31, 2011 Fair Value  Unrealized Losses  Fair Value  Unrealized Losses  Fair Value  Unrealized Losses
Marketable equity securities$ 42 $ 18 $ - $ - $ 42 $ 18
Asset backed commercial paper   -   -   19   6   19   6
Auction rate securities    -   -   5   2   5   2
 $ 42 $ 18 $ 24 $ 8 $ 66 $ 26

While the fair values of the Company's investments in asset backed commercial paper and auction rate securities are below their respective cost, the Company views these declines as temporary. The Company intends to hold its investment in auction rate securities and asset backed commercial paper until maturity or such time that the market recovers and therefore considers these losses temporary.

 

INVESTMENTS
     At December 31, 2011 
     Cost/Equity Unrealized Fair/Equity 
     Basis Gain Loss Basis 
 Current:              
  Marketable Equity Securities:             
   Paladin Energy Ltd. $60 $13 $- $73 
   Other  15  7  (1)  21 
     $75 $20 $(1) $94 
 Long-term:              
  Marketable Debt Securities:              
   Asset backed commercial paper  $25 $- $(6) $19 
   Auction rate securities    7  -  (2)  5 
   Corporate    10  1  -  11 
      42  1  (8)  35 
  Marketable Equity Securities:              
   Canadian Oil Sands Trust  302  401  -  703 
   Gabriel Resources Ltd.    76  236  -  312 
   Regis Resources Ltd.  36  218  -  254 
   Other    92  16  (17)  91 
      506  871  (17)  1,360 
                 
  Other investments, at cost     11  -  -  11 
                 
  Investment in Affiliates:              
   Minera La Zanja S.R.L.  66  -  -  66 
     $625 $872 $(25) $1,472 
Inventories
INVENTORIES

NOTE 18    INVENTORIES

 

         
   At June 30, At December 31, 
  20122011 
 In-process $123 $159 
 Concentrate  192  116 
 Precious metals  36  12 
 Materials, supplies and other  452  427 
   $803 $714 
Stockpiles and Ore on Leach Pads
STOCKPILES AND ORE ON LEACH PADS

NOTE 19    STOCKPILES AND ORE ON LEACH PADS

 

         
   At June 30, At December 31, 
   20122011 
 Current:      
  Stockpiles$ 590 $ 506 
  Ore on leach pads  208   165 
   $ 798 $ 671 
 Long-term:      
  Stockpiles$ 2,187 $ 1,904 
  Ore on leach pads  392   367 
   $ 2,579 $ 2,271 

   At June 30, At December 31, 
   2012 2011 
 Stockpiles and ore on leach pads:      
  Nevada$608 $536 
  La Herradura 21  6 
  Yanacocha 591  512 
  Boddington 456  435 
  Batu Hijau 1,331  1,119 
  Other Australia/New Zealand 165  161 
  Ahafo 205  173 
   $3,377 $2,942 
Other Assets
OTHER ASSETS

NOTE 20    OTHER ASSETS

 

   At June 30, At December 31, 
   20122011 
 Other current assets:      
  Refinery metal inventory and receivable$393 $796 
  Prepaid assets 176  93 
  Derivative instruments  105  127 
  Restricted cash 2  20 
  Note receivable -  12 
  Other   62  85 
   $738 $1,133 
         
 Other long-term assets:      
  Goodwill$188 $188 
  Income tax receivable 185  142 
  Intangible assets 142  147 
  Derivative instruments 122  112 
  Restricted cash   91  48 
  Debt issuance costs   79  59 
  Other receivables 16  17 
  Other   179  144 
   $1,002 $857 
Debt
DEBT

NOTE 21    DEBT

 

 At June 30, 2012 At December 31, 2011 
 Current Non-Current Current Non-Current 
Sale-leaseback of refractory ore treatment plant  $ 30 $ - $ 165 $ - 
Corporate revolving credit facility  -   -   -   33 
2012 Convertible Senior Notes, net  -   -   514   - 
2014 Convertible Senior Notes, net  -   523   -   512 
2017 Convertible Senior Notes, net  -   461   -   452 
2019 Senior Notes, net   -   897   -   896 
2022 Senior Notes, net   -   1,489   -   - 
2035 Senior Notes, net   -   598   -   598 
2039 Senior Notes, net   -   1,087   -   1,087 
2042 Senior Notes, net   -   992   -   - 
Ahafo project finance facility    10   40   10   45 
Other capital leases  -   1   -   1 
 $ 40 $ 6,088 $ 689 $ 3,624 
             

Scheduled minimum debt repayments are $35 for the remainder of 2012, $10 in 2013, $533 in 2014, $10 in 2015, $10 in 2016 and $5,530 thereafter.

 

Corporate Revolving Credit Facility

In May 2012, the Company's Corporate Revolving Credit Facility was amended to increase the capacity to $3,000 and extend the facility one year to 2017. The available capacity under the Corporate Revolving Credit Facility prior to the amendment was $2,500.

 

2012 Convertible Senior Notes

In February 2012, the Company's 2012 Convertible Senior Notes matured, resulting in a principal payment of $517. The Company elected to pay the conversion premium of $172 in cash in lieu of issuing common shares.

 

2022 and 2042 Senior Notes

In March 2012, the Company completed a two part public offering of $1,500 and $1,000 uncollateralized Senior Notes maturing on March 15, 2022 and March 15, 2042, respectively; net proceeds were $1,479 and $983, respectively. The 2022 Senior Notes pay interest semi-annually at a rate of 3.50% per annum and the 2042 Senior Notes pay semi-annual interest of 4.875% per annum.

 

Consistent with the Company's other Notes included in the table above, the 2022 and 2042 Senior Notes contain various covenants and default provisions including payment defaults, limitation on liens, limitation on sales and leaseback agreements and merger restrictions.

 

 

Other Liabilities
OTHER LIABILITIES

NOTE 22    OTHER LIABILITIES

 

         
   At June 30, At December 31, 
   20122011 
 Other current liabilities:      
  Refinery metal payable$393 $796 
  Accrued capital expenditures 237  248 
  Accrued operating costs 231  231 
  Interest 79  55 
  Taxes other than income and mining 78  93 
  Reclamation and remediation liabilities 66  71 
  Deferred income tax 54  50 
  Royalties 38  53 
  Boddington contingent consideration 28  24 
  Holt property royalty 17  17 
  Derivative instruments 8  408 
  Other 58  87 
   $1,287 $2,133 
         
 Other long-term liabilities:      
  Holt property royalty$226 $159 
  Income and mining taxes   75  88 
  Power supply agreements 45  45 
  Boddington contingent consideration  16  30 
  Derivative instruments 4  6 
  Other  37  36 
   $403 $364 
         
Net Change in Operating Assets and Liabilities
NET CHANGE IN OPERATING ASSETS AND LIABILITIES

NOTE 23 NET CHANGE IN OPERATING ASSETS AND LIABILITIES

 

Net cash provided from operations attributable to the net change in operating assets and liabilities is composed of the following:

 

   Six Months Ended June 30, 
   2012 2011 
 Decrease (increase) in operating assets:      
  Trade and accounts receivable  $(14) $121 
  Inventories, stockpiles and ore on leach pads   (443)  (230) 
  EGR refinery assets   406  (437) 
  Other assets   (43)  (67) 
 Increase (decrease) in operating liabilities:      
  Accounts payable and other accrued liabilities   (227)  (349) 
  EGR refinery liabilities   (406)  437 
  Reclamation liabilities   (41)  (15) 
   $(768) $(540) 
Supplemental Cash Flow Information
SUPPLEMENTAL CASH FLOW INFORMATION

NOTE 24    SUPPLEMENTAL CASH FLOW INFORMATION

 

         
   Six Months Ended June 30, 
   2012 2011 
 Income and mining taxes, net of refunds   $746 $892 
 Interest, net of amounts capitalized   $105 $92 
Condensed Consolidating Financial Statements
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

NOTE 25    CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

Newmont USA, a 100% owned subsidiary of Newmont Mining Corporation, has fully and unconditionally guaranteed the 2019, 2022, 2035, 2039 and 2042 Senior Notes, the 2014 and 2017 Convertible Senior Notes and the corporate revolving credit facility. The following consolidating financial statements are provided for Newmont USA, as guarantor, and for Newmont Mining Corporation, as issuer, as an alternative to providing separate financial statements for the guarantor. The accounts of Newmont Mining Corporation are presented using the equity method of accounting for investments in subsidiaries.

   Three Months Ended June 30, 2012
       Newmont
   Newmont      Mining
   Mining Newmont Other  Corporation
Condensed Consolidating Statement of Income Corporation USA Subsidiaries Eliminations Consolidated
                 
Sales $- $1,383 $846 $- $2,229
                 
Costs and expenses               
 Costs applicable to sales (1)  -  550  464  (12)  1,002
 Amortization    -  135  113  -  248
 Reclamation and remediation   -  12  4  -  16
 Exploration    -  71  35  -  106
 Advanced projects, research and development    -  64  17  1  82
 General and administrative    -  44  2  11  57
 Other expense, net  -  42  84  -  126
    -  918  719  -  1,637
                 
Other income (expense)                
 Other income, net    (6)  12  30  -  36
 Interest income - intercompany    39  1  6  (46)  -
 Interest expense - intercompany    (3)  (1)  (42)  46  -
 Interest expense, net    (62)  (7)  (2)  -  (71)
    (32)  5  (8)  -  (35)
Income before income and mining tax and other items    (32)  470  119  -  557
Income and mining tax expense    11  (83)  (103)  -  (175)
Equity income (loss) of affiliates    300  (2)  50  (359)  (11)
Net income   279  385  66  (359)  371
Net income attributable to noncontrolling interests  -  (91)  (31)  30  (92)
Net income attributable to Newmont stockholders $279 $294 $35 $(329) $279
                 
Comprehensive income $(18) $357 $(190) $(77) $72
Comprehensive income attributable to                
 noncontrolling interests  -  (91)  (29)  30  (90)
Comprehensive income attributable to Newmont               
 stockholders $(18) $266 $(219) $(47) $(18)

(1) Excludes Amortization and Reclamation and remediation.

 

                 
   Three Months Ended June 30, 2011
               Newmont
   Newmont         Mining
   Mining Newmont Other    Corporation
Condensed Consolidating Statement of Income Corporation USA Subsidiaries Eliminations Consolidated
                 
Sales $- $1,468 $916 $- $2,384
                 
Costs and expenses               
 Costs applicable to sales (1)  -  551  375  (9)  917
 Amortization    -  156  94  -  250
 Reclamation and remediation   -  37  6  -  43
 Exploration    -  47  42  -  89
 Advanced projects, research and development    -  41  46  (1)  86
 General and administrative    -  39  1  10  50
 Other expense, net  -  67  20  -  87
    -  938  584  -  1,522
Other income (expense)                
 Other income, net    (2)  41  9  -  48
 Interest income - intercompany    40  2  2  (44)  -
 Interest expense - intercompany    (3)  -  (41)  44  -
 Interest expense, net    (59)  (3)  (1)  -  (63)
    (24)  40  (31)  -  (15)
Income before income and mining tax and other items  (24)  570  301  -  847
Income and mining tax expense    5  (111)  (81)  -  (187)
Equity income (loss) of affiliates    406  2  50  (458)  -
Income from continuing operations  387  461  270  (458)  660
                 
Loss from discontinued operations  -  7  (143)  -  (136)
Net income (loss)  387  468  127  (458)  524
Net income attributable to noncontrolling interests  -  (173)  30  6  (137)
Net income attributable to Newmont stockholders $387 $295 $157 $(452) $387
                 
Comprehensive income $308 $419 $230 $(511) $446
Comprehensive income attributable to noncontrolling               
 interests  -  (173)  29  6  (138)
Comprehensive income attributable to Newmont               
 stockholders $308 $246 $259 $(505) $308

(1) Excludes Amortization and Reclamation and remediation.

 

                 
   Six Months Ended June 30, 2012
       Newmont
   Newmont      Mining
   Mining Newmont Other  Corporation
Condensed Consolidating Statement of Income Corporation USA Subsidiaries Eliminations Consolidated
                 
Sales $- $3,000 $1,912 $- $4,912
                 
Costs and expenses               
 Costs applicable to sales (1)  -  1,113  929  (23)  2,019
 Amortization    -  265  214  -  479
 Reclamation and remediation   -  23  9  -  32
 Exploration    -  124  70  -  194
 Advanced projects, research and development    -  152  31  1  184
 General and administrative    -  86  3  22  111
 Other expense, net  -  89  157  -  246
    -  1,852  1,413  -  3,265
                 
Other income (expense)                
 Other income, net    (9)  25  53  -  69
 Interest income - intercompany    79  3  11  (93)  -
 Interest expense - intercompany    (8)  (1)  (84)  93  -
 Interest expense, net    (108)  (12)  (3)  -  (123)
    (46)  15  (23)  -  (54)
Income before income and mining tax and other items    (46)  1,163  476  -  1,593
Income and mining tax expense    16  (229)  (305)  -  (518)
Equity income (loss) of affiliates    799  (13)  117  (933)  (30)
Income from continuing operations    769  921  288  (933)  1,045
Loss from discontinued operations    -  4  (75)  -  (71)
Net income  769  925  213  (933)  974
Net income attributable to noncontrolling interests   -  (207)  (63)  65  (205)
Net income attributable to Newmont stockholders $769 $718 $150 $(868) $769
                 
Comprehensive income $478 $898 $(51) $(642) $683
Comprehensive income attributable to                
 noncontrolling interests  -  (207)  (63)  65  (205)
Comprehensive income attributable to Newmont               
 stockholders $478 $691 $(114) $(577) $478

(1) Excludes Amortization and Reclamation and remediation.

 

                 
   Six Months Ended June 30, 2011
               Newmont
   Newmont         Mining
   Mining Newmont Other    Corporation
Condensed Consolidating Statement of Income Corporation USA Subsidiaries Eliminations Consolidated
                 
Sales $- $2,986 $1,863 $- $4,849
                 
Costs and expenses               
 Costs applicable to sales (1)  -  1,117  759  (19)  1,857
 Amortization    -  315  191  -  506
 Reclamation and remediation   -  48  9  -  57
 Exploration    -  81  70  -  151
 Advanced projects, research and development    -  68  87  (1)  154
 General and administrative    -  73  2  20  95
 Other expense, net  -  121  39  -  160
    -  1,823  1,157  -  2,980
Other income (expense)                
 Other income, net    (8)  67  20  -  79
 Interest income - intercompany    76  4  4  (84)  -
 Interest expense - intercompany    (6)  -  (78)  84  -
 Interest expense, net    (113)  (12)  (3)  -  (128)
    (51)  59  (57)  -  (49)
                 
Income before income and mining tax and other items  (51)  1,222  649  -  1,820
Income and mining tax expense    15  (319)  (188)  -  (492)
Equity income (loss) of affiliates    937  3  139  (1,077)  2
Income (loss) from continuing operations    901  906  600  (1,077)  1,330
Income (loss) from discontinued operations    -  7  (143)  -  (136)
Net income   901  913  457  (1,077)  1,194
                 
Net income attributable to noncontrolling interests  -  (365)  10  62  (293)
                 
Net income attributable to Newmont stockholders $901 $548 $467 $(1,015) $901
                 
Comprehensive income $1,103 $881 $825 $(1,410) $1,399
Comprehensive income attributable to noncontrolling               
 interests  -  (365)  7  62  (296)
Comprehensive income attributable to Newmont               
 stockholders $1,103 $516 $832 $(1,348) $1,103

(1) Excludes Amortization and Reclamation and remediation.

 

     Six Months Ended June 30, 2012 
                 Newmont 
     Newmont         Mining 
     Mining Newmont Other   Corporation 
   Condensed Consolidating Statement of Cash Flows Corporation USA Subsidiaries Eliminations Consolidated 
Operating activities:                
  Net income (loss) $769 $925 $213 $(933) $974 
  Adjustments    32  273  (480)  933  758 
  Net change in operating assets and liabilities    (7)  (514)  (247)  -  (768) 
Net cash provided from (used in) continuing operations  794  684  (514)  -  964 
Net cash used in discontinued operations  -  -  (8)  -  (8) 
Net cash provided from (used in) operations    794  684  (522)  -  956 
Investing activities:                
  Additions to property, plant and mine development    -  (1,090)  (488)  -  (1,578) 
  Sale of marketable securities  -  -  106  -  106 
  Purchases of marketable securities  -  (91)  (105)  -  (196) 
  Acquisitions, net     -  -  (22)  -  (22) 
  Proceeds from sale of other assets  -  9  4  -  13 
  Other    -  -  (37)  -  (37) 
Net cash used in investing activities    -  (1,172)  (542)  -  (1,714) 
Financing activities:                
  Net borrowings (repayments)  1,543  (136)  (5)  -  1,402 
  Payment of conversion premium on debt  (172)  -  -  -  (172) 
  Net intercompany borrowings (repayments)  (1,833)  692  1,141  -  - 
  Dividends paid to common stockholders    (347)  -  -  -  (347) 
  Dividends paid to noncontrolling interests  -  (3)  -  -  (3) 
  Proceeds from stock issuance, net  15  -  -  -  15 
  Other    -  -  (1)  -  (1) 
Net cash provided from (used in) financing activities    (794)  553  1,135  -  894 
Effect of exchange rate changes on cash    -  (1)  2  -  1 
Net change in cash and cash equivalents    -  64  73  -  137 
Cash and cash equivalents at beginning of period    -  1,526  234  -  1,760 
Cash and cash equivalents at end of period   $- $1,590 $307 $- $1,897 

     Six Months Ended June 30, 2011
                Newmont 
     Newmont       Mining 
     Mining Newmont Other   Corporation 
   Condensed Consolidating Statement of Cash Flows Corporation USA Subsidiaries Eliminations Consolidated 
Operating activities:                
  Net income (loss) $901 $913 $457 $(1,077) $1,194 
  Adjustments    39  362  (729)  1,077  749 
  Net change in operating assets and liabilities    (27)  (509)  (4)  -  (540) 
Net cash provided from (used in) continuing operations    913  766  (276)  -  1,403 
Net cash used in discontinued operations    -  -  (2)  -  (2) 
Net cash provided from (used in) operations    913  766  (278)  -  1,401 
Investing activities:                
  Additions to property, plant and mine development    -  (671)  (349)  -  (1,020) 
  Sale of marketable securities  -  55  -  -  55 
  Purchases of marketable securities  -  -  (15)  -  (15) 
  Acquisitions, net  -  -  (2,291)  -  (2,291) 
  Proceeds from sale of other assets  -  (56)  62  -  6 
  Other    -  -  (15)  -  (15) 
Net cash used in investing activities    -  (672)  (2,608)  -  (3,280) 
Financing activities:                
  Net borrowings (repayments)  83  (276)  (5)  -  (198) 
  Net intercompany borrowings (repayments)   (831)  (2,018)  2,849  -  - 
  Dividends paid to common stockholders    (173)  -  -  -  (173) 
  Dividends paid to noncontrolling interests  -  (17)  -  -  (17) 
  Proceeds from stock issuance, net    8  -  -  -  8 
  Other    -  1  (1)  -  - 
Net cash provided from (used in) financing activities    (913)  (2,310)  2,843  -  (380) 
Effect of exchange rate changes on cash    -  1  57  -  58 
Net change in cash and cash equivalents    -  (2,215)  14  -  (2,201) 
Cash and cash equivalents at beginning of period    -  3,877  179  -  4,056 
Cash and cash equivalents at end of period   $- $1,662 $193 $- $1,855 

                  
    At June 30, 2012
            Newmont
    Newmont       Mining
    Mining Newmont Other   Corporation
Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated
Assets               
 Cash and cash equivalents   $- $1,590 $307 $- $1,897
 Trade receivables    -  183  107  -  290
 Accounts receivable    3,854  4,642  293  (8,430)  359
 Investments  67  48  17  -  132
 Inventories    -  400  403  -  803
 Stockpiles and ore on leach pads    -  669  129  -  798
 Deferred income tax assets    5  250  -  -  255
 Other current assets    9  147  582  -  738
  Current assets    3,935  7,929  1,838  (8,430)  5,272
 Property, plant and mine development, net    -  7,675  9,293  (32)  16,936
 Investments    -  72  1,113  -  1,185
 Investments in subsidiaries    15,184  2  2,967  (18,153)  -
 Stockpiles and ore on leach pads    -  1,882  697  -  2,579
 Deferred income tax assets    800  833  53  -  1,686
 Other long-term assets    3,791  752  899  (4,440)  1,002
  Total assets   $23,710 $19,145 $16,860 $(31,055) $28,660
                  
Liabilities               
 Debt   $- $30 $10 $- $40
 Accounts payable    4,420  3,161  1,321  (8,328)  574
 Employee-related benefits    -  206  87  -  293
 Income and mining taxes    -  53  120  -  173
 Other current liabilities    78  539  2,735  (2,065)  1,287
  Current liabilities    4,498  3,989  4,273  (10,393)  2,367
 Debt    6,047  1  40  -  6,088
 Reclamation and remediation liabilities    -  908  362  -  1,270
 Deferred income tax liabilities    -  601  1,455  -  2,056
 Employee-related benefits    5  370  112  -  487
 Other long-term liabilities    527  51  4,297  (4,472)  403
  Total liabilities    11,077  5,920  10,539  (14,865)  12,671
Equity               
 Preferred stock    -  -  61  (61)  -
 Common stock    786  -  5  (5)  786
 Additional paid-in capital    8,012  3,050  5,698  (8,469)  8,291
 Accumulated other comprehensive income  361  (216)  905  (689)  361
 Retained earnings  3,474  6,776  (1,603)  (5,173)  3,474
 Newmont stockholders’ equity    12,633  9,610  5,066  (14,397)  12,912
 Noncontrolling interests    -  3,615  1,255  (1,793)  3,077
  Total equity  12,633  13,225  6,321  (16,190)  15,989
  Total liabilities and equity $23,710 $19,145 $16,860 $(31,055) $28,660
                  

                  
    At December 31, 2011
            Newmont
    Newmont       Mining
    Mining Newmont Other   Corporation
Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated
Assets               
 Cash and cash equivalents   $- $1,526 $234 $- $1,760
 Trade receivables    -  205  95  -  300
 Accounts receivable    1,415  3,447  264  (4,806)  320
 Investments  72  -  22  -  94
 Inventories    -  333  381  -  714
 Stockpiles and ore on leach pads    -  532  139  -  671
 Deferred income tax assets    134  257  5  -  396
 Other current assets    -  91  1,042  -  1,133
  Current assets    1,621  6,391  2,182  (4,806)  5,388
 Property, plant and mine development, net    -  6,917  8,990  (26)  15,881
 Investments    -  29  1,443  -  1,472
 Investments in subsidiaries    14,675  43  2,825  (17,543)  -
 Stockpiles and ore on leach pads    -  1,641  630  -  2,271
 Deferred income tax assets    708  838  59  -  1,605
 Other long-term assets    3,423  641  927  (4,134)  857
  Total assets   $20,427 $16,500 $17,056 $(26,509) $27,474
                  
Liabilities               
 Debt   $514 $165 $10 $- $689
 Accounts payable    2,698  1,327  1,343  (4,807)  561
 Employee-related benefits    -  222  85  -  307
 Income and mining taxes    -  45  205  -  250
 Other current liabilities    450  459  3,186  (1,962)  2,133
  Current liabilities    3,662  2,218  4,829  (6,769)  3,940
 Debt  3,578  1  45  -  3,624
 Reclamation and remediation liabilities    -  809  360  -  1,169
 Deferred income tax liabilities    -  732  1,415  -  2,147
 Employee-related benefits    5  355  99  -  459
 Other long-term liabilities    567  61  3,895  (4,159)  364
  Total liabilities    7,812  4,176  10,643  (10,928)  11,703
Equity               
 Preferred stock    -  -  61  (61)  -
 Common stock    784  -  -  -  784
 Additional paid-in capital    8,127  3,050  5,702  (8,471)  8,408
 Accumulated other comprehensive income  652  (189)  1,168  (979)  652
 Retained earnings  3,052  6,055  (1,744)  (4,311)  3,052
 Newmont stockholders’ equity    12,615  8,916  5,187  (13,822)  12,896
 Noncontrolling interests    -  3,408  1,226  (1,759)  2,875
  Total equity  12,615  12,324  6,413  (15,581)  15,771
  Total liabilities and equity $20,427 $16,500 $17,056 $(26,509) $27,474
                  
Commitments and Contingencies
COMMITMENTS AND CONTINGENCIES

NOTE 26    COMMITMENTS AND CONTINGENCIES

 

General

 

The Company follows ASC guidance in accounting for loss contingencies. Accordingly, estimated losses from contingencies are accrued by a charge to income when information available prior to issuance of the financial statements indicates that it is probable that a liability could be incurred and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the contingency and estimated range of loss, if determinable is made in the financial statements when it is at least reasonably possible that a material loss could be incurred.

