NEWMONT MINING CORP /DE/, 10-Q filed on 7/29/2011
Quarterly Report
Document and Entity Information
6 Months Ended
Jun. 30, 2011
Jul. 21, 2011
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, 2011 
 
Amendment Flag
FALSE 
 
Document Fiscal Year Focus
2011 
 
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
 
487,574,675 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) (USD $)
In Millions, except Per Share data
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) [Abstract]
 
 
 
 
Sales
$ 2,384 
$ 2,153 
$ 4,849 
$ 4,395 
Costs and expenses
 
 
 
 
Costs applicable to sales
917 
848 
1,857 
1,717 
Amortization
250 
231 
506 
455 
Reclamation and remediation
43 
13 
57 
26 
Exploration
89 
53 
151 
96 
Advanced projects, research and development
86 
57 
154 
103 
General and administrative
50 
43 
95 
88 
Other expense, net
87 
61 
160 
150 
Total costs and expenses
1,522 
1,306 
2,980 
2,635 
Other income (expense)
 
 
 
 
Other income, net
48 
44 
79 
92 
Interest expense, net
(63)
(69)
(128)
(144)
Total other income (expense)
(15)
(25)
(49)
(52)
Income before income and mining tax and other items
847 
822 
1,820 
1,708 
Income and mining tax expense
(187)
(283)
(492)
(424)
Equity income (loss) of affiliates
(2)
(4)
Income from continuing operations
660 
537 
1,330 
1,280 
Loss from discontinued operations
(136)
(136)
Net income
524 
537 
1,194 
1,280 
Net income attributable to noncontrolling interests
(137)
(155)
(293)
(352)
Net income attributable to Newmont stockholders
387 
382 
901 
928 
Net income attributable to Newmont stockholders:
 
 
 
 
Continuing operations
523 
382 
1,037 
928 
Discontinued operations
(136)
(136)
Net income attributable to Newmont stockholders
$ 387 
$ 382 
$ 901 
$ 928 
Income per common share, basic
 
 
 
 
Continuing operations
$ 1.06 
$ 0.78 
$ 2.10 
$ 1.89 
Discontinued operations
$ (0.28)
$ 0 
$ (0.28)
$ 0 
Income per common share, basic
$ 0.78 
$ 0.78 
$ 1.82 
$ 1.89 
Income per common share, diluted
 
 
 
 
Continuing operations
$ 1.04 
$ 0.77 
$ 2.07 
$ 1.87 
Discontinued operations
$ (0.27)
$ 0 
$ (0.27)
$ 0 
Income per common share, diluted
$ 0.77 
$ 0.77 
$ 1.80 
$ 1.87 
Cash dividends declared per common share
$ 0.20 
$ 0.10 
$ 0.35 
$ 0.20 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $)
In Millions
6 Months Ended
Jun. 30,
2011
2010
Operating activities:
 
 
Net income
$ 1,194 
$ 1,280 
Adjustments:
 
 
Amortization
506 
455 
Loss from discontinued operations
136 
Reclamation and remediation
57 
26 
Deferred income taxes
(38)
(86)
Stock based compensation and other non-cash benefits
44 
39 
Gain on asset sales, net
(53)
(49)
Other operating adjustments and write-downs
97 
67 
Net change in operating assets and liabilities
(540)
(251)
Net cash provided from continuing operations
1,403 
1,481 
Net cash used in discontinued operations
(2)
(13)
Net cash provided from operations
1,401 
1,468 
Investing activities:
 
 
Additions to property, plant and mine development
(1,020)
(628)
Proceeds from sale of marketable securities
55 
Purchases of marketable securities
(15)
(7)
Acquisitions, net
(2,291)
Proceeds from sale of other assets
52 
Other
(15)
(23)
Net cash used in investing activities
(3,280)
(605)
Financing activities:
 
 
Proceeds from debt, net
775 
Repayment of debt
(973)
(263)
Sale of noncontrolling interests
229 
Acquisition of noncontrolling interests
(109)
Dividends paid to common stockholders
(173)
(98)
Dividends paid to noncontrolling interests
(17)
(307)
Proceeds from stock issuance, net
30 
Change in restricted cash and other
48 
Net cash used in financing activities
(380)
(470)
Effect of exchange rate changes on cash
58 
(6)
Net change in cash and cash equivalents
(2,201)
387 
Cash and cash equivalents at beginning of period
4,056 
3,215 
Cash and cash equivalents at end of period
$ 1,855 
$ 3,602 
CONDENSED CONSOLIDATED BALANCE SHEET (USD $)
In Millions
Jun. 30, 2011
Dec. 31, 2010
Jun. 30, 2010
Dec. 31, 2009
ASSETS
 
 
 
 
Cash and cash equivalents
$ 1,855 
$ 4,056 
$ 3,602 
$ 3,215 
Trade receivables
418 
582 
 
 
Accounts receivable
135 
88 
 
 
Investments
203 
113 
 
 
Inventories
671 
658 
 
 
Stockpiles and ore on leach pads
696 
617 
 
 
Deferred income tax assets
308 
177 
 
 
Other current assets
1,613 
962 
 
 
Current assets
5,899 
7,253 
 
 
Property, plant and mine development, net
16,663 
12,907 
 
 
Investments
1,675 
1,568 
 
 
Stockpiles and ore on leach pads
1,950 
1,757 
 
 
Deferred income tax assets
1,505 
1,437 
 
 
Other long-term assets
946 
741 
 
 
Total assets
28,638 
25,663 
 
 
LIABILITIES
 
 
 
 
Debt
539 
259 
 
 
Accounts payable
490 
427 
 
 
Employee-related benefits
229 
288 
 
 
Income and mining taxes
184 
355 
 
 
Other current liabilities
1,998 
1,418 
 
 
Current liabilities
3,440 
2,747 
 
 
Debt
3,771 
4,182 
 
 
Reclamation and remediation liabilities
1,032 
984 
 
 
Deferred income tax liabilities
2,735 
1,488 
 
 
Employee-related benefits
353 
325 
 
 
Other long-term liabilities
314 
221 
 
 
Total liabilities
11,645 
9,947 
 
 
EQUITY
 
 
 
 
Common stock
780 
778 
 
 
Additional paid-in capital
8,330 
8,279 
 
 
Accumulated other comprehensive income
1,310 
1,108 
 
 
Retained earnings
3,908 
3,180 
 
 
Newmont stockholders' equity
14,328 
13,345 
 
 
Noncontrolling interests
2,665 
2,371 
 
 
Total equity
16,993 
15,716 
13,555 
 
Total liabilities and equity
$ 28,638 
$ 25,663 
 
 
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, 2010 filed February 24, 2011 on Form 10-K. The year-end balance sheet data was derived from the audited financial statements, but does not include all disclosures required by United States generally accepted accounting principles (“GAAP”).

 

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

 

Business Combinations

In December 2010, FASB Accounting Standards Codification (“ASC”) guidance for business combinations was updated to clarify existing guidance which requires a public entity to disclose pro forma revenue and earnings of the combined entity as though the business combination(s) that occurred during the current year had occurred as of the beginning of the comparable prior annual period only. The update also expands the supplemental pro forma disclosures required to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. Adoption of the updated guidance, effective for the Company's fiscal year beginning January 1, 2011, had no impact on the Company's condensed consolidated financial position, results of operations or cash flows.

Fair Value Accounting

In January 2010, ASC guidance for fair value measurements and disclosure was updated to require enhanced detail in the level 3 reconciliation. Adoption of the updated guidance, effective for the Company's fiscal year beginning January 1, 2011, had no impact on the Company's condensed consolidated financial position, results of operations or cash flows. Refer to Note 17 for further details regarding the Company's assets and liabilities measured at fair value.

Recently Issued Accounting Pronouncements

Comprehensive Income

In June 2011, ASC guidance was issued related to comprehensive income. Under the updated guidance, an entity will have the option to present the total of comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In addition, the update requires certain disclosure requirements when reporting other comprehensive income. The update does not change the items reported in other comprehensive income or when an item of other comprehensive income must be reclassified to income. The update is effective for the Company's fiscal year beginning January 1, 2012. The Company does not expect the updated guidance to have an impact on the condensed 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 update is effective for the Company's fiscal year beginning January 1, 2012. The Company does not expect the updated guidance to have a significant impact on the condensed consolidated financial position, results of operations or cash flows.

 

Segment Information
SEGMENT INFORMATION

NOTE 3    SEGMENT INFORMATION

 

     Costs    Advanced   
     Applicable to    Projects and Pre-Tax
   Sales Sales Amortization Exploration Income
Three Months Ended June 30, 2011             
Nevada$529 $224 $56 $38 $195
La Herradura 81  27  5  3  44
Hope Bay -  -  4  52  (55)
Other North America -  -  -  1  47
 North America 610  251  65  94  231
                 
Yanacocha 524  190  66  11  232
Other South America -  -  1  14  (16)
 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
Other Africa -  -  -  4  (6)
 Africa 218  65  20  12  113
                 
Corporate and Other -  -  4  26  (173)
Consolidated$2,384 $917 $250 $175 $847

      Costs    Advanced   
      Applicable to    Projects and Pre-Tax
   Sales Sales Amortization Exploration Income
Three Months Ended June 30, 2010              
Nevada$505 $246 $64 $20 $164
La Herradura 53  19  5  2  29
Hope Bay -  -  3  33  (36)
Other North America -  -  -  -  (1)
 North America 558  265  72  55  156
                 
Yanacocha 425  139  40  4  222
Other South America -  -  -  10  (9)
 South America 425  139  40  14  213
                 
Boddington              
 Gold 234  113  34  N/A  N/A
 Copper 40  25  6  N/A  N/A
  Total 274  138  40  3  92
Batu Hijau:              
 Gold 170  42  12  N/A  N/A
 Copper 258  73  19  N/A  N/A
  Total 428  115  31  -  270
Other Australia/New Zealand 308  136  24  7  142
Other Asia Pacific -  -  1  5  (9)
 Asia Pacific 1,010  389  96  15  495
                 
Ahafo 160  55  19  3  74
Other Africa -  -  -  2  (1)
 Africa 160  55  19  5  73
                 
Corporate and Other  -  -  4  21  (115)
Consolidated$2,153 $848 $231 $110 $822

     Costs    Advanced         
     Applicable to    Projects and Pre-Tax Total Capital
   Sales Sales Amortization Exploration Income Assets 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  27
Hope Bay -  -  7  96  (103)  2,242  41
Other North America -  -  -  1  45  52  -
 North America 1,257  541  144  161  433  9,351  296
                       
Yanacocha 886  343  119  17  381  2,634  127
Other South America -  -  1  24  (26)  599  251
 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  1,046  37
Other Africa -  -  -  5  (8)  348  67
 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.

      Costs    Advanced         
      Applicable to    Projects and Pre-Tax Total Capital
   Sales Sales Amortization Exploration Income Assets Expenditures(1)
Six Months Ended June 30, 2010                    
Nevada$972 $497 $126 $37 $291 $3,309 $117
La Herradura 97  32  8  3  54  180  22
Hope Bay -  -  6  50  (57)  1,938  48
Other North America -  -  -  1  (3)  53  -
 North America 1,069  529  140  91  285  5,480  187
                       
Yanacocha 885  293  77  11  465  2,532  68
Other South America -  -  -  15  (15)  194  43
 South America 885  293  77  26  450  2,726  111
                       
Boddington                    
 Gold 401  193  56  N/A  N/A  N/A  N/A
 Copper 79  49  13  N/A  N/A  N/A  N/A
  Total 480  242  69  4  160  4,136  81
Batu Hijau:                    
 Gold 335  76  22  N/A  N/A  N/A  N/A
 Copper 713  165  46  N/A  N/A  N/A  N/A
  Total 1,048  241  68  -  677  2,911  33
Other Australia/New Zealand 622  293  56  11  268  884  71
Other Asia Pacific -  -  1  10  9  183  3
 Asia Pacific 2,150  776  194  25  1,114  8,114  188
                       
Ahafo 291  119  36  6  116  1,005  51
Other Africa -  -  -  6  (5)  229  22
 Africa 291  119  36  12  111  1,234  73
                       
Corporate and Other  -  -  8  45  (252)  5,215  11
Consolidated$4,395 $1,717 $455 $199 $1,708 $22,769 $570
                       
 (1)Includes a decrease in accrued capital expenditures of $58; consolidated capital expenditures on a cash basis were $628.
Reclamation and Remediation
RECLAMATION AND REMEDIATION

NOTE 4    RECLAMATION AND REMEDIATION

 

At June 30, 2011 and December 31, 2010, $922 and $904, 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, 2011 and December 31, 2010, $172 and $144, 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, 
   2011 2010 
 Balance at beginning of period   $1,048 $859 
 Additions, changes in estimates and other    32  (4) 
 Liabilities settled    (15)  (18) 
 Accretion expense    29  26 
 Balance at end of period   $1,094 $863 

The current portion of Reclamation and remediation liabilities of $62 and $64 at June 30, 2011 and December 31, 2010, respectively, are included in Other current liabilities (see Note 24).

 

The Company's reclamation and remediation expenses consisted of:

 

   Three Months Ended June 30, Six Months Ended June 30, 
   2011 2010 2011 2010 
 Reclamation $28 $- $28 $- 
 Accretion - operating    13  11  25  22 
 Accretion - non-operating  2  2  4  4 
   $43 $13 $57 $26 
               
Advanced Projects, Research and Development
ADVANCED PROJECTS, RESEARCH AND DEVELOPMENT

NOTE 5 ADVANCED PROJECTS, RESEARCH AND DEVELOPMENT

 

    Three Months Ended June 30, Six Months Ended June 30, 
    2011 2010 2011 2010 
 Hope Bay $41 $25 $79 $35 
 Conga  5  2  6  3 
 Akyem  1  1  1  4 
 Technical and project services  18  11  33  23 
 Corporate  6  9  9  21 
 Other  15  9  26  17 
    $86 $57 $154 $103 
Other Expense, Net
OTHER EXPENSE, NET
NOTE 6 OTHER EXPENSE, NET             
               
   Three Months Ended June 30, Six Months Ended June 30, 
   2011 2010 2011 2010 
 Community development   $23 $20 $40 $75 
 Regional administration    21  18  37  31 
 Indonesian value added tax settlement  -  -  21  - 
 Fronteer acquisition costs  20  -  21  - 
 Western Australia power plant    5  1  9  7 
 Other     18   22   32   37 
   $87 $61 $160 $150 
Other Income, Net
OTHER INCOME, NET
NOTE 7    OTHER INCOME, NET             
               
   Three Months Ended June 30, Six Months Ended June 30, 
   2011 2010 2011 2010 
 Gain on sale of investments, net $50 $5 $50 $7 
 Canadian Oil Sands   10  15  16  25 
 Interest income    2  2  6  5 
 Gain on asset sales, net    -  9  3  42 
 Foreign currency exchange gain (loss), net    (18)  5  (29)  (4) 
 Other    4  8  33  17 
   $48 $44 $79 $92 
Employee Pension and Other Benefits Plans
EMPLOYEE PENSION AND OTHER BENEFIT PLANS
NOTE 8 EMPLOYEE PENSION AND OTHER BENEFIT PLANS    
                
    Three Months Ended June 30, Six Months Ended June 30, 
    2011 2010 2011 2010 
 Pension benefit costs, net              
  Service cost   $6 $6 $12 $11 
  Interest cost    10  9  20  18 
  Expected return on plan assets    (11)  (9)  (21)  (16) 
  Amortization, net  7  5  12  9 
    $12 $11 $23 $22 
                
    Three Months Ended June 30, Six Months Ended June 30, 
    2011 2010 2011 2010 
 Other benefit costs, net              
  Service cost   $- $- $1 $1 
  Interest cost    1  2  2  3 
    $1 $2 $3 $4 
                
Stock Based Compensation
STOCK BASED COMPENSATION
NOTE 9    STOCK BASED COMPENSATION 
               
  Three Months Ended June 30, Six Months Ended June 30, 
   2011 2010 2011 2010 
 Stock options   $7 $6 $10 $9 
 Restricted stock units  10  4  17  8 
 Performance leveraged stock units  1  1  3  4 
 Common stock  -  1  1  2 
 Restricted stock  -  -  -  1 
 Deferred stock  1  3  3  5 
   $19 $15 $34 $29 
Income and Mining Taxes
INCOME AND MINING TAXES

NOTE 10    INCOME AND MINING TAXES

 

During the second quarter of 2011, the Company recorded estimated income and mining tax expense of $187 resulting in an effective tax rate of 22%. Estimated income and mining tax expense during the second quarter of 2010 was $283 for an effective tax rate of 34%. The lower effective tax rate in the second quarter of 2011 resulted from a tax benefit of $65 recorded in connection with conversion of non-US tax-paying entities to entities currently subject to U.S. income tax which resulted in an increase in net deferred tax assets. During the first half of 2011, estimated income and mining tax expense was $492 resulting in an effective tax rate of 27%. Estimated income and mining tax expense during the first half of 2010 was $424 for an effective tax rate of 25%. In the first half of 2010, a tax benefit of $127 was recorded in connection with 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, 2011, the Company's total unrecognized tax benefit was $106 for uncertain income tax positions taken or expected to be taken on income tax returns. Of this, $55 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 $5 to $10 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, 
     2011 2010 2011 2010 
 Income before income and mining tax and             
  other items $847 $822 $1,820 $1,708 
 United States statutory corporate income             
  tax rate    35% 35% 35% 35%
 Income and mining tax expense computed             
  at United States statutory corporate income tax rate  (296)  (288)  (637)  (598) 
 Reconciling items:             
  Tax benefit generated on change in form             
   of a non-U.S. subsidiary   65  -  65  127 
  Percentage depletion    56  21  111  54 
  Other    (12)  (16)  (31)  (7) 
 Income and mining tax expense $(187) $(283) $(492) $(424) 
Discontinued Operations
DISCONTINUED OPERATIONS

NOTE 11    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 (see Note 28). 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 Newmont Canada appealed. In December 2010, the Company recognized a $28 charge, net of tax benefits of $12, related to these legal claims. In May 2011, the Ontario Court of Appeal upheld the Superior Court ruling resulting in an additional $136 charge, net of tax benefits of $7, in the second quarter.

Net operating cash used in discontinued operations was $2 and $13 in the first half of 2011 and 2010, respectively. In 2011, we made an initial payment related to the Holt property royalty and the 2010 amount related to the Kori Kollo operation in Bolivia which was sold in 2009.

 

Net Income attributable to Noncontrolling Interests
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
NOTE 12    NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS 
               
  Three Months Ended June 30, Six Months Ended June 30, 
   2011 2010 2011 2010 
 Batu Hijau   $64 $84 $166 $202 
 Yanacocha    76  71  132  151 
 Other    (3)  -  (5)  (1) 
   $137 $155 $293 $352 

At June 30, 2011, 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 continues to consolidate 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 13    INCOME PER COMMON SHARE

 

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

 

     Three Months Ended June 30, Six Months Ended June 30, 
     2011 2010 2011 2010 
                 
 Net income attributable to Newmont             
  stockholders             
    Continuing operations  $523 $382 $1,037 $928 
    Discontinued operations   (136)  -  (136)  - 
     $387 $382 $901 $928 
                 
 Weighted average common shares (millions):            
  Basic   494  492  494  491 
  Effect of employee stock-based awards   1  1  1  1 
  Effect of convertible notes 6  6  6  4 
  Diluted   501  499  501  496 
                 
 Net income attributable to Newmont            
  stockholders per common share            
   Basic:            
    Continuing operations  $1.06 $0.78 $2.10 $1.89 
    Discontinued operations   (0.28)  -  (0.28)  - 
     $0.78 $0.78 $1.82 $1.89 
   Diluted:            
    Continuing operations  $1.04 $0.77 $2.07 $1.87 
    Discontinued operations   (0.27)  -  (0.27)  - 
     $0.77 $0.77 $1.80 $1.87 

Options to purchase 3 and 2 million shares of common stock at average exercise prices of $57 and $57 were outstanding at June 30, 2011 and 2010, respectively, but were not included in the computation of diluted weighted average common shares because their effect would have been anti-dilutive.