 

Operating Segments

 

The Company's operating segments are identified in Note 3. Except as noted in this paragraph, all of the Company's commitments and contingencies specifically described in this Note 26 relate to the Corporate and Other reportable segment. The PT Newmont Minahasa Raya and PTNNT matters relate to the Asia Pacific reportable segment. The Yanacocha matters relate to the South America reportable segment.

 

Environmental Matters

 

The Company's mining and exploration activities are subject to various laws and regulations governing the protection of the environment. These laws and regulations are continually changing and are generally becoming more restrictive. The Company conducts its operations so as to protect the public health and environment and believes its operations are in compliance with applicable laws and regulations in all material respects. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures.

 

Estimated future reclamation costs are based principally on legal and regulatory requirements. At June 30, 2012 and December 31, 2011, $1,145 and $1,070, respectively, were accrued for reclamation costs relating to currently or recently producing mineral properties in accordance with asset retirement obligation guidance. The current portions of $45 and $47 at June 30, 2012 and December 31, 2011, respectively, are included in Other current liabilities.

 

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, $191 and $170 were accrued for such obligations at June 30, 2012 and December 31, 2011, 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 108% greater or 7% lower than the amount accrued at June 30, 2012. The amounts accrued are reviewed periodically based upon facts and circumstances available at the time. Changes in estimates are recorded in Reclamation and remediation in the period estimates are revised.

 

Details about certain of the more significant matters involved are discussed below.

 

Newmont Mining Corporation

 

Conjecture Mine Site. On April 24, 2012, Federal Resources Corporation served Newmont with a third party complaint seeking contribution for reclamation costs at the Conjecture Mine site in Bonner County, Idaho. The United States Department of Justice on behalf of the EPA (“U.S.”) brought a CERCLA action against Federal Resources Corporation for costs incurred in response to alleged releases or threatened releases of hazardous substances at the Conjecture Mine, Idaho Lakeview and Minnie More Mine sites. The U.S. has expended approximately $5 in total costs for the completion of reclamation at the Conjecture Mine. Federal Resources Corporation alleges that Newmont is the successor-in-interest to Duval Corporation (“Duval”), and that Duval is a former operator of the Conjecture Mine. Newmont denies that it is a successor-in-interest to the liabilities of Duval and further Newmont has not uncovered any evidence to substantiate that Duval operated the Conjecture Mine. Therefore, Newmont intends to vigorously defend this lawsuit. Newmont cannot reasonably predict the likelihood or outcome of this matter.

 

Empire Mine. On July 19, 2012, the California Department of Parks and Recreation (“Parks”) served Newmont, New Verde Mines LLC, Newmont North America Exploration Limited, Newmont Realty Company and Newmont USA Limited with a complaint for damages and declaratory relief under CERCLA, specifically for costs associated with water treatment at the Empire Mine State Park and for a declaration that Newmont is liable for past and future response costs, as well as indemnification to Parks. In 1975 Parks purchased the Empire Mine site in Grass Valley, California from Newmont to create a historic state park featuring the mining of the Empire Mine. Parks has operated the Empire Mine Site for over 35 years. Newmont intends to vigorously defend this lawsuit. Newmont cannot reasonably predict the outcome of this matter.

 

Newmont USA Limited - 100% Newmont Owned

 

Grey Eagle Mine Site.    By letter dated September 3, 2002, the EPA notified Newmont that the EPA had expended $3 in response costs to address environmental conditions associated with a historic tailings pile located at the Grey Eagle Mine site near Happy Camp, California, and requested that Newmont pay those costs. The EPA has identified four potentially responsible parties, including Newmont. Newmont does not believe it has any liability for environmental conditions at the Grey Eagle Mine site, and intends to vigorously defend any formal claims by the EPA. Newmont cannot reasonably predict the likelihood or outcome of any future action against it arising from this matter.

 

Ross-Adams Mine Site.    By letter dated June 5, 2007, the U.S. Forest Service notified Newmont that it had expended approximately $0.3 in response costs to address environmental conditions at the Ross-Adams mine in Prince of Wales, Alaska, and requested Newmont USA Limited pay those costs and perform an Engineering Evaluation/Cost Analysis (“EE/CA”) to assess what future response activities might need to be completed at the site. Newmont intends to vigorously defend any formal claims by the EPA. Newmont has agreed to perform the EE/CA. Newmont cannot reasonably predict the likelihood or outcome of any future action against it arising from this matter.

 

PT Newmont Minahasa Raya (“PTNMR”) - 80% Newmont Owned

 

On March 22, 2007, an Indonesian non-governmental organization named Wahana Lingkungan Hidup Indonesia (“WALHI”) filed a civil suit against PTNMR, the Newmont subsidiary that operated the Minahasa mine in Indonesia, and Indonesia's Ministry of Energy & Mineral Resources and Ministry of Environment, alleging pollution from the government-approved and permitted disposal of mill tailings into Buyat Bay, and seeking a court order requiring PTNMR to fund a 25-year monitoring program in relation to Buyat Bay. In December 2007, the court ruled in PTNMR's favor and found that WALHI's allegations of pollution in Buyat Bay were without merit. In March 2008, WALHI appealed this decision to the Indonesian High Court. On January 27, 2010, the Indonesian High Court upheld the December 2007 ruling in favor of PTNMR. On May 17, 2010, WALHI filed an appeal of the January 27, 2010 Indonesian High Court ruling seeking review from the Indonesian Supreme Court. 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. Ongoing monitoring of seawater quality by an Independent Scientific Panel continues to confirm that PTNMR's operations have not adversely affected the environment. The Company remains steadfast that it has not caused pollution or health problems.

 

Other Legal Matters

 

Minera Yanacocha S.R.L. (“Yanacocha”) - 51.35% Newmont Owned

 

Choropampa.    In June 2000, a transport contractor of Yanacocha spilled approximately 151 kilograms of elemental mercury near the town of Choropampa, Peru, which is located 53 miles (85 kilometers) southwest of the Yanacocha mine. Elemental mercury is not used in Yanacocha's operations but is a by-product of gold mining and was sold to a Lima firm for use in medical instruments and industrial applications. A comprehensive health and environmental remediation program was undertaken by Yanacocha in response to the incident. In August 2000, Yanacocha paid under protest a fine of 1,740,000 Peruvian soles (approximately $0.5) to the Peruvian government. Yanacocha has entered into settlement agreements with a number of individuals impacted by the incident. As compensation for the disruption and inconvenience caused by the incident, Yanacocha entered into agreements with and provided a variety of public works in the three communities impacted by this incident. Yanacocha cannot predict the likelihood of additional expenditures related to this matter.

 

Additional lawsuits relating to the Choropampa incident were filed against Yanacocha in the local courts of Cajamarca, Peru, in May 2002 by over 900 Peruvian citizens. A significant number of the plaintiffs in these lawsuits entered into settlement agreements with Yanacocha prior to filing such claims. In April 2008, the Peruvian Supreme Court upheld the validity of these settlement agreements, which the Company expects to result in the dismissal of all claims brought by previously settled plaintiffs. Yanacocha has also entered into settlement agreements with approximately 350 additional plaintiffs. The claims asserted by approximately 200 plaintiffs remain. In 2011, Yanacocha was served with 23 complaints alleging grounds to nullify the settlements entered between Yanacocha and the plaintiffs. Yanacocha has answered the complaints and the court has dismissed several of the matters and the plaintiffs have filed appeals. All appeals have been referred to the Civil Court of Cajamarca, which has confirmed the decision of the lower court judge. The plaintiffs have filed appeals of such orders before the Supreme Court. Yanacocha will continue to vigorously defend its position. Neither the Company nor Yanacocha can reasonably estimate the ultimate loss relating to such claims.

 

 

PT Newmont Nusa Tenggara (“PTNNT”) – 31.5% Newmont Owned

 

Under the Batu Hijau Contract of Work, beginning in 2006 and continuing through 2010, a portion of PTNNT's shares were required to be offered for sale, first, to the Indonesian government or, second, to Indonesian nationals, equal to the difference between the following percentages and the percentage of shares already owned by the Indonesian government or Indonesian nationals (if such number is positive): 23% by March 31, 2006; 30% by March 31, 2007; 37% by March 31, 2008; 44% by March 31, 2009; and 51% by March 31, 2010. As PT Pukuafu Indah (“PTPI”), an Indonesian national, owned a 20% interest in PTNNT at all relevant times, in 2006, a 3% interest was required to be offered for sale and, in each of 2007 through 2010, an additional 7% interest was required to be offered (for an aggregate 31% interest). The price at which such interests were offered for sale to the Indonesian parties was the fair market value of such interest considering PTNNT as a going concern, as agreed with the Indonesian government.

 

In accordance with the Contract of Work, an offer to sell a 3% interest was made to the Indonesian government in 2006 and an offer for an additional 7% interest was made in each of 2007, 2008, 2009 and 2010. While the central government declined to participate in the 2006 and 2007 offers, local governments in the area in which the Batu Hijau mine is located expressed interest in acquiring shares, as did various Indonesian nationals. After disagreement with the government over whether the government's first right to purchase had expired and receipt of Notices of Default from the government claiming breach and threatening termination of the Contract of Work, on March 3, 2008, the Indonesian government filed for international arbitration as provided under the Contract of Work, as did PTNNT.

 

An international arbitration panel (the “Panel”) was appointed to resolve these claims and other claims that had arisen in relation to divestment and on March 31, 2009, the Panel issued its final award and decision on the matter. In its decision, the Panel determined that PTNNT's foreign shareholders had not complied with the divestiture procedure required by the Contract of Work in 2006 and 2007, but the Panel ruled that the Indonesian government was not entitled to immediately terminate the Contract of Work and rejected the Indonesian government's claim for damages. In November and December 2009, sale agreements were concluded pursuant to which the 2006, 2007 and 2008 shares were transferred to PT Multi Daerah Bersaing (“PTMDB”), the nominee of the local governments, and the 2009 shares were transferred to PTMDB in February 2010, resulting in PTMDB owning a 24% interest in PTNNT.

 

On December 17, 2010, the Ministry of Energy & Mineral Resources, acting on behalf of the Indonesian government, accepted the offer to acquire the final 7% interest in PTNNT. Subsequently, the Indonesian government designated Pusat Investasi Pemerintah (“PIP”), an agency of the Ministry of Finance, as the entity that will buy the final stake. On May 6, 2011, PIP and the foreign shareholders entered into a definitive agreement for the sale and purchase of the final 7% divestiture stake. Closing of the transaction is pending receipt of approvals from certain Indonesian government ministries. Subsequent to signing the agreement, a disagreement arose between the Ministry of Finance and the Indonesian parliament in regard to whether parliamentary approval was needed to allow PIP to make the share purchase. In October 2011, press reports stated that Indonesia's Supreme Audit Agency had determined that parliamentary approval is required. The Ministry of Finance continues to dispute the need for parliamentary approval and has filed a case with Indonesia's Constitutional Court to have the issue finally resolved. Further disputes may arise in regard to the divestiture of the 2010 shares.

 

As part of the negotiation of the sale agreements with PTMDB, the parties executed an operating agreement (the “Operating Agreement”) under which each recognizes the rights of the Company and Sumitomo to apply their operating standards to the management of PTNNT's operations, including standards for safety, environmental stewardship and community responsibility. The Operating Agreement became effective upon the completion of the sale of the 2009 shares in February 2010 and will continue for so long as the Company and Sumitomo own more shares of PTNNT than PTMDB. If the Operating Agreement terminates, then the Company may lose control over the applicable operating standards for Batu Hijau and will be at risk for operations conducted in a manner that either detracts from value or results in safety, environmental or social standards below those adhered to by the Company and Sumitomo.

 

In the event of any future disputes under the Contract of Work or Operating Agreement, there can be no assurance that the Company would prevail in any such dispute and any termination of such contracts could result in substantial diminution in the value of the Company's interests in PTNNT.

 

Effective January 1, 2011, the local government in the region where the Batu Hijau mine is located commenced the enforcement of local regulations that purport to require PTNNT to pay additional taxes based on revenue and the value of PTNNT's contracts. In addition, the regulations purport to require PTNNT to obtain certain export-related documents from the regional government for purposes of shipping copper concentrate. PTNNT is required to and has obtained all export related-documents in compliance with the laws and regulations of the central government. PTNNT believes that the new regional regulations are not enforceable as they expressly contradict higher level Indonesian laws that set out the permissible taxes that can be imposed by a regional government and all effective export requirements. PTNNT's position is supported by Indonesia's Ministry of Energy & Mineral Resources, Ministry of Trade, and the provincial government. To date, PTNNT has not been forced to comply with these new contradictory regional regulations. On February 4, 2011, PTNNT filed legal proceedings seeking to have the regulations declared null and void because they conflict with the laws of Indonesia. Subsequently, the Ministry of Home Affairs issued a decree declaring these local regulations to be contrary to Indonesian law and thus unenforceable. Further disputes with the local government could arise in relation to these regulations. PTNNT intends to vigorously defend its position in this dispute.

 

Additionally, in September 2011, WALHI brought an administrative law claim against Indonesia's Ministry of Environment to challenge the May 2011 renewal of PTNNT's submarine tailings permit. PTNNT and the regional government of KSB (“KSB”) filed separate applications for intervention into the proceedings, both of which were accepted by the Administrative Court. KSB intervened on the side of WALHI, and PTNNT joined on the side of the Ministry of Environment. On April 3, 2012, the Administrative Court ruled in favor of the Ministry of Environment and PTNNT, finding that the Ministry of Environment properly renewed the permit in accordance with Indonesian law and regulations. WALHI has appealed the verdict. PTNNT will continue to defend its submarine tailings permit and is confident that the Ministry of Environment acted properly in renewing PTNNT's permit.

 

Newmont Mining Corporation claim relating to PTNNT divestiture

 

Indonesian citizens apparently living in the province of Nusa Tenggara Barat filed a lawsuit against Indonesia's Ministry of Finance and other government officials (as defendants) and against PTNNT and the Company (as co-defendants). Plaintiffs claim that the purchase by the central government of the final 7% divestiture stake in PTNNT violates, or would violate, their human rights. PTNNT's alleged liability appears supposedly to arise from being a party involved in the process of divestiture, and the Company's from being a holding company of PTNNT. The allegations regarding alleged liability are vague and unclear. Plaintiffs seek various relief, including an order requiring the defendants and co-defendants to transfer the final 7% stake to the regional government of Nusa Tenggara Barat and a payment of approximately $247 in damages. The Company considers that there is lack of jurisdiction, and that the claims, including those pertaining to it and PTNNT, are entirely without merit.

PT Pukuafu Indah Litigation

In October 2009, PTPI filed a lawsuit in the Central Jakarta District Court against PTNNT and the Indonesian government seeking to cancel the March 2009 arbitration award pertaining to the manner in which divestiture of shares in PTNNT should proceed (refer to the discussion of PTNNT above for the arbitration results). On October 11, 2010, the District Court ruled in favor of PTNNT and the Indonesian government finding, among other things, that PTPI lacks standing to contest the validity of the arbitration award. PTPI filed an appeal to the High Court, which was rejected by the High Court on January 4, 2012. PTPI has appealed the case to the Indonesian Supreme Court.

Subsequent to its initial claim, PTPI filed numerous additional lawsuits, three of which have been withdrawn, against Newmont Indonesia Limited (“NIL”) and Nusa Tenggara Mining Corporation (“NTMC”), a subsidiary of Sumitomo, in the South Jakarta District Court. Fundamentally, the cases all relate to PTPI's contention that it owns, or has rights to own, the shares in PTNNT that have been or will be divested to fulfill the requirements of the PTNNT Contract of Work and the March 2009 arbitration award. PTPI also makes various other allegations, including alleged rights in or to the Company's or NTMC's non-divestiture shares in PTNNT, and PTPI asserts claims for significant damages allegedly arising from NIL's and NTMC's unlawful acts in transferring the divestiture shares to a third party. On November 30, 2010, the South Jakarta District Court rendered a decision in favor of PTPI in one of the cases that included an order that NIL/NTMC transfer 31% of PTNNT shares to PTPI and pay PTPI $26 in damages and certain monetary penalties. The order is not final and binding until the appeal process is completed. NIL and NTMC appealed the decision. On June 28, 2011, the South Jakarta District Court ruled in favor of NIL and NTMC in one of PTPI's lawsuits contending that PTPI has rights in or to NIL's and NTMC's non-divestiture shares. In the Company's view, this ruling further conflicts with the November 30, 2010 ruling finding that PTPI has rights in the divestiture shares. PTPI has filed a notice of appeal. In March 2012, the District Court dismissed PTPI's final two cases that were pending at the trial court level, and PTPI has to date appealed one of these lawsuits.

 

In January 2010, PTPI also filed a lawsuit against PTNNT's President Director, Mr. Martiono Hadianto, alleging wrongful acts associated with the arbitration, including failure to properly share certain information. The South Jakarta District Court issued a decision partially in favor of PTPI against the PTNNT President Director, requiring the production of arbitration documents. The PTNNT President Director has appealed the decision, which is nonbinding until the appeal process is completed.

 

Newmont, Sumitomo and PTNNT's management believe that all of PTPI's claims in these matters are without merit and constitute a material breach of a written release agreement executed by PTPI in 2009, in which it and its shareholders committed to cease prosecution of all then-pending lawsuits and not to initiate new proceedings, in conjunction with Newmont's provision of financing to PTPI in late 2009.

 

In August 2010, NIL and NVL USA Limited (“NVL”) commenced an arbitration against PTPI in the Singapore International Arbitration Centre, as provided in relevant financing agreements, seeking declarations that PTPI has violated the release agreement by failing to dismiss its Indonesian lawsuits, that PTPI is in breach of the November 2009 loan facility and related agreements, and that NIL and NVL are entitled to damages arising from PTPI's and its shareholders' conduct.

 

On October 1, 2010, NIL and NVL requested, based upon the release agreement, that the arbitral tribunal issue an interim order requiring PTPI and its shareholders to discontinue the various Indonesian court proceedings and refrain from bringing additional lawsuits. On October 15, 2010, the tribunal issued an order granting NIL and NVL's request. The order of the tribunal restrains PTPI and its agents from “proceeding with or continuing with or assisting or participating in the prosecution of the Indonesian [s]uits” and from commencing additional proceedings relating to the same subject matter as the Indonesian lawsuits. NIL and NVL obtained an enforcement order in Singapore courts but it is not known whether PTPI and its shareholders will abide by the court order. PTPI and its shareholders' proceedings in Singapore court to contest enforcement of the interim award were rejected by the court.

 

On April 7, 2011, the arbitral tribunal issued a final award, while keeping the proceedings open to allow NIL and NVL to seek further relief as necessary, finding PTPI and its shareholders in breach of various provisions of the financing agreements, including the release agreement. The tribunal, for the second time, ordered PTPI and its agents to restrain from proceeding with the Indonesian lawsuits or filing new lawsuits relating to the same subject matter. In addition, the tribunal ordered PTPI and other shareholder defendants, collectively, to pay more than $11 in damages, costs and expenses. NIL and NVL obtained an enforcement order in Singapore courts but it is not known whether PTPI and its shareholders will comply with the court order. NIL and NVL have also registered the final award in the Central Jakarta District Court to seek enforcement in Indonesia.

The Company intends to continue vigorously defending the PTPI lawsuits and pursuing its claims against PTPI.

 

NWG Investments Inc. v. Fronteer Gold Inc.

 

In April 2011, Newmont acquired Fronteer Gold Inc. (“Fronteer”). Fronteer has been named as a defendant in a lawsuit filed in New York State Supreme Court by NWG Investments Inc. (“NWG”).

 

Fronteer acquired NewWest Gold Corporation (“NewWest Gold”) in September 2007. At the time of that acquisition, NWG owned approximately 86% of NewWest Gold and an individual named Jacob Safra owned or controlled 100% of NWG. Prior to its acquisition of NewWest Gold, Fronteer entered into a June 2007 lock-up agreement with NWG providing that, among other things, NWG would support Fronteer's acquisition of NewWest Gold. At that time, Fronteer owned approximately 42% of Aurora Energy Resources Inc. (“Aurora”), which, among other things, had a uranium exploration project in Labrador, Canada.

 

NWG contends that, during the negotiations leading up to the lock-up agreement, Fronteer represented to NWG that Aurora would commence uranium mining in Labrador by 2013, that this was a firm date, that Fronteer was not aware of any obstacle to doing so, that Aurora faced no serious environmental issues in Labrador and that Aurora's competitors faced greater delays in commencing uranium mining. NWG further contends that it entered into the lock-up agreement and agreed to support Fronteer's acquisition of NewWest Gold in reliance upon these purported representations. On October 11, 2007, less than three weeks after the Fronteer-NewWest Gold transaction closed, a member of the Nunatsiavut Assembly introduced a motion calling for the adoption of a moratorium on uranium mining in Labrador. On April 8, 2008, the Nunatsiavut Assembly adopted a three-year moratorium on uranium mining in Labrador. NWG contends that Fronteer was aware during the negotiations of the NWG/Fronteer lock-up agreement that the Nunatsiavut Assembly planned on adopting this moratorium and that its adoption would preclude Aurora from commencing uranium mining by 2013, but Fronteer nonetheless fraudulently induced NWG to enter into the lock-up agreement.

 

NWG has not yet filed or served a complaint upon Fronteer or Newmont. Newmont intends to defend this matter, but cannot reasonably predict the outcome.

 

 

Other Commitments and Contingencies

 

Tax contingencies are provided for in accordance with ASC income tax guidance (see Note 9).

 

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 $28 in 2012 through 2016 and $223 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. At June 30, 2012 and December 31, 2011, there were $1,661 and $1,354, 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. However, the Company believes it is in compliance with all applicable bonding obligations and will be able to satisfy future bonding requirements through existing or alternative means, as they arise.

 

Newmont is from time to time involved in various legal proceedings related to its business. Except in the above described proceedings, management does not believe that adverse decisions in any pending or threatened proceeding or that amounts that may be required to be paid by reason thereof will have a material adverse effect on the Company's financial condition or results of operations.

 

Supplementary Data
SUPPLEMENTARY DATA

NOTE ##SuppNote    SUPPLEMENTARY DATA

 

Ratio of Earnings to Fixed Charges

 

The ratio of earnings to fixed charges for the six months ended June 30, 2012 was 9.7. The ratio of earnings to fixed charges represents income before income and mining tax expense, equity income (loss) of affiliates, loss from discontinued operations and net income attributable to noncontrolling interests, divided by interest expense. Interest expense includes amortization of capitalized interest and the portion of rent expense representative of interest. Interest expense does not include interest on income tax liabilities. The computation of the ratio of earnings to fixed charges can be found in Exhibit 12.1.

 

Summary of Significant Accounting Policies (Policies)
Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Goodwill Impairment

In September 2011, ASC guidance was issued related to goodwill impairment. Under the updated guidance, an entity will have the option to first assess qualitatively whether it is necessary to perform the two-step goodwill impairment test. If the Company believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required. The update does not change how the Company performs the two-step impairment test under previous guidance. The Company's January 1, 2012 adoption of the guidance had no impact on the Company's consolidated financial position, results of operations or cash flows.

Fair Value Accounting

 

In May 2011, ASC guidance was issued related to disclosures around fair value accounting. The updated guidance clarifies different components of fair value accounting including the application of the highest and best use and valuation premise concepts, measuring the fair value of an instrument classified in a reporting entity's shareholders' equity and disclosing quantitative information about the unobservable inputs used in fair value measurements that are categorized in Level 3 of the fair value hierarchy. The Company's January 1, 2012 adoption of the updated guidance had no impact on the Company's consolidated financial position, results of operations or cash flows.

 

 

Segment Information (Tables)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Financial Information of Newmont's Segments

NOTE 3    SEGMENT INFORMATION

 

     Costs    Advanced   
     Applicable to    Projects and Pre-Tax
   Sales Sales Amortization Exploration Income (Loss)
Three Months Ended June 30, 2012             
Nevada$571 $258 $47 $43 $217
La Herradura 93  33  6  11  46
Other North America -  -  -  1  (54)
 North America 664  291  53  55  209
                 
Yanacocha 614  177  62  18  333
Conga -  -  -  12  (12)
Other South America -  -  -  19  (19)
 South America 614  177  62  49  302
                 
Boddington:              
 Gold 264  157  49  NA  NA
 Copper 42  38  12  NA  NA
  Total 306  195  61  2  37
Batu Hijau:              
 Gold 18  11  3  NA  NA
 Copper 88  70  14  NA  NA
  Total 106  81  17  7  (16)
Other Australia/New Zealand 331  182  33  18  101
Other Asia Pacific -  -  2  4  (9)
 Asia Pacific 743  458  113  31  113
                 
Ahafo 208  76  16  11  100
Akyem -  -  -  5  (5)
Other Africa -  -  -  3  (2)
 Africa 208  76  16  19  93
                 
Corporate and Other -  -  4  34  (160)
Consolidated$2,229 $1,002 $248 $188 $557
Financial Information of Newmont's Segments
      Costs    Advanced   
      Applicable to    Projects and Pre-Tax
   Sales Sales Amortization Exploration Income (Loss)
Three Months Ended June 30, 2011              
Nevada$529 $224 $56 $38 $195
La Herradura 81  27  5  3  44
Other North America -  -  4  53  (8)
 North America 610  251  65  94  231
                 
Yanacocha 524  190  66  11  232
Conga -  -  1  7  (7)
Other South America -  -  -  7  (9)
 South America 524  190  67  25  216
                 
Boddington:              
 Gold 269  117  31  N/A  N/A
 Copper 54  27  7  N/A  N/A
  Total 323  144  38  2  140
Batu Hijau:              
 Gold 92  30  7  N/A  N/A
 Copper 242  79  18  N/A  N/A
  Total 334  109  25  1  186
Other Australia/New Zealand 375  158  31  10  168
Other Asia Pacific -  -  -  5  (34)
 Asia Pacific 1,032  411  94  18  460
                 
Ahafo 218  65  20  8  119
Akyem -  -  -  1  (1)
Other Africa -  -  -  3  (5)
 Africa 218  65  20  12  113
                 
Corporate and Other  -  -  4  26  (173)
Consolidated$2,384 $917 $250 $175 $847
Financial Information of Newmont's Segments

NOTE 3    SEGMENT INFORMATION

 

                      
     Costs    Advanced Pre-Tax    
   Sales Applicable to Sales Amortization Projects and Exploration Income (Loss) Total Assets Capital Expenditures(1)
Six Months Ended June 30, 2012                   
Nevada$1,294 $525 $100 $77 $586 $7,280 $370
La Herradura 186  65  11  17  91  353  29
Other North America -  -  -  1  (106)  199  -
 North America 1,480  590  111  95  571  7,832  399
                       
Yanacocha 1,208  338  112  35  682  2,775  243
Conga -  -  -  39  (39)  1,462  342
Other South America -  -  -  44  (44)  44  -
 South America 1,208  338  112  118  599  4,281  585
                       
Boddington:                    
 Gold 562  294  81  N/A  N/A  N/A  N/A
 Copper 103  68  18  N/A  N/A  N/A  N/A
  Total 665  362  99  5  180  4,640  52
Batu Hijau:                    
 Gold 52  30  6  N/A  N/A  N/A  N/A
 Copper 260  155  30  N/A  N/A  N/A  N/A
  Total 312  185  36  14  32  3,651  61
Other Australia/New Zealand 758  372  69  33  280  1,348  137
Other Asia Pacific -  -  3  10  (4)  606  8
 Asia Pacific 1,735  919  207  62  488  10,245  258
                       
Ahafo 489  172  40  22  250  1,328  108
Akyem -  -  -  9  (10)  750  189
Other Africa -  -  -  5  (4)  9  -
 Africa 489  172  40  36  236  2,087  297
                       
Corporate and Other -  -  9  67  (301)  4,215  37
Consolidated$4,912 $2,019 $479 $378 $1,593 $28,660 $1,576
                       
 (1)Includes a decrease in accrued capital expenditures of $2; consolidated capital expenditures on a cash basis were $1578.
Financial Information of Newmont's Segments
                       
      Costs    Advanced Pre-Tax    
   Sales Applicable to Sales Amortization Projects and Exploration Income (Loss) Total Assets Capital Expenditures(1)
Six Months Ended June 30, 2011                    
Nevada$1,111 $496 $128 $55 $411 $6,797 $228
La Herradura 146  45  9  9  80  260  41
Other North America -  -  7  97  (58)  2,294  27
 North America 1,257  541  144  161  433  9,351  296
                       
Yanacocha 886  343  119  17  381  2,634  127
Conga -  -  1  10  (11)  562  251
Other South America -  -  -  14  (15)  37  -
 South America 886  343  120  41  355  3,233  378
                       
Boddington:                    
 Gold 501  217  59  N/A  N/A  N/A  N/A
 Copper 107  55  14  N/A  N/A  N/A  N/A
  Total 608  272  73  3  244  4,419  75
Batu Hijau:                    
 Gold 232  64  14  N/A  N/A  N/A  N/A
 Copper 611  168  38  N/A  N/A  N/A  N/A
  Total 843  232  52  1  509  3,513  88
Other Australia/New Zealand 790  324  66  22  365  1,124  134
Other Asia Pacific -  -  1  6  (34)  625  4
 Asia Pacific 2,241  828  192  32  1,084  9,681  301
                       
Ahafo 465  145  42  15  255  1,037  37
Akyem -  -  -  2  (2)  351  67
Other Africa -  -  -  3  (6)  6  -
 Africa 465  145  42  20  247  1,394  104
                       
Corporate and Other  -  -  8  51  (299)  4,979  18
Consolidated$4,849 $1,857 $506 $305 $1,820 $28,638 $1,097
                       
 (1)Includes an increase in accrued capital expenditures of $77; consolidated capital expenditures on a cash basis were $1020.
Reclamation and Remediation (Tables)
Reconciliation of Reclamation and Remediation Liabilities 
   Six Months Ended June 30, 
   2012 2011 
 Balance at beginning of period   $1,240 $1,048 
 Additions, changes in estimates and other    105  32 
 Liabilities settled    (41)  (15) 
 Accretion expense    32  29 
 Balance at end of period   $1,336 $1,094 
Reclamation and Remediation Expenses 
   Three Months Ended June 30, Six Months Ended June 30, 
   2012 2011 2012 2011 
 Reclamation $- $28 $- $28 
 Accretion - operating    13  13  27  25 
 Accretion - non-operating  3  2  5  4 
   $16 $43 $32 $57 
               
Other Expense, Net (Tables)
Other Expense, Net

NOTE 5    OTHER EXPENSE, NET

 

   Three Months Ended June 30, Six Months Ended June 30, 
   2012 2011 2012 2011 
 Hope Bay care and maintenance $52 $- $102 $- 
 Community development    20  23  51  40 
 Regional administration  29  21  50  37 
 Acquisiton costs  12  20  12  21 
 Western Australia power plant    4  5  8  9 
 Indonesian value added tax settlement  -  -  -  21 
 Other    9  18  23  32 
   $126 $87 $246 $160 
Other Income, Net (Tables)
Other Income, Net

NOTE 6    OTHER INCOME, NET

 

    Three Months Ended June 30, Six Months Ended June 30, 
    2012 2011 2012 2011 
 Income (loss) from developing projects, net $19 $(4) $33 $20 
 Reduction of allowance for loan receivable  -  -  21  - 
 Canadian Oil Sands  11  10  20  16 
 Gain on asset sales, net  -  -  10  3 
 Refinery income, net  2  -  7  - 
 Interest  2  2  7  6 
 Gain on sale of investments, net  -  50  -  50 
 Foreign currency exchange, net  12  (18)  (3)  (29) 
 Impairment of marketable securities  (8)  (1)  (32)  (1) 
 Other    (2)  9  6  14 
    $36 $48 $69 $79 
Employee Pension and Other Benefit Plans (Tables)
Employee Pension and Other Benefit Plans

NOTE 7    EMPLOYEE PENSION AND OTHER BENEFIT PLANS

 

    Three Months Ended June 30, Six Months Ended June 30, 
    2012 2011 2012 2011 
 Pension benefit costs, net              
  Service cost   $8 $6 $15 $12 
  Interest cost    11  10  21  20 
  Expected return on plan assets    (11)  (11)  (22)  (21) 
  Amortization  8  7  14  12 
    $16 $12 $28 $23 
                
    Three Months Ended June 30, Six Months Ended June 30, 
    2012 2011 2012 2011 
 Other benefit costs, net              
  Service cost   $- $- $1 $1 
  Interest cost    2  1  3  2 
    $2 $1 $4 $3 
Stock Based Compensation (Tables)
Stock Option and Other Stock Based Compensation

NOTE 8    STOCK BASED COMPENSATION

 

   Three Months Ended June 30, Six Months Ended June 30, 
   2012 2011 2012 2011 
 Stock options   $3 $7 $7 $10 
 Restricted stock units  6  11  11  21 
 Performance leveraged stock units  3  1  6  3 
 Strategic stock units  1  -  1  - 
   $13 $19 $25 $34 
Income and Mining Taxes (Tables)
Income and Mining Tax Expense Reconciliation
    Three Months Ended June 30, Six Months Ended June 30,
    2012 2011 2012 2011
Income before income and mining                        
 tax and other items    $557    $847    $1,593    $1,820
                         
Tax on income at statutory rate 35%  195 35%  296 35%  558 35%  637
Reconciling items:                        
 Tax benefit generated on change                        
   in form of a non-U.S. subsidiary      - (8)%  (65)     - (4)%  (65)
 Percentage depletion   (6)%  (34) (7)%  (56) (7)%  (108) (6)%  (111)
 Change in valuation allowance on                         
  deferred tax assets 2%  13     - 3%  46     -
 Other   1%  1 2%  12 2%  22 2%  31
Income and mining tax expense 32% $175 22% $187 33% $518 27% $492
Net Income Attributable to Noncontrolling Interests (Tables)
Net Income Attributable to Noncontrolling Interests

NOTE 11    NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

   Three Months Ended June 30, Six Months Ended June 30, 
   2012 2011 2012 2011 
 Yanacocha   $97 $72 $195 $126 
 Batu Hijau    (5)  64  8  166 
 Other    -  1  2  1 
   $92 $137 $205 $293 
Income Per Common Share (Tables)
Income Per Common Share
     Three Months Ended June 30, Six Months Ended June 30, 
     2012 2011 2012 2011 
                 
 Net income attributable to Newmont             
  stockholders             
    Continuing operations  $279 $523 $840 $1,037 
    Discontinued operations   -  (136)  (71)  (136) 
     $279 $387 $769 $901 
                 
 Weighted average common shares:            
  Basic   496  494  496  494 
  Effect of employee stock-based awards   1  1  1  1 
  Effect of convertible notes 1  6  5  6 
  Diluted   498  501  502  501 
                 
 Income per common share            
   Basic:            
    Continuing operations  $0.56 $1.06 $1.69 $2.10 
    Discontinued operations   -  (0.28)  (0.14)  (0.28) 
     $0.56 $0.78 $1.55 $1.82 
   Diluted:            
    Continuing operations  $0.56 $1.04 $1.67 $2.07 
    Discontinued operations   -  (0.27)  (0.14)  (0.27) 
     $0.56 $0.77 $1.53 $1.80 
Changes in Equity (Tables)
Changes in Equity

NOTE 13    CHANGES IN EQUITY

 

     Six Months Ended June 30, 
     2012 2011 
 Common stock:       
  At beginning of period $784 $778 
   Stock based awards   2  2 
  At end of period    786  780 
           
 Additional paid-in capital:       
  At beginning of period    8,408  8,279 
   Stock based awards   55  52 
   Conversion premium on convertible notes  (172)  0 
   Shares issued in exchange for exchangeable shares    0  (1) 
  At end of period    8,291  8,330 
           
 Accumulated other comprehensive income:       
  At beginning of period    652  1,108 
   Other comprehensive income   (291)  202 
  At end of period    361  1,310 
           
 Retained earnings:       
  At beginning of period    3,052  3,180 
   Net income attributable to Newmont stockholders    769  901 
   Dividends paid     (347)  (173) 
  At end of period    3,474  3,908 
           
 Noncontrolling interests:       
  At beginning of period    2,875  2,371 
   Net income attributable to noncontrolling interests    205  293 
   Dividends paid   (3)  (2) 
   Other comprehensive income     -   3 
  At end of period    3,077  2,665 
 Total equity   $15,989 $16,993 
           
Fair Value Accounting (Tables)
Fair Value Measurement of Assets and Liabilities 
    Fair Value at June 30, 2012 
    Total Level 1 Level 2 Level 3 
 Assets:            
  Cash equivalents  $503 $503 $- $- 
  Marketable equity securities:              
   Extractive industries 1,110  1,110  -  - 
   Other 10  10  -  - 
  Marketable debt securities:            
   Asset backed commercial paper   19  -  -  19 
   Corporate 98  -  98  - 
   Auction rate securities   5  -  -  5 
  Trade receivable from provisional copper             
   and gold concentrate sales, net  179  179  -  - 
  Derivative instruments, net:              
   Foreign exchange forward contracts 223  -  223  - 
    $2,147 $1,802 $321 $24 
 Liabilities:            
  Diesel forward contracts 8  -  8  - 
  Boddington contingent consideration 44  -  -  44 
  Holt property royalty 243  -  -  243 
    $295 $- $8 $287 
Changes in the Fair Value of the Company's Level 3 Financial Assets 
    Auction Rate Securities Asset Backed Commercial Paper Total Assets Boddington Contingent Royalty Holt Property Royalty Total Liabilities 
 Balance at beginning of period   $5 $19 $24 $54 $176 $230 
  Settlements  -  -  -  (22)  (8)  (30) 
  Revaluation  -  -  -  12  75  87 
 Balance at end of period   $5 $19 $24 $44 $243 $287 
Derivative Instruments (Tables)
Foreign Currency Derivative Contracts Outstanding 
    Expected Maturity Date 
                Total/ 
    2012 2013 2014 2015 2016 2017 Average 
 A$ Operating Fixed Forward Contracts:                       
  A$ notional (millions)    641  1,048  762  471  244  28  3,194 
  Average rate ($/A$)    0.93  0.93  0.90  0.89  0.90  0.88  0.91 
  Expected hedge ratio  78% 68% 50% 33% 17% 4%   
 A$ Capital Fixed Forward Contracts:                       
  A$ notional (millions)    27  51  22  -  -  -  100 
  Average rate ($/A$)    1.00  0.98  0.96  -  -  -  0.98 
  Expected hedge ratio  37% 28% 40% -  -  -    
 NZ$ Operating Fixed Forward Contracts:                       
  NZ$ notional (millions)    41  37  4  -  -  -  82 
  Average rate ($/NZ$)    0.78  0.78  0.78  -  -  -  0.78 
  Expected hedge ratio  60% 29% 8% -  -  -    
Diesel Derivative Contracts Outstanding 
    Expected Maturity Date 
             Total/ 
    2012 2013 2014 2015 Average 
 Diesel Fixed Forward Contracts:                 
  Diesel gallons (millions)    16  22  10  1  49 
  Average rate ($/gallon)    2.91  2.92  2.88  2.85  2.91 
  Expected hedge ratio  71% 50% 24% 8%   
Fair Values of Derivative Instruments Designated as Hedges 
   Fair Value 
   At June 30, 2012 
   Other Current Assets Other Long-Term Assets Other Current Liabilities Other Long-Term Liabilities 
 Foreign currency exchange contracts:            
  A$ operating fixed forwards  $102 $121 $2 $1 
  A$ capital fixed forwards   1  1  -  - 
  NZ$ operating fixed forwards 1  -  -  - 
 Diesel fixed forwards 1  -  6  3 
 Total derivative instruments (Note ##OthAssetsNote and ##OthLiabNote)$105 $122 $8 $4 
               
   Fair Value 
   At December 31, 2011 
   Other Current Assets Other Long-Term Assets Other Current Liabilities Other Long-Term Liabilities 
 Foreign currency exchange contracts:            
  A$ operating fixed forwards  $121  112  6  4 
  A$ capital fixed forwards -  -  -  1 
  NZ$ operating fixed forwards   2  -  1  - 
 Diesel fixed forwards 4  -  2  1 
 Forward starting interest rate swaps -  -  399  - 
 Total derivative instruments (Note ##OthAssetsNote and ##OthLiabNote)$127 $112 $408 $6 
Location and Amount of Gains (Losses) Reported in Condensed Consolidated Financial Statements 
   Foreign Currency Exchange Contracts Diesel Forward Contracts Forward Starting Swap Contracts
               
   2012 2011 2012 2011 2012 2011
 For the three months ended June 30,                 
 Cash flow hedging relationships:                 
  Gain (loss) recognized in other comprehensive income (effective portion)  $23 $126 $(16) $(5) $- $-
  Gain (loss) reclassified from Accumulated other comprehensive income into income (effective portion) (1)?  38  49  1  5  (3)  -
                    
 For the six months ended June 30,                 
 Cash flow hedging relationships:                 
  Gain (loss) recognized in other comprehensive income (effective portion)  $85 $193 $(4) $10 $36 $-
  Gain(loss) reclassified from Accumulated other comprehensive income into income (effective portion) (1)?  85  91  4  9  (4)  -
  Gain reclassified from Accumulated other comprehensive income into income (ineffective portion) (2)?  -  -  -  -  2  -

(1) The gain (loss) for the effective portion of the foreign exchange and diesel cash flow hedges reclassified from Accumulated other comprehensive income is included in Costs applicable to sales. The loss for the effective portion of the forward starting swaps reclassified from Accumulated other comprehensive income is included in Interest Expense.

(2) The ineffective portion recognized for cash flow hedges is included in Other Income, net.

 

 

Gains (Losses) Recorded for Hedged Item Related to Fair Value Hedges 
   Interest Rate 8 5/8% Debentures 
  Swap Contracts(Hedged Portion) 
   2012 2011 2012 2011 
 For the three months ended June 30,            
 Fair value hedging relationships:            
  Gain (loss) recognized in income (effective portion) (1)?$- $1 $- $(1) 
  (Loss) recognized in income (ineffective portion) (2)? -  (1)  -  - 
               
 For the six months ended June 30,            
 Fair value hedging relationships:            
  Gain (loss) recognized in income (effective portion) (1)?$- $3 $- $(6) 
  (Loss) recognized in income (ineffective portion) (2)? -  (2)  -  - 

(1) The gain (loss) recognized for the effective portion of fair value hedges and the underlying hedged debt is included in Interest expense, net.

(2) The ineffective portion recognized for fair value hedges and the underlying hedged debt is included in Other income, net.