 

In February 2009 and July 2007, Newmont issued $518 and $1,150, respectively, of convertible senior notes that, if converted in the future, may have a dilutive effect on the Company's weighted average number of common shares. The notes issued in 2009 and 2007 are convertible, at the holder's option, equivalent to a conversion price of $46.04 and $46.00, respectively, per share of common stock. Under the convertible note indenture, Newmont is required to settle the principal amount of the convertible senior notes in cash and may elect to settle the remaining conversion obligation (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 for the three and six months ended June 30, 2011 exceeded the conversion price of $46.04 and $46.00 for the notes issued in 2009 and 2007, respectively, and therefore, 6 and 6 million additional shares were included in the computation of diluted weighted average common shares for the three and six months ended June 30, 2011, respectively. The average price of the Company's common stock for the three and six months ended June 30, 2010 exceeded the conversion price of $46.25 and $46.21 for the notes issued in 2009 and 2007, respectively, and therefore, 6 and 4 million additional shares were included in the computation of diluted weighted average common shares for the three and six months ended June 30, 2010, respectively.

 

In connection with the 2007 convertible senior notes offering, the Company entered into Call Spread Transactions which included the purchase of call options and the sale of warrants. As a result of the Call Spread Transactions, the conversion price of $46.00 was effectively increased to $60.00. Should the warrant transactions become dilutive to the Company's earnings per share (Newmont's average share price exceeds $60.00) the effect of the warrant transactions on diluted earnings per share will be calculated in accordance with the net share settlement method.

 

The Net income attributable to Newmont stockholders and transfers from noncontrolling interests was:

 

   Three Months Ended June 30, Six Months Ended June 30, 
   2011 2010 2011 2010 
               
Net income attributable to Newmont stockholders$387 $382 $901 $928 
Transfers from noncontrolling interests:            
 Increase in Additional paid in capital from sale            
  of PTNNT shares, net of tax of $33 -  1  -  16 
Net income attributable to Newmont stockholders            
 and transfers from noncontrolling interests$387 $383 $901 $944 
Comprehensive Income
COMPREHENSIVE INCOME
NOTE 14    COMPREHENSIVE INCOME          
                  
      Three Months Ended June 30, Six Months Ended June 30,
      2011 2010 2011 2010 
                  
 Net income   $524 $537 $1,194 $1,280 
 Other comprehensive income (loss), net of tax:             
  Unrealized loss on marketable              
   securities  (243)  (77)  (75)  (28) 
  Foreign currency translation adjustments    38  (55)  127  1 
  Pension and other benefit liability             
   adjustments  4  3  8  5 
  Change in fair value of cash flow hedge             
   instruments:             
   Net change from periodic revaluations    162  (72)  217  (43) 
   Net amount reclassified to income    (39)  (16)  (72)  (35) 
   Net unrecognized gain (loss) on             
    derivatives  123  (88)  145  (78) 
       (78)  (217)  205  (100) 
 Comprehensive income $446 $320 $1,399 $1,180 
                  
 Comprehensive income attributable to:             
  Newmont stockholders   $308 $165 $1,103 $828 
  Noncontrolling interests   138  155  296  352 
      $446 $320 $1,399 $1,180 
Changes in Equity
CHANGES IN EQUITY
NOTE 15    CHANGES IN EQUITY       
           
     Six Months Ended June 30, 
     2011 2010 
 Common stock:       
  At beginning of period $778 $770 
   Stock based awards   2  2 
   Shares issued in exchange for exchangeable shares     -  3 
  At end of period    780  775 
           
 Additional paid-in capital:       
  At beginning of period    8,279  8,158 
   Stock based awards   52  64 
   Shares issued in exchange for exchangeable shares    (1)  (3) 
   Sale of noncontrolling interests   -  16 
  At end of period    8,330  8,235 
           
 Accumulated other comprehensive income:       
  At beginning of period    1,108  626 
   Other comprehensive income   202  (100) 
  At end of period    1,310  526 
           
 Retained earnings:       
  At beginning of period    3,180  1,149 
   Net income attributable to Newmont stockholders    901  928 
   Dividends paid     (173)  (98) 
  At end of period    3,908  1,979 
           
 Noncontrolling interests:       
  At beginning of period    2,371  1,910 
   Net income attributable to noncontrolling interests    293  352 
   Dividends paid   (2)  (320) 
   Other comprehensive income    3   - 
   Sale of noncontrolling interests, net   -  98 
  At end of period    2,665  2,040 
 Total equity   $16,993 $13,555 
           
Acquisitions
ACQUISITIONS

NOTE 16    ACQUISITIONS

       

On February 3, 2011, we announced an agreement with Fronteer Gold, Inc. (“Fronteer”) to acquire all of the outstanding common shares of Fronteer. On April 6, 2011, Newmont acquired 153 million common shares of Fronteer pursuant to the Company's offer. 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. Fronteer owns, among other assets, the exploration stage Long Canyon project, which is located approximately one hundred miles from the Company's existing infrastructure in Nevada and provides the potential for significant development and operating synergies.

 

In connection with the acquisition, Newmont incurred transaction costs of $21, which were recorded in Other Expense, net.

 

The Fronteer purchase price of $2,259 was preliminarily allocated based on the estimated fair values of assets acquired and liabilities assumed at the April 6, 2011 acquisition date as follows:

 

 Assets:     
  Cash   $2 
  Property, plant and mine development, net    3,208 
  Investments  281 
  Other assets    6 
    $3,497 
 Liabilities:     
  Deferred income tax liability $1,223 
  Other liabilities  15 
     1,238 
 Net assets acquired    $2,259 

The allocation of the purchase price will be completed later in the year.

 

The pro forma impact of the acquisition on Net Income was not material as Fronteer was not in production.

 

Fair Value Accounting
FAIR VALUE ACCOUNTING

NOTE 17    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, 2011 
    Total Level 1 Level 2 Level 3 
 Assets:            
  Cash equivalents  $36 $36 $- $- 
  Marketable equity securities:              
   Extractive industries 1,757  1,757  -  - 
   Other 6  6  -  - 
  Marketable debt securities:            
   Asset backed commercial paper   20  -  -  20 
   Corporate 9  9  -  - 
   Auction rate securities   5  -  -  5 
  Trade receivable from provisional copper             
   and gold concentrate sales, net  306  306  -  - 
  Derivative instruments, net:              
   Foreign exchange forward contracts 376  -  376  - 
   Diesel forward contracts 11  -  11  - 
    $2,526 $2,114 $387 $25 
 Liabilities:            
  Derivative instruments, net:              
   Forward starting swap contracts$11 $- $11 $- 
  Boddington contingent consideration 70  -  -  70 
  Holt property royalty 181  -  -  181 
    $262 $- $11 $251 

 

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

 

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

 

The Company's marketable debt securities include investments in auction rate securities and asset backed commercial paper. The Company reviews the fair value for auction rate securities and asset backed commercial paper on at least a quarterly basis. The auction rate securities are traded in markets that are not active, trade infrequently and have little price transparency. The Company estimated the fair value of the auction rate securities based on weighted average risk calculations using probabilistic cash flow assumptions. The Company estimated the fair value of the asset backed commercial paper using a probability of return to each class of notes reflective of information reviewed regarding the separate classes of securities. The auction rate securities and asset backed commercial paper are classified within Level 3 of the fair value hierarchy. The Company's corporate marketable debt securities are valued using quoted market prices in active markets and as such are classified within Level 1 of the fair value hierarchy.

 

The Company's net trade receivable from provisional copper and gold concentrate sales, 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 Company recorded a contingent consideration liability related to the 2009 acquisition of the final 33.33% interest in Boddington. The estimated value of the contingent consideration was determined using a valuation model which simulates future gold and copper prices and costs applicable to sales. The contingent consideration liability is classified within Level 3 of the fair value hierarchy.

 

The Company recorded a sliding scale royalty liability related to the divestiture of the Holt property. The estimated fair value of the liability was determined using a Monte Carlo valuation model to simulate future gold prices utilizing a $1,300 per ounce long-term assumption, various gold production scenarios based on publicly available reserve and resource information for the Holt property and a 4.2% weighted average discount rate. The contingent 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, 2011:

 

    Auction Rate Securities Asset Backed Commercial Paper Total Assets Boddington Contingent Consideration Holt Property Royalty Total Liabilities 
 Balance at beginning of period   $5 $19 $24 $83 $- $83 
  Unrealized gain  -  1  1  -  -  - 
  Settlements  -  -  -  (13)  -  (13) 
  Valuation  -  -  -  -  181  181 
 Balance at end of period   $5 $20 $25 $70 $181 $251 

Unrealized gains of $1 were included in Accumulated other comprehensive income as a result of changes in C$ exchange rates from January 1, 2011 to June 30, 2011. At June 30, 2011, assets and liabilities classified within Level 3 of the fair value hierarchy represent 1% and 96%, respectively, of total assets and liabilities measured at fair value.

 

Derivative Instruments
DERIVATIVE INSTRUMENTS

NOTE 18    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.

 

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

 

Newmont had the following foreign currency derivative contracts outstanding at June 30, 2011:

    Expected Maturity Date 
                Total/ 
    2011 2012 2013 2014 2015 2016 Average 
 A$ Operating Fixed Forward Contracts:                       
  A$ notional (millions)    594  947  665  436  204  25  2,871 
  Average rate ($/A$)    0.86  0.88  0.90  0.87  0.84  0.88  0.88 
  Expected hedge ratio  82% 64% 44% 30% 14% 3%   
 A$ Capital Fixed Forward Contracts:                       
  A$ notional (millions)    10  18  -  -  -  -  28 
  Average rate ($/A$)    1.04  1.02  -  -  -  -  1.03 
  Expected hedge ratio  34% 41% -  -  -  -    
 NZ$ Operating Fixed Forward Contracts:                       
  NZ$ notional (millions)    37  41  6  -  -  -  84 
  Average rate ($/NZ$)    0.71  0.73  0.77  -  -  -  0.72 
  Expected hedge ratio  66% 35% 10% -  -  -    
                         

Diesel Fixed Forward Contracts

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

Newmont had the following diesel derivative contracts outstanding at June 30, 2011:

    Expected Maturity Date 
          Total/ 
    2011 2012 2013 Average 
 Diesel Fixed Forward Contracts:              
  Diesel gallons (millions)    11  11  1  23 
  Average rate ($/gallon)    2.51  2.68  3.19  2.62 
  Expected hedge ratio  53% 25% 5%   

Forward Starting Swap Contracts

During the three months ended June 30, 2011, Newmont entered into forward starting swaps with a total notional value of $1,000. Newmont entered into these swaps as a hedge against adverse movements in treasury rates related to a potential debt issuance in the second half of 2011. At June 30, 2011, the hedge contracts were in a net liability position of $11.

Fair Value Hedges

Interest Rate Swap Contracts

Newmont had $222 fixed to floating swap contracts designated as a hedge against debt which matured in May 2011.

Derivative Instrument Fair Values

Newmont had the following derivative instruments designated as hedges at June 30, 2011 and December 31, 2010:

   Fair Value 
   At June 30, 2011 
   Other Current Assets Other Long-Term Assets Other Current Liabilities Other Long-Term Liabilities 
 Foreign currency exchange contracts:            
  A$ operating fixed forward contracts  $204 $165 $1 $- 
  A$ Akyem capital fixed forward contracts   -  -  -  - 
  NZ$ operating fixed forward contracts   7  1  -  - 
 Diesel fixed forward contracts 11  1  1  - 
 Forward starting swap contracts   4  -  15  - 
 Total derivative instruments (Note 22)$226 $167 $17 $- 
               
   Fair Value 
   At December 31, 2010 
   Other Current Assets Other Long-Term Assets Other Current Liabilities Other Long-Term Liabilities 
 Foreign currency exchange contracts:            
  A$ operating fixed forward contracts  $181  114  -  - 
  NZ$ operating fixed forward contracts   5  1  -  - 
 Diesel fixed forward contracts   7  1  -  - 
 Interest rate swap contracts   3  -  -  - 
 Total derivative instruments (Note 22)$196 $116 $- $- 

The following tables show the location and amount of gains 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 
           
   2011 2010 2011 2010 
 For the three months ended June 30,            
 Cash flow hedging relationships:            
  Gain (loss) recognized in other comprehensive income (effective portion)  $126 $(99) $(5) $(6) 
  (1)?  49  21  5  1 
               
 For the six months ended June 30,            
 Cash flow hedging relationships:            
  Gain (loss) recognized in other comprehensive income (effective portion)  $193 $(58) $10 $(5) 
  (1)?  91  45  9  2 

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

 

 

   Interest Rate 8 5/8% Debentures 
  Swap Contracts(Hedged Portion) 
   2011 2010 2011 2010 
 For the three months ended June 30,            
 Fair value hedging relationships:            
  Gain (loss) recognized in income (effective portion) (1)?$1 $1 $(1) $2 
  Gain (loss) recognized in income (ineffective portion) (2)? (1)  (2)  -  1 
               
 For the six months ended June 30,            
 Fair value hedging relationships:            
  Gain (loss) recognized in income (effective portion) (1)?$3 $3 $(6) $2 
  Gain (loss) recognized in income (ineffective portion) (2)? (2)  (2)  -  1 

(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 $146.

 

Provisional Copper and Gold Sales

 

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

 

LME copper prices averaged $4.14 per pound during the three months ended June 30, 2011, compared with the Company's recorded average provisional price of $4.22 per pound before mark-to-market losses and treatment and refining charges. LME copper prices averaged $4.26 per pound during the six months ended June 30, 2011, compared with the Company's recorded average provisional price of $4.31 per pound before mark-to-market losses and treatment and refining charges. During the three and six months ended June 30, 2011, changes in copper prices resulted in a provisional pricing mark-to-market loss of $16 ($0.21 per pound) and $28 ($0.16 per pound), respectively. At June 30, 2011, Newmont had copper sales of 84 million pounds priced at an average of $4.22 per pound, subject to final pricing over the next several months.

 

The average London P.M. fix for gold was $1,506 per ounce during the three months ended June 30, 2011, compared with the Company's recorded average provisional price of $1,500 per ounce before mark-to-market gains and treatment and refining charges. The average London P.M. fix for gold was $1,445 per ounce during the six months ended June 30, 2011, compared to the Company's recorded average provisional price of $1,441 per ounce before mark-to-market gains and treatment and refining charges. During the three and six months ended June 30, 2011, changes in gold prices resulted in a provisional pricing mark-to-market gain of $10 ($7 per ounce) and $18 ($6 per ounce), respectively. At June 30, 2011, Newmont had gold sales of 105,000 ounces priced at an average of $1,506 per ounce, subject to final pricing over the next several months.

 

Investments
INVESTMENTS
NOTE 19    INVESTMENTS             
     At June 30, 2011 
     Cost/Equity Unrealized Fair/Equity 
     Basis Gain Loss Basis 
 Current:              
  Marketable Equity Securities:             
   Paladin Energy Ltd. $208 $- $(67) $141 
   Other  28  36  (2)  62 
     $236 $36 $(69) $203 
                 
 Long-term:              
  Marketable Debt Securities:             
   Asset backed commercial paper  $26 $- $(6) $20 
   Auction rate securities    7  -  (2)  5 
   Corporate    7  2  -  9 
      40  2  (8)  34 
  Marketable Equity Securities:              
   Canadian Oil Sands Ltd.  320  570  -  890 
   Gabriel Resources Ltd.    80  270  -  350 
   Regis Resources Ltd.  23  163  -  186 
   Other    125  29  (20)  134 
      548  1,032  (20)  1,560 
                 
  Other investments, at cost     9  -  -  9 
                 
  Investment in Affiliates:             
   La Zanja  72  -  -  72 
     $669 $1,034 $(28) $1,675 
                 

     At December 31, 2010 
     Cost/Equity Unrealized Fair/Equity 
     Basis Gain Loss Basis 
 Current:              
  Marketable Equity Securities:             
   New Gold Inc. $5 $54 $- $59 
   Other  19  35  -  54 
     $24 $89 $- $113 
 Long-term:              
  Marketable Debt Securities:              
   Asset backed commercial paper  $25 $- $(6) $19 
   Auction rate securities    7  -  (2)  5 
   Corporate    7  3  -  10 
      39  3  (8)  34 
  Marketable Equity Securities:              
   Canadian Oil Sands Ltd.  308  508  -  816 
   Gabriel Resources Ltd.    78  325  -  403 
   Regis Resources Ltd.  23  148  -  171 
   Other    39  37  -  76 
      448  1,018  -  1,466 
                 
  Other investments, at cost     11  -  -  11 
                 
  Investment in Affiliates:              
   La Zanja  57  -  -  57 
     $555 $1,021 $(8) $1,568 

Included in Investments at June 30, 2011 and December 31, 2010 are $9 and $10, respectively, of long-term marketable debt securities and $6 and $6 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.

 

In conjunction with the April 6, 2011 acquisition of Fronteer, Newmont acquired $208 of Paladin Energy Ltd. securities and $73 of other marketable equity securities and warrants. During the first half of 2011 and 2010, the Company purchased other marketable securities for $15 and $7, respectively. In June 2011, Newmont sold its investment in New Gold Inc. and realized a gain of $50.

 

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, 2011 Fair Value  Unrealized Losses  Fair Value  Unrealized Losses  Fair Value  Unrealized Losses
Marketable equity securities$ 62 $ 22 $ - $ - $ 62 $ 22
Paladin Energy Ltd.  141   67   -   -   141   67
Asset backed commercial paper   -   -   20   6   20   6
Auction rate securities    -   -   5   2   5   2
 $ 203 $ 89 $ 25 $ 8 $ 228 $ 97
                  
                  
                  
  Less than 12 Months  12 Months or Greater  Total
At December 31, 2010 Fair Value  Unrealized Losses  Fair Value  Unrealized Losses  Fair Value  Unrealized Losses
Asset backed commercial paper $ - $ - $ 19 $ 6 $ 19 $ 6
Auction rate securities    -   -   5   2   5   2
 $ - $ - $ 24 $ 8 $ 24 $ 8

Included in the tables above are the unrealized losses of $97 and $8 at June 30, 2011 and December 31, 2010, respectively, related to the Company's investments in asset backed commercial paper, auction rate securities and marketable equity securities as listed in the tables above. While the fair values of these investments are below their respective cost, the Company views these declines as temporary. The Company intends to hold its investment in auction rate securities and asset backed commercial paper until maturity or such time that the market recovers and therefore considers these losses temporary.

 

Inventories
INVENTORIES
NOTE 20    INVENTORIES       
         
   At June 30, At December 31, 
  20112010 
 In-process $101 $142 
 Concentrate  110  111 
 Precious metals  15  4 
 Materials, supplies and other  445  401 
   $671 $658 
Stockpiles and Ore on Leach Pads
STOCKPILES AND ORE ON LEACH PADS
NOTE 21    STOCKPILES AND ORE ON LEACH PADS      
         
   At June 30, At December 31, 
   20112010 
 Current:      
  Stockpiles$ 443 $ 389 
  Ore on leach pads  253   228 
   $ 696 $ 617 
 Long-term:      
  Stockpiles$ 1,640 $ 1,397 
  Ore on leach pads  310   360 
   $ 1,950 $ 1,757 

   At June 30, At December 31, 
   2011 2010 
 Stockpiles and ore on leach pads:      
  Nevada$497 $479 
  La Herradura 9  6 
  Yanacocha 503  496 
  Boddington 357  248 
  Batu Hijau 995  879 
  Other Australia/New Zealand 152  145 
  Ahafo 133  121 
   $2,646 $2,374 
Other Assets
OTHER ASSETS
NOTE 22    OTHER ASSETS      
   At June 30, At December 31, 
   20112010 
 Other current assets:      
  Refinery metal inventory and receivable$1,166 $617 
  Derivative instruments  226  196 
  Prepaid assets 141  65 
  Other   80  84 
   $1,613 $962 
         
 Other long-term assets:      
  Goodwill$188 $188 
  Income tax receivable 176  119 
  Derivative instruments  167  116 
  Intangible assets 151  91 
  Debt issuance costs   62  39 
  Restricted cash   26  25 
  Other receivables 19  19 
  Other   157  144 
   $946 $741 
Debt
DEBT
NOTE 23    DEBT            
             
 At June 30, 2011 At December 31, 2010 
 Current Non-Current Current Non-Current 
Sale-leaseback of refractory ore treatment plant  $ 28 $ 106 $ 30 $ 134 
8 5/8% debentures, net of discount (due 2011)    -   -   217   - 
2012 convertible senior notes, net of discount  501   -   -   488 
2014 convertible senior notes, net of discount  -   500   -   489 
2017 convertible senior notes, net of discount  -   443   -   434 
2019 senior notes, net of discount    -   896   -   896 
2035 senior notes, net of discount    -   598   -   598 
2039 senior notes, net of discount    -   1,087   -   1,087 
Corporate revolving credit facility  -   90   -   - 
Ahafo project facility    10   50   10   55 
Other capital leases    -   1   2   1 
 $ 539 $ 3,771 $ 259 $ 4,182 
             

In May 2011, Newmont repaid the $223 balance outstanding on the 8 5/8% Senior Notes. Scheduled minimum debt repayments are $5 for the remainder of 2011, $572 in 2012, $42 in 2013, $544 in 2014, $18 in 2015 and $3,129 thereafter.