 

Investments (Tables)
6 Months Ended 12 Months Ended
Jun. 30, 2012
Dec. 31, 2011
Investments (Tables) [Abstract]
 
 
Investment in Marketable Securities
Text Block 
Text Block 
Gross Unrealized Losses and Fair Value of the Company's Investments
Text Block 
 
Investment in Marketable Securities 

NOTE 17    INVESTMENTS

 

     At June 30, 2012 
     Cost/Equity Unrealized Fair/Equity 
     Basis Gain Loss Basis 
 Current:              
  Marketable Equity Securities:             
   Paladin Energy Ltd. $60 $7 $- $67 
   Other  14  6  (3)  17 
      74  13  (3)  84 
  Marketable Debt Securities:             
   Corporate    48  -  -  48 
     $122 $13 $(3) $132 
                 
 Long-term:              
  Marketable Debt Securities:             
   Asset backed commercial paper  $25 $- $(6) $19 
   Auction rate securities    8  -  (3)  5 
   Corporate    48  2  -  50 
      81  2  (9)  74 
  Marketable Equity Securities:              
   Canadian Oil Sands Ltd.  303  296  -  599 
   Gabriel Resources Ltd.    76  1  -  77 
   Regis Resources Ltd.  36  260  -  296 
   Other    68  8  (12)  64 
      483  565  (12)  1,036 
                 
  Other investments, at cost     12  -  -  12 
                 
  Investment in Affiliates:             
   Euronimba Ltd.  2  -  -  2 
   Minera La Zanja S.R.L.  61  -  -  61 
     $639 $567 $(21) $1,185 
                 
Investment in Marketable Securities 
     At December 31, 2011 
     Cost/Equity Unrealized Fair/Equity 
     Basis Gain Loss Basis 
 Current:              
  Marketable Equity Securities:             
   Paladin Energy Ltd. $60 $13 $- $73 
   Other  15  7  (1)  21 
     $75 $20 $(1) $94 
 Long-term:              
  Marketable Debt Securities:              
   Asset backed commercial paper  $25 $- $(6) $19 
   Auction rate securities    7  -  (2)  5 
   Corporate    10  1  -  11 
      42  1  (8)  35 
  Marketable Equity Securities:              
   Canadian Oil Sands Trust  302  401  -  703 
   Gabriel Resources Ltd.    76  236  -  312 
   Regis Resources Ltd.  36  218  -  254 
   Other    92  16  (17)  91 
      506  871  (17)  1,360 
                 
  Other investments, at cost     11  -  -  11 
                 
  Investment in Affiliates:              
   Minera La Zanja S.R.L.  66  -  -  66 
     $625 $872 $(25) $1,472 
Gross Unrealized Losses and Fair Value of the Company's Investments 
  Less than 12 Months  12 Months or Greater  Total
At June 30, 2012 Fair Value  Unrealized Losses  Fair Value  Unrealized Losses  Fair Value  Unrealized Losses
Marketable equity securities$ 34 $ 14 $ - $ - $ 34 $ 14
Asset backed commercial paper   -   -   19   6   19   6
Auction rate securities    -   -   5   3   5   3
 $ 34 $ 14 $ 24 $ 9 $ 58 $ 23
                  
                  
                  
  Less than 12 Months  12 Months or Greater  Total
At December 31, 2011 Fair Value  Unrealized Losses  Fair Value  Unrealized Losses  Fair Value  Unrealized Losses
Marketable equity securities$ 42 $ 18 $ - $ - $ 42 $ 18
Asset backed commercial paper   -   -   19   6   19   6
Auction rate securities    -   -   5   2   5   2
 $ 42 $ 18 $ 24 $ 8 $ 66 $ 26
Inventories (Tables)
Summary of Inventories

NOTE 18    INVENTORIES

 

         
   At June 30, At December 31, 
  20122011 
 In-process $123 $159 
 Concentrate  192  116 
 Precious metals  36  12 
 Materials, supplies and other  452  427 
   $803 $714 
Stockpiles and Ore on Leach Pads (Tables)
Stockpiles and Ore on Leach Pads 

NOTE 19    STOCKPILES AND ORE ON LEACH PADS

 

         
   At June 30, At December 31, 
   20122011 
 Current:      
  Stockpiles$ 590 $ 506 
  Ore on leach pads  208   165 
   $ 798 $ 671 
 Long-term:      
  Stockpiles$ 2,187 $ 1,904 
  Ore on leach pads  392   367 
   $ 2,579 $ 2,271 
Stockpiles and Ore on Leach Pads, by Segment 

NOTE 19    STOCKPILES AND ORE ON LEACH PADS

 

   At June 30, At December 31, 
   2012 2011 
 Stockpiles and ore on leach pads:      
  Nevada$608 $536 
  La Herradura 21  6 
  Yanacocha 591  512 
  Boddington 456  435 
  Batu Hijau 1,331  1,119 
  Other Australia/New Zealand 165  161 
  Ahafo 205  173 
   $3,377 $2,942 
Other Assets (Tables)
Other Assets

NOTE 20    OTHER ASSETS

 

   At June 30, At December 31, 
   20122011 
 Other current assets:      
  Refinery metal inventory and receivable$393 $796 
  Prepaid assets 176  93 
  Derivative instruments  105  127 
  Restricted cash 2  20 
  Note receivable -  12 
  Other   62  85 
   $738 $1,133 
         
 Other long-term assets:      
  Goodwill$188 $188 
  Income tax receivable 185  142 
  Intangible assets 142  147 
  Derivative instruments 122  112 
  Restricted cash   91  48 
  Debt issuance costs   79  59 
  Other receivables 16  17 
  Other   179  144 
   $1,002 $857 
Debt (Tables)
Debt

NOTE 21    DEBT

 

 At June 30, 2012 At December 31, 2011 
 Current Non-Current Current Non-Current 
Sale-leaseback of refractory ore treatment plant  $ 30 $ - $ 165 $ - 
Corporate revolving credit facility  -   -   -   33 
2012 Convertible Senior Notes, net  -   -   514   - 
2014 Convertible Senior Notes, net  -   523   -   512 
2017 Convertible Senior Notes, net  -   461   -   452 
2019 Senior Notes, net   -   897   -   896 
2022 Senior Notes, net   -   1,489   -   - 
2035 Senior Notes, net   -   598   -   598 
2039 Senior Notes, net   -   1,087   -   1,087 
2042 Senior Notes, net   -   992   -   - 
Ahafo project finance facility    10   40   10   45 
Other capital leases  -   1   -   1 
 $ 40 $ 6,088 $ 689 $ 3,624 
             
Other Liabilities (Tables)
Other Liabilities

NOTE 22    OTHER LIABILITIES

 

         
   At June 30, At December 31, 
   20122011 
 Other current liabilities:      
  Refinery metal payable$393 $796 
  Accrued capital expenditures 237  248 
  Accrued operating costs 231  231 
  Interest 79  55 
  Taxes other than income and mining 78  93 
  Reclamation and remediation liabilities 66  71 
  Deferred income tax 54  50 
  Royalties 38  53 
  Boddington contingent consideration 28  24 
  Holt property royalty 17  17 
  Derivative instruments 8  408 
  Other 58  87 
   $1,287 $2,133 
         
 Other long-term liabilities:      
  Holt property royalty$226 $159 
  Income and mining taxes   75  88 
  Power supply agreements 45  45 
  Boddington contingent consideration  16  30 
  Derivative instruments 4  6 
  Other  37  36 
   $403 $364 
         
Net Change in Operating Assets and Liabilities (Tables)
Net Change in Operating Assets and Liabilities
   Six Months Ended June 30, 
   2012 2011 
 Decrease (increase) in operating assets:      
  Trade and accounts receivable  $(14) $121 
  Inventories, stockpiles and ore on leach pads   (443)  (230) 
  EGR refinery assets   406  (437) 
  Other assets   (43)  (67) 
 Increase (decrease) in operating liabilities:      
  Accounts payable and other accrued liabilities   (227)  (349) 
  EGR refinery liabilities   (406)  437 
  Reclamation liabilities   (41)  (15) 
   $(768) $(540) 
Supplemental Cash Flow Information (Tables)
Supplemental Cash Flow Information

NOTE 24    SUPPLEMENTAL CASH FLOW INFORMATION

 

         
   Six Months Ended June 30, 
   2012 2011 
 Income and mining taxes, net of refunds   $746 $892 
 Interest, net of amounts capitalized   $105 $92 
Condensed Consolidating Financial Statements (Tables)
Condensed Consolidating Statement of Income 
   Three Months Ended June 30, 2012
       Newmont
   Newmont      Mining
   Mining Newmont Other  Corporation
Condensed Consolidating Statement of Income Corporation USA Subsidiaries Eliminations Consolidated
                 
Sales $- $1,383 $846 $- $2,229
                 
Costs and expenses               
 Costs applicable to sales (1)  -  550  464  (12)  1,002
 Amortization    -  135  113  -  248
 Reclamation and remediation   -  12  4  -  16
 Exploration    -  71  35  -  106
 Advanced projects, research and development    -  64  17  1  82
 General and administrative    -  44  2  11  57
 Other expense, net  -  42  84  -  126
    -  918  719  -  1,637
                 
Other income (expense)                
 Other income, net    (6)  12  30  -  36
 Interest income - intercompany    39  1  6  (46)  -
 Interest expense - intercompany    (3)  (1)  (42)  46  -
 Interest expense, net    (62)  (7)  (2)  -  (71)
    (32)  5  (8)  -  (35)
Income before income and mining tax and other items    (32)  470  119  -  557
Income and mining tax expense    11  (83)  (103)  -  (175)
Equity income (loss) of affiliates    300  (2)  50  (359)  (11)
Net income   279  385  66  (359)  371
Net income attributable to noncontrolling interests  -  (91)  (31)  30  (92)
Net income attributable to Newmont stockholders $279 $294 $35 $(329) $279
                 
Comprehensive income $(18) $357 $(190) $(77) $72
Comprehensive income attributable to                
 noncontrolling interests  -  (91)  (29)  30  (90)
Comprehensive income attributable to Newmont               
 stockholders $(18) $266 $(219) $(47) $(18)

                 
   Three Months Ended June 30, 2011
               Newmont
   Newmont         Mining
   Mining Newmont Other    Corporation
Condensed Consolidating Statement of Income Corporation USA Subsidiaries Eliminations Consolidated
                 
Sales $- $1,468 $916 $- $2,384
                 
Costs and expenses               
 Costs applicable to sales (1)  -  551  375  (9)  917
 Amortization    -  156  94  -  250
 Reclamation and remediation   -  37  6  -  43
 Exploration    -  47  42  -  89
 Advanced projects, research and development    -  41  46  (1)  86
 General and administrative    -  39  1  10  50
 Other expense, net  -  67  20  -  87
    -  938  584  -  1,522
Other income (expense)                
 Other income, net    (2)  41  9  -  48
 Interest income - intercompany    40  2  2  (44)  -
 Interest expense - intercompany    (3)  -  (41)  44  -
 Interest expense, net    (59)  (3)  (1)  -  (63)
    (24)  40  (31)  -  (15)
Income before income and mining tax and other items  (24)  570  301  -  847
Income and mining tax expense    5  (111)  (81)  -  (187)
Equity income (loss) of affiliates    406  2  50  (458)  -
Income from continuing operations  387  461  270  (458)  660
                 
Loss from discontinued operations  -  7  (143)  -  (136)
Net income (loss)  387  468  127  (458)  524
Net income attributable to noncontrolling interests  -  (173)  30  6  (137)
Net income attributable to Newmont stockholders $387 $295 $157 $(452) $387
                 
Comprehensive income $308 $419 $230 $(511) $446
Comprehensive income attributable to noncontrolling               
 interests  -  (173)  29  6  (138)
Comprehensive income attributable to Newmont               
 stockholders $308 $246 $259 $(505) $308

                 
   Six Months Ended June 30, 2012
       Newmont
   Newmont      Mining
   Mining Newmont Other  Corporation
Condensed Consolidating Statement of Income Corporation USA Subsidiaries Eliminations Consolidated
                 
Sales $- $3,000 $1,912 $- $4,912
                 
Costs and expenses               
 Costs applicable to sales (1)  -  1,113  929  (23)  2,019
 Amortization    -  265  214  -  479
 Reclamation and remediation   -  23  9  -  32
 Exploration    -  124  70  -  194
 Advanced projects, research and development    -  152  31  1  184
 General and administrative    -  86  3  22  111
 Other expense, net  -  89  157  -  246
    -  1,852  1,413  -  3,265
                 
Other income (expense)                
 Other income, net    (9)  25  53  -  69
 Interest income - intercompany    79  3  11  (93)  -
 Interest expense - intercompany    (8)  (1)  (84)  93  -
 Interest expense, net    (108)  (12)  (3)  -  (123)
    (46)  15  (23)  -  (54)
Income before income and mining tax and other items    (46)  1,163  476  -  1,593
Income and mining tax expense    16  (229)  (305)  -  (518)
Equity income (loss) of affiliates    799  (13)  117  (933)  (30)
Income from continuing operations    769  921  288  (933)  1,045
Loss from discontinued operations    -  4  (75)  -  (71)
Net income  769  925  213  (933)  974
Net income attributable to noncontrolling interests   -  (207)  (63)  65  (205)
Net income attributable to Newmont stockholders $769 $718 $150 $(868) $769
                 
Comprehensive income $478 $898 $(51) $(642) $683
Comprehensive income attributable to                
 noncontrolling interests  -  (207)  (63)  65  (205)
Comprehensive income attributable to Newmont               
 stockholders $478 $691 $(114) $(577) $478

                 
   Six Months Ended June 30, 2011
               Newmont
   Newmont         Mining
   Mining Newmont Other    Corporation
Condensed Consolidating Statement of Income Corporation USA Subsidiaries Eliminations Consolidated
                 
Sales $- $2,986 $1,863 $- $4,849
                 
Costs and expenses               
 Costs applicable to sales (1)  -  1,117  759  (19)  1,857
 Amortization    -  315  191  -  506
 Reclamation and remediation   -  48  9  -  57
 Exploration    -  81  70  -  151
 Advanced projects, research and development    -  68  87  (1)  154
 General and administrative    -  73  2  20  95
 Other expense, net  -  121  39  -  160
    -  1,823  1,157  -  2,980
Other income (expense)                
 Other income, net    (8)  67  20  -  79
 Interest income - intercompany    76  4  4  (84)  -
 Interest expense - intercompany    (6)  -  (78)  84  -
 Interest expense, net    (113)  (12)  (3)  -  (128)
    (51)  59  (57)  -  (49)
                 
Income before income and mining tax and other items  (51)  1,222  649  -  1,820
Income and mining tax expense    15  (319)  (188)  -  (492)
Equity income (loss) of affiliates    937  3  139  (1,077)  2
Income (loss) from continuing operations    901  906  600  (1,077)  1,330
Income (loss) from discontinued operations    -  7  (143)  -  (136)
Net income   901  913  457  (1,077)  1,194
                 
Net income attributable to noncontrolling interests  -  (365)  10  62  (293)
                 
Net income attributable to Newmont stockholders $901 $548 $467 $(1,015) $901
                 
Comprehensive income $1,103 $881 $825 $(1,410) $1,399
Comprehensive income attributable to noncontrolling               
 interests  -  (365)  7  62  (296)
Comprehensive income attributable to Newmont               
 stockholders $1,103 $516 $832 $(1,348) $1,103
Condensed Consolidating Statement of Cash Flows 
     Six Months Ended June 30, 2012 
                 Newmont 
     Newmont         Mining 
     Mining Newmont Other   Corporation 
   Condensed Consolidating Statement of Cash Flows Corporation USA Subsidiaries Eliminations Consolidated 
Operating activities:                
  Net income (loss) $769 $925 $213 $(933) $974 
  Adjustments    32  273  (480)  933  758 
  Net change in operating assets and liabilities    (7)  (514)  (247)  -  (768) 
Net cash provided from (used in) continuing operations  794  684  (514)  -  964 
Net cash used in discontinued operations  -  -  (8)  -  (8) 
Net cash provided from (used in) operations    794  684  (522)  -  956 
Investing activities:                
  Additions to property, plant and mine development    -  (1,090)  (488)  -  (1,578) 
  Sale of marketable securities  -  -  106  -  106 
  Purchases of marketable securities  -  (91)  (105)  -  (196) 
  Acquisitions, net     -  -  (22)  -  (22) 
  Proceeds from sale of other assets  -  9  4  -  13 
  Other    -  -  (37)  -  (37) 
Net cash used in investing activities    -  (1,172)  (542)  -  (1,714) 
Financing activities:                
  Net borrowings (repayments)  1,543  (136)  (5)  -  1,402 
  Payment of conversion premium on debt  (172)  -  -  -  (172) 
  Net intercompany borrowings (repayments)  (1,833)  692  1,141  -  - 
  Dividends paid to common stockholders    (347)  -  -  -  (347) 
  Dividends paid to noncontrolling interests  -  (3)  -  -  (3) 
  Proceeds from stock issuance, net  15  -  -  -  15 
  Other    -  -  (1)  -  (1) 
Net cash provided from (used in) financing activities    (794)  553  1,135  -  894 
Effect of exchange rate changes on cash    -  (1)  2  -  1 
Net change in cash and cash equivalents    -  64  73  -  137 
Cash and cash equivalents at beginning of period    -  1,526  234  -  1,760 
Cash and cash equivalents at end of period   $- $1,590 $307 $- $1,897 

     Six Months Ended June 30, 2011
                Newmont 
     Newmont       Mining 
     Mining Newmont Other   Corporation 
   Condensed Consolidating Statement of Cash Flows Corporation USA Subsidiaries Eliminations Consolidated 
Operating activities:                
  Net income (loss) $901 $913 $457 $(1,077) $1,194 
  Adjustments    39  362  (729)  1,077  749 
  Net change in operating assets and liabilities    (27)  (509)  (4)  -  (540) 
Net cash provided from (used in) continuing operations    913  766  (276)  -  1,403 
Net cash used in discontinued operations    -  -  (2)  -  (2) 
Net cash provided from (used in) operations    913  766  (278)  -  1,401 
Investing activities:                
  Additions to property, plant and mine development    -  (671)  (349)  -  (1,020) 
  Sale of marketable securities  -  55  -  -  55 
  Purchases of marketable securities  -  -  (15)  -  (15) 
  Acquisitions, net  -  -  (2,291)  -  (2,291) 
  Proceeds from sale of other assets  -  (56)  62  -  6 
  Other    -  -  (15)  -  (15) 
Net cash used in investing activities    -  (672)  (2,608)  -  (3,280) 
Financing activities:                
  Net borrowings (repayments)  83  (276)  (5)  -  (198) 
  Net intercompany borrowings (repayments)   (831)  (2,018)  2,849  -  - 
  Dividends paid to common stockholders    (173)  -  -  -  (173) 
  Dividends paid to noncontrolling interests  -  (17)  -  -  (17) 
  Proceeds from stock issuance, net    8  -  -  -  8 
  Other    -  1  (1)  -  - 
Net cash provided from (used in) financing activities    (913)  (2,310)  2,843  -  (380) 
Effect of exchange rate changes on cash    -  1  57  -  58 
Net change in cash and cash equivalents    -  (2,215)  14  -  (2,201) 
Cash and cash equivalents at beginning of period    -  3,877  179  -  4,056 
Cash and cash equivalents at end of period   $- $1,662 $193 $- $1,855 
Condensed Consolidating Balance Sheet 
                  
    At June 30, 2012
            Newmont
    Newmont       Mining
    Mining Newmont Other   Corporation
Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated
Assets               
 Cash and cash equivalents   $- $1,590 $307 $- $1,897
 Trade receivables    -  183  107  -  290
 Accounts receivable    3,854  4,642  293  (8,430)  359
 Investments  67  48  17  -  132
 Inventories    -  400  403  -  803
 Stockpiles and ore on leach pads    -  669  129  -  798
 Deferred income tax assets    5  250  -  -  255
 Other current assets    9  147  582  -  738
  Current assets    3,935  7,929  1,838  (8,430)  5,272
 Property, plant and mine development, net    -  7,675  9,293  (32)  16,936
 Investments    -  72  1,113  -  1,185
 Investments in subsidiaries    15,184  2  2,967  (18,153)  -
 Stockpiles and ore on leach pads    -  1,882  697  -  2,579
 Deferred income tax assets    800  833  53  -  1,686
 Other long-term assets    3,791  752  899  (4,440)  1,002
  Total assets   $23,710 $19,145 $16,860 $(31,055) $28,660
                  
Liabilities               
 Debt   $- $30 $10 $- $40
 Accounts payable    4,420  3,161  1,321  (8,328)  574
 Employee-related benefits    -  206  87  -  293
 Income and mining taxes    -  53  120  -  173
 Other current liabilities    78  539  2,735  (2,065)  1,287
  Current liabilities    4,498  3,989  4,273  (10,393)  2,367
 Debt    6,047  1  40  -  6,088
 Reclamation and remediation liabilities    -  908  362  -  1,270
 Deferred income tax liabilities    -  601  1,455  -  2,056
 Employee-related benefits    5  370  112  -  487
 Other long-term liabilities    527  51  4,297  (4,472)  403
  Total liabilities    11,077  5,920  10,539  (14,865)  12,671
Equity               
 Preferred stock    -  -  61  (61)  -
 Common stock    786  -  5  (5)  786
 Additional paid-in capital    8,012  3,050  5,698  (8,469)  8,291
 Accumulated other comprehensive income  361  (216)  905  (689)  361
 Retained earnings  3,474  6,776  (1,603)  (5,173)  3,474
 Newmont stockholders’ equity    12,633  9,610  5,066  (14,397)  12,912
 Noncontrolling interests    -  3,615  1,255  (1,793)  3,077
  Total equity  12,633  13,225  6,321  (16,190)  15,989
  Total liabilities and equity $23,710 $19,145 $16,860 $(31,055) $28,660
                  

                  
    At December 31, 2011
            Newmont
    Newmont       Mining
    Mining Newmont Other   Corporation
Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated
Assets               
 Cash and cash equivalents   $- $1,526 $234 $- $1,760
 Trade receivables    -  205  95  -  300
 Accounts receivable    1,415  3,447  264  (4,806)  320
 Investments  72  -  22  -  94
 Inventories    -  333  381  -  714
 Stockpiles and ore on leach pads    -  532  139  -  671
 Deferred income tax assets    134  257  5  -  396
 Other current assets    -  91  1,042  -  1,133
  Current assets    1,621  6,391  2,182  (4,806)  5,388
 Property, plant and mine development, net    -  6,917  8,990  (26)  15,881
 Investments    -  29  1,443  -  1,472
 Investments in subsidiaries    14,675  43  2,825  (17,543)  -
 Stockpiles and ore on leach pads    -  1,641  630  -  2,271
 Deferred income tax assets    708  838  59  -  1,605
 Other long-term assets    3,423  641  927  (4,134)  857
  Total assets   $20,427 $16,500 $17,056 $(26,509) $27,474
                  
Liabilities               
 Debt   $514 $165 $10 $- $689
 Accounts payable    2,698  1,327  1,343  (4,807)  561
 Employee-related benefits    -  222  85  -  307
 Income and mining taxes    -  45  205  -  250
 Other current liabilities    450  459  3,186  (1,962)  2,133
  Current liabilities    3,662  2,218  4,829  (6,769)  3,940
 Debt  3,578  1  45  -  3,624
 Reclamation and remediation liabilities    -  809  360  -  1,169
 Deferred income tax liabilities    -  732  1,415  -  2,147
 Employee-related benefits    5  355  99  -  459
 Other long-term liabilities    567  61  3,895  (4,159)  364
  Total liabilities    7,812  4,176  10,643  (10,928)  11,703
Equity               
 Preferred stock    -  -  61  (61)  -
 Common stock    784  -  -  -  784
 Additional paid-in capital    8,127  3,050  5,702  (8,471)  8,408
 Accumulated other comprehensive income  652  (189)  1,168  (979)  652
 Retained earnings  3,052  6,055  (1,744)  (4,311)  3,052
 Newmont stockholders’ equity    12,615  8,916  5,187  (13,822)  12,896
 Noncontrolling interests    -  3,408  1,226  (1,759)  2,875
  Total equity  12,615  12,324  6,413  (15,581)  15,771
  Total liabilities and equity $20,427 $16,500 $17,056 $(26,509) $27,474
                  
Segment Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Financial Information of Newmont's Segments
 
 
 
 
 
Sales
$ 2,229 
$ 2,384 
$ 4,912 
$ 4,849 
 
Costs Applicable to Sales
1,002 1
917 1
2,019 1
1,857 1
 
Amortization
248 
250 
479 
506 
 
Advanced Projects and Exploration
188 
175 
378 
305 
 
Pre-Tax Income (Loss)
557 
847 
1,593 
1,820 
 
Totals Assets
28,660 
28,638 
28,660 
28,638 
27,474 
Capital Expenditures
 
 
1,576 
1,097 
 
Segment Information (Textuals) [Abstract]
 
 
 
 
 
Change in accrued capital expenditures
 
 
2 
77 
 
Consolidated capital expenditures on a cash basis
 
 
1,578 
1,020 
 
Nevada [Member]
 
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
 
Sales
571 
529 
1,294 
1,111 
 
Costs Applicable to Sales
258 
224 
525 
496 
 
Amortization
47 
56 
100 
128 
 
Advanced Projects and Exploration
43 
38 
77 
55 
 
Pre-Tax Income (Loss)
217 
195 
586 
411 
 
Totals Assets
7,280 
6,797 
7,280 
6,797 
 
Capital Expenditures
 
 
370 
228 
 
La Herradura [Member]
 
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
 
Sales
93 
81 
186 
146 
 
Costs Applicable to Sales
33 
27 
65 
45 
 
Amortization
6 
5 
11 
9 
 
Advanced Projects and Exploration
11 
3 
17 
9 
 
Pre-Tax Income (Loss)
46 
44 
91 
80 
 
Totals Assets
353 
260 
353 
260 
 
Capital Expenditures
 
 
29 
41 
 
Other North America [Member]
 
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
 
Sales
0 
0 
0 
0 
 
Costs Applicable to Sales
0 
0 
0 
0 
 
Amortization
0 
4 
0 
7 
 
Advanced Projects and Exploration
1 
53 
1 
97 
 
Pre-Tax Income (Loss)
(54)
(8)
(106)
(58)
 
Totals Assets
199 
2,294 
199 
2,294 
 
Capital Expenditures
 
 
0 
27 
 
Total North America [Member]
 
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
 
Sales
664 
610 
1,480 
1,257 
 
Costs Applicable to Sales
291 
251 
590 
541 
 
Amortization
53 
65 
111 
144 
 
Advanced Projects and Exploration
55 
94 
95 
161 
 
Pre-Tax Income (Loss)
209 
231 
571 
433 
 
Totals Assets
7,832 
9,351 
7,832 
9,351 
 
Capital Expenditures
 
 
399 
296 
 
Yanacocha [Member]
 
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
 
Sales
614 
524 
1,208 
886 
 
Costs Applicable to Sales
177 
190 
338 
343 
 
Amortization
62 
66 
112 
119 
 
Advanced Projects and Exploration
18 
11 
35 
17 
 
Pre-Tax Income (Loss)
333 
232 
682 
381 
 
Totals Assets
2,775 
2,634 
2,775 
2,634 
 
Capital Expenditures
 
 
243 
127 
 
Conga [Member]
 
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
 
Sales
0 
0 
0 
0 
 
Costs Applicable to Sales
0 
0 
0 
0 
 
Amortization
0 
1 
0 
1 
 
Advanced Projects and Exploration
12 
7 
39 
10 
 
Pre-Tax Income (Loss)
(12)
(7)
(39)
(11)
 
Totals Assets
1,462 
562 
1,462 
562 
 
Capital Expenditures
 
 
342 
251 
 
Other South America [Member]
 
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
 
Sales
0 
0 
0 
0 
 
Costs Applicable to Sales
0 
0 
0 
0 
 
Amortization
0 
0 
0 
0 
 
Advanced Projects and Exploration
19 
7 
44 
14 
 
Pre-Tax Income (Loss)
(19)
(9)
(44)
(15)
 
Totals Assets
44 
37 
44 
37 
 
Capital Expenditures
 
 
0 
0 
 
Total South America [Member]
 
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
 
Sales
614 
524 
1,208 
886 
 
Costs Applicable to Sales
177 
190 
338 
343 
 
Amortization
62 
67 
112 
120 
 
Advanced Projects and Exploration
49 
25 
118 
41 
 
Pre-Tax Income (Loss)
302 
216 
599 
355 
 
Totals Assets
4,281 
3,233 
4,281 
3,233 
 
Capital Expenditures
 
 
585 
378 
 
Boddington [Member]
 
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
 
Sales
306 
323 
665 
608 
 
Costs Applicable to Sales
195 
144 
362 
272 
 
Amortization
61 
38 
99 
73 
 
Advanced Projects and Exploration
2 
2 
5 
3 
 
Pre-Tax Income (Loss)
37 
140 
180 
244 
 
Totals Assets
4,640 
4,419 
4,640 
4,419 
 
Capital Expenditures
 
 
52 
75 
 
Boddington [Member] |
Gold [Member]
 
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
 
Sales
264 
269 
562 
501 
 
Costs Applicable to Sales
157 
117 
294 
217 
 
Amortization
49 
31 
81 
59 
 
Boddington [Member] |
Copper [Member]
 
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
 
Sales
42 
54 
103 
107 
 
Costs Applicable to Sales
38 
27 
68 
55 
 
Amortization
12 
7 
18 
14 
 
Batu Hijau [Member]
 
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
 
Sales
106 
334 
312 
843 
 
Costs Applicable to Sales
81 
109 
185 
232 
 
Amortization
17 
25 
36 
52 
 
Advanced Projects and Exploration
7 
1 
14 
1 
 
Pre-Tax Income (Loss)
(16)
186 
32 
509 
 
Totals Assets
3,651 
3,513 
3,651 
3,513 
 
Capital Expenditures
 
 
61 
88 
 
Batu Hijau [Member] |
Gold [Member]
 
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
 
Sales
18 
92 
52 
232 
 
Costs Applicable to Sales
11 
30 
30 
64 
 
Amortization
3 
7 
6 
14 
 
Batu Hijau [Member] |
Copper [Member]
 
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
 
Sales
88 
242 
260 
611 
 
Costs Applicable to Sales
70 
79 
155 
168 
 
Amortization
14 
18 
30 
38 
 
Other Australia New Zealand [Member]
 
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
 
Sales
331 
375 
758 
790 
 
Costs Applicable to Sales
182 
158 
372 
324 
 
Amortization
33 
31 
69 
66 
 
Advanced Projects and Exploration
18 
10 
33 
22 
 
Pre-Tax Income (Loss)
101 
168 
280 
365 
 
Totals Assets
1,348 
1,124 
1,348 
1,124 
 
Capital Expenditures
 
 
137 
134 
 
Other Asia Pacific [Member]
 
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
 
Sales
0 
0 
0 
0 
 
Costs Applicable to Sales
0 
0 
0 
0 
 
Amortization
2 
0 
3 
1 
 
Advanced Projects and Exploration
4 
5 
10 
6 
 
Pre-Tax Income (Loss)
(9)
(34)
(4)
(34)
 
Totals Assets
606 
625 
606 
625 
 
Capital Expenditures
 
 
8 
4 
 
Total Asia Pacific [Member]
 
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
 
Sales
743 
1,032 
1,735 
2,241 
 
Costs Applicable to Sales
458 
411 
919 
828 
 
Amortization
113 
94 
207 
192 
 
Advanced Projects and Exploration
31 
18 
62 
32 
 
Pre-Tax Income (Loss)
113 
460 
488 
1,084 
 
Totals Assets
10,245 
9,681 
10,245 
9,681 
 
Capital Expenditures
 
 
258 
301 
 
Ahafo [Member]
 
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
 
Sales
208 
218 
489 
465 
 
Costs Applicable to Sales
76 
65 
172 
145 
 
Amortization
16 
20 
40 
42 
 
Advanced Projects and Exploration
11 
8 
22 
15 
 
Pre-Tax Income (Loss)
100 
119 
250 
255 
 
Totals Assets
1,328 
1,037 
1,328 
1,037 
 
Capital Expenditures
 
 
108 
37 
 
Akyem [Member]
 
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
 
Sales
0 
0 
0 
0 
 
Costs Applicable to Sales
0 
0 
0 
0 
 
Amortization
0 
0 
0 
0 
 
Advanced Projects and Exploration
5 
1 
9 
2 
 
Pre-Tax Income (Loss)
(5)
(1)
(10)
(2)
 
Totals Assets
750 
351 
750 
351 
 
Capital Expenditures
 
 
189 
67 
 
Other Africa [Member]
 
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
 
Sales
0 
0 
0 
0 
 
Costs Applicable to Sales
0 
0 
0 
0 
 
Amortization
0 
0 
0 
0 
 
Advanced Projects and Exploration
3 
3 
5 
3 
 
Pre-Tax Income (Loss)
(2)
(5)
(4)
(6)
 
Totals Assets
9 
6 
9 
6 
 
Capital Expenditures
 
 
0 
0 
 
Total Africa [Member]
 
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
 
Sales
208 
218 
489 
465 
 
Costs Applicable to Sales
76 
65 
172 
145 
 
Amortization
16 
20 
40 
42 
 
Advanced Projects and Exploration
19 
12 
36 
20 
 
Pre-Tax Income (Loss)
93 
113 
236 
247 
 
Totals Assets
2,087 
1,394 
2,087 
1,394 
 
Capital Expenditures
 
 
297 
104 
 
Corporate and Other [Member]
 
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
 
Sales
0 
0 
0 
0 
 
Costs Applicable to Sales
0 
0 
0 
0 
 
Amortization
4 
4 
9 
8 
 
Advanced Projects and Exploration
34 
26 
67 
51 
 
Pre-Tax Income (Loss)
(160)
(173)
(301)
(299)
 
Totals Assets
4,215 
4,979 
4,215 
4,979 
 
Capital Expenditures
 
 
$ 37 
$ 18 
 
Reclamation and Remediation (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Reconciliation of Reclamation and Remediation Liabilities
 
 
 
 
 
Balance at beginning of period
 
 
$ 1,240 
$ 1,048 
 
Additions, changes in estimates and other
 
 
105 
32 
 
Liabilities settled
 
 
(41)
(15)
 
Accretion expense
 
 
32 
29 
 
Balance at end of period
1,336 
1,094 
1,336 
1,094 
 
Reclamation and Remediation Expenses
 
 
 
 
 
Reclamation
0 
28 
0 
28 
 
Accretion - operating
13 
13 
27 
25 
 
Accretion - non-operating
3 
2 
5 
4 
 
Reclamation and remediation expense, total
16 
43 
32 
57 
 
Reclamation And Remediation (Textuals) [Abstract]
 
 
 
 
 
Accrued for reclamation obligations relating to mineral properties
1,145 
 
1,145 
 
1,070 
Accrued obligation associated with former, primarily historic, mining activities
191 
 
191 
 
170 
Reclamation and remediation liabilities
$ 66 
 
$ 66 
 
$ 71 
Other Expense, Net (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Other Expense, Net
 
 
 
 
Hope Bay care and maintenance
$ 52 
$ 0 
$ 102 
$ 0 
Community development
20 
23 
51 
40 
Regional administration
29 
21 
50 
37 
Acquisition costs
12 
20 
12 
21 
Western Australia power plant
4 
5 
8 
9 
Indonesian value added tax settlement
0 
0 
0 
21 
Other
9 
18 
23 
32 
Other expense, total
$ 126 
$ 87 
$ 246 
$ 160 
Other Income, Net (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Other Income, Net
 
 
 
 
Income (loss) from developing projects, net
$ 19 
$ (4)
$ 33 
$ 20 
Reduction of allowance for loan receivable
0 
0 
21 
0 
Canadian Oil Sands
11 
10 
20 
16 
Gain on asset sales, net
0 
0 
10 
3 
Refinery income, net
2 
0 
7 
0 
Interest
2 
2 
7 
6 
Gain on sale of investments, net
0 
50 
0 
50 
Foreign currency exchange gain (loss), net
12 
(18)
(3)
(29)
Impairment of marketable securities
(8)
(1)
(32)
(1)
Other
(2)
9 
6 
14 
Total
$ 36 
$ 48 
$ 69 
$ 79 
Employee Pension and Other Benefit Plans (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Other benefit costs [Member]
 
 
 
 
Employee Related Benefits [Line Items]
 
 
 
 
Service cost
$ 0 
$ 0 
$ 1 
$ 1 
Interest cost
2 
1 
3 
2 
Amortization, net
0 
0 
0 
0 
Pension benefit costs, net
2 
1 
4 
3 
Pension benefit costs [Member]
 
 
 
 
Employee Related Benefits [Line Items]
 
 
 
 
Service cost
8 
6 
15 
12 
Interest cost
11 
10 
21 
20 
Expected return on plan assets
(11)
(11)
(22)
(21)
Amortization, net
8 
7 
14 
12 
Pension benefit costs, net
$ 16 
$ 12 
$ 28 
$ 23 
Stock Based Compensation (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Stock Option and Other Stock Based Compensation
 
 
 
 
Share-based Compensation
$ 13 
$ 19 
$ 25 
$ 34 
Stock options [Member]
 
 
 
 
Stock Option and Other Stock Based Compensation
 
 
 
 
Share-based Compensation
3 
7 
7 
10 
Restricted Stock Units (RSUs) [Member]
 
 
 
 
Stock Option and Other Stock Based Compensation
 
 
 
 
Share-based Compensation
6 
11 
11 
21 
Performance leveraged stock units [Member]
 
 
 
 
Stock Option and Other Stock Based Compensation
 
 
 
 
Share-based Compensation
3 
1 
6 
3 
Strategic stock units [Member]
 
 
 
 
Stock Option and Other Stock Based Compensation
 
 
 
 
Share-based Compensation
$ 1 
 
$ 1 
 
Income and Mining Taxes (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Income And Mining Taxes (Textuals) [Abstract]
 
 
 
 
Estimated Income and mining tax expense
$ 175 
$ 187 
$ 518 
$ 492 
Effective tax rate
32.00% 
22.00% 
33.00% 
27.00% 
United States statutory rate
35.00% 
35.00% 
35.00% 
35.00% 
Tax benefit generated on change in form of a non-U.S. subsidiary
 
(65)
 
(65)
Total unrecognized tax benefit
 
 
245 
 
Unrecognized tax benefit, if recognized
28 
 
28 
 
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Lower Bound
20 
 
20 
 
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Upper Bound
25 
 
25 
 
Income Tax Reconciliation [Abstract]
 
 
 
 
Income before income and mining tax and other items
557 
847 
1,593 
1,820 
Tax on income at statutory rate
35.00% 
35.00% 
35.00% 
35.00% 
Tax benefit generated on change in form of a non-U.S. subsidiary
 
8.00% 
 
4.00% 
Percentage depletion
6.00% 
7.00% 
7.00% 
6.00% 
Change in valuation allowance on deferred tax assets
(2.00%)
 
(3.00%)
 
Other
(1.00%)
(2.00%)
(2.00%)
(2.00%)
Income and mining tax expense
32.00% 
22.00% 
33.00% 
27.00% 
Tax on income at statutory rate
195 
296 
558 
637 
Tax benefit generated on change in form of a non-U.S. subsidiary
 
(65)
 
(65)
Percentage depletion
(34)
(56)
(108)
(111)
Change in valuation allowance on deferred tax assets
13 
 
46 
 
Other
1 
12 
22 
31 
Income and mining tax expense
$ 175 
$ 187 
$ 518 
$ 492 
Discontinued Operations (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Discontinued Operations Details [Abstract]
 
 
 
 
Loss from discontinued operations
$ 0 
$ (136)
$ (71)
$ (136)
Loss from discontinued operations, income tax benefit
 
 
4 
 
Net operating cash used in discontinued operations
 
 
$ (8)
$ (2)
Net Income Attributable to Noncontrolling Interests (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Net Income Attributable to Noncontrolling Interests (Textuals) (Abstract)
 
 
 
 
Other
$ 0 
$ 1 
$ 2 
$ 1 
Net income attributable to noncontrolling interests
92 
137 
205 
293 
Yanacocha [Member]
 
 
 
 
Net Income Attributable to Noncontrolling Interests (Textuals) (Abstract)
 
 
 
 
Ownership interest in subsidiaries
51.35% 
 
51.35% 
 
Net income attributable to noncontrolling interests
97 
72 
195 
126 
Batu Hijau [Member]
 
 
 
 
Net Income Attributable to Noncontrolling Interests (Textuals) (Abstract)
 
 
 
 
Ownership interest in subsidiaries
31.50% 
 
31.50% 
 
Effective economic interest percent
48.50% 
 
 
 
Net income attributable to noncontrolling interests
(5)
64 
8 
166 
Compania de Minas Buenaventura SAA [Member]
 
 
 
 
Net Income Attributable to Noncontrolling Interests (Textuals) (Abstract)
 
 
 
 
Noncontrolling interest, ownership percentage by noncontrolling owners
43.65% 
 
43.65% 
 
International Finance Corporation [Member]
 
 
 
 
Net Income Attributable to Noncontrolling Interests (Textuals) (Abstract)
 
 
 
 
Noncontrolling interest, ownership percentage by noncontrolling owners
5.00% 
 
5.00% 
 
Newmont Mining Corporation [Member]
 
 
 
 
Net Income Attributable to Noncontrolling Interests (Textuals) (Abstract)
 
 
 
 
Net income attributable to noncontrolling interests
$ 0 
$ 0 
$ 0 
$ 0 
Income Per Common Share (Details) (USD $)
Share data in Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Earnings per share reconciliation [Abstract]
 
 
 
 
Continuing operations
$ 279,000,000 
$ 523,000,000 
$ 840,000,000 
$ 1,037,000,000 
Discontinued operations
0 
(136,000,000)
(71,000,000)
(136,000,000)
Net income attributable to Newmont stockholders
279,000,000 
387,000,000 
769,000,000 
901,000,000 
Weighted average common shares (millions):
 
 
 
 
Basic
496 
494 
496 
494 
Effect of employee stock-based awards
1 
1 
1 
1 
Effect of convertible notes
1 
6 
5 
6 
Diluted
498 
501 
502 
501 
Income per common share, basic
 
 
 
 
Continuing operations
$ 0.56 
$ 1.06 
$ 1.69 
$ 2.10 
Discontinued operations
$ 0 
$ (0.28)
$ (0.14)
$ (0.28)
Income per common share, basic
$ 0.56 
$ 0.78 
$ 1.55 
$ 1.82 
Income per common share, diluted
 
 
 
 
Continuing operations
$ 0.56 
$ 1.04 
$ 1.67 
$ 2.07 
Discontinued operations
$ 0 
$ (0.27)
$ (0.14)
$ (0.27)
Income per common share, diluted
$ 0.56 
$ 0.77 
$ 1.53 
$ 1.80 
Net income attributable to Newmount stockholders and transfers from noncontrolling interest [Abstract]
 
 
 
 
Net income attributable to Newmont stockholders
279,000,000 
387,000,000 
769,000,000 
901,000,000 
Income Per Common Share (Textuals) Abstract
 
 
 
 
Anti-dilutive shares - stock options
 
 
2 
3 
Options to purchase common shares average exercise price
 
 
$ 58 
$ 57 
Anti-dilutive shares - convertible notes
1 
6 
5 
6 
Changes in Equity (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 6 Months Ended 6 Months Ended 6 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Common Stock [Member]
Jun. 30, 2011
Common Stock [Member]
Dec. 31, 2009
Common Stock [Member]
Jun. 30, 2012
Additional paid-in capital [Member]
Jun. 30, 2011
Additional paid-in capital [Member]
Dec. 31, 2009
Additional paid-in capital [Member]
Jun. 30, 2012
Accumulated other comprehensive income [Member]
Jun. 30, 2011
Accumulated other comprehensive income [Member]
Dec. 31, 2009
Accumulated other comprehensive income [Member]
Jun. 30, 2012
Retained earnings [Member]
Jun. 30, 2011
Retained earnings [Member]
Dec. 31, 2009
Retained earnings [Member]
Jun. 30, 2012
Noncontrolling interests [Member]
Jun. 30, 2011
Noncontrolling interests [Member]
Dec. 31, 2009
Noncontrolling interests [Member]
Changes in Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
 
 
$ 15,771 
 
 
$ 784 
$ 778 
 
$ 8,408 
$ 8,279 
 
$ 652 
$ 1,108 
 
$ 3,052 
$ 3,180 
 
$ 2,875 
$ 2,371 
Net income attributable to Newmont stockholders
279 
387 
769 
901 
 
 
 
 
 
 
 
 
 
769 
901 
 
 
 
 
Net income attributable to noncontrolling interests
(92)
(137)
(205)
(293)
 
 
 
 
 
 
 
 
 
 
 
 
205 
293 
 
Dividends paid
 
 
 
 
 
 
 
 
 
 
 
 
 
(347)
(173)
 
 
 
 
Stock based awards
 
 
 
 
2 
2 
 
55 
52 
 
 
 
 
 
 
 
 
 
 
Conversion premium on convertible notes
 
 
(172)
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares issued in exchange for exchangeable shares
 
 
 
 
0 
0 
 
0 
(1)
 
 
 
 
 
 
 
 
 
 
Other comprehensive income
(299)
(78)
(291)
205 
 
 
 
 
 
 
(291)
202 
 
 
 
 
0 
3 
 
Dividends paid
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(3)
(2)
 
Sale of noncontrolling interests
 
 
 
 
 
 
 
0 
0 
 
 
 
 
 
 
 
0 
0 
 
Ending Balance
$ 15,989 
$ 16,993 
$ 15,989 
$ 16,993 
$ 786 
$ 780 
$ 778 
$ 8,291 
$ 8,330 
$ 8,279 
$ 361 
$ 1,310 
$ 1,108 
$ 3,474 
$ 3,908 
$ 3,180 
$ 3,077 
$ 2,665 
$ 2,371 
Acquisitions (Details)
Jun. 30, 2011
USD ($)
Jun. 30, 2011
CAD ($)
Business Acquisition (Textuals)
 
 
Cash per common share received by shareholders
 
$ 14.00 
Acquisition transaction costs
21,000,000 
 
Boddington final interest acquired
33.33% 
33.33% 
Business Acquisition, Contingent Consideration, Potential Cash Payment
$ 100,000,000 
 