 

Corporate Revolving Credit Facility

 

Effective May 20, 2011, the Company entered into a new uncollateralized $2,500 revolving credit facility with a syndicate of commercial banks. This new revolving credit facility replaced the existing revolving credit facility which was cancelled upon the effectiveness of the new facility. The new facility provides for borrowings in U.S. dollars and contains a letter of credit sub-facility. The new facility matures in May 2016. Interest rates and facility fees vary based on the credit ratings of the Company's senior, uncollateralized, long-term debt. Borrowings under the facility currently bear interest at a rate per annum equal to LIBOR plus a margin of 1.075%. Facility fees currently accrue at an annual rate of 0.175% of the aggregate commitments. At June 30, 2011, there were $90 in borrowings outstanding and $239 outstanding in letters of credit.

 

Subsidiary Financings

PTNNT Revolving Credit Facility

Effective May 27, 2011, PTNNT entered into a new $600 reducing revolving credit facility with a syndicate of banks. This new reducing revolving credit facility provides for borrowings in U.S. dollars. The facility matures in March 2017. The facility is non-recourse to Newmont and substantially all of PTNNT's assets are pledged as collateral. Borrowings under the facility bear interest at a rate per annum equal to LIBOR plus a margin of 4.00%. Commitment fees currently accrue on the daily average unused amount of the commitment of each lender at an annual rate of 2.00%. There were no borrowings outstanding under the facility at June 30, 2011.

 

Other Liabilities
OTHER LIABILITIES
NOTE 24    OTHER LIABILITIES      
         
   At June 30, At December 31, 
   20112010 
 Other current liabilities:      
  Refinery metal payable$1,166 $617 
  Accrued operating costs 249  217 
  Accrued capital expenditures 156  83 
  Taxes other than income and mining 105  135 
  Reclamation and remediation liabilities 62  64 
  Interest 57  66 
  Royalties 44  90 
  Boddington contingent consideration 42  32 
  Deferred income tax 18  54 
  Holt property royalty 14  - 
  Other 85  60 
   $1,998 $1,418 
         
 Other long-term liabilities:      
  Holt property royalty$ 167 $ 40 
  Power supply agreements 47   45 
  Income and mining taxes   29   36 
  Boddington contingent consideration  28   51 
  Other  43   49 
   $314 $221 
         
Net Change in Operating Assets and Liabilities
NET CHANGE IN OPERATING ASSETS AND LIABILITIES

NOTE 25 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, 
   2011 2010 
 Decrease (increase) in operating assets:      
  Trade and accounts receivable  $121 $74 
  Inventories, stockpiles and ore on leach pads   (230)  (187) 
  EGR refinery assets   (437)  138 
  Other assets   (67)  (30) 
 Increase (decrease) in operating liabilities:      
  Accounts payable and other accrued liabilities   (349)  (90) 
  EGR refinery liabilities   437  (138) 
  Reclamation liabilities   (15)  (18) 
   $(540) $(251) 
Supplemental Cash Flow Information
SUPPLEMENTAL CASH FLOW INFORMATION
NOTE 26    SUPPLEMENTAL CASH FLOW INFORMATION  
         
   Six Months Ended June 30, 
   2011 2010 
 Income and mining taxes, net of refunds   $892 $546 
 Interest, net of amounts capitalized   $92 $116 
Condensed Consolidating Financial Statements
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

NOTE 27    CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

Newmont USA, a 100% owned subsidiary of Newmont Mining Corporation, has fully and unconditionally guaranteed the 2019, 2035 and 2039 senior notes, the 2012, 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, 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   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

(1) Excludes Amortization and Reclamation and remediation.

 

                 
   Three Months Ended June 30, 2010
               Newmont
   Newmont         Mining
   Mining Newmont Other    Corporation
Condensed Consolidating Statement of Income Corporation USA Subsidiaries Eliminations Consolidated
                 
Sales $- $1,410 $743 $- $2,153
                 
Costs and expenses               
 Costs applicable to sales (1)  -  519  335  (6)  848
 Amortization    -  143  89  (1)  231
 Reclamation and remediation   -  10  3  -  13
 Exploration    -  32  21  -  53
 Advanced projects, research and development    -  25  32  -  57
 General and administrative    -  37  -  6  43
 Other expense, net  -  39  21  1  61
    -  805  501  -  1,306
Other income (expense)                
 Other income, net    -  13  31  -  44
 Interest income - intercompany    35  2  1  (38)  -
 Interest expense - intercompany    (3)  -  (35)  38  -
 Interest expense, net    (64)  (4)  (1)  -  (69)
    (32)  11  (4)  -  (25)
Income before income and mining tax and other items  (32)  616  238  -  822
Income and mining tax expense    9  (227)  (65)  -  (283)
Equity income (loss) of affiliates    405  1  63  (471)  (2)
Net income (loss)    382  390  236  (471)  537
Net loss (income) attributable to noncontrolling               
 interests    -  (185)  (10)  40  (155)
Net income (loss) attributable to Newmont               
 stockholders $382 $205 $226 $(431) $382

(1) 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 from continuing operations    901  906  600  (1,077)  1,330
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

(1) Excludes Amortization and Reclamation and remediation.

 

                 
   Six Months Ended June 30, 2010
               Newmont
   Newmont         Mining
   Mining Newmont Other    Corporation
Condensed Consolidating Statement of Income Corporation USA Subsidiaries Eliminations Consolidated
                 
Sales $- $3,002 $1,393 $- $4,395
                 
Costs and expenses               
 Costs applicable to sales (1)  -  1,064  664  (11)  1,717
 Amortization    -  286  170  (1)  455
 Reclamation and remediation   -  19  7  -  26
 Exploration    -  56  40  -  96
 Advanced projects, research and development    -  54  49  -  103
 General and administrative    -  75  1  12  88
 Other expense, net  -  115  35  -  150
    -  1,669  966  -  2,635
Other income (expense)                
 Other income, net    -  14  78  -  92
 Interest income - intercompany    71  4  2  (77)  -
 Interest expense - intercompany    (5)  -  (72)  77  -
 Interest expense, net    (126)  (16)  (2)  -  (144)
    (60)  2  6  -  (52)
                 
Income before income and mining tax and other items  (60)  1,335  433  -  1,708
Income and mining tax expense    150  (466)  (108)  -  (424)
Equity income (loss) of affiliates    838  1  130  (973)  (4)
Net income (loss)    928  870  455  (973)  1,280
Net loss (income) attributable to noncontrolling               
 interests    -  (428)  (5)  81  (352)
Net income (loss) attributable to Newmont               
 stockholders $928 $442 $450 $(892) $928

(1) Excludes Amortization and Reclamation and remediation.

 

    Six Months Ended June 30, 2011
                Newmont
    Newmont         Mining
    MiningNewmontOther   Corporation
   Condensed Consolidating Statement of Cash FlowsCorporationUSASubsidiariesEliminationsConsolidated
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) 
  Proceeds from 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 
  Change in restricted cash and 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 

    Six Months Ended June 30, 2010
                Newmont
    Newmont         Mining
    MiningNewmontOther   Corporation
   Condensed Consolidating Statement of Cash FlowsCorporationUSASubsidiariesEliminationsConsolidated
Operating activities:               
  Net income (loss)$928 $870 $455 $(973) $1,280 
  Adjustments   (115)  319  (725)  973  452 
  Net change in operating assets and liabilities   (2)  (160)  (89)  -  (251) 
Net cash provided from (used in) continuing operations   811  1,029  (359)  -  1,481 
Net cash used in discontinued operations   -  (13)  -  -  (13) 
Net cash provided from (used in) operations   811  1,016  (359)  -  1,468 
Investing activities:               
  Additions to property, plant and mine development   -  (283)  (345)  -  (628) 
  Proceeds from sale of marketable securities -  -  1  -  1 
  Purchases of marketable securities -  -  (7)  -  (7) 
  Proceeds from sale of other assets -  8  44  -  52 
  Other   -  -  (23)  -  (23) 
Net cash used in investing activities   -  (275)  (330)  -  (605) 
Financing activities:               
  Net repayments -  (257)  (6)  -  (263) 
  Net intercompany borrowings (repayments)  (751)  (23)  855  (81)  - 
  Sale of noncontrolling interests -  229  -  -  229 
  Acquisition of noncontrolling interests -  -  (109)  -  (109) 
  Dividends paid to common stockholders   (98)  -  -  -  (98) 
  Dividends paid to noncontrolling interests -  (388)  -  81  (307) 
  Proceeds from stock issuance, net   30  -  -  -  30 
  Change in restricted cash and other   -  48  -  -  48 
Net cash provided from (used in) financing activities   (819)  (391)  740  -  (470) 
Effect of exchange rate changes on cash   -  -  (6)  -  (6) 
Net change in cash and cash equivalents   (8)  350  45  -  387 
Cash and cash equivalents at beginning of period   8  3,067  140  -  3,215 
Cash and cash equivalents at end of period  $- $3,417 $185 $- $3,602 

                  
    At June 30, 2011
            Newmont
    Newmont       Mining
    Mining Newmont Other   Corporation
Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated
Assets               
 Cash and cash equivalents   $- $1,662 $193 $- $1,855
 Trade receivables    -  355  63  -  418
 Accounts receivable    1,608  2,497  1,356  (5,326)  135
 Investments  141  16  46  -  203
 Inventories    -  363  308  -  671
 Stockpiles and ore on leach pads    -  591  105  -  696
 Deferred income tax assets    3  254  51  -  308
 Other current assets    6  144  1,463  -  1,613
  Current assets    1,758  5,882  3,585  (5,326)  5,899
 Property, plant and mine development, net    -  5,687  10,997  (21)  16,663
 Investments    -  22  1,653  -  1,675
 Investments in subsidiaries    16,569  33  2,692  (19,294)  -
 Stockpiles and ore on leach pads    -  1,413  537  -  1,950
 Deferred income tax assets    661  685  159  -  1,505
 Other long-term assets    2,617  653  829  (3,153)  946
  Total assets   $21,605 $14,375 $20,452 $(27,794) $28,638
                  
Liabilities               
 Debt   $501 $28 $10 $- $539
 Accounts payable    3,008  920  1,877  (5,315)  490
 Employee-related benefits    -  159  70  -  229
 Income and mining taxes    -  15  169  -  184
 Other current liabilities    66  388  3,517  (1,973)  1,998
  Current liabilities    3,575  1,510  5,643  (7,288)  3,440
 Debt    3,614  107  50  -  3,771
 Reclamation and remediation liabilities    -  719  313  -  1,032
 Deferred income tax liabilities    6  554  2,175  -  2,735
 Employee-related benefits    5  255  93  -  353
 Other long-term liabilities    389  47  3,053  (3,175)  314
  Total liabilities    7,589  3,192  11,327  (10,463)  11,645
Equity               
 Preferred stock    -  -  61  (61)  -
 Common stock    780  -  -  -  780
 Additional paid-in capital    8,018  2,721  6,991  (9,400)  8,330
 Accumulated other comprehensive income  1,310  (107)  1,545  (1,438)  1,310
 Retained earnings  3,908  5,394  (637)  (4,757)  3,908
 Newmont stockholders’ equity    14,016  8,008  7,960  (15,656)  14,328
 Noncontrolling interests    -  3,175  1,165  (1,675)  2,665
  Total equity  14,016  11,183  9,125  (17,331)  16,993
  Total liabilities and equity $21,605 $14,375 $20,452 $(27,794) $28,638
                  

                  
    At December 31, 2010
            Newmont
    Newmont       Mining
    Mining Newmont Other   Corporation
Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated
Assets               
 Cash and cash equivalents   $- $3,877 $179 $- $4,056
 Trade receivables    -  501  81  -  582
 Accounts receivable    2,222  802  265  (3,201)  88
 Investments  -  72  41  -  113
 Inventories    -  388  270  -  658
 Stockpiles and ore on leach pads    -  513  104  -  617
 Deferred income tax assets    -  170  7  -  177
 Other current assets    -  77  885  -  962
  Current assets    2,222  6,400  1,832  (3,201)  7,253
 Property, plant and mine development, net    -  5,364  7,562  (19)  12,907
 Investments    -  25  1,543  -  1,568
 Investments in subsidiaries    12,295  35  1,909  (14,239)  -
 Stockpiles and ore on leach pads    -  1,347  410  -  1,757
 Deferred income tax assets    638  690  109  -  1,437
 Other long-term assets    2,675  496  584  (3,014)  741
  Total assets   $17,830 $14,357 $13,949 $(20,473) $25,663
                  
Liabilities               
 Debt   $- $249 $10 $- $259
 Accounts payable    355  1,269  1,996  (3,193)  427
 Employee-related benefits    -  222  66  -  288
 Income and mining taxes    19  261  75  -  355
 Other current liabilities    56  373  2,959  (1,970)  1,418
  Current liabilities    430  2,374  5,106  (5,163)  2,747
 Debt  3,991  135  56  -  4,182
 Reclamation and remediation liabilities    -  676  308  -  984
 Deferred income tax liabilities    -  513  975  -  1,488
 Employee-related benefits    5  244  76  -  325
 Other long-term liabilities    375  56  2,824  (3,034)  221
  Total liabilities    4,801  3,998  9,345  (8,197)  9,947
Equity               
 Preferred stock    -  -  61  (61)  -
 Common stock    778  -  -  -  778
 Additional paid-in capital    7,963  2,722  3,894  (6,300)  8,279
 Accumulated other comprehensive income  1,108  (75)  1,180  (1,105)  1,108
 Retained earnings  3,180  4,850  (1,109)  (3,741)  3,180
 Newmont stockholders’ equity    13,029  7,497  4,026  (11,207)  13,345
 Noncontrolling interests    -  2,862  578  (1,069)  2,371
  Total equity  13,029  10,359  4,604  (12,276)  15,716
  Total liabilities and equity $17,830 $14,357 $13,949 $(20,473) $25,663
                  
Commitments and Contingencies
COMMITMENTS AND CONTINGENCIES

NOTE 28    COMMITMENTS AND CONTINGENCIES

 

General

 

The Company follows ASC guidance in determining its accruals and disclosures with respect to loss contingencies. Accordingly, estimated losses from loss contingencies are accrued by a charge to income when information available prior to issuance of the financial statements indicates that it is probable (greater than a 75% probability) that a liability could be incurred and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred.

 

Operating Segments

 

The Company's operating segments are identified in Note 3. Except as noted in this paragraph, all of the Company's commitments and contingencies specifically described in this Note 28 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, 2011 and December 31, 2010, $922 and $904, 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 $43 and $46 at June 30, 2011 and December 31, 2010, respectively, are included in Other current liabilities.

 

In addition, the Company is involved in several matters concerning environmental obligations associated with former mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. The Company believes that the related environmental obligations associated with these sites are similar in nature with respect to the development of remediation plans, their risk profile and the compliance required to meet general environmental standards. Based upon the Company's best estimate of its liability for these matters, $172 and $144 were accrued for such obligations at June 30, 2011 and December 31, 2010, 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 137% greater or 3% lower than the amount accrued at June 30, 2011. 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.

 

Dawn Mining Company LLC (“Dawn”) - 51% Newmont Owned

 

Midnite Mine Site.    Dawn previously leased an open pit uranium mine, currently inactive, on the Spokane Indian Reservation in the State of Washington. The mine site is subject to regulation by agencies of the U.S. Department of Interior (the Bureau of Indian Affairs and the Bureau of Land Management), as well as the United States Environmental Protection Agency (“EPA”).

 

In 1991, Dawn's mining lease at the mine was terminated. As a result, Dawn was required to file a formal mine closure and reclamation plan. The Department of Interior commenced an analysis of Dawn's proposed plan and alternate closure and reclamation plans for the mine. Work on this analysis has been suspended indefinitely. In mid-2000, the mine was included on the National Priorities List under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”). In March 2003, the EPA notified Dawn and Newmont that it had thus far expended $12 on the Remedial Investigation/Feasibility Study (“RI/FS”) under CERCLA. In October 2005, the EPA issued the RI/FS on this property in which it indicated a preferred remedy that it estimated to cost approximately $150. Newmont and Dawn filed comments on the RI/FS with the EPA in January 2006. On October 3, 2006, the EPA issued a final Record of Decision in which it formally selected the preferred remedy identified in the RI/FS.

 

On January 28, 2005, the EPA filed a lawsuit against Dawn and Newmont under CERCLA in the U.S. District Court for the Eastern District of Washington. The EPA has asserted that Dawn and Newmont are liable for reclamation or remediation work and costs at the mine. Dawn does not have sufficient funds to pay for the reclamation plan it proposed or for any alternate plan, or for any additional remediation work or costs at the mine.

 

On July 14, 2008, after a bench trial, the Court held Newmont liable under CERCLA as an “operator” of the Midnite Mine. The Court previously ruled on summary judgment that both the U.S. Government and Dawn were liable under CERCLA. On October 17, 2008 the Court issued its written decision in the bench trial. The Court found Dawn and Newmont jointly and severally liable under CERCLA for past and future response costs, and ruled that each of Dawn and Newmont are responsible to pay one-third of such costs. The Court also found the U.S. Government liable on Dawn's and Newmont's contribution claim, and ruled that the U.S. Government is responsible to pay one-third of all past and future response costs. In November 2008, all parties appealed the Court's ruling. Also in November 2008, the EPA issued an Administrative Order pursuant to Section 106 of CERCLA ordering Dawn and Newmont to conduct water treatment, testing and other preliminary remedial actions. Newmont has initiated those preliminary remedial actions.

 

Newmont intends to continue to vigorously defend this matter and cannot reasonably predict the outcome of this lawsuit or the likelihood of any other action against Dawn or Newmont arising from this matter.

 

Dawn Mill Site.    Dawn also owns a uranium mill site facility, located on private land near Ford, Washington, which is subject to state and federal regulation. In late 1999, Dawn sought and later received approval from the State of Washington for a revised closure plan that expedites the reclamation process at the site. The currently approved plan for the site is guaranteed by Newmont.

 

Newmont Canada Corporation (“Newmont Canada”) - 100% Newmont Owned

 

On November 11, 2008, St. Andrew Goldfields Ltd. (“St. Andrew”) filed an Application in the Superior Court of Justice in Ontario, Canada, seeking a declaration to clarify St. Andrew's royalty obligations regarding certain mineral rights and property formerly owned by Newmont Canada and now owned by St. Andrew.

 

Newmont Canada purchased the property, called the Holt-McDermott property (“Holt Property”), from Barrick Gold Corporation (“Barrick”) in October 2004. At that time, Newmont Canada entered into a royalty agreement with Barrick (the “Barrick Royalty”), allowing Barrick to retain a royalty on the Holt Property. In August 2006, Newmont Canada sold all of its interests in the Holt Property to Holloway Mining Company (“Holloway”) in exchange for common stock issued by Holloway. In September 2006, Newmont Canada entered into a purchase and sale agreement with St. Andrew (the “2006 Agreement”), under which St. Andrew acquired all the common stock of Holloway. In 2008, Barrick sold its Barrick Royalty to Royal Gold, Inc. (“Royal Gold”).

 

In the court proceedings, St. Andrew alleged that in the 2006 Agreement it only agreed to assume royalty obligations equal to 0.013% of net smelter returns from operations on the Holt Property. Such an interpretation of the 2006 Agreement would make Newmont responsible for any royalties exceeding that amount payable to Royal Gold pursuant to the Barrick Royalty, which is a royalty determined by multiplying 0.013% by the quarterly average gold price. On July 23, 2009, the Superior Court issued a decision finding in favor of St. Andrews' interpretation. On August 21, 2009, Newmont Canada appealed the decision. On May 13, 2011, the Ontario Court of Appeal upheld the lower court ruling, finding Newmont liable for the sliding scale royalty, which equals 0.013% of net smelter returns multiplied by the quarterly average gold price, minus a 0.013% of net smelter returns. There is no cap on the sliding scale royalty and it increases or decreases with the gold price.