Fair Value Accounting (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended 6 Months Ended 3 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Boddington Contingent Consideration [Member]
Jun. 30, 2012
Holt Property Royalty [Member]
Jun. 30, 2012
Foreign exchange forward contracts [Member]
Jun. 30, 2012
Diesel forward contracts [Member]
Jun. 30, 2012
Extractive industries [Member]
Marketable Equity Securities [Member]
Jun. 30, 2012
Other Industries [Member]
Marketable Equity Securities [Member]
Jun. 30, 2012
Asset Backed Commercial Paper [Member]
Dec. 31, 2011
Asset Backed Commercial Paper [Member]
Jun. 30, 2012
Asset Backed Commercial Paper [Member]
Debt Securities [Member]
Jun. 30, 2012
Corporate Debt Securities [Member]
Debt Securities [Member]
Jun. 30, 2012
Auction Rate Securities [Member]
Dec. 31, 2011
Auction Rate Securities [Member]
Jun. 30, 2012
Auction Rate Securities [Member]
Debt Securities [Member]
Jun. 30, 2012
Trade receivable from provisional copper and gold concentrate sales, net [Member]
Jun. 30, 2012
Level 1 [Member]
Jun. 30, 2012
Level 1 [Member]
Extractive industries [Member]
Marketable Equity Securities [Member]
Jun. 30, 2012
Level 1 [Member]
Other Industries [Member]
Marketable Equity Securities [Member]
Jun. 30, 2012
Level 1 [Member]
Trade receivable from provisional copper and gold concentrate sales, net [Member]
Jun. 30, 2012
Level 2 [Member]
Jun. 30, 2012
Level 2 [Member]
Foreign exchange forward contracts [Member]
Jun. 30, 2012
Level 2 [Member]
Diesel forward contracts [Member]
Jun. 30, 2012
Level 2 [Member]
Corporate Debt Securities [Member]
Debt Securities [Member]
Jun. 30, 2012
Level 3 [Member]
Jun. 30, 2012
Level 3 [Member]
Boddington Contingent Consideration [Member]
Jun. 30, 2012
Level 3 [Member]
Holt Property Royalty [Member]
Jun. 30, 2012
Level 3 [Member]
Asset Backed Commercial Paper [Member]
Debt Securities [Member]
Jun. 30, 2012
Level 3 [Member]
Auction Rate Securities [Member]
Debt Securities [Member]
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents
$ 503 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 503 
 
 
 
 
 
 
 
 
 
 
 
 
Marketable securities
 
 
 
 
 
 
1,110 
10 
 
 
19 
98 
 
 
5 
 
 
1,110 
10 
 
 
 
 
98 
 
 
 
19 
5 
Trade receivable from provisional copper and gold concentrate sales, net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
179 
 
 
 
179 
 
 
 
 
 
 
 
 
 
Derivative instruments, net
 
 
 
 
223 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
223 
 
 
 
 
 
 
 
Fair value assets
2,147 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,802 
 
 
 
321 
 
 
 
24 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative instruments, net
 
 
 
 
 
8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8 
 
 
 
 
 
 
Boddington contingent consideration
 
 
44 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
44 
 
 
 
Holt property royalty
 
 
 
243 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
243 
 
 
Fair value liabilities
295 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
287 
 
 
 
 
Fair Value Accounting (Textuals) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale Securities, Fair Value Disclosure, Significant Assumptions
The Company estimated the fair value of the auction rate securities based on weighted average risk calculations using cash flow assumptions discounted approximately 42%, which reflects an estimated discount for lack of marketability. The Company estimated the fair value of its asset backed commercial paper using a probability of return ranging from 13%-74% for each class of notes, which is reflective of information reviewed regarding the separate classes of securities. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value, Commitments, Valuation Techniques
The estimated value of the Boddington contingent royalty was determined using a Monte Carlo valuation model which simulates future gold and copper prices and costs applicable to sales. This contingent royalty is capped at $100, and at June 30, 2012, the Company has accrued the maximum of $100. At June 30, 2012 the Company used the following long-term price assumptions: 1) $1,500 per ounce gold price, 2) $3.50 per pound copper price, 3) $90 per barrel of oil, and 4) a $1.00 A$/US$ exchange rate. The Company used an approximate 4% discount rate in the model. The contingent royalty liability is classified within Level 3 of the fair value hierarchy. The estimated fair value of the Holt sliding scale royalty was determined using a Monte Carlo valuation model to simulate future gold prices utilizing a long-term gold price assumption of $1,500 per ounce, various gold production scenarios based on publicly available reserve and resource information for the Holt property and an approximate 4% weighted average discount rate. The sliding scale royalty liability is classified within Level 3 of the fair value hierarchy. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets measured at fair value hierarchy, percent
1.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities measured at fair value hierarchy, percent
97.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Contingent Consideration, Potential Cash Payment
 
100 
100 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Changes in the Fair Value of the Company's Level 3 Financial Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period, assets
24 
 
 
 
 
 
 
 
19 
19 
 
 
5 
5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at end of period, assets
24 
 
 
 
 
 
 
 
19 
19 
 
 
5 
5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Changes in the Fair Value of the Company's Level 3 Financial Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period, liabilities
230 
 
54 
176 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Settlements
(30)
 
(22)
(8)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Valuation
87 
 
12 
75 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12 
 
 
 
 
Balance at end of period, liabilities
$ 287 
 
$ 44 
$ 243 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Instruments (Details)
3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2012
USD ($)
Dec. 31, 2011
USD ($)
Jun. 30, 2012
Senior Notes Net of Discount 2022 [Member]
USD ($)
Jun. 30, 2012
Senior Notes Net Of Discount 2042 [Member]
USD ($)
Jun. 30, 2012
Diesel Fixed Forward Contracts [Member]
USD ($)
Dec. 31, 2011
Diesel Fixed Forward Contracts [Member]
USD ($)
Jun. 30, 2012
Diesel Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
USD ($)
gal
Jun. 30, 2011
Diesel Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
USD ($)
Jun. 30, 2012
Diesel Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
USD ($)
gal
Jun. 30, 2011
Diesel Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
USD ($)
Jun. 30, 2012
AU Dollar Operating Fixed Forward Contracts [Member]
USD ($)
Jun. 30, 2012
AU Dollar Operating Fixed Forward Contracts [Member]
AUD ($)
Dec. 31, 2011
AU Dollar Operating Fixed Forward Contracts [Member]
USD ($)
Jun. 30, 2012
AU Dollar Capital Fixed Forward Contracts [Member]
USD ($)
Jun. 30, 2012
AU Dollar Capital Fixed Forward Contracts [Member]
AUD ($)
Dec. 31, 2011
AU Dollar Capital Fixed Forward Contracts [Member]
USD ($)
Jun. 30, 2012
NZ Dollar Operating Fixed Forward Contracts [Member]
USD ($)
Jun. 30, 2012
NZ Dollar Operating Fixed Forward Contracts [Member]
NZD ($)
Dec. 31, 2011
NZ Dollar Operating Fixed Forward Contracts [Member]
USD ($)
Jun. 30, 2012
Interest Rate Swap Contracts [Member]
USD ($)
Jun. 30, 2012
Interest Rate Swap Contracts [Member]
Fair Value Hedging [Member]
USD ($)
Jun. 30, 2011
Interest Rate Swap Contracts [Member]
Fair Value Hedging [Member]
USD ($)
Jun. 30, 2012
Interest Rate Swap Contracts [Member]
Fair Value Hedging [Member]
USD ($)
Jun. 30, 2011
Interest Rate Swap Contracts [Member]
Fair Value Hedging [Member]
USD ($)
Jun. 30, 2012
Forward Starting Swap Contracts [Member]
USD ($)
Jun. 30, 2012
Forward Starting Swap Contracts [Member]
USD ($)
Dec. 31, 2011
Forward Starting Swap Contracts [Member]
USD ($)
Jun. 30, 2012
Forward Starting Swap Contracts [Member]
Cash Flow Hedging [Member]
USD ($)
Jun. 30, 2012
Forward Starting Swap Contracts [Member]
Cash Flow Hedging [Member]
USD ($)
Jun. 30, 2012
Foreign Exchange Contract [Member]
Cash Flow Hedging [Member]
USD ($)
Jun. 30, 2011
Foreign Exchange Contract [Member]
Cash Flow Hedging [Member]
USD ($)
Jun. 30, 2012
Foreign Exchange Contract [Member]
Cash Flow Hedging [Member]
USD ($)
Jun. 30, 2011
Foreign Exchange Contract [Member]
Cash Flow Hedging [Member]
USD ($)
Jun. 30, 2012
Debentures 8 5/8% (Hedged Portion) [Member]
Fair Value Hedging [Member]
USD ($)
Jun. 30, 2011
Debentures 8 5/8% (Hedged Portion) [Member]
Fair Value Hedging [Member]
USD ($)
Jun. 30, 2012
Debentures 8 5/8% (Hedged Portion) [Member]
Fair Value Hedging [Member]
USD ($)
Jun. 30, 2011
Debentures 8 5/8% (Hedged Portion) [Member]
Fair Value Hedging [Member]
USD ($)
Jun. 30, 2012
Expected Maturity Date Year 2012 [Member]
Diesel Fixed Forward Contracts [Member]
Jun. 30, 2012
Expected Maturity Date Year 2012 [Member]
Diesel Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
gal
Jun. 30, 2012
Expected Maturity Date Year 2012 [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
USD ($)
Jun. 30, 2012
Expected Maturity Date Year 2012 [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
AUD ($)
Jun. 30, 2012
Expected Maturity Date Year 2012 [Member]
AU Dollar Capital Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
USD ($)
Jun. 30, 2012
Expected Maturity Date Year 2012 [Member]
AU Dollar Capital Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
AUD ($)
Jun. 30, 2012
Expected Maturity Date Year 2012 [Member]
NZ Dollar Operating Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
USD ($)
Jun. 30, 2012
Expected Maturity Date Year 2012 [Member]
NZ Dollar Operating Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
NZD ($)
Jun. 30, 2012
Expected Maturity Date Year 2013 [Member]
Diesel Fixed Forward Contracts [Member]
USD ($)
Jun. 30, 2012
Expected Maturity Date Year 2013 [Member]
Diesel Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
gal
Jun. 30, 2012
Expected Maturity Date Year 2013 [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
USD ($)
Jun. 30, 2012
Expected Maturity Date Year 2013 [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
AUD ($)
Jun. 30, 2012
Expected Maturity Date Year 2013 [Member]
AU Dollar Capital Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
USD ($)
Jun. 30, 2012
Expected Maturity Date Year 2013 [Member]
AU Dollar Capital Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
AUD ($)
Jun. 30, 2012
Expected Maturity Date Year 2013 [Member]
NZ Dollar Operating Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
USD ($)
Jun. 30, 2012
Expected Maturity Date Year 2013 [Member]
NZ Dollar Operating Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
NZD ($)
Jun. 30, 2012
Expected Maturity Date Year 2014 [Member]
Diesel Fixed Forward Contracts [Member]
USD ($)
Jun. 30, 2012
Expected Maturity Date Year 2014 [Member]
Diesel Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
gal
Jun. 30, 2012
Expected Maturity Date Year 2014 [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
USD ($)
Jun. 30, 2012
Expected Maturity Date Year 2014 [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
AUD ($)
Jun. 30, 2012
Expected Maturity Date Year 2014 [Member]
AU Dollar Capital Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
USD ($)
Jun. 30, 2012
Expected Maturity Date Year 2014 [Member]
AU Dollar Capital Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
AUD ($)
Jun. 30, 2012
Expected Maturity Date Year 2014 [Member]
NZ Dollar Operating Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
USD ($)
Jun. 30, 2012
Expected Maturity Date Year 2014 [Member]
NZ Dollar Operating Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
NZD ($)
Jun. 30, 2012
Expected Maturity Date Year 2015 [Member]
Cash Flow Hedging [Member]
gal
Jun. 30, 2012
Expected Maturity Date Year 2015 [Member]
Diesel Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
USD ($)
Jun. 30, 2012
Expected Maturity Date Year 2015 [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
USD ($)
Jun. 30, 2012
Expected Maturity Date Year 2015 [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
AUD ($)
Jun. 30, 2012
Expected Maturity Date Year 2016 [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
Jun. 30, 2012
Expected Maturity Date Year 2016 [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
USD ($)
Jun. 30, 2012
Expected Maturity Date Year 2016 [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
AUD ($)
Jun. 30, 2012
Expected Maturity Date Year 2017 [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
USD ($)
Jun. 30, 2012
Gold [Member]
USD ($)
oz
Jun. 30, 2012
Gold [Member]
USD ($)
oz
Jun. 30, 2012
Gold [Member]
USD ($)
oz
Jun. 30, 2012
Copper [Member]
USD ($)
lb
Jun. 30, 2012
Copper [Member]
USD ($)
lb
Jun. 30, 2012
Copper [Member]
USD ($)
lb
Jun. 30, 2012
Copper [Member]
USD ($)
lb
Foreign Currency Derivatives
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average rate
2.91 
 
 
 
 
 
2.91 
 
2.91 
 
0.91 
 
 
0.98 
 
 
0.78 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.93 
 
1.00 
 
0.78 
 
2.92 
 
0.93 
 
0.98 
 
0.78 
 
2.88 
 
0.90 
 
0.96 
 
0.78 
 
 
2.85 
0.89 
 
 
0.90 
 
0.88 
 
 
 
 
 
 
 
Notional Amount of Foreign Currency Derivatives
 
 
 
 
 
 
 
 
 
 
 
$ 3,194,000,000 
 
 
$ 100,000,000 
 
 
$ 82,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 641,000,000 
 
$ 27,000,000 
 
$ 41,000,000 
 
 
 
$ 1,048,000,000 
 
$ 51,000,000 
 
$ 37,000,000 
 
 
 
$ 762,000,000 
 
$ 22,000,000 
 
$ 4,000,000 
 
 
 
$ 471,000,000 
 
 
$ 244,000,000 
$ 28,000,000 
 
 
 
 
 
 
 
Expected hedge ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
71.00% 
 
78.00% 
78.00% 
37.00% 
37.00% 
60.00% 
60.00% 
50.00% 
 
68.00% 
68.00% 
28.00% 
28.00% 
29.00% 
29.00% 
24.00% 
 
50.00% 
50.00% 
40.00% 
40.00% 
8.00% 
8.00% 
 
8.00% 
33.00% 
33.00% 
17.00% 
 
 
4.00% 
 
 
 
 
 
 
 
Diesel Derivative Contracts Outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average rate
2.91 
 
 
 
 
 
2.91 
 
2.91 
 
0.91 
 
 
0.98 
 
 
0.78 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.93 
 
1.00 
 
0.78 
 
2.92 
 
0.93 
 
0.98 
 
0.78 
 
2.88 
 
0.90 
 
0.96 
 
0.78 
 
 
2.85 
0.89 
 
 
0.90 
 
0.88 
 
 
 
 
 
 
 
Diesel gallons
 
 
 
 
 
 
49,000,000 
 
49,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
16,000,000 
 
 
 
 
 
 
 
22,000,000 
 
 
 
 
 
 
 
10,000,000 
 
 
 
 
 
 
1,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expected hedge ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
71.00% 
 
78.00% 
78.00% 
37.00% 
37.00% 
60.00% 
60.00% 
50.00% 
 
68.00% 
68.00% 
28.00% 
28.00% 
29.00% 
29.00% 
24.00% 
 
50.00% 
50.00% 
40.00% 
40.00% 
8.00% 
8.00% 
 
8.00% 
33.00% 
33.00% 
17.00% 
 
 
4.00% 
 
 
 
 
 
 
 
Fair values of Derivative Instruments Designated as Hedges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Assets Current
105,000,000 
127,000,000 
 
 
1,000,000 
4,000,000 
 
 
 
 
102,000,000 
 
121,000,000 
1,000,000 
 
 
1,000,000 
 
2,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Long-Term Assets
122,000,000 
112,000,000 
 
 
0 
 
 
 
 
 
121,000,000 
 
112,000,000 
1,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Current Liabilities
8,000,000 
408,000,000 
 
 
6,000,000 
2,000,000 
 
 
 
 
2,000,000 
 
6,000,000 
 
 
 
 
 
1,000,000 
 
 
 
 
 
0 
0 
399,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Long-Term Liabilities
4,000,000 
6,000,000 
 
 
3,000,000 
1,000,000 
 
 
 
 
1,000,000 
 
4,000,000 
 
 
1,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Location and Amount of Gains (Losses) Reported in Condensed Consolidated Financial Statements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain recognized in other comprehensive income (effective portion)
 
 
 
 
 
 
(16,000,000)
(5,000,000)
(4,000,000)
10,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
36,000,000 
23,000,000 
126,000,000 
85,000,000 
193,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) reclassified from Accumulated other comprehensive income into income (effective portion)(1)
 
 
 
 
 
 
1,000,000 
5,000,000 
4,000,000 
9,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(3,000,000)
(4,000,000)
 
 
 
38,000,000 
49,000,000 
85,000,000 
91,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain reclassified from Accumulated other comprehensive income into income (ineffective portion) (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
(1,000,000)
0 
(2,000,000)
 
 
 
0 
2,000,000 
 
 
 
 
0 
0 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gains (Losses) Recorded for Hedged Item Related to Fair Value Hedges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain recognized in income (effective portion)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
1,000,000 
0 
3,000,000 
 
 
 
 
 
 
 
 
 
0 
(1,000,000)
0 
(6,000,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) recognized in income (ineffective portion)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
(1,000,000)
0 
(2,000,000)
 
 
 
0 
2,000,000 
 
 
 
 
0 
0 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Instruments (Textuals) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Forward starting swaps notional amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,000,000,000 
2,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt, Gross
 
 
1,500,000,000 
1,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Charge related to hedge ineffectiveness
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
1,000,000 
0 
2,000,000 
 
 
 
0 
(2,000,000)
 
 
 
 
0 
0 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Forward Starting Swaps Gross Settlement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
362,000,000 
362,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Forward starting swaps, net of ineffectiveness settlement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
349,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed to floating swap contracts, amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
222,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,609,000,000 
1,609,000,000 
1,651 
3.57 
3.57 
3.67 
3.67 
Recorded average provisional price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,651 
1,607,000,000 
 
3.65 
3.52 
 
 
Provisional pricing mark-to-market gain (loss)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,000,000 
4,000,000 
 
18,000,000 
 
13,000,000 
Provisional pricing mark-to-market gain (loss) rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2 
1 
 
 
0.12 
0.40 
Provisional pricing quantity sales
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
74,000 
74,000 
74,000 
40,000,000 
40,000,000 
40,000,000 
40,000,000 
Average price, subject to final pricing
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,600 
1,600 
1,600 
3.44 
3.44 
3.44 
3.44 
Approximate gain amount to be reclassified from accumulated other comprehensive income, net of tax to income
$ 49,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Investment in Marketable Securities
 
 
 
 
 
Current Investments
$ 132 
 
$ 132 
 
$ 94 
Long-Term Investments
1,185 
 
1,185 
 
1,472 
Available For Sale Securities Continuous Unrealized Loss Position Aggregate Losses Abstract
 
 
 
 
 
Securities continuous unrealized losses less than 12 months - unrealized losses
14 
 
14 
 
18 
Securities continuous unrealized losses greater than 12 months - unrealized losses
9 
 
9 
 
8 
Securities continuous unrealized losses - unrealized losses
23 
 
23 
 
26 
Available For Sale Securities Continuous Unrealized Loss Position Fair Value Abstract
 
 
 
 
 
Securities continuous unrealized losses less than 12 months - fair value
34 
 
34 
 
42 
Securities continuous unrealized losses greater than 12 months - fair value
24 
 
24 
 
24 
Securities continuous unrealized losses - fair value
58 
 
58 
 
66 
Investments (Textuals) [Abstract]
 
 
 
 
 
Payments to acquire marketable securities
 
 
196 
15 
 
Gain on sale of investments, net
0 
50 
0 
50 
 
Impairment of marketable securities
8 
1 
32 
1 
 
Current [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
122 
 
122 
 
75 
Unrealized Gain
13 
 
13 
 
20 
Unrealized Loss
(3)
 
(3)
 
(1)
Long-term [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
639 
 
639 
 
625 
Unrealized Gain
567 
 
567 
 
872 
Unrealized Loss
(21)
 
(21)
 
(25)
Other Investments, at Cost
12 
 
12 
 
11 
Paladin Energy Ltd [Member] |
Current [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
60 
 
60 
 
60 
Unrealized Gain
7 
 
7 
 
13 
Unrealized Loss
0 
 
0 
 
0 
Fair/Equity Basis - Current Marketable Equity Securities
67 
 
67 
 
73 
Other Equity Securities [Member] |
Current [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
14 
 
14 
 
15 
Unrealized Gain
6 
 
6 
 
7 
Unrealized Loss
(3)
 
(3)
 
(1)
Fair/Equity Basis - Current Marketable Equity Securities
17 
 
17 
 
21 
Other Equity Securities [Member] |
Long-term [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
68 
 
68 
 
92 
Unrealized Gain
8 
 
8 
 
16 
Unrealized Loss
(12)
 
(12)
 
(17)
Fair/Equity Basis - Long-Term Marketable Equity Securities
64 
 
64 
 
91 
Marketable Equity Securities [Member]
 
 
 
 
 
Available For Sale Securities Continuous Unrealized Loss Position Aggregate Losses Abstract
 
 
 
 
 
Securities continuous unrealized losses less than 12 months - unrealized losses
14 
 
14 
 
18 
Securities continuous unrealized losses greater than 12 months - unrealized losses
0 
 
0 
 
0 
Securities continuous unrealized losses - unrealized losses
14 
 
14 
 
18 
Available For Sale Securities Continuous Unrealized Loss Position Fair Value Abstract
 
 
 
 
 
Securities continuous unrealized losses less than 12 months - fair value
34 
 
34 
 
42 
Securities continuous unrealized losses greater than 12 months - fair value
0 
 
0 
 
0 
Securities continuous unrealized losses - fair value
34 
 
34 
 
42 
Investments (Textuals) [Abstract]
 
 
 
 
 
Asset retirement obligation restricted asset
10 
 
10 
 
4 
Marketable Equity Securities [Member] |
Current [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
74 
 
74 
 
 
Unrealized Gain
13 
 
13 
 
 
Unrealized Loss
(3)
 
(3)
 
 
Fair/Equity Basis - Current Marketable Equity Securities
84 
 
84 
 
 
Marketable Equity Securities [Member] |
Long-term [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
483 
 
483 
 
506 
Unrealized Gain
565 
 
565 
 
871 
Unrealized Loss
(12)
 
(12)
 
(17)
Fair/Equity Basis - Long-Term Marketable Equity Securities
1,036 
 
1,036 
 
1,360 
Asset Backed Commercial Paper [Member]
 