 

Newmont USA Limited - 100% Newmont Owned

 

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

 

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

 

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

 

On March 22, 2007, an Indonesian non-governmental organization named Wahana Lingkungan Hidup Indonesia (“WALHI”) filed a civil suit against PTNMR, the Newmont subsidiary that operated the Minahasa mine in Indonesia, and Indonesia's Ministry of Energy and Mineral Resources and Ministry for the Environment, alleging pollution from the disposal of mine tailings into Buyat Bay, and seeking a court order requiring PTNMR to fund a 25-year monitoring program in relation to Buyat Bay. In December 2007, the court ruled in PTNMR's favor and found that WALHI's allegations of pollution in Buyat Bay were without merit. In March 2008, WALHI appealed this decision to the Indonesian High Court. On January 27, 2010, the Indonesian High Court upheld the December 2007 ruling in favor of PTNMR. On May 17, 2010, WALHI filed an appeal of the January 27, 2010 Indonesian High Court ruling seeking review from the Indonesian Supreme Court. Independent sampling and testing of Buyat Bay water and fish, as well as area residents, conducted by the World Health Organization and the Australian Commonwealth Scientific and Industrial Research Organization, confirm that PTNMR has not polluted the Buyat Bay environment, and, therefore, has not adversely affected the fish in Buyat Bay or the health of nearby residents. The Company remains steadfast that it has not caused pollution or health problems.

 

Other Legal Matters

 

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

 

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

 

Additional lawsuits relating to the Choropampa incident were filed against Yanacocha in the local courts of Cajamarca, Peru, in May 2002 by over 900 Peruvian citizens. A significant number of the plaintiffs in these lawsuits entered into settlement agreements with Yanacocha prior to filing such claims. In April 2008, the Peruvian Supreme Court upheld the validity of these settlement agreements, which 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 22 complaints alleging grounds to nullify the settlements entered between Yanacocha and the plaintiffs. Yanacocha has answered the complaints and 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 Direct Ownership

 

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

 

In accordance with the Contract of Work, an offer to sell a 3% interest was made to the Indonesian government in 2006 and an offer for an additional 7% interest was made in each of 2007, 2008, 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. In the arbitration proceeding, PTNNT sought a declaration that the Indonesian government was not entitled to terminate the Contract of Work and additional declarations pertaining to the procedures for divesting the shares. For its part, the Indonesian government sought declarations that PTNNT was in default of its divestiture obligations, that the government may terminate the Contract of Work and recover damages for breach of the Contract of Work, and that PTNNT must cause shares subject to divestiture to be sold to certain local governments.

 

An international arbitration panel (the “Panel”) was appointed to resolve these claims and other claims that had arisen in relation to divestment and a hearing was held in Jakarta in December 2008. On March 31, 2009, the Panel issued its final award and decision on the matter. In its decision, the Panel determined that PTNNT's foreign shareholders had not complied with the divestiture procedure required by the Contract of Work in 2006 and 2007, but the Panel ruled that the Indonesian government was not entitled to immediately terminate the Contract of Work and rejected the Indonesian government's claim for damages. The Panel granted PTNNT 180 days from the date of notification of the final award to effect transfer of the 2006 3% interest and the 2007 7% interest in PTNNT to the local governments or their respective nominees. The Panel also applied a 180-day cure period to the 2008 7% interest, requiring that PTNNT effect the offer of the 2008 7% interest to the Indonesian government or its nominee within such 180-day period, and ensure the transfer of such shares if, after agreement on the transfer price, the Indonesian government invoked its right of first refusal under the Contract of Work. On July 14, 2009, the Company reached agreement with the Indonesian government on the price of the 2008 7% interest and the 2009 7% interest. PTNNT effected the reoffer of the 2008 7% interest and the 2009 7% interest to the Indonesian government at this newly agreed price. In November and December 2009, sale agreements were concluded pursuant to which the 2006, 2007 and 2008 shares were transferred to 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. 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 as of 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.

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 has filed a notice of appeal of the court's ruling.

Subsequent to its initial claim, PTPI filed numerous additional lawsuits, two 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 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 Sumitomo'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 which 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 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 are in the process of enforcing the interim award in Indonesian and Singapore courts but it is not known the extent to which the courts will enforce the award or whether PTPI and its shareholders will, in any event, abide by the award and any related court orders. PTPI and its shareholders have commenced proceedings in Singapore court to contest enforcement of the interim award.

 

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. The Company has aggressively sought enforcement of the interim award and will continue to do so with regard to the April 7, 2011 award in Indonesian and Singapore courts.

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 10).

 

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 2011, $28 in 2012 through 2015 and $251 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, 2011 and December 31, 2010, there were $1,365 and $1,191, 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 29    SUPPLEMENTARY DATA

 

Ratio of Earnings to Fixed Charges

 

The ratio of earnings to fixed charges for the six months ended June 30, 2011 was 12.9. 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)
12 Months Ended
Dec. 31, 2010
Summary of Significant Accounting Policies [Abstract]
 
Recently Adopted Accounting Pronouncements
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements Comprehensive Income In June 2011, ASC guidance was issued related to comprehensive income. Under the updated guidance, an entity will have the option to present the total of comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In addition, the update requires certain disclosure requirements when reporting other comprehensive income. The update does not change the items reported in other comprehensive income or when an item of other comprehensive income must be reclassified to income. The update is effective for the Company’s fiscal year beginning January 1, 2012. The Company does not expect the updated guidance to have an impact on the condensed 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 update is effective for the Company’s fiscal year beginning January 1, 2012. The Company does not expect the updated guidance to have a significant impact on the condensed consolidated financial position, results of operations or cash flows. 

Recently Adopted Accounting Pronouncements

 

Business Combinations

In December 2010, FASB Accounting Standards Codification (“ASC”) guidance for business combinations was updated to clarify existing guidance which requires a public entity to disclose pro forma revenue and earnings of the combined entity as though the business combination(s) that occurred during the current year had occurred as of the beginning of the comparable prior annual period only. The update also expands the supplemental pro forma disclosures required to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. Adoption of the updated guidance, effective for the Company's fiscal year beginning January 1, 2011, had no impact on the Company's condensed consolidated financial position, results of operations or cash flows.

Fair Value Accounting

In January 2010, ASC guidance for fair value measurements and disclosure was updated to require enhanced detail in the level 3 reconciliation. Adoption of the updated guidance, effective for the Company's fiscal year beginning January 1, 2011, had no impact on the Company's condensed consolidated financial position, results of operations or cash flows. Refer to Note 17 for further details regarding the Company's assets and liabilities measured at fair value.

 

Segment Information (Tables)
Financial Information of Newmont's Segments
     Costs    Advanced   
     Applicable to    Projects and Pre-Tax
   Sales Sales Amortization Exploration Income
Three Months Ended June 30, 2011             
Nevada$529 $224 $56 $38 $195
La Herradura 81  27  5  3  44
Hope Bay -  -  4  52  (55)
Other North America -  -  -  1  47
 North America 610  251  65  94  231
                 
Yanacocha 524  190  66  11  232
Other South America -  -  1  14  (16)
 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
Other Africa -  -  -  4  (6)
 Africa 218  65  20  12  113
                 
Corporate and Other -  -  4  26  (173)
Consolidated$2,384 $917 $250 $175 $847

      Costs    Advanced   
      Applicable to    Projects and Pre-Tax
   Sales Sales Amortization Exploration Income
Three Months Ended June 30, 2010              
Nevada$505 $246 $64 $20 $164
La Herradura 53  19  5  2  29
Hope Bay -  -  3  33  (36)
Other North America -  -  -  -  (1)
 North America 558  265  72  55  156
                 
Yanacocha 425  139  40  4  222
Other South America -  -  -  10  (9)
 South America 425  139  40  14  213
                 
Boddington              
 Gold 234  113  34  N/A  N/A
 Copper 40  25  6  N/A  N/A
  Total 274  138  40  3  92
Batu Hijau:              
 Gold 170  42  12  N/A  N/A
 Copper 258  73  19  N/A  N/A
  Total 428  115  31  -  270
Other Australia/New Zealand 308  136  24  7  142
Other Asia Pacific -  -  1  5  (9)
 Asia Pacific 1,010  389  96  15  495
                 
Ahafo 160  55  19  3  74
Other Africa -  -  -  2  (1)
 Africa 160  55  19  5  73
                 
Corporate and Other  -  -  4  21  (115)
Consolidated$2,153 $848 $231 $110 $822

     Costs    Advanced         
     Applicable to    Projects and Pre-Tax Total Capital
   Sales Sales Amortization Exploration Income Assets 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  27
Hope Bay -  -  7  96  (103)  2,242  41
Other North America -  -  -  1  45  52  -
 North America 1,257  541  144  161  433  9,351  296
                       
Yanacocha 886  343  119  17  381  2,634  127
Other South America -  -  1  24  (26)  599  251
 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  1,046  37
Other Africa -  -  -  5  (8)  348  67
 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.

      Costs    Advanced         
      Applicable to    Projects and Pre-Tax Total Capital
   Sales Sales Amortization Exploration Income Assets Expenditures(1)
Six Months Ended June 30, 2010                    
Nevada$972 $497 $126 $37 $291 $3,309 $117
La Herradura 97  32  8  3  54  180  22
Hope Bay -  -  6  50  (57)  1,938  48
Other North America -  -  -  1  (3)  53  -
 North America 1,069  529  140  91  285  5,480  187
                       
Yanacocha 885  293  77  11  465  2,532  68
Other South America -  -  -  15  (15)  194  43
 South America 885  293  77  26  450  2,726  111
                       
Boddington                    
 Gold 401  193  56  N/A  N/A  N/A  N/A
 Copper 79  49  13  N/A  N/A  N/A  N/A
  Total 480  242  69  4  160  4,136  81
Batu Hijau:                    
 Gold 335  76  22  N/A  N/A  N/A  N/A
 Copper 713  165  46  N/A  N/A  N/A  N/A
  Total 1,048  241  68  -  677  2,911  33
Other Australia/New Zealand 622  293  56  11  268  884  71
Other Asia Pacific -  -  1  10  9  183  3
 Asia Pacific 2,150  776  194  25  1,114  8,114  188
                       
Ahafo 291  119  36  6  116  1,005  51
Other Africa -  -  -  6  (5)  229  22
 Africa 291  119  36  12  111  1,234  73
                       
Corporate and Other  -  -  8  45  (252)  5,215  11
Consolidated$4,395 $1,717 $455 $199 $1,708 $22,769 $570
                       
 (1)Includes a decrease in accrued capital expenditures of $58; consolidated capital expenditures on a cash basis were $628.
Reclamation and Remediation (Tables)
   Six Months Ended June 30, 
   2011 2010 
 Balance at beginning of period   $1,048 $859 
 Additions, changes in estimates and other    32  (4) 
 Liabilities settled    (15)  (18) 
 Accretion expense    29  26 
 Balance at end of period   $1,094 $863 
   Three Months Ended June 30, Six Months Ended June 30, 
   2011 2010 2011 2010 
 Reclamation $28 $- $28 $- 
 Accretion - operating    13  11  25  22 
 Accretion - non-operating  2  2  4  4 
   $43 $13 $57 $26 
               
Advanced Projects, Research and Development (Tables)
Advanced Projects, Research and Development
    Three Months Ended June 30, Six Months Ended June 30, 
    2011 2010 2011 2010 
 Hope Bay $41 $25 $79 $35 
 Conga  5  2  6  3 
 Akyem  1  1  1  4 
 Technical and project services  18  11  33  23 
 Corporate  6  9  9  21 
 Other  15  9  26  17 
    $86 $57 $154 $103 
Other Expense, Net (Tables)
Other Expense, Net
NOTE 6 OTHER EXPENSE, NET             
               
   Three Months Ended June 30, Six Months Ended June 30, 
   2011 2010 2011 2010 
 Community development   $23 $20 $40 $75 
 Regional administration    21  18  37  31 
 Indonesian value added tax settlement  -  -  21  - 
 Fronteer acquisition costs  20  -  21  - 
 Western Australia power plant    5  1  9  7 
 Other     18   22   32   37 
   $87 $61 $160 $150 
Other Income, Net (Tables)
Other Income, Net
NOTE 7    OTHER INCOME, NET             
               
   Three Months Ended June 30, Six Months Ended June 30, 
   2011 2010 2011 2010 
 Gain on sale of investments, net $50 $5 $50 $7 
 Canadian Oil Sands   10  15  16  25 
 Interest income    2  2  6  5 
 Gain on asset sales, net    -  9  3  42 
 Foreign currency exchange gain (loss), net    (18)  5  (29)  (4) 
 Other    4  8  33  17 
   $48 $44 $79 $92 
Employee Pension and Other Benefits Plans (Tables)
Pension benefit costs, net
NOTE 8 EMPLOYEE PENSION AND OTHER BENEFIT PLANS    
                
    Three Months Ended June 30, Six Months Ended June 30, 
    2011 2010 2011 2010 
 Pension benefit costs, net              
  Service cost   $6 $6 $12 $11 
  Interest cost    10  9  20  18 
  Expected return on plan assets    (11)  (9)  (21)  (16) 
  Amortization, net  7  5  12  9 
    $12 $11 $23 $22 
                
    Three Months Ended June 30, Six Months Ended June 30, 
    2011 2010 2011 2010 
 Other benefit costs, net              
  Service cost   $- $- $1 $1 
  Interest cost    1  2  2  3 
    $1 $2 $3 $4 
                
Stock Based Compensation (Tables)
Stock Option and Other Stock Based Compensation
NOTE 9    STOCK BASED COMPENSATION 
               
  Three Months Ended June 30, Six Months Ended June 30, 
   2011 2010 2011 2010 
 Stock options   $7 $6 $10 $9 
 Restricted stock units  10  4  17  8 
 Performance leveraged stock units  1  1  3  4 
 Common stock  -  1  1  2 
 Restricted stock  -  -  -  1 
 Deferred stock  1  3  3  5 
   $19 $15 $34 $29 
Income and Mining Taxes (Tables)
Income and mining tax expense reconciliation
     Three Months Ended June 30, Six Months Ended June 30, 
     2011 2010 2011 2010 
 Income before income and mining tax and             
  other items $847 $822 $1,820 $1,708 
 United States statutory corporate income             
  tax rate    35% 35% 35% 35%
 Income and mining tax expense computed             
  at United States statutory corporate income tax rate  (296)  (288)  (637)  (598) 
 Reconciling items:             
  Tax benefit generated on change in form             
   of a non-U.S. subsidiary   65  -  65  127 
  Percentage depletion    56  21  111  54 
  Other    (12)  (16)  (31)  (7) 
 Income and mining tax expense $(187) $(283) $(492) $(424) 
Net Income attributable to Noncontrolling Interests (Tables)
Net income attributable to noncontrolling interests
NOTE 12    NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS 
               
  Three Months Ended June 30, Six Months Ended June 30, 
   2011 2010 2011 2010 
 Batu Hijau   $64 $84 $166 $202 
 Yanacocha    76  71  132  151 
 Other    (3)  -  (5)  (1) 
   $137 $155 $293 $352 
Income Per Common Share (Tables)
     Three Months Ended June 30, Six Months Ended June 30, 
     2011 2010 2011 2010 
                 
 Net income attributable to Newmont             
  stockholders             
    Continuing operations  $523 $382 $1,037 $928 
    Discontinued operations   (136)  -  (136)  - 
     $387 $382 $901 $928 
                 
 Weighted average common shares (millions):            
  Basic   494  492  494  491 
  Effect of employee stock-based awards   1  1  1  1 
  Effect of convertible notes 6  6  6  4 
  Diluted   501  499  501  496 
                 
 Net income attributable to Newmont            
  stockholders per common share            
   Basic:            
    Continuing operations  $1.06 $0.78 $2.10 $1.89 
    Discontinued operations   (0.28)  -  (0.28)  - 
     $0.78 $0.78 $1.82 $1.89 
   Diluted:            
    Continuing operations  $1.04 $0.77 $2.07 $1.87 
    Discontinued operations   (0.27)  -  (0.27)  - 
     $0.77 $0.77 $1.80 $1.87 
   Three Months Ended June 30, Six Months Ended June 30, 
   2011 2010 2011 2010 
               
Net income attributable to Newmont stockholders$387 $382 $901 $928 
Transfers from noncontrolling interests:            
 Increase in Additional paid in capital from sale            
  of PTNNT shares, net of tax of $33 -  1  -  16 
Net income attributable to Newmont stockholders            
 and transfers from noncontrolling interests$387 $383 $901 $944 
Comprehensive Income (Tables)
Comprehensive Income
NOTE 14    COMPREHENSIVE INCOME          
                  
      Three Months Ended June 30, Six Months Ended June 30,
      2011 2010 2011 2010 
                  
 Net income   $524 $537 $1,194 $1,280 
 Other comprehensive income (loss), net of tax:             
  Unrealized loss on marketable              
   securities  (243)  (77)  (75)  (28) 
  Foreign currency translation adjustments    38  (55)  127  1 
  Pension and other benefit liability             
   adjustments  4  3  8  5 
  Change in fair value of cash flow hedge             
   instruments:             
   Net change from periodic revaluations    162  (72)  217  (43) 
   Net amount reclassified to income    (39)  (16)  (72)  (35) 
   Net unrecognized gain (loss) on             
    derivatives  123  (88)  145  (78) 
       (78)  (217)  205  (100) 
 Comprehensive income $446 $320 $1,399 $1,180 
                  
 Comprehensive income attributable to:             
  Newmont stockholders   $308 $165 $1,103 $828 
  Noncontrolling interests   138  155  296  352 
      $446 $320 $1,399 $1,180 
Changes in Equity (Tables)
Changes in Equity
NOTE 15    CHANGES IN EQUITY       
           
     Six Months Ended June 30, 
     2011 2010 
 Common stock:       
  At beginning of period $778 $770 
   Stock based awards   2  2 
   Shares issued in exchange for exchangeable shares     -  3 
  At end of period    780  775 
           
 Additional paid-in capital:       
  At beginning of period    8,279  8,158 
   Stock based awards   52  64 
   Shares issued in exchange for exchangeable shares    (1)  (3) 
   Sale of noncontrolling interests   -  16 
  At end of period    8,330  8,235 
           
 Accumulated other comprehensive income:       
  At beginning of period    1,108  626 
   Other comprehensive income   202  (100) 
  At end of period    1,310  526 
           
 Retained earnings:       
  At beginning of period    3,180  1,149 
   Net income attributable to Newmont stockholders    901  928 
   Dividends paid     (173)  (98) 
  At end of period    3,908  1,979 
           
 Noncontrolling interests:       
  At beginning of period    2,371  1,910 
   Net income attributable to noncontrolling interests    293  352 
   Dividends paid   (2)  (320) 
   Other comprehensive income    3   - 
   Sale of noncontrolling interests, net   -  98 
  At end of period    2,665  2,040 
 Total equity   $16,993 $13,555 
           
Acquisitions (Tables)
Acquisitions
 Assets:     
  Cash   $2 
  Property, plant and mine development, net    3,208 
  Investments  281 
  Other assets    6 
    $3,497 
 Liabilities:     
  Deferred income tax liability $1,223 
  Other liabilities  15 
     1,238 
 Net assets acquired    $2,259 
Fair Value Accounting (Tables)
    Fair Value at June 30, 2011 
    Total Level 1 Level 2 Level 3 
 Assets:            
  Cash equivalents  $36 $36 $- $- 
  Marketable equity securities:              
   Extractive industries 1,757  1,757  -  - 
   Other 6  6  -  - 
  Marketable debt securities:            
   Asset backed commercial paper   20  -  -  20 
   Corporate 9  9  -  - 
   Auction rate securities   5  -  -  5 
  Trade receivable from provisional copper             
   and gold concentrate sales, net  306  306  -  - 
  Derivative instruments, net:              
   Foreign exchange forward contracts 376  -  376  - 
   Diesel forward contracts 11  -  11  - 
    $2,526 $2,114 $387 $25 
 Liabilities:            
  Derivative instruments, net:              
   Forward starting swap contracts$11 $- $11 $- 
  Boddington contingent consideration 70  -  -  70 
  Holt property royalty 181  -  -  181 
    $262 $- $11 $251 
    Auction Rate Securities Asset Backed Commercial Paper Total Assets Boddington Contingent Consideration Holt Property Royalty Total Liabilities 
 Balance at beginning of period   $5 $19 $24 $83 $- $83 
  Unrealized gain  -  1  1  -  -  - 
  Settlements  -  -  -  (13)  -  (13) 
  Valuation  -  -  -  -  181  181 
 Balance at end of period   $5 $20 $25 $70 $181 $251 
Derivative Instruments (Tables)
    Expected Maturity Date 
                Total/ 
    2011 2012 2013 2014 2015 2016 Average 
 A$ Operating Fixed Forward Contracts:                       
  A$ notional (millions)    594  947  665  436  204  25  2,871 
  Average rate ($/A$)    0.86  0.88  0.90  0.87  0.84  0.88  0.88 
  Expected hedge ratio  82% 64% 44% 30% 14% 3%   
 A$ Capital Fixed Forward Contracts:                       
  A$ notional (millions)    10  18  -  -  -  -  28 
  Average rate ($/A$)    1.04  1.02  -  -  -  -  1.03 
  Expected hedge ratio  34% 41% -  -  -  -    
 NZ$ Operating Fixed Forward Contracts:                       
  NZ$ notional (millions)    37  41  6  -  -  -  84 
  Average rate ($/NZ$)    0.71  0.73  0.77  -  -  -  0.72 
  Expected hedge ratio  66% 35% 10% -  -  -    
                         
    Expected Maturity Date 
          Total/ 
    2011 2012 2013 Average 
 Diesel Fixed Forward Contracts:              
  Diesel gallons (millions)    11  11  1  23 
  Average rate ($/gallon)    2.51  2.68  3.19  2.62 
  Expected hedge ratio  53% 25% 5%   
   Fair Value 
   At June 30, 2011 
   Other Current Assets Other Long-Term Assets Other Current Liabilities Other Long-Term Liabilities 
 Foreign currency exchange contracts:            
  A$ operating fixed forward contracts  $204 $165 $1 $- 
  A$ Akyem capital fixed forward contracts   -  -  -  - 
  NZ$ operating fixed forward contracts   7  1  -  - 
 Diesel fixed forward contracts 11  1  1  - 
 Forward starting swap contracts   4  -  15  - 
 Total derivative instruments (Note 22)$226 $167 $17 $- 
               
   Fair Value 
   At December 31, 2010 
   Other Current Assets Other Long-Term Assets Other Current Liabilities Other Long-Term Liabilities 
 Foreign currency exchange contracts:            
  A$ operating fixed forward contracts  $181  114  -  - 
  NZ$ operating fixed forward contracts   5  1  -  - 
 Diesel fixed forward contracts   7  1  -  - 
 Interest rate swap contracts   3  -  -  - 
 Total derivative instruments (Note 22)$196 $116 $- $- 
   Foreign Currency Exchange Contracts Diesel Forward Contracts 
           
   2011 2010 2011 2010 
 For the three months ended June 30,            
 Cash flow hedging relationships:            
  Gain (loss) recognized in other comprehensive income (effective portion)  $126 $(99) $(5) $(6) 
  (1)?  49  21  5  1 
               
 For the six months ended June 30,            
 Cash flow hedging relationships:            
  Gain (loss) recognized in other comprehensive income (effective portion)  $193 $(58) $10 $(5) 
  (1)?  91  45  9  2 

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

 

   Interest Rate 8 5/8% Debentures 
  Swap Contracts(Hedged Portion) 
   2011 2010 2011 2010 
 For the three months ended June 30,            
 Fair value hedging relationships:            
  Gain (loss) recognized in income (effective portion) (1)?$1 $1 $(1) $2 
  Gain (loss) recognized in income (ineffective portion) (2)? (1)  (2)  -  1 
               
 For the six months ended June 30,            
 Fair value hedging relationships:            
  Gain (loss) recognized in income (effective portion) (1)?$3 $3 $(6) $2 
  Gain (loss) recognized in income (ineffective portion) (2)? (2)  (2)  -  1 

(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)
NOTE 19    INVESTMENTS             
     At June 30, 2011 
     Cost/Equity Unrealized Fair/Equity 
     Basis Gain Loss Basis 
 Current:              
  Marketable Equity Securities:             
   Paladin Energy Ltd. $208 $- $(67) $141 
   Other  28  36  (2)  62 
     $236 $36 $(69) $203 
                 
 Long-term:              
  Marketable Debt Securities:             
   Asset backed commercial paper  $26 $- $(6) $20 
   Auction rate securities    7  -  (2)  5 
   Corporate    7  2  -  9 
      40  2  (8)  34 
  Marketable Equity Securities:              
   Canadian Oil Sands Ltd.  320  570  -  890 
   Gabriel Resources Ltd.    80  270  -  350 
   Regis Resources Ltd.  23  163  -  186 
   Other    125  29  (20)  134 
      548  1,032  (20)  1,560 
                 
  Other investments, at cost     9  -  -  9 
                 
  Investment in Affiliates:             
   La Zanja  72  -  -  72 
     $669 $1,034 $(28) $1,675 
                 

     At December 31, 2010 
     Cost/Equity Unrealized Fair/Equity 
     Basis Gain Loss Basis 
 Current:              
  Marketable Equity Securities:             
   New Gold Inc. $5 $54 $- $59 
   Other  19  35  -  54 
     $24 $89 $- $113 
 Long-term:              
  Marketable Debt Securities:              
   Asset backed commercial paper  $25 $- $(6) $19 
   Auction rate securities    7  -  (2)  5 
   Corporate    7  3  -  10 
      39  3  (8)  34 
  Marketable Equity Securities:              
   Canadian Oil Sands Ltd.  308  508  -  816 
   Gabriel Resources Ltd.    78  325  -  403 
   Regis Resources Ltd.  23  148  -  171 
   Other    39  37  -  76 
      448  1,018  -  1,466 
                 
  Other investments, at cost     11  -  -  11 
                 
  Investment in Affiliates:              
   La Zanja  57  -  -  57 
     $555 $1,021 $(8) $1,568 
  Less than 12 Months  12 Months or Greater  Total
At June 30, 2011 Fair Value  Unrealized Losses  Fair Value  Unrealized Losses  Fair Value  Unrealized Losses
Marketable equity securities$ 62 $ 22 $ - $ - $ 62 $ 22
Paladin Energy Ltd.  141   67   -   -   141   67
Asset backed commercial paper   -   -   20   6   20   6
Auction rate securities    -   -   5   2   5   2
 $ 203 $ 89 $ 25 $ 8 $ 228 $ 97
                  
                  
                  
  Less than 12 Months  12 Months or Greater  Total
At December 31, 2010 Fair Value  Unrealized Losses  Fair Value  Unrealized Losses  Fair Value  Unrealized Losses
Asset backed commercial paper $ - $ - $ 19 $ 6 $ 19 $ 6
Auction rate securities    -   -   5   2   5   2
 $ - $ - $ 24 $ 8 $ 24 $ 8
Inventories (Tables)
Summary of Inventories
NOTE 20    INVENTORIES       
         
   At June 30, At December 31, 
  20112010 
 In-process $101 $142 
 Concentrate  110  111 
 Precious metals  15  4 
 Materials, supplies and other  445  401 
   $671 $658 
Stockpiles and Ore on Leach Pads (Tables)
NOTE 21    STOCKPILES AND ORE ON LEACH PADS      
         
   At June 30, At December 31, 
   20112010 
 Current:      
  Stockpiles$ 443 $ 389 
  Ore on leach pads  253   228 
   $ 696 $ 617 
 Long-term:      
  Stockpiles$ 1,640 $ 1,397 
  Ore on leach pads  310   360 
   $ 1,950 $ 1,757 
   At June 30, At December 31, 
   2011 2010 
 Stockpiles and ore on leach pads:      
  Nevada$497 $479 
  La Herradura 9  6 
  Yanacocha 503  496 
  Boddington 357  248 
  Batu Hijau 995  879 
  Other Australia/New Zealand 152  145 
  Ahafo 133  121 
   $2,646 $2,374 
Other Assets (Tables)
Other Assets
NOTE 22    OTHER ASSETS      
   At June 30, At December 31, 
   20112010 
 Other current assets:      
  Refinery metal inventory and receivable$1,166 $617 
  Derivative instruments  226  196 
  Prepaid assets 141  65 
  Other   80  84 
   $1,613 $962 
         
 Other long-term assets:      
  Goodwill$188 $188 
  Income tax receivable 176  119 
  Derivative instruments  167  116 
  Intangible assets 151  91 
  Debt issuance costs   62  39 
  Restricted cash   26  25 
  Other receivables 19  19 
  Other   157  144 
   $946 $741 
Debt (Tables)
Debt
NOTE 23    DEBT            
             
 At June 30, 2011 At December 31, 2010 
 Current Non-Current Current Non-Current 
Sale-leaseback of refractory ore treatment plant  $ 28 $ 106 $ 30 $ 134 
8 5/8% debentures, net of discount (due 2011)    -   -   217   - 
2012 convertible senior notes, net of discount  501   -   -   488 
2014 convertible senior notes, net of discount  -   500   -   489 
2017 convertible senior notes, net of discount  -   443   -   434 
2019 senior notes, net of discount    -   896   -   896 
2035 senior notes, net of discount    -   598   -   598 
2039 senior notes, net of discount    -   1,087   -   1,087 
Corporate revolving credit facility  -   90   -   - 
Ahafo project facility    10   50   10   55 
Other capital leases    -   1   2   1 
 $ 539 $ 3,771 $ 259 $ 4,182 
             
Other Liabilities (Tables)
Other Liabilities
NOTE 24    OTHER LIABILITIES      
         
   At June 30, At December 31, 
   20112010 
 Other current liabilities:      
  Refinery metal payable$1,166 $617 
  Accrued operating costs 249  217 
  Accrued capital expenditures 156  83 
  Taxes other than income and mining 105  135 
  Reclamation and remediation liabilities 62  64 
  Interest 57  66 
  Royalties 44  90 
  Boddington contingent consideration 42  32 
  Deferred income tax 18  54 
  Holt property royalty 14  - 
  Other 85  60 
   $1,998 $1,418 
         
 Other long-term liabilities:      
  Holt property royalty$ 167 $ 40 
  Power supply agreements 47   45 
  Income and mining taxes   29   36 
  Boddington contingent consideration  28   51 
  Other  43   49 
   $314 $221 
         
Net Change in Operating Assets and Liabilities (Tables)
Net Changes in Operating Assets and Liabilities
   Six Months Ended June 30, 
   2011 2010 
 Decrease (increase) in operating assets:      
  Trade and accounts receivable  $121 $74 
  Inventories, stockpiles and ore on leach pads   (230)  (187) 
  EGR refinery assets   (437)  138 
  Other assets   (67)  (30) 
 Increase (decrease) in operating liabilities:      
  Accounts payable and other accrued liabilities   (349)  (90) 
  EGR refinery liabilities   437  (138) 
  Reclamation liabilities   (15)  (18) 
   $(540) $(251) 
Supplemental Cash Flow Information (Tables)
Supplemental Cash Flow Information
NOTE 26    SUPPLEMENTAL CASH FLOW INFORMATION  
         
   Six Months Ended June 30, 
   2011 2010 
 Income and mining taxes, net of refunds   $892 $546 
 Interest, net of amounts capitalized   $92 $116 
Condensed Consolidating Financial Statements (Tables)
   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   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

(1) Excludes Amortization and Reclamation and remediation.

 

                 
   Three Months Ended June 30, 2010
               Newmont
   Newmont         Mining
   Mining Newmont Other    Corporation
Condensed Consolidating Statement of Income Corporation USA Subsidiaries Eliminations Consolidated
                 
Sales $- $1,410 $743 $- $2,153
                 
Costs and expenses               
 Costs applicable to sales (1)  -  519  335  (6)  848
 Amortization    -  143  89  (1)  231
 Reclamation and remediation   -  10  3  -  13
 Exploration    -  32  21  -  53
 Advanced projects, research and development    -  25  32  -  57
 General and administrative    -  37  -  6  43
 Other expense, net  -  39  21  1  61
    -  805  501  -  1,306
Other income (expense)                
 Other income, net    -  13  31  -  44
 Interest income - intercompany    35  2  1  (38)  -
 Interest expense - intercompany    (3)  -  (35)  38  -
 Interest expense, net    (64)  (4)  (1)  -  (69)
    (32)  11  (4)  -  (25)
Income before income and mining tax and other items  (32)  616  238  -  822
Income and mining tax expense    9  (227)  (65)  -  (283)
Equity income (loss) of affiliates    405  1  63  (471)  (2)
Net income (loss)    382  390  236  (471)  537
Net loss (income) attributable to noncontrolling               
 interests    -  (185)  (10)  40  (155)
Net income (loss) attributable to Newmont               
 stockholders $382 $205 $226 $(431) $382

(1) 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 from continuing operations    901  906  600  (1,077)  1,330
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

(1) Excludes Amortization and Reclamation and remediation.

 

                 
   Six Months Ended June 30, 2010
               Newmont
   Newmont         Mining
   Mining Newmont Other    Corporation
Condensed Consolidating Statement of Income Corporation USA Subsidiaries Eliminations Consolidated
                 
Sales $- $3,002 $1,393 $- $4,395
                 
Costs and expenses               
 Costs applicable to sales (1)  -  1,064  664  (11)  1,717
 Amortization    -  286  170  (1)  455
 Reclamation and remediation   -  19  7  -  26
 Exploration    -  56  40  -  96
 Advanced projects, research and development    -  54  49  -  103
 General and administrative    -  75  1  12  88
 Other expense, net  -  115  35  -  150
    -  1,669  966  -  2,635
Other income (expense)                
 Other income, net    -  14  78  -  92
 Interest income - intercompany    71  4  2  (77)  -
 Interest expense - intercompany    (5)  -  (72)  77  -
 Interest expense, net    (126)  (16)  (2)  -  (144)
    (60)  2  6  -  (52)
                 
Income before income and mining tax and other items  (60)  1,335  433  -  1,708
Income and mining tax expense    150  (466)  (108)  -  (424)
Equity income (loss) of affiliates    838  1  130  (973)  (4)
Net income (loss)    928  870  455  (973)  1,280
Net loss (income) attributable to noncontrolling               
 interests    -  (428)  (5)  81  (352)
Net income (loss) attributable to Newmont               
 stockholders $928 $442 $450 $(892) $928

(1) Excludes Amortization and Reclamation and remediation.

 

    Six Months Ended June 30, 2011
                Newmont
    Newmont         Mining
    MiningNewmontOther   Corporation
   Condensed Consolidating Statement of Cash FlowsCorporationUSASubsidiariesEliminationsConsolidated
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) 
  Proceeds from 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 
  Change in restricted cash and 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 

    Six Months Ended June 30, 2010
                Newmont
    Newmont         Mining
    MiningNewmontOther   Corporation
   Condensed Consolidating Statement of Cash FlowsCorporationUSASubsidiariesEliminationsConsolidated
Operating activities:               
  Net income (loss)$928 $870 $455 $(973) $1,280 
  Adjustments   (115)  319  (725)  973  452 
  Net change in operating assets and liabilities   (2)  (160)  (89)  -  (251) 
Net cash provided from (used in) continuing operations   811  1,029  (359)  -  1,481 
Net cash used in discontinued operations   -  (13)  -  -  (13) 
Net cash provided from (used in) operations   811  1,016  (359)  -  1,468 
Investing activities:               
  Additions to property, plant and mine development   -  (283)  (345)  -  (628) 
  Proceeds from sale of marketable securities -  -  1  -  1 
  Purchases of marketable securities -  -  (7)  -  (7) 
  Proceeds from sale of other assets -  8  44  -  52 
  Other   -  -  (23)  -  (23) 
Net cash used in investing activities   -  (275)  (330)  -  (605) 
Financing activities:               
  Net repayments -  (257)  (6)  -  (263) 
  Net intercompany borrowings (repayments)  (751)  (23)  855  (81)  - 
  Sale of noncontrolling interests -  229  -  -  229 
  Acquisition of noncontrolling interests -  -  (109)  -  (109) 
  Dividends paid to common stockholders   (98)  -  -  -  (98) 
  Dividends paid to noncontrolling interests -  (388)  -  81  (307) 
  Proceeds from stock issuance, net   30  -  -  -  30 
  Change in restricted cash and other   -  48  -  -  48 
Net cash provided from (used in) financing activities   (819)  (391)  740  -  (470) 
Effect of exchange rate changes on cash   -  -  (6)  -  (6) 
Net change in cash and cash equivalents   (8)  350  45  -  387 
Cash and cash equivalents at beginning of period   8  3,067  140  -  3,215 
Cash and cash equivalents at end of period  $- $3,417 $185 $- $3,602 
                  
    At June 30, 2011
            Newmont
    Newmont       Mining
    Mining Newmont Other   Corporation
Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated
Assets               
 Cash and cash equivalents   $- $1,662 $193 $- $1,855
 Trade receivables    -  355  63  -  418
 Accounts receivable    1,608  2,497  1,356  (5,326)  135
 Investments  141  16  46  -  203
 Inventories    -  363  308  -  671
 Stockpiles and ore on leach pads    -  591  105  -  696
 Deferred income tax assets    3  254  51  -  308
 Other current assets    6  144  1,463  -  1,613
  Current assets    1,758  5,882  3,585  (5,326)  5,899
 Property, plant and mine development, net    -  5,687  10,997  (21)  16,663
 Investments    -  22  1,653  -  1,675
 Investments in subsidiaries    16,569  33  2,692  (19,294)  -
 Stockpiles and ore on leach pads    -  1,413  537  -  1,950
 Deferred income tax assets    661  685  159  -  1,505
 Other long-term assets    2,617  653  829  (3,153)  946
  Total assets   $21,605 $14,375 $20,452 $(27,794) $28,638
                  
Liabilities               
 Debt   $501 $28 $10 $- $539
 Accounts payable    3,008  920  1,877  (5,315)  490
 Employee-related benefits    -  159  70  -  229
 Income and mining taxes    -  15  169  -  184
 Other current liabilities    66  388  3,517  (1,973)  1,998
  Current liabilities    3,575  1,510  5,643  (7,288)  3,440
 Debt    3,614  107  50  -  3,771
 Reclamation and remediation liabilities    -  719  313  -  1,032
 Deferred income tax liabilities    6  554  2,175  -  2,735
 Employee-related benefits    5  255  93  -  353
 Other long-term liabilities    389  47  3,053  (3,175)  314
  Total liabilities    7,589  3,192  11,327  (10,463)  11,645
Equity               
 Preferred stock    -  -  61  (61)  -
 Common stock    780  -  -  -  780
 Additional paid-in capital    8,018  2,721  6,991  (9,400)  8,330
 Accumulated other comprehensive income  1,310  (107)  1,545  (1,438)  1,310
 Retained earnings  3,908  5,394  (637)  (4,757)  3,908
 Newmont stockholders’ equity    14,016  8,008  7,960  (15,656)  14,328
 Noncontrolling interests    -  3,175  1,165  (1,675)  2,665
  Total equity  14,016  11,183  9,125  (17,331)  16,993
  Total liabilities and equity $21,605 $14,375 $20,452 $(27,794) $28,638
                  

                  
    At December 31, 2010
            Newmont
    Newmont       Mining
    Mining Newmont Other   Corporation
Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated
Assets               
 Cash and cash equivalents   $- $3,877 $179 $- $4,056
 Trade receivables    -  501  81  -  582
 Accounts receivable    2,222  802  265  (3,201)  88
 Investments  -  72  41  -  113
 Inventories    -  388  270  -  658
 Stockpiles and ore on leach pads    -  513  104  -  617
 Deferred income tax assets    -  170  7  -  177
 Other current assets    -  77  885  -  962
  Current assets    2,222  6,400  1,832  (3,201)  7,253
 Property, plant and mine development, net    -  5,364  7,562  (19)  12,907
 Investments    -  25  1,543  -  1,568
 Investments in subsidiaries    12,295  35  1,909  (14,239)  -
 Stockpiles and ore on leach pads    -  1,347  410  -  1,757
 Deferred income tax assets    638  690  109  -  1,437
 Other long-term assets    2,675  496  584  (3,014)  741
  Total assets   $17,830 $14,357 $13,949 $(20,473) $25,663
                  
Liabilities               
 Debt   $- $249 $10 $- $259
 Accounts payable    355  1,269  1,996  (3,193)  427
 Employee-related benefits    -  222  66  -  288
 Income and mining taxes    19  261  75  -  355
 Other current liabilities    56  373  2,959  (1,970)  1,418
  Current liabilities    430  2,374  5,106  (5,163)  2,747
 Debt  3,991  135  56  -  4,182
 Reclamation and remediation liabilities    -  676  308  -  984
 Deferred income tax liabilities    -  513  975  -  1,488
 Employee-related benefits    5  244  76  -  325
 Other long-term liabilities    375  56  2,824  (3,034)  221
  Total liabilities    4,801  3,998  9,345  (8,197)  9,947
Equity               
 Preferred stock    -  -  61  (61)  -
 Common stock    778  -  -  -  778
 Additional paid-in capital    7,963  2,722  3,894  (6,300)  8,279
 Accumulated other comprehensive income  1,108  (75)  1,180  (1,105)  1,108
 Retained earnings  3,180  4,850  (1,109)  (3,741)  3,180
 Newmont stockholders’ equity    13,029  7,497  4,026  (11,207)  13,345
 Noncontrolling interests    -  2,862  578  (1,069)  2,371
  Total equity  13,029  10,359  4,604  (12,276)  15,716
  Total liabilities and equity $17,830 $14,357 $13,949 $(20,473) $25,663
                  