 
 
 
 
Available For Sale Securities Continuous Unrealized Loss Position Aggregate Losses Abstract
 
 
 
 
 
Securities continuous unrealized losses less than 12 months - unrealized losses
0 
 
0 
 
0 
Securities continuous unrealized losses greater than 12 months - unrealized losses
6 
 
6 
 
6 
Securities continuous unrealized losses - unrealized losses
6 
 
6 
 
6 
Available For Sale Securities Continuous Unrealized Loss Position Fair Value Abstract
 
 
 
 
 
Securities continuous unrealized losses less than 12 months - fair value
0 
 
0 
 
0 
Securities continuous unrealized losses greater than 12 months - fair value
19 
 
19 
 
19 
Securities continuous unrealized losses - fair value
19 
 
19 
 
19 
Asset Backed Commercial Paper [Member] |
Long-term [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
25 
 
25 
 
25 
Unrealized Gain
0 
 
0 
 
0 
Unrealized Loss
(6)
 
(6)
 
(6)
Fair/Equity Basis - Long-Term Marketable Debt Securities
19 
 
19 
 
19 
Auction Rate Securities [Member]
 
 
 
 
 
Available For Sale Securities Continuous Unrealized Loss Position Aggregate Losses Abstract
 
 
 
 
 
Securities continuous unrealized losses less than 12 months - unrealized losses
0 
 
0 
 
0 
Securities continuous unrealized losses greater than 12 months - unrealized losses
3 
 
3 
 
2 
Securities continuous unrealized losses - unrealized losses
3 
 
3 
 
2 
Available For Sale Securities Continuous Unrealized Loss Position Fair Value Abstract
 
 
 
 
 
Securities continuous unrealized losses less than 12 months - fair value
0 
 
0 
 
0 
Securities continuous unrealized losses greater than 12 months - fair value
5 
 
5 
 
5 
Securities continuous unrealized losses - fair value
5 
 
5 
 
5 
Auction Rate Securities [Member] |
Long-term [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
8 
 
8 
 
7 
Unrealized Gain
0 
 
0 
 
0 
Unrealized Loss
(3)
 
(3)
 
(2)
Fair/Equity Basis - Long-Term Marketable Debt Securities
5 
 
5 
 
5 
Corporate Debt Securities [Member] |
Current [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Unrealized Gain
0 
 
0 
 
 
Unrealized Loss
0 
 
0 
 
 
Fair/Equity Basis - Current Marketable Debt Securities
48 
 
48 
 
 
Corporate Debt Securities [Member] |
Long-term [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
48 
 
48 
 
10 
Unrealized Gain
2 
 
2 
 
1 
Unrealized Loss
0 
 
0 
 
0 
Fair/Equity Basis - Long-Term Marketable Debt Securities
50 
 
50 
 
11 
Debt Securities [Member]
 
 
 
 
 
Investments (Textuals) [Abstract]
 
 
 
 
 
Asset retirement obligation restricted asset
7 
 
7 
 
11 
Debt Securities [Member] |
Long-term [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
81 
 
81 
 
42 
Unrealized Gain
2 
 
2 
 
1 
Unrealized Loss
(9)
 
(9)
 
(8)
Fair/Equity Basis - Long-Term Marketable Debt Securities
74 
 
74 
 
35 
Canadian Oil Sands Ltd [Member] |
Long-term [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
303 
 
303 
 
302 
Unrealized Gain
296 
 
296 
 
401 
Unrealized Loss
0 
 
0 
 
0 
Fair/Equity Basis - Long-Term Marketable Equity Securities
599 
 
599 
 
703 
Gabriel Resources Ltd [Member] |
Long-term [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
76 
 
76 
 
76 
Unrealized Gain
1 
 
1 
 
236 
Unrealized Loss
0 
 
0 
 
0 
Fair/Equity Basis - Long-Term Marketable Equity Securities
77 
 
77 
 
312 
Regis [Member] |
Long-term [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
36 
 
36 
 
36 
Unrealized Gain
260 
 
260 
 
218 
Unrealized Loss
0 
 
0 
 
0 
Fair/Equity Basis - Long-Term Marketable Equity Securities
296 
 
296 
 
254 
La Zanja [Member] |
Long-term [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Equity Method Investments
61 
 
61 
 
66 
Euronimba [Member] |
Long-term [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Equity Method Investments
$ 2 
 
$ 2 
 
 
Inventories (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Summary of Inventories
 
 
In-process
$ 123 
$ 159 
Concentrate
192 
116 
Precious metals
36 
12 
Materials, supplies and other
452 
427 
Total Inventories
$ 803 
$ 714 
Stockpiles and Ore on Leach Pads (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Stockpiles And Ore On Leach Pads [Line Items]
 
 
Current stockpiles and ore on leach pads
$ 798 
$ 671 
Long-term stockpiles and ore on leach pads
2,579 
2,271 
Total stockpiles and ore on leach pads
3,377 
2,942 
Nevada [Member]
 
 
Stockpiles And Ore On Leach Pads [Line Items]
 
 
Total stockpiles and ore on leach pads
608 
536 
La Herradura [Member]
 
 
Stockpiles And Ore On Leach Pads [Line Items]
 
 
Total stockpiles and ore on leach pads
21 
6 
Yanacocha [Member]
 
 
Stockpiles And Ore On Leach Pads [Line Items]
 
 
Total stockpiles and ore on leach pads
591 
512 
Boddington [Member]
 
 
Stockpiles And Ore On Leach Pads [Line Items]
 
 
Total stockpiles and ore on leach pads
456 
435 
Batu Hijau [Member]
 
 
Stockpiles And Ore On Leach Pads [Line Items]
 
 
Total stockpiles and ore on leach pads
1,331 
1,119 
Other Australia New Zealand [Member]
 
 
Stockpiles And Ore On Leach Pads [Line Items]
 
 
Total stockpiles and ore on leach pads
165 
161 
Ahafo [Member]
 
 
Stockpiles And Ore On Leach Pads [Line Items]
 
 
Total stockpiles and ore on leach pads
205 
173 
Stockpiles [Member]
 
 
Stockpiles And Ore On Leach Pads [Line Items]
 
 
Current stockpiles and ore on leach pads
590 
506 
Long-term stockpiles and ore on leach pads
2,187 
1,904 
Ore On Leach Pads [Member]
 
 
Stockpiles And Ore On Leach Pads [Line Items]
 
 
Current stockpiles and ore on leach pads
208 
165 
Long-term stockpiles and ore on leach pads
$ 392 
$ 367 
Other Assets (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Other current assets:
 
 
Refinery metal inventory and receivable
$ 393 
$ 796 
Prepaid assets
176 
93 
Derivative instruments
105 
127 
Restricted cash
2 
20 
Note receivable
0 
12 
Other
62 
85 
Other current assets, total
738 
1,133 
Other long-term assets:
 
 
Goodwill
188 
188 
Income tax receivable
185 
142 
Intangible assets
142 
147 
Derivative instruments
122 
112 
Restricted cash
91 
48 
Debt issuance costs
79 
59 
Other receivables
16 
17 
Other
179 
144 
Other long-term assets, total
$ 1,002 
$ 857 
Debt (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Debt
 
 
 
Total Debt Current
$ 40 
 
$ 689 
Total Debt Non-Current
6,088 
 
3,624 
Debt (Textuals)
 
 
 
Long-term Debt of Registrant, Maturities, Repayments of Principal in Remainder of Fiscal Year
35 
 
 
Long-term Debt, Maturities, Repayments of Principal in Year Two
10 
 
 
Long-term Debt, Maturities, Repayments of Principal in Year Three
533 
 
 
Long-term Debt, Maturities, Repayments of Principal in Year Four
10 
 
 
Long-term Debt, Maturities, Repayments of Principal in Year Five
10 
 
 
Long-term Debt, Maturities, Repayments of Principal after Year Five
5,530 
 
 
Line of Credit Facility, Maximum Borrowing Capacity
3,000 
 
 
Line Of Credit Facility Maximum Borrowing Capacity Previous
2,500 
 
 
Conversion Premium On Repayment Of Convertible Debt
172 
0 
 
Proceeds from Issuance of Long-term Debt
3,343 
775 
 
Current [Member]
 
 
 
Debt
 
 
 
Sale-leaseback of refractory ore treatment plant
30 
 
165 
Corporate revolving credit facility (due 2017)
0 
 
 
Ahafo project finance facility
10 
 
10 
Other capital leases
0 
 
0 
Non-current [Member]
 
 
 
Debt
 
 
 
Sale-leaseback of refractory ore treatment plant
0 
 
0 
Corporate revolving credit facility (due 2017)
 
 
33 
Ahafo project finance facility
40 
 
45 
Other capital leases
1 
 
1 
Convertible Senior Notes Net Of Discount 2012 [Member]
 
 
 
Debt (Textuals)
 
 
 
Repayments of Convertible Debt
517 
 
 
Conversion Premium On Repayment Of Convertible Debt
172 
 
 
Convertible Senior Notes Net Of Discount 2012 [Member] |
Current [Member]
 
 
 
Debt
 
 
 
Convertible senior notes, net
0 
 
514 
Convertible Senior Notes Net Of Discount 2012 [Member] |
Non-current [Member]
 
 
 
Debt
 
 
 
Convertible senior notes, net
 
 
0 
Convertible Senior Notes Net Of Discount 2014 [Member] |
Current [Member]
 
 
 
Debt
 
 
 
Convertible senior notes, net
0 
 
 
Convertible Senior Notes Net Of Discount 2014 [Member] |
Non-current [Member]
 
 
 
Debt
 
 
 
Convertible senior notes, net
523 
 
512 
Convertible Senior Notes Net Of Discount 2017 [Member] |
Current [Member]
 
 
 
Debt
 
 
 
Convertible senior notes, net
0 
 
 
Convertible Senior Notes Net Of Discount 2017 [Member] |
Non-current [Member]
 
 
 
Debt
 
 
 
Convertible senior notes, net
461 
 
452 
Senior Notes Net Of Discount 2019 [Member] |
Current [Member]
 
 
 
Debt
 
 
 
Senior notes, net
0 
 
 
Senior Notes Net Of Discount 2019 [Member] |
Non-current [Member]
 
 
 
Debt
 
 
 
Senior notes, net
897 
 
896 
Senior Notes Net Of Discount 2035 [Member] |
Non-current [Member]
 
 
 
Debt
 
 
 
Senior notes, net
598 
 
598 
Senior Notes Net Of Discount 2039 [Member] |
Non-current [Member]
 
 
 
Debt
 
 
 
Senior notes, net
1,087 
 
1,087 
Senior Notes Net of Discount 2022 [Member]
 
 
 
Debt (Textuals)
 
 
 
Long-term Debt, Gross
1,500 
 
 
Proceeds from Issuance of Long-term Debt
1,479 
 
 
Interest rate
3.50 
 
 
Senior Notes Net of Discount 2022 [Member] |
Current [Member]
 
 
 
Debt
 
 
 
Senior notes, net
0 
 
 
Senior Notes Net of Discount 2022 [Member] |
Non-current [Member]
 
 
 
Debt
 
 
 
Senior notes, net
1,489 
 
0 
Senior Notes Net Of Discount 2042 [Member]
 
 
 
Debt (Textuals)
 
 
 
Long-term Debt, Gross
1,000 
 
 
Proceeds from Issuance of Long-term Debt
983 
 
 
Interest rate
4.875 
 
 
Senior Notes Net Of Discount 2042 [Member] |
Non-current [Member]
 
 
 
Debt
 
 
 
Senior notes, net
$ 992 
 
 
Other Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Other current liabilities:
 
 
Refinery metal payable
$ 393 
$ 796 
Accrued capital expenditures
237 
248 
Accrued operating costs
231 
231 
Interest
79 
55 
Taxes other than income and mining
78 
93 
Reclamation and remediation liabilities
66 
71 
Deferred income tax
54 
50 
Royalties
38 
53 
Boddington contingent consideration
28 
24 
Holt property royalty
17 
17 
Derivative instruments
8 
408 
Other
58 
87 
Other current liabilities, total
1,287 
2,133 
Other long-term liabilities:
 
 
Holt property royalty
226 
159 
Income and mining taxes
75 
88 
Power supply agreements
45 
45 
Boddington contingent consideration
16 
30 
Derivative instruments
4 
6 
Other
37 
36 
Other long-term liabilities, total
$ 403 
$ 364 
Net Change in Operating Assets and Liabilities (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Decrease (increase) in operating assets:
 
 
Trade and accounts receivable
$ (14)
$ 121 
Inventories, stockpiles and ore on leach pads
(443)
(230)
EGR refinery assets
406 
(437)
Other assets
(43)
(67)
Increase (decrease) in operating liabilities:
 
 
Accounts payable and other accrued liabilities
(227)
(349)
EGR refinery liabilities
(406)
437 
Reclamation liabilities
(41)
(15)
Net change in operating assets and liabilities (Note 23)
$ (768)
$ (540)
Supplemental Cash Flow Information (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Supplemental Cash Flow Information (Details) [Abstract]
 
 
Income and mining taxes, net of refunds
$ 746 
$ 892 
Interest, net of amounts capitalized
$ 105 
$ 92 
Condensed Consolidating Financial Statements (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Condensed Consolidating Statement of Income
 
 
 
 
 
Sales
$ 2,229 
$ 2,384 
$ 4,912 
$ 4,849 
 
Costs and expenses
 
 
 
 
 
Costs applicable to sales
1,002 1
917 1
2,019 1
1,857 1
 
Amortization
248 
250 
479 
506 
 
Reclamation and remediation
16 
43 
32 
57 
 
Exploration
106 
89 
194 
151 
 
Advanced projects, research and development
82 
86 
184 
154 
 
General and administrative
57 
50 
111 
95 
 
Other expense, net
126 
87 
246 
160 
 
Total costs and expenses
1,637 
1,522 
3,265 
2,980 
 
Other income (expense)
 
 
 
 
 
Other income, net
36 
48 
69 
79 
 
Interest income-intercompany
0 
0 
0 
0 
 
Interest expense-intercompany
0 
0 
0 
0 
 
Interest expense, net
(71)
(63)
(123)
(128)
 
Total other income (expense)
(35)
(15)
(54)
(49)
 
Income before income and mining tax and other items
557 
847 
1,593 
1,820 
 
Income and mining tax expense
(175)
(187)
(518)
(492)
 
Equity income (loss) of affiliates
(11)
0 
(30)
2 
 
Income from continuing operations
371 
660 
1,045 
1,330 
 
Loss from discontinued operations
0 
(136)
(71)
(136)
 
Net income
371 
524 
974 
1,194 
 
Net income attributable to noncontrolling interests
(92)
(137)
(205)
(293)
 
Net income attributable to Newmont stockholders
279 
387 
769 
901 
 
Comprehensive income
72 
446 
683 
1,399 
 
Comprehensive income attributable to noncontrolling interests
(90)
(138)
(205)
(296)
 
Comprehensive income attributable to Newmont stockholders
(18)
308 
478 
1,103 
 
Operating activities:
 
 
 
 
 
Net income
371 
524 
974 
1,194 
 
Adjustments
 
 
758 
749 
 
Net change in operating assets and liabilities (Note 23)
 
 
(768)
(540)
 
Net cash provided from continuing operations
 
 
964 
1,403 
 
Net cash used in discontinued operations
 
 
(8)
(2)
 
Net cash provided from operations
 
 
956 
1,401 
 
Investing activities:
 
 
 
 
 
Additions to property, plant and mine development
 
 
(1,578)
(1,020)
 
Sale of marketable securities
 
 
106 
55 
 
Purchases of marketable securities
 
 
(196)
(15)
 
Acquisitions, net
 
 
(22)
(2,291)
 
Proceeds from sale of other assets
 
 
13 
6 
 
Other
 
 
(37)
(15)
 
Net cash used in investing activities
 
 
(1,714)
(3,280)
 
Financing activities:
 
 
 
 
 
Net borrowings (repayments)
 
 
1,402 
(198)
 
Payment of conversion premium on debt
 
 
(172)
0 
 
Net intercompany borrowings (repayments)
 
 
0 
0 
 
Dividends paid to common stockholders
 
 
(347)
(173)
 
Dividends paid to noncontrolling interests
 
 
(3)
(17)
 
Proceeds from stock issuance, net
 
 
15 
8 
 
Other
 
 
(1)
0 
 
Net cash provided from (used in) financing activities
 
 
894 
(380)
 
Effect of exchange rate changes on cash
 
 
1 
58 
 
Net change in cash and cash equivalents
 
 
137 
(2,201)
 
Cash and cash equivalents at beginning of period
 
 
1,760 
4,056 
 
Cash and cash equivalents at end of period
1,897 
1,855 
1,897 
1,855 
 
Assets
 
 
 
 
 
Cash and cash equivalents
1,897 
1,855 
1,897 
1,855 
 
Trade receivables
290 
 
290 
 
300 
Accounts receivable
359 
 
359 
 
320 
Investments
132 
 
132 
 
94 
Inventories
803 
 
803 
 
714 
Stockpiles and ore on leach pads
798 
 
798 
 
671 
Deferred income tax assets
255 
 
255 
 
396 
Other current assets
738 
 
738 
 
1,133 
Current assets
5,272 
 
5,272 
 
5,388 
Property, plant and mine development, net
16,936 
 
16,936 
 
15,881 
Investments
1,185 
 
1,185 
 
1,472 
Investments in subsidiaries
0 
 
0 
 
0 
Stockpiles and ore on leach pads
2,579 
 
2,579 
 
2,271 
Deferred income tax assets
1,686 
 
1,686 
 
1,605 
Other long-term assets
1,002 
 
1,002 
 
857 
Total assets
28,660 
28,638 
28,660 
28,638 
27,474 
Liabilities
 
 
 
 
 
Debt
40 
 
40 
 
689 
Accounts payable
574 
 
574 
 
561 
Employee-related benefits
293 
 
293 
 
307 
Income and mining taxes
173 
 
173 
 
250 
Other current liabilities
1,287 
 
1,287 
 
2,133 
Current liabilities
2,367 
 
2,367 
 
3,940 
Debt
6,088 
 
6,088 
 
3,624 
Reclamation and remediation liabilities
1,270 
 
1,270 
 
1,169 
Deferred income tax liabilities
2,056 
 
2,056 
 
2,147 
Employee-related benefits
487 
 
487 
 
459 
Other long-term liabilities
403 
 
403 
 
364 
Total liabilities
12,671 
 
12,671 
 
11,703 
Equity
 
 
 
 
 
Preferred stock
0 
 
0 
 
0 
Common stock
786 
 
786 
 
784 
Additional paid-in capital
8,291 
 
8,291 
 
8,408 
Accumulated other comprehensive income
361 
 
361 
 
652 
Retained earnings
3,474 
 
3,474 
 
3,052 
Newmont stockholders' equity
12,912 
 
12,912 
 
12,896 
Noncontrolling interests
3,077 
 
3,077 
 
2,875 
Total equity
15,989 
16,993 
15,989 
16,993 
15,771 
Total liabilities and equity
28,660 
 
28,660 
 
27,474 
Convertible Senior Notes Net Of Discount 2012 [Member]
 
 
 
 
 
Financing activities:
 
 
 
 
 
Payment of conversion premium on debt
 
 
(172)
 
 
Newmont Mining Corporation [Member]
 
 
 
 
 
Condensed Consolidating Statement of Income
 
 
 
 
 
Sales
0 
0 
0 
0 
 
Costs and expenses
 
 
 
 
 
Costs applicable to sales
0 
0 
0 
0 
 
Amortization
0 
0 
0 
0 
 
Reclamation and remediation
0 
0 
0 
0 
 
Exploration
0 
0 
0 
0 
 
Advanced projects, research and development
0 
0 
0 
0 
 
General and administrative
0 
0 
0 
0 
 
Other expense, net
0 
0 
0 
0 
 
Total costs and expenses
0 
0 
0 
0 
 
Other income (expense)
 
 
 
 
 
Other income, net
(6)
(2)
(9)
(8)
 
Interest income-intercompany
39 
40 
79 
76 
 
Interest expense-intercompany
(3)
(3)
(8)
(6)
 
Interest expense, net
(62)
(59)
(108)
(113)
 
Total other income (expense)
(32)
(24)
(46)
(51)
 
Income before income and mining tax and other items
(32)
(24)
(46)
(51)
 
Income and mining tax expense
11 
5 
16 
15 
 
Equity income (loss) of affiliates
300 
406 
799 
937 
 
Income from continuing operations
 
387 
769 
901 
 
Loss from discontinued operations
 
0 
0 
0 
 
Net income
279 
387 
769 
901 
 
Net income attributable to noncontrolling interests
0 
0 
0 
0 
 
Net income attributable to Newmont stockholders
279 
387 
769 
901 
 
Comprehensive income
(18)
308 
478 
1,103 
 
Comprehensive income attributable to noncontrolling interests
0 
0 
0 
0 
 
Comprehensive income attributable to Newmont stockholders
(18)
308 
478 
1,103 
 
Operating activities:
 
 
 
 
 
Net income
279 
387 
769 
901 
 
Adjustments
 
 
32 
39 
 
Net change in operating assets and liabilities (Note 23)
 
 
(7)
(27)
 
Net cash provided from continuing operations
 
 
794 
913 
 
Net cash used in discontinued operations
 
 
0 
0 
 
Net cash provided from operations
 
 
794 
913 
 
Investing activities:
 
 
 
 
 
Additions to property, plant and mine development
 
 
0 
0 
 
Sale of marketable securities
 
 
0 
0 
 
Purchases of marketable securities
 
 
0 
0 
 
Acquisitions, net
 
 
0 
0 
 
Proceeds from sale of other assets
 
 
0 
0 
 
Other
 
 
0 
0 
 
Net cash used in investing activities
 
 
0 
0 
 
Financing activities:
 
 
 
 
 
Net borrowings (repayments)
 
 
1,543 
83 
 
Payment of conversion premium on debt
 
 
(172)
 
 
Net intercompany borrowings (repayments)
 
 
(1,833)
(831)
 
Dividends paid to common stockholders
 
 
(347)
(173)
 
Dividends paid to noncontrolling interests
 
 
0 
0 
 
Proceeds from stock issuance, net
 
 
15 
8 
 
Other
 
 
0 
0 
 
Net cash provided from (used in) financing activities
 
 
(794)
(913)
 
Effect of exchange rate changes on cash
 
 
0 
0 
 
Net change in cash and cash equivalents
 
 
0 
0 
 
Cash and cash equivalents at beginning of period
 
 
0 
0 
 
Cash and cash equivalents at end of period
0 
0 
0 
0 
 
Assets
 
 
 
 
 