Segment Information (Details) (USD $)
In Millions
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Financial Information of Newmont's Segments
 
 
 
 
Sales
$ 2,384 
$ 2,153 
$ 4,849 
$ 4,395 
Costs Applicable to Sales
917 
848 
1,857 
1,717 
Amortization
250 
231 
506 
455 
Advanced Projects and Exploration
175 
110 
305 
199 
Pre-tax Income
847 
822 
1,820 
1,708 
Total Assets
28,638 
22,769 
28,638 
22,769 
Capital Expenditures
 
 
1,097 
570 
Segment Information (Textuals) [Abstract]
 
 
 
 
Change in accrued capital expenditures
 
 
77 
(58)
Consolidated capital expenditures on a cash basis
 
 
1,020 
628 
Nevada [Member]
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
Sales
529 
505 
1,111 
972 
Costs Applicable to Sales
224 
246 
496 
497 
Amortization
56 
64 
128 
126 
Advanced Projects and Exploration
38 
20 
55 
37 
Pre-tax Income
195 
164 
411 
291 
Total Assets
6,797 
3,309 
6,797 
3,309 
Capital Expenditures
 
 
228 
117 
La Herradura [Member]
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
Sales
81 
53 
146 
97 
Costs Applicable to Sales
27 
19 
45 
32 
Amortization
Advanced Projects and Exploration
Pre-tax Income
44 
29 
80 
54 
Total Assets
260 
180 
260 
180 
Capital Expenditures
 
 
27 
22 
Hope Bay [Member]
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
Sales
Costs Applicable to Sales
Amortization
Advanced Projects and Exploration
52 
33 
96 
50 
Pre-tax Income
(55)
(36)
(103)
(57)
Total Assets
2,242 
1,938 
2,242 
1,938 
Capital Expenditures
 
 
41 
48 
Other North America [Member]
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
Sales
Costs Applicable to Sales
Amortization
Advanced Projects and Exploration
Pre-tax Income
47 
(1)
45 
(3)
Total Assets
52 
53 
52 
53 
Capital Expenditures
 
 
Total North America [Member]
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
Sales
610 
558 
1,257 
1,069 
Costs Applicable to Sales
251 
265 
541 
529 
Amortization
65 
72 
144 
140 
Advanced Projects and Exploration
94 
55 
161 
91 
Pre-tax Income
231 
156 
433 
285 
Total Assets
9,351 
5,480 
9,351 
5,480 
Capital Expenditures
 
 
296 
187 
Yanacocha [Member]
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
Sales
524 
425 
886 
885 
Costs Applicable to Sales
190 
139 
343 
293 
Amortization
66 
40 
119 
77 
Advanced Projects and Exploration
11 
17 
11 
Pre-tax Income
232 
222 
381 
465 
Total Assets
2,634 
2,532 
2,634 
2,532 
Capital Expenditures
 
 
127 
68 
Other South America [Member]
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
Sales
Costs Applicable to Sales
Amortization
Advanced Projects and Exploration
14 
10 
24 
15 
Pre-tax Income
(16)
(9)
(26)
(15)
Total Assets
599 
194 
599 
194 
Capital Expenditures
 
 
251 
43 
Total South America [Member]
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
Sales
524 
425 
886 
885 
Costs Applicable to Sales
190 
139 
343 
293 
Amortization
67 
40 
120 
77 
Advanced Projects and Exploration
25 
14 
41 
26 
Pre-tax Income
216 
213 
355 
450 
Total Assets
3,233 
2,726 
3,233 
2,726 
Capital Expenditures
 
 
378 
111 
Boddington [Member]
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
Sales
323 
274 
608 
480 
Costs Applicable to Sales
144 
138 
272 
242 
Amortization
38 
40 
73 
69 
Advanced Projects and Exploration
Pre-tax Income
140 
92 
244 
160 
Total Assets
4,419 
4,136 
4,419 
4,136 
Capital Expenditures
 
 
75 
81 
Boddington [Member] |
Gold [Member]
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
Sales
269 
234 
501 
401 
Costs Applicable to Sales
117 
113 
217 
193 
Amortization
31 
34 
59 
56 
Boddington [Member] |
Copper [Member]
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
Sales
54 
40 
107 
79 
Costs Applicable to Sales
27 
25 
55 
49 
Amortization
14 
13 
Batu Hijau [Member]
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
Sales
334 
428 
843 
1,048 
Costs Applicable to Sales
109 
115 
232 
241 
Amortization
25 
31 
52 
68 
Advanced Projects and Exploration
Pre-tax Income
186 
270 
509 
677 
Total Assets
3,513 
2,911 
3,513 
2,911 
Capital Expenditures
 
 
88 
33 
Batu Hijau [Member] |
Gold [Member]
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
Sales
92 
170 
232 
335 
Costs Applicable to Sales
30 
42 
64 
76 
Amortization
12 
14 
22 
Batu Hijau [Member] |
Copper [Member]
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
Sales
242 
258 
611 
713 
Costs Applicable to Sales
79 
73 
168 
165 
Amortization
18 
19 
38 
46 
Other Australia New Zealand [Member]
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
Sales
375 
308 
790 
622 
Costs Applicable to Sales
158 
136 
324 
293 
Amortization
31 
24 
66 
56 
Advanced Projects and Exploration
10 
22 
11 
Pre-tax Income
168 
142 
365 
268 
Total Assets
1,124 
884 
1,124 
884 
Capital Expenditures
 
 
134 
71 
Other Asia Pacific [Member]
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
Sales
Costs Applicable to Sales
Amortization
Advanced Projects and Exploration
10 
Pre-tax Income
(34)
(9)
(34)
Total Assets
625 
183 
625 
183 
Capital Expenditures
 
 
Total Asia Pacific [Member]
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
Sales
1,032 
1,010 
2,241 
2,150 
Costs Applicable to Sales
411 
389 
828 
776 
Amortization
94 
96 
192 
194 
Advanced Projects and Exploration
18 
15 
32 
25 
Pre-tax Income
460 
495 
1,084 
1,114 
Total Assets
9,681 
8,114 
9,681 
8,114 
Capital Expenditures
 
 
301 
188 
Ahafo [Member]
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
Sales
218 
160 
465 
291 
Costs Applicable to Sales
65 
55 
145 
119 
Amortization
20 
19 
42 
36 
Advanced Projects and Exploration
15 
Pre-tax Income
119 
74 
255 
116 
Total Assets
1,046 
1,005 
1,046 
1,005 
Capital Expenditures
 
 
37 
51 
Other Africa [Member]
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
Sales
Costs Applicable to Sales
Amortization
Advanced Projects and Exploration
Pre-tax Income
(6)
(1)
(8)
(5)
Total Assets
348 
229 
348 
229 
Capital Expenditures
 
 
67 
22 
Total Africa [Member]
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
Sales
218 
160 
465 
291 
Costs Applicable to Sales
65 
55 
145 
119 
Amortization
20 
19 
42 
36 
Advanced Projects and Exploration
12 
20 
12 
Pre-tax Income
113 
73 
247 
111 
Total Assets
1,394 
1,234 
1,394 
1,234 
Capital Expenditures
 
 
104 
73 
Corporate and Other [Member]
 
 
 
 
Financial Information of Newmont's Segments
 
 
 
 
Sales
Costs Applicable to Sales
Amortization
Advanced Projects and Exploration
26 
21 
51 
45 
Pre-tax Income
(173)
(115)
(299)
(252)
Total Assets
4,979 
5,215 
4,979 
5,215 
Capital Expenditures
 
 
$ 18 
$ 11 
Reclamation and Remediation (Details) (USD $)
In Millions
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Dec. 31, 2010
Reconciliation of Reclamation and Remediation Liabilities
 
 
 
 
 
Balance at beginning of period
 
 
$ 1,048 
$ 859 
 
Additions, changes in estimates and other
 
 
32 
(4)
 
Liabilities settled
 
 
(15)
(18)
 
Accretion expense
 
 
29 
26 
 
Balance at end of period
1,094 
863 
1,094 
863 
 
Reclamation and Remediation Expenses
 
 
 
 
 
Reclamation
28 
28 
 
Accretion - operating
13 
11 
25 
22 
 
Accretion - non-operating
 
Reclamation and remediation expense, total
43 
13 
57 
26 
 
Reclamation And Remediation (Textuals) [Abstract]
 
 
 
 
 
Accrued for reclamation obligations relating to mineral properties
922 
 
922 
 
904 
Accrued obligation associated with former, primarily historic, mining activities
172 
 
172 
 
144 
Reclamation and remediation liabilities - current
$ 62 
 
$ 62 
 
$ 64 
Advanced Projects, Research and Development (Details) (USD $)
In Millions
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Advanced Projects, Research and Development
 
 
 
 
Advanced projects, research and development
$ 86 
$ 57 
$ 154 
$ 103 
Other projects [Member] |
Technical and project services [Member]
 
 
 
 
Advanced Projects, Research and Development
 
 
 
 
Advanced projects, research and development
18 
11 
33 
23 
Other projects [Member] |
Other Project [Member]
 
 
 
 
Advanced Projects, Research and Development
 
 
 
 
Advanced projects, research and development
15 
26 
17 
Hope Bay [Member] |
Major projects [Member]
 
 
 
 
Advanced Projects, Research and Development
 
 
 
 
Advanced projects, research and development
41 
25 
79 
35 
Major projects [Member] |
Conga [Member]
 
 
 
 
Advanced Projects, Research and Development
 
 
 
 
Advanced projects, research and development
 
Major projects [Member] |
Akyem [Member]
 
 
 
 
Advanced Projects, Research and Development
 
 
 
 
Advanced projects, research and development
 
Conga [Member]
 
 
 
 
Advanced Projects, Research and Development
 
 
 
 
Advanced projects, research and development
 
 
 
Akyem [Member]
 
 
 
 
Advanced Projects, Research and Development
 
 
 
 
Advanced projects, research and development
 
$ 1 
 
 
Other Expense, Net (Details) (USD $)
In Millions
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Other Expense, Net
 
 
 
 
Community development
$ 23 
$ 20 
$ 40 
$ 75 
Regional administration
21 
18 
37 
31 
Indonesian value added tax settlement
21 
Fronteer acquisition costs
20 
21 
Western Australia power plant
Other
18 
22 
32 
37 
Other expense, total
$ 87 
$ 61 
$ 160 
$ 150 
Other Income, Net (Details) (USD $)
In Millions
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Other Income, Net
 
 
 
 
Gain on sale of investments, net
$ 50 
$ 5 
$ 50 
$ 7 
Canadian Oil Sands
10 
15 
16 
25 
Interest income
Gain on asset sales, net
42 
Foreign currency exchange gain (loss), net
(18)
(29)
(4)
Other
33 
17 
Total
$ 48 
$ 44 
$ 79 
$ 92 
Employee Pension and Other Benefits Plans (Details) (USD $)
In Millions
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Pension benefit costs [Member]
 
 
 
 
Employee Related Benefits [Line Items]
 
 
 
 
Service cost
$ 6 
$ 6 
$ 12 
$ 11 
Interest cost
10 
20 
18 
Expected return on plan assets
(11)
(9)
(21)
(16)
Amortization, net
12 
Pension benefit costs, net
12 
11 
23 
22 
Other benefit costs [Member]
 
 
 
 
Employee Related Benefits [Line Items]
 
 
 
 
Service cost
Interest cost
Pension benefit costs, net
$ 1 
$ 2 
$ 3 
$ 4 
Stock Based Compensation (Details) (USD $)
In Millions
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Stock Option and Other Stock Based Compensation
 
 
 
 
Share-based Compensation
$ 19 
$ 15 
$ 34 
$ 29 
Common Stock [Member]
 
 
 
 
Stock Option and Other Stock Based Compensation
 
 
 
 
Share-based Compensation
Deferred stock [Member]
 
 
 
 
Stock Option and Other Stock Based Compensation
 
 
 
 
Share-based Compensation
Stock options [Member]
 
 
 
 
Stock Option and Other Stock Based Compensation
 
 
 
 
Share-based Compensation
10 
Restricted stock unit [Member]
 
 
 
 
Stock Option and Other Stock Based Compensation
 
 
 
 
Share-based Compensation
10 
17 
Performance leveraged stock units [Member]
 
 
 
 
Stock Option and Other Stock Based Compensation
 
 
 
 
Share-based Compensation
Restricted stock [Member]
 
 
 
 
Stock Option and Other Stock Based Compensation
 
 
 
 
Share-based Compensation
$ 0 
$ 0 
$ 0 
$ 1 
Income and Mining Taxes (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Income And Mining Taxes (Textuals) [Abstract]
 
 
 
 
Estimated Income tax expense
$ 187 
$ 283 
$ 492 
$ 424 
Effective tax rate
22.00% 
34.00% 
27.00% 
25.00% 
Tax benefit generated on change in form of a non-U.S. subsidiary
65 
65 
127 
Total unrecognized tax benefit
 
 
106 
 
United States statutory corporate income tax rate
35.00% 
35.00% 
35.00% 
35.00% 
Unrecognized tax benefit, If recognized
55 
 
55 
 
Income Tax Reconciliation [Abstract]
 
 
 
 
Income before income and mining tax and other items
847 
822 
1,820 
1,708 
United States statutory corporate income tax rate
35.00% 
35.00% 
35.00% 
35.00% 
Income and mining tax expense computed at United States statutory corporate income tax rate
296 
288 
637 
598 
Tax benefit generated on change in form of a non-U.S. subsidiary
65 
65 
127 
Percentage depletion
56 
21 
111 
54 
Other
(12)
(16)
(31)
(7)
Income and mining tax expense
(187)
(283)
(492)
(424)
High Range [Member]
 
 
 
 
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items]
 
 
 
 
Decrease in net unrecognized income tax benefits
10 
 
10 
 
Low Range [Member]
 
 
 
 
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items]
 
 
 
 
Decrease in net unrecognized income tax benefits
$ 5 
 
$ 5 
 
Discontinued Operations (Details) (USD $)
In Millions
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
12 Months Ended
Dec. 31, 2010
Discontinued Operations Details [Abstract]
 
 
 
 
 
Loss from discontinued operations
$ (136)
$ 0 
$ (136)
$ 0 
$ 28 
Loss from discontinued operations, income tax benefit
 
 
 
12 
Net operating cash used in discontinued operations
 
 
$ (2)
$ (13)
 
Net Income Attributable to Noncontrolling Interests (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Net Income Attributable to Noncontrolling Interests (Textuals) (Abstract)
 
 
 
 
Other
$ (3)
$ 0 
$ (5)
$ (1)
Net income attributable to noncontrolling interests
137 
155 
293 
352 
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
Yanacocha [Member]
 
 
 
 
Net Income Attributable to Noncontrolling Interests (Textuals) (Abstract)
 
 
 
 
Ownership interest in subsidiaries
51.35% 
 
51.35% 
 
Net income attributable to noncontrolling interests
76 
71 
132 
151 
Batu Hijau [Member]
 
 
 
 
Net Income Attributable to Noncontrolling Interests (Textuals) (Abstract)
 
 
 
 
Effective economic interest percent
48.50% 
 
48.50% 
 
Net income attributable to noncontrolling interests
$ 64 
$ 84 
$ 166 
$ 202 
Income Per Common Share (Details) (USD $)
Share data in Millions, except Per Share data
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Earnings per share reconciliation [Abstract]
 
 
 
 
Net income attributable to Newmont common stockholders
$ 387,000,000 
$ 382,000,000 
$ 901,000,000 
$ 928,000,000 
Weighted average common shares (millions):
 
 
 
 
Basic
494 
492 
494 
491 
Effect of employee stock-based awards
Effect of convertible notes
Diluted
501 
499 
501 
496 
Income per common share, basic
 
 
 
 
Income per common share, basic
$ 0.78 
$ 0.78 
$ 1.82 
$ 1.89 
Income per common share, diluted
 
 
 
 
Income per common share, diluted
$ 0.77 
$ 0.77 
$ 1.80 
$ 1.87 
Net income attributable to Newmount stockholders and transfers from noncontrolling interest [Abstract]
 
 
 
 
Net income attributable to Newmont stockholders
387,000,000 
382,000,000 
901,000,000 
928,000,000 
Transfers from noncontrolling interests:
 
 
 
 
Increase in Additional paid in capital from sale of PTNNT shares, net of tax of $33
 
1,000,000 
 
16,000,000 
Net income attributable to Newmont stockholders and transfers from noncontrolling interests
387,000,000 
383,000,000 
901,000,000 
944,000,000 
Income Per Common Share (Textuals) Abstract
 
 
 
 
Anti-dilutive shares - stock options
 
 
Options to purchase common shares average exercise price
 
 
57 
57 
Anti-dilutive shares - convertible notes
Share transfers gains tax
 
 
 
33,000,000 
Convertible Senior Notes Net Of Discount 2012 [Member]
 
 
 
 
Income Per Common Share (Textuals) Abstract
 
 
 
 
Convertible notes
518,000,000 
 
518,000,000 
 
Conversion price on convertible notes
46.04 
 
46.04 
 
Convertible Senior Notes Net Of Discount 2014 And 2017 [Member]
 
 
 
 
Income Per Common Share (Textuals) Abstract
 
 
 
 
Convertible notes
1,150,000,000 
 
1,150,000,000 
 
Conversion price on convertible notes
46 
 
46 
 
Conversion price on call spread transaction
$ 60 
 
$ 60 
 
Comprehensive Income (Details) (USD $)
In Millions
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Comprehensive Income
 
 
 
 
Net income
$ 524 
$ 537 
$ 1,194 
$ 1,280 
Other comprehensive income (loss), net of tax:
 
 
 
 
Unrealized gain on marketable securities
(243)
(77)
(75)
(28)
Foreign currency translation adjustments
38 
(55)
127 
Pension and other benefit liability adjustments
Change in fair value of cash flow hedge instruments:
 
 
 
 
Net change from periodic revaluations
162 
(72)
217 
(43)
Net amount reclassified to income
(39)
(16)
(72)
(35)
Net unrecognized gain (loss) on derivatives
123 
(88)
145 
(78)
Other comprehensive income, net of tax
(78)
(217)
205 
(100)
Comprehensive income
446 
320 
1,399 
1,180 
Comprehensive income attributable to:
 
 
 
 
Newmont stockholders
308 
165 
1,103 
828 
Noncontrolling interests
138 
155 
296 
352 
Comprehensive income
$ 446 
$ 320 
$ 1,399 
$ 1,180 
Changes in Equity (Details) (USD $)
In Millions
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Changes in Equity
 
 
 
 
Beginning Balance
 
 
$ 15,716 
 
Net income attributable to Newmont stockholders
387 
382 
901 
928 
Net income attributable to noncontrolling interests
(137)
(155)
(293)
(352)
Other comprehensive income
(78)
(217)
205 
(100)
Ending Balance
16,993 
13,555 
16,993 
13,555 
Common Stock [Member]
 
 
 
 
Changes in Equity
 
 
 
 
Beginning Balance
 
 
778 
770 
Stock based awards
 
 
Shares issued in exchange for exchangeable shares
 
 
Ending Balance
780 
775 
780 
775 
Additional paid-in capital [Member]
 
 
 
 
Changes in Equity
 
 
 
 
Beginning Balance
 
 
8,279 
8,158 
Stock based awards
 
 
52 
64 
Shares issued in exchange for exchangeable shares
 
 
(1)
(3)
Sale of noncontrolling interests
 
 
16 
Ending Balance
8,330 
8,235 
8,330 
8,235 
Accumulated other comprehensive income [Member]
 
 
 
 
Changes in Equity
 
 
 
 
Beginning Balance
 
 
1,108 
626 
Other comprehensive income
 
 
202 
(100)
Ending Balance
1,310 
526 
1,310 
526 
Retained earnings [Member]
 
 
 
 
Changes in Equity
 
 
 
 
Beginning Balance
 
 
3,180 
1,149 
Net income attributable to Newmont stockholders
 
 
901 
928 
Dividends paid
 
 
(173)
(98)
Ending Balance
3,908 
1,979 
3,908 
1,979 
Noncontrolling interests [Member]
 
 
 
 
Changes in Equity
 
 
 
 
Beginning Balance
 
 
2,371 
1,910 
Net income attributable to noncontrolling interests
 
 
293 
352 
Dividends paid
 
 
(2)
(320)
Other comprehensive income
 
 
Sale of noncontrolling interests
 
 
98 
Ending Balance
$ 2,665 
$ 2,040 
$ 2,665 
$ 2,040 
Acquisitions (Details) (Fronteer [Member])
6 Months Ended
Jun. 30,
2011
USD ($)
2011
CAD ($)
Assets:
 
 
Cash
$ 2,000,000 
 
Property, plant and mine development
3,208,000,000 
 
Investments
281,000,000 
 
Other assets
6,000,000 
 
Total assets
3,497,000,000 
 
Liabilities:
 
 
Deferred income tax liability
1,223,000,000 
 
Other liabilities
15,000,000 
 
Total liabilities
1,238,000,000 
 
Net assets acquired
2,259,000,000 
 
Business Acquisition (Textuals)
 
 
Acquisition common shares acquired
153,000,000 
153,000,000 
Cash per common share received by shareholders
 
14 
Common shares received by shareholders
0.25 
0.25 
Acquisition transaction costs
1,000,000 
 
Purchase price
$ 2,259,000,000 
 
Fair Value Accounting (Details) (USD $)
6 Months Ended
Jun. 30, 2011
12 Months Ended
Dec. 31, 2010
Assets:
 
 
Cash equivalents
$ 36,000,000 
 
Derivative instruments, net:
 
 
Fair value assets measured on recurring basis
2,526,000,000 
 
Liabilities:
 
 
Fair Value Liabilities Measured On Recurring Basis
262,000,000 
 
Fair Value Accounting (Textuals) [Abstract]
 
 
Unrealized gain
1,000,000 
 
Assets measured at fair value hierarchy, percent
1.00% 
 
Liabilities measured at fair value hierarchy, percent
96.00% 
 
Changes in the Fair Value of the Company's Level 3 Financial Assets
 
 
Balance at beginning of period, assets
24,000,000 
 
Unrealized gain
1,000,000 
 
Balance at end of period, assets
25,000,000 
24,000,000 
Changes in the Fair Value of the Company's Level 3 Financial Liabilities
 
 
Balance at beginning of period, liabilities
251,000,000 
83,000,000 
Settlements
13,000,000 
 
Valuation
181,000,000 
 
Balance at end of period, liabilities
251,000,000 
83,000,000 
Level 1 [Member]
 
 
Assets:
 
 
Cash equivalents
36,000,000 
 
Derivative instruments, net:
 
 
Fair value assets measured on recurring basis
2,114,000,000 
 
Level 1 [Member] |
Extractive industries [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
1,757,000,000 
 
Marketable debt securities:
 
 
Marketable Debt securities
1,757,000,000 
 
Level 1 [Member] |
Other Industries [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
6,000,000 
 
Marketable debt securities:
 
 
Marketable Debt securities
6,000,000 
 
Level 1 [Member] |
Corporate Debt Securities [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
9,000,000 
 
Marketable debt securities:
 
 
Marketable Debt securities
9,000,000 
 
Level 1 [Member] |
Trade receivable from provisional copper and gold concentrate sales, net [Member]
 
 
Marketable debt securities:
 
 
Trade receivable from provisional copper and gold concentrate sales, net
306,000,000 
 
Level 2 [Member]
 
 
Derivative instruments, net:
 
 
Fair value assets measured on recurring basis
387,000,000 
 
Liabilities:
 
 
Fair Value Liabilities Measured On Recurring Basis
11,000,000 
 
Level 2 [Member] |
Diesel forward contracts [Member]
 
 
Derivative instruments, net:
 
 
Derivative instruments, net
11,000,000 
 
Level 2 [Member] |
Foreign exchange forward contracts [Member]
 
 
Derivative instruments, net:
 
 
Derivative instruments, net
376,000,000 
 
Level 2 [Member] |
Forward Starting Swap Contracts [Member]
 
 
Liabilities:
 
 
Derivative instruments, net
11,000,000 
 
Level 3 [Member]
 
 
Derivative instruments, net:
 
 
Fair value assets measured on recurring basis
25,000,000 
 
Liabilities:
 
 
Fair Value Liabilities Measured On Recurring Basis
251,000,000 
 
Level 3 [Member] |
Asset Backed Commercial Paper [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
20,000,000 
 
Marketable debt securities:
 
 
Marketable Debt securities
20,000,000 
 
Level 3 [Member] |
Auction Rate Securities [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
5,000,000 
 
Marketable debt securities:
 
 
Marketable Debt securities
5,000,000 
 
Level 3 [Member] |
Holt Property Royalty [Member]
 
 
Liabilities:
 
 
Holt property royalty
181,000,000 
 
Level 3 [Member] |
Boddington Contingent Consideration [Member]
 
 
Liabilities:
 
 
Boddington contingent consideration
70,000,000 
 
Extractive industries [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
1,757,000,000 
 
Marketable debt securities:
 
 
Marketable Debt securities
1,757,000,000 
 
Other Industries [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
6,000,000 
 
Marketable debt securities:
 
 
Marketable Debt securities
6,000,000 
 
Asset Backed Commercial Paper [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
20,000,000 
 
Marketable debt securities:
 
 
Marketable Debt securities
20,000,000 
 
Fair Value Accounting (Textuals) [Abstract]
 
 
Unrealized gain
1,000,000 
 
Changes in the Fair Value of the Company's Level 3 Financial Assets
 
 
Balance at beginning of period, assets
19,000,000 
 
Unrealized gain
1,000,000 
 
Balance at end of period, assets
20,000,000 
 
Corporate Debt Securities [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
9,000,000 
 
Marketable debt securities:
 
 
Marketable Debt securities
9,000,000 
 
Auction Rate Securities [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
5,000,000 
 
Marketable debt securities:
 
 
Marketable Debt securities
5,000,000 
 
Changes in the Fair Value of the Company's Level 3 Financial Assets
 
 
Balance at end of period, assets
5,000,000 
5,000,000 
Trade receivable from provisional copper and gold concentrate sales, net [Member]
 
 
Marketable debt securities:
 
 
Trade receivable from provisional copper and gold concentrate sales, net
306,000,000 
 
Diesel forward contracts [Member]
 
 
Derivative instruments, net:
 
 
Derivative instruments, net
11,000,000 
 
Foreign exchange forward contracts [Member]
 
 
Derivative instruments, net:
 
 
Derivative instruments, net
376,000,000 
 
Forward Starting Swap Contracts [Member]
 
 
Liabilities:
 
 
Derivative instruments, net
11,000,000 
 
Holt Property Royalty [Member]
 
 
Liabilities:
 
 
Holt property royalty
181,000,000 
 
Fair Value Accounting (Textuals) [Abstract]
 
 
Holt property royalty valuation technique
The estimated fair value of the liability was determined using a Monte Carlo valuation model to simulate future gold prices utilizing a $1,300 per ounce long-term assumption, various gold production scenarios based on publicly available reserve and resource information for the Holt property and a 4.2% weighted average discount rate. 
 
Changes in the Fair Value of the Company's Level 3 Financial Liabilities
 
 
Balance at beginning of period, liabilities
181,000,000 
Valuation
181,000,000 
 
Balance at end of period, liabilities
181,000,000 
Boddington Contingent Consideration [Member]
 
 
Liabilities:
 
 
Boddington contingent consideration
70,000,000 
 
Fair Value Accounting (Textuals) [Abstract]
 
 
Boddington final interest acquired
33.33% 
 
Changes in the Fair Value of the Company's Level 3 Financial Liabilities
 
 
Balance at beginning of period, liabilities
70,000,000 
83,000,000 
Settlements
13,000,000 
 
Balance at end of period, liabilities
$ 70,000,000 
$ 83,000,000 
Derivative Instruments (Details)
In Millions, unless otherwise specified
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
Jun. 30, 2011
USD ($)
Jun. 30, 2011
Other Long Term Asset [Member]
USD ($)
Dec. 31, 2010
Other Long Term Asset [Member]
USD ($)
Jun. 30, 2011
Other Long Term Asset [Member]
Diesel Fixed Forward Contracts [Member]
USD ($)
Dec. 31, 2010
Other Long Term Asset [Member]
Diesel Fixed Forward Contracts [Member]
USD ($)
Jun. 30, 2011
Other Long Term Asset [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
USD ($)
Dec. 31, 2010
Other Long Term Asset [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
USD ($)
Jun. 30, 2011
Other Long Term Asset [Member]
NZ Dollar Operating Fixed Forward Contracts [Member]
USD ($)
Dec. 31, 2010
Other Long Term Asset [Member]
NZ Dollar Operating Fixed Forward Contracts [Member]
USD ($)
Jun. 30, 2011
Other Current Asset [Member]
USD ($)
Dec. 31, 2010
Other Current Asset [Member]
USD ($)
Jun. 30, 2011
Other Current Asset [Member]
Diesel Fixed Forward Contracts [Member]
USD ($)
Dec. 31, 2010
Other Current Asset [Member]
Diesel Fixed Forward Contracts [Member]
USD ($)
Jun. 30, 2011
Other Current Asset [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
USD ($)
Dec. 31, 2010
Other Current Asset [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
USD ($)
Jun. 30, 2011
Other Current Asset [Member]
NZ Dollar Operating Fixed Forward Contracts [Member]
USD ($)
Dec. 31, 2010
Other Current Asset [Member]
NZ Dollar Operating Fixed Forward Contracts [Member]
USD ($)
Dec. 31, 2010
Other Current Asset [Member]
Interest Rate Swap Contracts [Member]
USD ($)
Jun. 30, 2011
Other Current Asset [Member]
Forward Starting Swap Contracts [Member]
USD ($)
Jun. 30, 2011
Other Current Liabilities [Member]
USD ($)
Jun. 30, 2011
Other Current Liabilities [Member]
Diesel Fixed Forward Contracts [Member]
USD ($)
Jun. 30, 2011
Other Current Liabilities [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
USD ($)
Jun. 30, 2011
Other Current Liabilities [Member]
Forward Starting Swap Contracts [Member]
USD ($)
3 Months Ended
Jun. 30, 2011
Gold [Member]
USD ($)
oz
6 Months Ended
Jun. 30, 2011
Gold [Member]
USD ($)
oz
3 Months Ended
Jun. 30, 2011
Copper [Member]
USD ($)
lb
6 Months Ended
Jun. 30, 2011
Copper [Member]
USD ($)
lb
Jun. 30, 2011
Expected Maturity Date Year 2011 [Member]
Diesel Fixed Forward Contracts [Member]
gal
Jun. 30, 2011
Expected Maturity Date Year 2011 [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
AUD ($)
Jun. 30, 2011
Expected Maturity Date Year 2011 [Member]
AU Dollar Akyem Capital Fixed Forward Contracts [Member]
AUD ($)
Jun. 30, 2011
Expected Maturity Date Year 2011 [Member]
NZ Dollar Operating Fixed Forward Contracts [Member]
NZD ($)
Jun. 30, 2011
Expected Maturity Date Year 2012 [Member]
Diesel Fixed Forward Contracts [Member]
gal
Jun. 30, 2011
Expected Maturity Date Year 2012 [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
AUD ($)
Jun. 30, 2011
Expected Maturity Date Year 2012 [Member]
AU Dollar Akyem Capital Fixed Forward Contracts [Member]
AUD ($)
Jun. 30, 2011
Expected Maturity Date Year 2012 [Member]
NZ Dollar Operating Fixed Forward Contracts [Member]
NZD ($)
Jun. 30, 2011
Expected Maturity Date Year 2013 [Member]
Diesel Fixed Forward Contracts [Member]
gal
Jun. 30, 2011
Expected Maturity Date Year 2013 [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
AUD ($)
Jun. 30, 2011
Expected Maturity Date Year 2013 [Member]
NZ Dollar Operating Fixed Forward Contracts [Member]
NZD ($)
Jun. 30, 2011
Expected Maturity Date Year 2014 [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
AUD ($)
Jun. 30, 2011
Expected Maturity Date Year 2015 [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
AUD ($)
Jun. 30, 2011
Expected Maturity Date Year 2016 [Member]
AU Dollar Operating Fixed Forward Contracts [Member]
AUD ($)
Jun. 30, 2011
Diesel Fixed Forward Contracts [Member]
gal
2011
Diesel Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
USD ($)
2010
Diesel Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
USD ($)
2011
Diesel Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
USD ($)
2010
Diesel Fixed Forward Contracts [Member]
Cash Flow Hedging [Member]
USD ($)
Jun. 30, 2011
AU Dollar Operating Fixed Forward Contracts [Member]
AUD ($)
Jun. 30, 2011
AU Dollar Akyem Capital Fixed Forward Contracts [Member]
AUD ($)
Jun. 30, 2011
NZ Dollar Operating Fixed Forward Contracts [Member]
NZD ($)
Jun. 30, 2011
Interest Rate Swap Contracts [Member]
USD ($)
2011
Interest Rate Swap Contracts [Member]
Fair Value Hedging [Member]
USD ($)
2010
Interest Rate Swap Contracts [Member]
Fair Value Hedging [Member]
USD ($)
2011
Interest Rate Swap Contracts [Member]
Fair Value Hedging [Member]
USD ($)
2010
Interest Rate Swap Contracts [Member]
Fair Value Hedging [Member]
USD ($)
Jun. 30, 2011
Forward Starting Swap Contracts [Member]
Cash Flow Hedging [Member]
USD ($)
Jun. 30, 2010
Forward Starting Swap Contracts [Member]
Cash Flow Hedging [Member]
USD ($)
2011
Fair Value Hedging [Member]
Debentures 8 5/8% (Hedged Portion) [Member]
USD ($)
2010
Fair Value Hedging [Member]
Debentures 8 5/8% (Hedged Portion) [Member]
USD ($)
2011
Fair Value Hedging [Member]
Debentures 8 5/8% (Hedged Portion) [Member]
USD ($)
2010
Fair Value Hedging [Member]
Debentures 8 5/8% (Hedged Portion) [Member]
USD ($)
2011
Cash Flow Hedging [Member]
Foreign Exchange Contract [Member]
USD ($)
2010
Cash Flow Hedging [Member]
Foreign Exchange Contract [Member]
USD ($)
2011
Cash Flow Hedging [Member]
Foreign Exchange Contract [Member]
USD ($)
2010
Cash Flow Hedging [Member]
Foreign Exchange Contract [Member]
USD ($)
Foreign Currency Derivatives Abstract
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.51 
0.86 
1.04 
0.71 
2.68 
0.88 
1.02 
0.73 
3.19 
0.90 
0.77 
0.87 
0.84 
0.88 
2.62 
 
 
 
 
0.88 
1.03 
0.72 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notional Amount of Foreign Currency Derivatives
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 594 
$ 10 
$ 37 
 
$ 947 
$ 18 
$ 41 
 
$ 665 
$ 6 
$ 436 
$ 204 
$ 25 
 
 
 
 
 
$ 2,871 
$ 28 
$ 84 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expected hedge ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
53.00% 
82.00% 
34.00% 
66.00% 
25.00% 
64.00% 
41.00% 
35.00% 
5.00% 
44.00% 
10.00% 
30.00% 
14.00% 
3.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diesel Derivative Contracts Outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.51 
0.86 
1.04 
0.71 
2.68 
0.88 
1.02 
0.73 
3.19 
0.90 
0.77 
0.87 
0.84 
0.88 
2.62 
 
 
 
 
0.88 
1.03 
0.72 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diesel gallons
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11,000,000 
 
 
 
11,000,000 
 
 
 
1,000,000 
 
 
 
 
 
23,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expected hedge ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
53.00% 
82.00% 
34.00% 
66.00% 
25.00% 
64.00% 
41.00% 
35.00% 
5.00% 
44.00% 
10.00% 
30.00% 
14.00% 
3.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair values of Derivative Instruments Designated as Hedges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Current and Long Term Assets
 
167 
116 
165 
114 
226 
196 
11 
204 
181 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Current and Long Term Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
17 
15 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Instruments (Textuals) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hedge contracts net liability position
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11 
 
 
 
 
 
 
 
 
Forward starting swaps notional amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,000 
 
 
 
 
 
 
 
 
 
Fixed to floating swap contracts, amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
222 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,506 
1,445 
4.14 
4.26 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recorded average provisional price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,500 
1,441 
4.22 
4.31 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provisional pricing mark-to-market gain (loss)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10 
18 
16 
28 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provisional pricing mark-to-market gain (loss) rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.21 
0.16 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provisional pricing quantity sales
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
105,000 
105,000 
84,000,000 
84,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average price, subject to final pricing
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,506 
1,506 
4.22 
4.22 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Approximate gain amount to be reclassified from accumulated other comprehensive income, net of tax to income
146 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Location and Amount of Gains (Losses) Reported in Condensed Consolidated Financial Statements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) recognized in other comprehensive income (effective portion)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(5)
(6)
10 
(5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
126 
(99)
193 
(58)
Gain (loss) reclassified from Accumulated other comprehensive income into income (effective portion)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
49 
21 
91 
45 
Gains (Losses) Recorded for Hedged Item Related to Fair Value Hedges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) recognized in income (effective portion)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
(6)
 
 
 
 
Gain (loss) recognized in income (ineffective portion)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ (1)
$ (2)
$ (2)
$ (2)
 
 
$ 0 
$ 1 
$ 0 
$ 1 
 
 
 
 
Investments (Details) (USD $)
In Millions
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
12 Months Ended
Dec. 31, 2010
Investment in Marketable Securities
 
 
 
 
 
Current Investments
$ 203 
 
$ 203 
 
$ 113 
Long-Term Investments
1,675 
 
1,675 
 
1,568 
Available For Sale Securities Continuous Unrealized Loss Position Aggregate Losses Abstract
 
 
 
 
 
Securities continuous unrealized losses less than 12 months - unrealized losses
 
 
89 
 
Securities continuous unrealized losses greater than 12 months - unrealized losses
 
 
 
Securities continuous unrealized losses - unrealized losses
 
 
97 
 
Available For Sale Securities Continuous Unrealized Loss Position Fair Value Abstract
 
 
 
 
 
Securities continuous unrealized losses less than 12 months - fair value
203 
 
203 
 
Securities continuous unrealized losses greater than 12 months - fair value
25 
 
25 
 
24 
Securities continuous unrealized losses - fair value
228 
 
228 
 
24 
Investments (Textuals) [Abstract]
 
 
 
 
 
Payments to acquire marketable securities
 
 
15 
 
Gain on sale of investments, net
50 
50 
 
Securities continuous unrealized losses - unrealized losses
 
 
97 
 
New Gold Inc [Member]
 
 
 
 
 
Investments (Textuals) [Abstract]
 
 
 
 
 
Gain on sale of investments, net
 
 
50 
 
 
New Gold Inc [Member] |
Current [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
 
 
 
 
Unrealized Gain
 
 
 
 
54 
Unrealized Loss
 
 
 
 
Fair/Equity Basis - Current Marketable Equity Securities
 
 
 
 
59 
Paladin Energy Ltd [Member]
 
 
 
 
 
Available For Sale Securities Continuous Unrealized Loss Position Aggregate Losses Abstract
 
 
 
 
 
Securities continuous unrealized losses less than 12 months - unrealized losses
 
 
67 
 
 
Securities continuous unrealized losses greater than 12 months - unrealized losses
 
 
 
 
Securities continuous unrealized losses - unrealized losses
 
 
67 
 
 
Available For Sale Securities Continuous Unrealized Loss Position Fair Value Abstract
 
 
 
 
 
Securities continuous unrealized losses less than 12 months - fair value
141 
 
141 
 
 
Securities continuous unrealized losses greater than 12 months - fair value
 
 
 
Securities continuous unrealized losses - fair value
141 
 
141 
 
 
Investments (Textuals) [Abstract]
 
 
 
 
 
Investments acquired
208 
 
208 
 
 
Securities continuous unrealized losses - unrealized losses
 
 
67 
 
 
Paladin Energy Ltd [Member] |
Current [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
208 
 
208 
 
 
Unrealized Gain
 
 
 
 
Unrealized Loss
 
 
(67)
 
 
Fair/Equity Basis - Current Marketable Equity Securities
141 
 
141 
 
 
Other Equity Securities [Member]
 
 
 
 
 