Cash and cash equivalents
0 
0 
0 
0 
 
Trade receivables
0 
 
0 
 
0 
Accounts receivable
3,854 
 
3,854 
 
1,415 
Investments
67 
 
67 
 
72 
Inventories
0 
 
0 
 
0 
Stockpiles and ore on leach pads
0 
 
0 
 
0 
Deferred income tax assets
5 
 
5 
 
134 
Other current assets
9 
 
9 
 
0 
Current assets
3,935 
 
3,935 
 
1,621 
Property, plant and mine development, net
0 
 
0 
 
0 
Investments
0 
 
0 
 
0 
Investments in subsidiaries
15,184 
 
15,184 
 
14,675 
Stockpiles and ore on leach pads
0 
 
0 
 
0 
Deferred income tax assets
800 
 
800 
 
708 
Other long-term assets
3,791 
 
3,791 
 
3,423 
Total assets
23,710 
 
23,710 
 
20,427 
Liabilities
 
 
 
 
 
Debt
0 
 
0 
 
514 
Accounts payable
4,420 
 
4,420 
 
2,698 
Employee-related benefits
0 
 
0 
 
0 
Income and mining taxes
0 
 
0 
 
0 
Other current liabilities
78 
 
78 
 
450 
Current liabilities
4,498 
 
4,498 
 
3,662 
Debt
6,047 
 
6,047 
 
3,578 
Reclamation and remediation liabilities
0 
 
0 
 
0 
Deferred income tax liabilities
0 
 
0 
 
0 
Employee-related benefits
5 
 
5 
 
5 
Other long-term liabilities
527 
 
527 
 
567 
Total liabilities
11,077 
 
11,077 
 
7,812 
Equity
 
 
 
 
 
Preferred stock
0 
 
0 
 
0 
Common stock
786 
 
786 
 
784 
Additional paid-in capital
8,012 
 
8,012 
 
8,127 
Accumulated other comprehensive income
361 
 
361 
 
652 
Retained earnings
3,474 
 
3,474 
 
3,052 
Newmont stockholders' equity
12,633 
 
12,633 
 
12,615 
Noncontrolling interests
0 
 
0 
 
0 
Total equity
12,633 
 
12,633 
 
12,615 
Total liabilities and equity
23,710 
 
23,710 
 
20,427 
Newmont USA [Member]
 
 
 
 
 
Condensed Consolidating Statement of Income
 
 
 
 
 
Sales
1,383 
1,468 
3,000 
2,986 
 
Costs and expenses
 
 
 
 
 
Costs applicable to sales
550 
551 
1,113 
1,117 
 
Amortization
135 
156 
265 
315 
 
Reclamation and remediation
12 
37 
23 
48 
 
Exploration
71 
47 
124 
81 
 
Advanced projects, research and development
64 
41 
152 
68 
 
General and administrative
44 
39 
86 
73 
 
Other expense, net
42 
67 
89 
121 
 
Total costs and expenses
918 
938 
1,852 
1,823 
 
Other income (expense)
 
 
 
 
 
Other income, net
12 
41 
25 
67 
 
Interest income-intercompany
1 
2 
3 
4 
 
Interest expense-intercompany
(1)
0 
(1)
0 
 
Interest expense, net
(7)
(3)
(12)
(12)
 
Total other income (expense)
5 
40 
15 
59 
 
Income before income and mining tax and other items
470 
570 
1,163 
1,222 
 
Income and mining tax expense
(83)
(111)
(229)
(319)
 
Equity income (loss) of affiliates
(2)
2 
(13)
3 
 
Income from continuing operations
 
461 
921 
906 
 
Loss from discontinued operations
 
7 
4 
7 
 
Net income
385 
468 
925 
913 
 
Net income attributable to noncontrolling interests
(91)
(173)
(207)
(365)
 
Net income attributable to Newmont stockholders
294 
295 
718 
548 
 
Comprehensive income
357 
419 
898 
881 
 
Comprehensive income attributable to noncontrolling interests
(91)
(173)
(207)
(365)
 
Comprehensive income attributable to Newmont stockholders
266 
246 
691 
516 
 
Operating activities:
 
 
 
 
 
Net income
385 
468 
925 
913 
 
Adjustments
 
 
273 
362 
 
Net change in operating assets and liabilities (Note 23)
 
 
(514)
(509)
 
Net cash provided from continuing operations
 
 
684 
766 
 
Net cash used in discontinued operations
 
 
0 
0 
 
Net cash provided from operations
 
 
684 
766 
 
Investing activities:
 
 
 
 
 
Additions to property, plant and mine development
 
 
(1,090)
(671)
 
Sale of marketable securities
 
 
0 
55 
 
Purchases of marketable securities
 
 
(91)
0 
 
Acquisitions, net
 
 
0 
0 
 
Proceeds from sale of other assets
 
 
9 
(56)
 
Other
 
 
0 
0 
 
Net cash used in investing activities
 
 
(1,172)
(672)
 
Financing activities:
 
 
 
 
 
Net borrowings (repayments)
 
 
(136)
(276)
 
Payment of conversion premium on debt
 
 
0 
 
 
Net intercompany borrowings (repayments)
 
 
692 
(2,018)
 
Dividends paid to common stockholders
 
 
0 
0 
 
Dividends paid to noncontrolling interests
 
 
(3)
(17)
 
Proceeds from stock issuance, net
 
 
0 
0 
 
Other
 
 
0 
1 
 
Net cash provided from (used in) financing activities
 
 
553 
(2,310)
 
Effect of exchange rate changes on cash
 
 
(1)
1 
 
Net change in cash and cash equivalents
 
 
64 
(2,215)
 
Cash and cash equivalents at beginning of period
 
 
1,526 
3,877 
 
Cash and cash equivalents at end of period
1,590 
1,662 
1,590 
1,662 
 
Assets
 
 
 
 
 
Cash and cash equivalents
1,590 
1,662 
1,590 
1,662 
 
Trade receivables
183 
 
183 
 
205 
Accounts receivable
4,642 
 
4,642 
 
3,447 
Investments
48 
 
48 
 
0 
Inventories
400 
 
400 
 
333 
Stockpiles and ore on leach pads
669 
 
669 
 
532 
Deferred income tax assets
250 
 
250 
 
257 
Other current assets
147 
 
147 
 
91 
Current assets
7,929 
 
7,929 
 
6,391 
Property, plant and mine development, net
7,675 
 
7,675 
 
6,917 
Investments
72 
 
72 
 
29 
Investments in subsidiaries
2 
 
2 
 
43 
Stockpiles and ore on leach pads
1,882 
 
1,882 
 
1,641 
Deferred income tax assets
833 
 
833 
 
838 
Other long-term assets
752 
 
752 
 
641 
Total assets
19,145 
 
19,145 
 
16,500 
Liabilities
 
 
 
 
 
Debt
30 
 
30 
 
165 
Accounts payable
3,161 
 
3,161 
 
1,327 
Employee-related benefits
206 
 
206 
 
222 
Income and mining taxes
53 
 
53 
 
45 
Other current liabilities
539 
 
539 
 
459 
Current liabilities
3,989 
 
3,989 
 
2,218 
Debt
1 
 
1 
 
1 
Reclamation and remediation liabilities
908 
 
908 
 
809 
Deferred income tax liabilities
601 
 
601 
 
732 
Employee-related benefits
370 
 
370 
 
355 
Other long-term liabilities
51 
 
51 
 
61 
Total liabilities
5,920 
 
5,920 
 
4,176 
Equity
 
 
 
 
 
Preferred stock
0 
 
0 
 
0 
Common stock
0 
 
0 
 
0 
Additional paid-in capital
3,050 
 
3,050 
 
3,050 
Accumulated other comprehensive income
(216)
 
(216)
 
(189)
Retained earnings
6,776 
 
6,776 
 
6,055 
Newmont stockholders' equity
9,610 
 
9,610 
 
8,916 
Noncontrolling interests
3,615 
 
3,615 
 
3,408 
Total equity
13,225 
 
13,225 
 
12,324 
Total liabilities and equity
19,145 
 
19,145 
 
16,500 
Other Subsidiaries [Member]
 
 
 
 
 
Condensed Consolidating Statement of Income
 
 
 
 
 
Sales
846 
916 
1,912 
1,863 
 
Costs and expenses
 
 
 
 
 
Costs applicable to sales
464 
375 
929 
759 
 
Amortization
113 
94 
214 
191 
 
Reclamation and remediation
4 
6 
9 
9 
 
Exploration
35 
42 
70 
70 
 
Advanced projects, research and development
17 
46 
31 
87 
 
General and administrative
2 
1 
3 
2 
 
Other expense, net
84 
20 
157 
39 
 
Total costs and expenses
719 
584 
1,413 
1,157 
 
Other income (expense)
 
 
 
 
 
Other income, net
30 
9 
53 
20 
 
Interest income-intercompany
6 
2 
11 
4 
 
Interest expense-intercompany
(42)
(41)
(84)
(78)
 
Interest expense, net
(2)
(1)
(3)
(3)
 
Total other income (expense)
(8)
(31)
(23)
(57)
 
Income before income and mining tax and other items
119 
301 
476 
649 
 
Income and mining tax expense
(103)
(81)
(305)
(188)
 
Equity income (loss) of affiliates
50 
50 
117 
139 
 
Income from continuing operations
 
270 
288 
600 
 
Loss from discontinued operations
 
(143)
(75)
(143)
 
Net income
66 
127 
213 
457 
 
Net income attributable to noncontrolling interests
(31)
30 
(63)
10 
 
Net income attributable to Newmont stockholders
35 
157 
150 
467 
 
Comprehensive income
(190)
230 
(51)
825 
 
Comprehensive income attributable to noncontrolling interests
(29)
29 
(63)
7 
 
Comprehensive income attributable to Newmont stockholders
(219)
259 
(114)
832 
 
Operating activities:
 
 
 
 
 
Net income
66 
127 
213 
457 
 
Adjustments
 
 
(480)
(729)
 
Net change in operating assets and liabilities (Note 23)
 
 
(247)
(4)
 
Net cash provided from continuing operations
 
 
(514)
(276)
 
Net cash used in discontinued operations
 
 
(8)
(2)
 
Net cash provided from operations
 
 
(522)
(278)
 
Investing activities:
 
 
 
 
 
Additions to property, plant and mine development
 
 
(488)
(349)
 
Sale of marketable securities
 
 
106 
0 
 
Purchases of marketable securities
 
 
(105)
(15)
 
Acquisitions, net
 
 
(22)
(2,291)
 
Proceeds from sale of other assets
 
 
4 
62 
 
Other
 
 
(37)
(15)
 
Net cash used in investing activities
 
 
(542)
(2,608)
 
Financing activities:
 
 
 
 
 
Net borrowings (repayments)
 
 
(5)
(5)
 
Payment of conversion premium on debt
 
 
0 
 
 
Net intercompany borrowings (repayments)
 
 
1,141 
2,849 
 
Dividends paid to common stockholders
 
 
0 
0 
 
Dividends paid to noncontrolling interests
 
 
0 
0 
 
Proceeds from stock issuance, net
 
 
0 
0 
 
Other
 
 
(1)
(1)
 
Net cash provided from (used in) financing activities
 
 
1,135 
2,843 
 
Effect of exchange rate changes on cash
 
 
2 
57 
 
Net change in cash and cash equivalents
 
 
73 
14 
 
Cash and cash equivalents at beginning of period
 
 
234 
179 
 
Cash and cash equivalents at end of period
307 
193 
307 
193 
 
Assets
 
 
 
 
 
Cash and cash equivalents
307 
193 
307 
193 
 
Trade receivables
107 
 
107 
 
95 
Accounts receivable
293 
 
293 
 
264 
Investments
17 
 
17 
 
22 
Inventories
403 
 
403 
 
381 
Stockpiles and ore on leach pads
129 
 
129 
 
139 
Deferred income tax assets
0 
 
0 
 
5 
Other current assets
582 
 
582 
 
1,042 
Current assets
1,838 
 
1,838 
 
2,182 
Property, plant and mine development, net
9,293 
 
9,293 
 
8,990 
Investments
1,113 
 
1,113 
 
1,443 
Investments in subsidiaries
2,967 
 
2,967 
 
2,825 
Stockpiles and ore on leach pads
697 
 
697 
 
630 
Deferred income tax assets
53 
 
53 
 
59 
Other long-term assets
899 
 
899 
 
927 
Total assets
16,860 
 
16,860 
 
17,056 
Liabilities
 
 
 
 
 
Debt
10 
 
10 
 
10 
Accounts payable
1,321 
 
1,321 
 
1,343 
Employee-related benefits
87 
 
87 
 
85 
Income and mining taxes
120 
 
120 
 
205 
Other current liabilities
2,735 
 
2,735 
 
3,186 
Current liabilities
4,273 
 
4,273 
 
4,829 
Debt
40 
 
40 
 
45 
Reclamation and remediation liabilities
362 
 
362 
 
360 
Deferred income tax liabilities
1,455 
 
1,455 
 
1,415 
Employee-related benefits
112 
 
112 
 
99 
Other long-term liabilities
4,297 
 
4,297 
 
3,895 
Total liabilities
10,539 
 
10,539 
 
10,643 
Equity
 
 
 
 
 
Preferred stock
61 
 
61 
 
61 
Common stock
5 
 
5 
 
0 
Additional paid-in capital
5,698 
 
5,698 
 
5,702 
Accumulated other comprehensive income
905 
 
905 
 
1,168 
Retained earnings
(1,603)
 
(1,603)
 
(1,744)
Newmont stockholders' equity
5,066 
 
5,066 
 
5,187 
Noncontrolling interests
1,255 
 
1,255 
 
1,226 
Total equity
6,321 
 
6,321 
 
6,413 
Total liabilities and equity
16,860 
 
16,860 
 
17,056 
Eliminations [Member]
 
 
 
 
 
Condensed Consolidating Statement of Income
 
 
 
 
 
Sales
0 
0 
0 
0 
 
Costs and expenses
 
 
 
 
 
Costs applicable to sales
(12)
(9)
(23)
(19)
 
Amortization
0 
0 
0 
0 
 
Reclamation and remediation
0 
0 
0 
0 
 
Exploration
0 
0 
0 
0 
 
Advanced projects, research and development
1 
(1)
1 
(1)
 
General and administrative
11 
10 
22 
20 
 
Other expense, net
0 
0 
0 
0 
 
Total costs and expenses
0 
0 
0 
0 
 
Other income (expense)
 
 
 
 
 
Other income, net
0 
0 
0 
0 
 
Interest income-intercompany
(46)
(44)
(93)
(84)
 
Interest expense-intercompany
46 
44 
93 
84 
 
Interest expense, net
0 
0 
0 
0 
 
Total other income (expense)
0 
0 
0 
0 
 
Income before income and mining tax and other items
0 
0 
0 
0 
 
Income and mining tax expense
0 
0 
0 
0 
 
Equity income (loss) of affiliates
(359)
(458)
(933)
(1,077)
 
Income from continuing operations
 
(458)
(933)
(1,077)
 
Loss from discontinued operations
 
0 
0 
0 
 
Net income
(359)
(458)
(933)
(1,077)
 
Net income attributable to noncontrolling interests
30 
6 
65 
62 
 
Net income attributable to Newmont stockholders
(329)
(452)
(868)
(1,015)
 
Comprehensive income
(77)
(511)
(642)
(1,410)
 
Comprehensive income attributable to noncontrolling interests
30 
6 
65 
62 
 
Comprehensive income attributable to Newmont stockholders
(47)
(505)
(577)
(1,348)
 
Operating activities:
 
 
 
 
 
Net income
(359)
(458)
(933)
(1,077)
 
Adjustments
 
 
933 
1,077 
 
Net change in operating assets and liabilities (Note 23)
 
 
0 
0 
 
Net cash provided from continuing operations
 
 
0 
0 
 
Net cash used in discontinued operations
 
 
0 
0 
 
Net cash provided from operations
 
 
0 
0 
 
Investing activities:
 
 
 
 
 
Additions to property, plant and mine development
 
 
0 
0 
 
Sale of marketable securities
 
 
0 
0 
 
Purchases of marketable securities
 
 
0 
0 
 
Acquisitions, net
 
 
0 
0 
 
Proceeds from sale of other assets
 
 
0 
0 
 
Other
 
 
0 
0 
 
Net cash used in investing activities
 
 
0 
0 
 
Financing activities:
 
 
 
 
 
Net borrowings (repayments)
 
 
0 
0 
 
Payment of conversion premium on debt
 
 
0 
 
 
Net intercompany borrowings (repayments)
 
 
0 
0 
 
Dividends paid to common stockholders
 
 
0 
0 
 
Dividends paid to noncontrolling interests
 
 
0 
0 
 
Proceeds from stock issuance, net
 
 
0 
0 
 
Other
 
 
0 
0 
 
Net cash provided from (used in) financing activities
 
 
0 
0 
 
Effect of exchange rate changes on cash
 
 
0 
0 
 
Net change in cash and cash equivalents
 
 
0 
0 
 
Cash and cash equivalents at beginning of period
 
 
0 
0 
 
Cash and cash equivalents at end of period
0 
0 
0 
0 
 
Assets
 
 
 
 
 
Cash and cash equivalents
0 
0 
0 
0 
 
Trade receivables
0 
 
0 
 
0 
Accounts receivable
(8,430)
 
(8,430)
 
(4,806)
Investments
0 
 
0 
 
0 
Inventories
0 
 
0 
 
0 
Stockpiles and ore on leach pads
0 
 
0 
 
0 
Deferred income tax assets
0 
 
0 
 
0 
Other current assets
0 
 
0 
 
0 
Current assets
(8,430)
 
(8,430)
 
(4,806)
Property, plant and mine development, net
(32)
 
(32)
 
(26)
Investments
0 
 
0 
 
0 
Investments in subsidiaries
(18,153)
 
(18,153)
 
(17,543)
Stockpiles and ore on leach pads
0 
 
0 
 
0 
Deferred income tax assets
0 
 
0 
 
0 
Other long-term assets
(4,440)
 
(4,440)
 
(4,134)
Total assets
(31,055)
 
(31,055)
 
(26,509)
Liabilities
 
 
 
 
 
Debt
0 
 
0 
 
0 
Accounts payable
(8,328)
 
(8,328)
 
(4,807)
Employee-related benefits
0 
 
0 
 
0 
Income and mining taxes
0 
 
0 
 
0 
Other current liabilities
(2,065)
 
(2,065)
 
(1,962)
Current liabilities
(10,393)
 
(10,393)
 
(6,769)
Debt
0 
 
0 
 
0 
Reclamation and remediation liabilities
0 
 
0 
 
0 
Deferred income tax liabilities
0 
 
0 
 
0 
Employee-related benefits
0 
 
0 
 
0 
Other long-term liabilities
(4,472)
 
(4,472)
 
(4,159)
Total liabilities
(14,865)
 
(14,865)
 
(10,928)
Equity
 
 
 
 
 
Preferred stock
(61)
 
(61)
 
(61)
Common stock
(5)
 
(5)
 
0 
Additional paid-in capital
(8,469)
 
(8,469)
 
(8,471)
Accumulated other comprehensive income
(689)
 
(689)
 
(979)
Retained earnings
(5,173)
 
(5,173)
 
(4,311)
Newmont stockholders' equity
(14,397)
 
(14,397)
 
(13,822)
Noncontrolling interests
(1,793)
 
(1,793)
 
(1,759)
Total equity
(16,190)
 
(16,190)
 
(15,581)
Total liabilities and equity
$ (31,055)
 
$ (31,055)
 
$ (26,509)
Commitments and Contingencies (Details)
6 Months Ended 6 Months Ended 6 Months Ended
Jun. 30, 2012
USD ($)
Jun. 30, 2012
PEN (S/.)
Dec. 31, 2011
USD ($)
Jun. 30, 2010
Jun. 30, 2009
Mar. 31, 2008
Mar. 31, 2007
Mar. 31, 2006
Jun. 30, 2012
Yanacocha [Member]
Jun. 30, 2012
Batu Hijau [Member]
USD ($)
Jun. 30, 2012
NUSA [Member]
Jun. 30, 2012
PTMDB [Member]
Jun. 30, 2012
PTNMR [Member]
Jun. 30, 2012
To PTPI From NIL NTMC [Member]
USD ($)
Jun. 30, 2012
To NVL From PTPI [Member]
USD ($)
Jun. 30, 2012
NWG Ownership In NewWest Gold [Member]
Jun. 30, 2012
Jacob Safra Ownership In NWG [Member]
Jun. 30, 2012
Fronteer Ownership In Aurora [Member]
Jun. 30, 2012
PTPI [Member]
Jun. 30, 2012
NMC [Member]
USD ($)
Jun. 30, 2012
Minimum royalty payable year one [Member]
USD ($)
Jun. 30, 2012
Minimum royalty payable year two [Member]
USD ($)
Jun. 30, 2012
Minimum royalty payable year three [Member]
USD ($)
Jun. 30, 2012
Minimum royalty payable year four [Member]
USD ($)
Jun. 30, 2012
Minimum royalty payable year five [Member]
USD ($)
Jun. 30, 2012
Minimum royalty payable thereafter [Member]
USD ($)
Commitments and Contingencies (Textuals)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued for reclamation obligations relating to mineral properties
$ 1,145,000,000 
 
$ 1,070,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued reclamation operating costs current
45,000,000 
 
47,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued obligation associated with former, primarily historic, mining activities
191,000,000 
 
170,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Range of reclamation and remediation liabilities upper limit
108.00% 
108.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Range of reclamation and remediation liabilities lower limit
7.00% 
7.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ownership interest in subsidiaries
 
 
 
 
 
 
 
 
51.35% 
31.50% 
100.00% 
 
80.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grey Eagle EPA expenditures
3,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ross Adams US Forest Service expenditures
300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimate of possible loss
 
 
 
 
 
 
 
 
 
247,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fine paid under protest for spill of elementary mercury
500,000 
1,740,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of ownership shares by the Indonesian government or Indonesian nationals in PTNNT
 
 
 
51.00% 
44.00% 
37.00% 
30.00% 
23.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other company ownership percentage in affiliate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
86.00% 
100.00% 
42.00% 
20.00% 
 
 
 
 
 
 
 
Aggregate interest to be offered
 
 
 
 
 
 
 
 
 
 
 
 
 
31.00% 
 
 
 
 
 
 
 
 
 
 
 
 
Sale and transfer of shares of interest percent
 
 
 
7.00% 
7.00% 
7.00% 
7.00% 
3.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PTMDB's ownership in PTNNT
 
 
 
 
 
 
 
 
 
 
 
24.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum royalty payable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
28,000,000 
28,000,000 
28,000,000 
28,000,000 
28,000,000 
223,000,000 
Letters of Credit Surety Bonds and Bank Guarantees, outstanding
1,661,000,000 
 
1,354,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Legal damages
 
 
 
 
 
 
 
 
 
 
 
 
 
26,000,000 
11,000,000 
 
 
 
 
 
 
 
 
 
 
 
Conjecture Mine Site Reclamation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 5,000,000