Investments (Textuals) [Abstract]
 
 
 
 
 
Investments acquired
73 
 
73 
 
 
Other Equity Securities [Member] |
Current [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
28 
 
28 
 
19 
Unrealized Gain
 
 
36 
 
35 
Unrealized Loss
 
 
(2)
 
Fair/Equity Basis - Current Marketable Equity Securities
62 
 
62 
 
54 
Other Equity Securities [Member] |
Long-term [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
125 
 
125 
 
39 
Unrealized Gain
 
 
29 
 
37 
Unrealized Loss
 
 
(20)
 
Fair/Equity Basis - Long-Term Marketable Equity Securities
134 
 
134 
 
76 
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
 
 
22 
 
 
Securities continuous unrealized losses greater than 12 months - unrealized losses
 
 
 
 
Securities continuous unrealized losses - unrealized losses
 
 
22 
 
 
Available For Sale Securities Continuous Unrealized Loss Position Fair Value Abstract
 
 
 
 
 
Securities continuous unrealized losses less than 12 months - fair value
62 
 
62 
 
 
Securities continuous unrealized losses greater than 12 months - fair value
 
 
 
Securities continuous unrealized losses - fair value
62 
 
62 
 
 
Investments (Textuals) [Abstract]
 
 
 
 
 
Asset retirement obligation restricted asset
 
 
Securities continuous unrealized losses - unrealized losses
 
 
22 
 
 
Marketable Equity Securities [Member] |
Long-term [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
548 
 
548 
 
448 
Unrealized Gain
 
 
1,032 
 
1,018 
Unrealized Loss
 
 
(20)
 
Fair/Equity Basis - Long-Term Marketable Equity Securities
1,560 
 
1,560 
 
1,466 
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
 
 
 
Securities continuous unrealized losses greater than 12 months - unrealized losses
 
 
 
Securities continuous unrealized losses - unrealized losses
 
 
 
Available For Sale Securities Continuous Unrealized Loss Position Fair Value Abstract
 
 
 
 
 
Securities continuous unrealized losses less than 12 months - fair value
 
 
Securities continuous unrealized losses greater than 12 months - fair value
20 
 
20 
 
19 
Securities continuous unrealized losses - fair value
20 
 
20 
 
19 
Investments (Textuals) [Abstract]
 
 
 
 
 
Securities continuous unrealized losses - unrealized losses
 
 
 
Asset Backed Commercial Paper [Member] |
Long-term [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
26 
 
26 
 
25 
Unrealized Gain
 
 
 
Unrealized Loss
 
 
(6)
 
(6)
Fair/Equity Basis - Long-Term Marketable Debt Securities
20 
 
20 
 
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
 
 
 
Securities continuous unrealized losses greater than 12 months - unrealized losses
 
 
 
Securities continuous unrealized losses - unrealized losses
 
 
 
Available For Sale Securities Continuous Unrealized Loss Position Fair Value Abstract
 
 
 
 
 
Securities continuous unrealized losses less than 12 months - fair value
 
 
Securities continuous unrealized losses greater than 12 months - fair value
 
 
Securities continuous unrealized losses - fair value
 
 
Investments (Textuals) [Abstract]
 
 
 
 
 
Securities continuous unrealized losses - unrealized losses
 
 
 
Auction Rate Securities [Member] |
Long-term [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
 
 
Unrealized Gain
 
 
 
Unrealized Loss
 
 
(2)
 
(2)
Fair/Equity Basis - Long-Term Marketable Debt Securities
 
 
Corporate Debt Securities [Member] |
Long-term [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
 
 
Unrealized Gain
 
 
 
Unrealized Loss
 
 
 
Fair/Equity Basis - Long-Term Marketable Debt Securities
 
 
10 
Debt Securities [Member]
 
 
 
 
 
Investments (Textuals) [Abstract]
 
 
 
 
 
Asset retirement obligation restricted asset
 
 
10 
Debt Securities [Member] |
Long-term [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
40 
 
40 
 
39 
Unrealized Gain
 
 
 
Unrealized Loss
 
 
(8)
 
(8)
Fair/Equity Basis - Long-Term Marketable Debt Securities
34 
 
34 
 
34 
Canadian Oil Sands Ltd [Member] |
Long-term [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
320 
 
320 
 
308 
Unrealized Gain
 
 
570 
 
508 
Unrealized Loss
 
 
 
Fair/Equity Basis - Long-Term Marketable Equity Securities
890 
 
890 
 
816 
Gabriel Resources Ltd [Member] |
Long-term [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
80 
 
80 
 
78 
Unrealized Gain
 
 
270 
 
325 
Unrealized Loss
 
 
 
Fair/Equity Basis - Long-Term Marketable Equity Securities
350 
 
350 
 
403 
Regis [Member] |
Long-term [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
23 
 
23 
 
23 
Unrealized Gain
 
 
163 
 
148 
Unrealized Loss
 
 
 
Fair/Equity Basis - Long-Term Marketable Equity Securities
186 
 
186 
 
171 
La Zanja [Member] |
Long-term [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Equity Method Investments
72 
 
72 
 
57 
Current [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
236 
 
236 
 
24 
Unrealized Gain
 
 
36 
 
89 
Unrealized Loss
 
 
(69)
 
Long-term [Member]
 
 
 
 
 
Investment in Marketable Securities
 
 
 
 
 
Cost/Equity Basis
669 
 
669 
 
555 
Unrealized Gain
 
 
1,034 
 
1,021 
Unrealized Loss
 
 
(28)
 
(8)
Other Investments, at Cost
$ 9 
 
$ 9 
 
$ 11 
Inventories (Details) (USD $)
In Millions
Jun. 30, 2011
Dec. 31, 2010
Summary of Inventories
 
 
In-process
$ 101 
$ 142 
Concentrate
110 
111 
Precious metals
15 
Materials, supplies and other
445 
401 
Total Inventories
$ 671 
$ 658 
Stockpiles and Ore on Leach Pads (Details) (USD $)
In Millions
Jun. 30, 2011
Dec. 31, 2010
Current:
 
 
Stockpiles
$ 443 
$ 389 
Ore on leach pads
253 
228 
Total
696 
617 
Long-term:
 
 
Stockpiles
1,640 
1,397 
Ore On leach pads
310 
360 
Total
1,950 
1,757 
Stockpiles And Ore On Leach Pads Segment [Abstract]
 
 
Stockpiles and ore on leach pads
2,646 
2,374 
Nevada [Member]
 
 
Stockpiles And Ore On Leach Pads Segment [Abstract]
 
 
Stockpiles and ore on leach pads
497 
479 
La Herradura [Member]
 
 
Stockpiles And Ore On Leach Pads Segment [Abstract]
 
 
Stockpiles and ore on leach pads
Yanacocha [Member]
 
 
Stockpiles And Ore On Leach Pads Segment [Abstract]
 
 
Stockpiles and ore on leach pads
503 
496 
Boddington [Member]
 
 
Stockpiles And Ore On Leach Pads Segment [Abstract]
 
 
Stockpiles and ore on leach pads
357 
248 
Batu Hijau [Member]
 
 
Stockpiles And Ore On Leach Pads Segment [Abstract]
 
 
Stockpiles and ore on leach pads
995 
879 
Other Australia New Zealand [Member]
 
 
Stockpiles And Ore On Leach Pads Segment [Abstract]
 
 
Stockpiles and ore on leach pads
152 
145 
Ahafo [Member]
 
 
Stockpiles And Ore On Leach Pads Segment [Abstract]
 
 
Stockpiles and ore on leach pads
$ 133 
$ 121 
Other Assets (Details) (USD $)
In Millions
Jun. 30, 2011
Dec. 31, 2010
Other current assets:
 
 
Refinery metal inventory and receivable
$ 1,166 
$ 617 
Derivative instruments
226 
196 
Other prepaid assets
141 
65 
Other
80 
84 
Other current assets, total
1,613 
962 
Other long-term assets:
 
 
Goodwill
188 
188 
Income tax receivable
176 
119 
Derivative instruments
167 
116 
Intangible assets
151 
91 
Debt issuance costs
62 
39 
Restricted cash
26 
25 
Other receivables
19 
19 
Other
157 
144 
Other long-term assets, total
$ 946 
$ 741 
Debt (Details) (USD $)
In Millions
Jun. 30, 2011
Dec. 31, 2010
Jun. 30, 2011
Convertible Senior Notes Net Of Discount 2012 [Member]
Current [Member]
Dec. 31, 2010
Convertible Senior Notes Net Of Discount 2012 [Member]
Non-current [Member]
Jun. 30, 2011
Convertible Senior Notes Net Of Discount 2014 [Member]
Non-current [Member]
Dec. 31, 2010
Convertible Senior Notes Net Of Discount 2014 [Member]
Non-current [Member]
Jun. 30, 2011
Convertible Senior Notes Net Of Discount 2017 [Member]
Non-current [Member]
Dec. 31, 2010
Convertible Senior Notes Net Of Discount 2017 [Member]
Non-current [Member]
Jun. 30, 2011
Senior Notes Net Of Discount 2019 [Member]
Non-current [Member]
Dec. 31, 2010
Senior Notes Net Of Discount 2019 [Member]
Non-current [Member]
Jun. 30, 2011
Senior Notes Net Of Discount 2035 [Member]
Non-current [Member]
Dec. 31, 2010
Senior Notes Net Of Discount 2035 [Member]
Non-current [Member]
Jun. 30, 2011
Senior Notes Net Of Discount 2039 [Member]
Non-current [Member]
Dec. 31, 2010
Senior Notes Net Of Discount 2039 [Member]
Non-current [Member]
6 Months Ended
Jun. 30, 2011
Corporate [Member]
Jun. 30, 2011
Corporate [Member]
Non-current [Member]
Jun. 30, 2011
Corporate [Member]
Letter of Credit [Member]
6 Months Ended
Jun. 30, 2011
Batu Hijau [Member]
Jun. 30, 2011
Current [Member]
Dec. 31, 2010
Current [Member]
Jun. 30, 2011
Non-current [Member]
Dec. 31, 2010
Non-current [Member]
Debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sale-leaseback of refractory ore treatment plant
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ (28)
$ (30)
$ (106)
$ (134)
8 5/8% debentures, net of discount (due 2011)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
217 
 
 
Convertible senior notes, net of discount
 
 
501 
488 
500 
489 
443 
434 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior notes, net of discount
 
 
 
 
 
 
 
 
896 
896 
598 
598 
1,087 
1,087 
 
 
 
 
 
 
 
 
Revolving credit facility
 
 
 
 
 
 
 
 
 
 
 
 
 
 
90 
90 
239 
 
 
 
 
 
Ahafo project facility
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10 
10 
50 
55 
Other capital leases
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Debt Current
539 
259 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Debt Non-Current
3,771 
4,182 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt (Textuals)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt, Maturities, Repayments of Principal in Year Two
572 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt, Maturities, Repayments of Principal in Year Three
42 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt, Maturities, Repayments of Principal in Year Four
544 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt, Maturities, Repayments of Principal in Year Five
18 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt, Maturities, Repayments of Principal after Year Five
3,129 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility
 
 
 
 
 
 
 
 
 
 
 
 
 
 
90 
90 
239 
 
 
 
 
 
Borrowings outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 2,500 
 
 
$ 600 
 
 
 
 
Interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings under the facility currently bear interest at a rate per annum equal to LIBOR plus a margin of 1.075%. 
 
 
Borrowings under the facility bear interest at a rate per annum equal to LIBOR plus a margin of 4.00%. 
 
 
 
 
Commitment fees
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Facility fees currently accrue at an annual rate of 0.175% of the aggregate commitments. 
 
 
Commitment fees currently accrue on the daily average unused amount of the commitment of each lender at an annual rate of 2.00%. 
 
 
 
 
Other Liabilities (Details) (USD $)
In Millions
Jun. 30, 2011
Dec. 31, 2010
Other current liabilities:
 
 
Refinery metal payable
$ 1,166 
$ 617 
Accrued operating costs
249 
217 
Accrued capital expenditures
156 
83 
Taxes other than income and mining
105 
135 
Reclamation and remediation liabilities - current
62 
64 
Interest
57 
66 
Royalties
44 
90 
Boddington contingent consideration
42 
32 
Deferred income tax
18 
54 
Holt property royalty
14 
Other
85 
60 
Other current liabilities, total
1,998 
1,418 
Other long-term liabilities:
 
 
Holt property royalty
167 
40 
Power supply agreements
47 
45 
Income and mining taxes
29 
36 
Boddington contingent consideration
28 
51 
Other
43 
49 
Other long-term liabilities, total
$ 314 
$ 221 
Net Change in Operating Assets and Liabilities (Details) (USD $)
In Millions
6 Months Ended
Jun. 30,
2011
2010
Decrease (increase) in operating assets:
 
 
Trade and accounts receivable
$ 121 
$ 74 
Inventories, stockpiles and ore on leach pads
(230)
(187)
EGR refinery assets
(437)
138 
Other assets
(67)
(30)
Increase (decrease) in operating liabilities:
 
 
Accounts payable and other accrued liabilities
(349)
(90)
EGR refinery liabilities
437 
(138)
Reclamation liabilities
(15)
(18)
Net change in operating assets and liabilities
$ (540)
$ (251)
Supplemental Cash Flow Information (Details) (USD $)
In Millions
6 Months Ended
Jun. 30,
2011
2010
Supplemental Cash Flow Information (Details) [Abstract]
 
 
Income and mining taxes, net of refunds
$ 892 
$ 546 
Interest, net of amounts capitalized
$ 92 
$ 116 
Condensed Consolidating Financial Statements (Details) (USD $)
In Millions
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
12 Months Ended
Dec. 31, 2010
Condensed Consolidating Statement of Income
 
 
 
 
 
Sales
$ 2,384 
$ 2,153 
$ 4,849 
$ 4,395 
 
Costs and expenses
 
 
 
 
 
Costs applicable to sales
917 
848 
1,857 
1,717 
 
Amortization
250 
231 
506 
455 
 
Reclamation and remediation
43 
13 
57 
26 
 
Exploration
89 
53 
151 
96 
 
Advanced projects, research and development
86 
57 
154 
103 
 
General and administrative
50 
43 
95 
88 
 
Other expense, net
87 
61 
160 
150 
 
Total costs and expenses
1,522 
1,306 
2,980 
2,635 
 
Other income (expense)
 
 
 
 
 
Other income, net
48 
44 
79 
92 
 
Interest income-intercompany
 
Interest expense-intercompany
 
Interest expense, net
(63)
(69)
(128)
(144)
 
Total other income (expense)
(15)
(25)
(49)
(52)
 
Income before income and mining tax and other items
847 
822 
1,820 
1,708 
 
Income and mining tax expense
(187)
(283)
(492)
(424)
 
Equity income (loss) of affiliates
(2)
(4)
 
Income from continuing operations
660 
537 
1,330 
1,280 
 
Loss from discontinued operations
(136)
(136)
28 
Net income
524 
537 
1,194 
1,280 
 
Net income attributable to noncontrolling interests
(137)
(155)
(293)
(352)
 
Net income attributable to Newmont stockholders
387 
382 
901 
928 
 
Operating activities:
 
 
 
 
 
Net income
524 
537 
1,194 
1,280 
 
Adjustments
 
 
749 
452 
 
Net change in operating assets and liabilities
 
 
(540)
(251)
 
Net cash provided from continuing operations
 
 
1,403 
1,481 
 
Net cash used in discontinued operations
 
 
(2)
(13)
 
Net cash provided from operations
 
 
1,401 
1,468 
 
Investing activities:
 
 
 
 
 
Additions to property, plant and mine development
 
 
(1,020)
(628)
 
Proceeds from sale of marketable securities
 
 
55 
 
Purchases of marketable securities
 
 
(15)
(7)
 
Acquisitions, net
 
 
(2,291)
 
Proceeds from sale of other assets
 
 
52 
 
Other
 
 
(15)
(23)
 
Net cash used in investing activities
 
 
(3,280)
(605)
 
Financing activities:
 
 
 
 
 
Net (borrowings) repayments
 
 
(198)
(263)
 
Net intercompany borrowings (repayments)
 
 
 
Sale of noncontrolling interests
 
 
229 
 
Acquisition of noncontrolling interests
 
 
(109)
 
Dividends paid to common stockholders
 
 
(173)
(98)
 
Dividends paid to noncontrolling interests
 
 
(17)
(307)
 
Proceeds from stock issuance, net
 
 
30 
 
Change in restricted cash and other
 
 
48 
 
Net cash used in financing activities
 
 
(380)
(470)
 
Effect of exchange rate changes on cash
 
 
58 
(6)
 
Net change in cash and cash equivalents
 
 
(2,201)
387 
 
Cash and cash equivalents at beginning of period
 
 
4,056 
3,215 
3,215 
Cash and cash equivalents at end of period
1,855 
3,602 
1,855 
3,602 
4,056 
Assets
 
 
 
 
 
Cash and cash equivalents
1,855 
3,602 
1,855 
3,602 
4,056 
Trade receivables
418 
 
418 
 
582 
Accounts receivable
135 
 
135 
 
88 
Investments
203 
 
203 
 
113 
Inventories
671 
 
671 
 
658 
Stockpiles and ore on leach pads
696 
 
696 
 
617 
Deferred income tax assets
308 
 
308 
 
177 
Other current assets
1,613 
 
1,613 
 
962 
Current assets
5,899 
 
5,899 
 
7,253 
Property, plant and mine development, net
16,663 
 
16,663 
 
12,907 
Investments
1,675 
 
1,675 
 
1,568 
Investments in subsidiaries
 
 
Stockpiles and ore on leach pads
1,950 
 
1,950 
 
1,757 
Deferred income tax assets
1,505 
 
1,505 
 
1,437 
Other long-term assets
946 
 
946 
 
741 
Total assets
28,638 
 
28,638 
 
25,663 
Liabilities
 
 
 
 
 
Debt
539 
 
539 
 
259 
Accounts payable
490 
 
490 
 
427 
Employee-related benefits
229 
 
229 
 
288 
Income and mining taxes
184 
 
184 
 
355 
Other current liabilities
1,998 
 
1,998 
 
1,418 
Current liabilities
3,440 
 
3,440 
 
2,747 
Debt
3,771 
 
3,771 
 
4,182 
Reclamation and remediation liabilities
1,032 
 
1,032 
 
984 
Deferred income tax liabilities
2,735 
 
2,735 
 
1,488 
Employee-related benefits
353 
 
353 
 
325 
Other long-term liabilities
314 
 
314 
 
221 
Total liabilities
11,645 
 
11,645 
 
9,947 
Equity
 
 
 
 
 
Common stock
780 
 
780 
 
778 
Additional paid-in capital
8,330 
 
8,330 
 
8,279 
Accumulated other comprehensive income
1,310 
 
1,310 
 
1,108 
Retained earnings
3,908 
 
3,908 
 
3,180 
Newmont stockholders' equity
14,328 
 
14,328 
 
13,345 
Noncontrolling interests
2,665 
 
2,665 
 
2,371 
Total equity
16,993 
13,555 
16,993 
13,555 
15,716 
Total liabilities and equity
28,638 
 
28,638 
 
25,663 
Newmont Mining Corporation [Member]
 
 
 
 
 
Condensed Consolidating Statement of Income
 
 
 
 
 
Sales
 
Costs and expenses
 
 
 
 
 
Costs applicable to sales
 
Amortization
 
Reclamation and remediation
 
Exploration
 
Advanced projects, research and development
 
General and administrative
 
Other expense, net
 
Total costs and expenses
 
Other income (expense)
 
 
 
 
 
Other income, net
(2)
(8)
 
Interest income-intercompany
40 
35 
76 
71 
 
Interest expense-intercompany
(3)
(3)
(6)
(5)
 
Interest expense, net
(59)
(64)
(113)
(126)
 
Total other income (expense)
(24)
(32)
(51)
(60)
 
Income before income and mining tax and other items
(24)
(32)
(51)
(60)
 
Income and mining tax expense
15 
150 
 
Equity income (loss) of affiliates
406 
405 
937 
838 
 
Income from continuing operations
387 
 
901 
 
 
Loss from discontinued operations
 
 
 
Net income
387 
382 
901 
928 
 
Net income attributable to noncontrolling interests
 
Net income attributable to Newmont stockholders
387 
382 
901 
928 
 
Operating activities:
 
 
 
 
 
Net income
387 
382 
901 
928 
 
Adjustments
 
 
39 
(115)
 
Net change in operating assets and liabilities
 
 
(27)
(2)
 
Net cash provided from continuing operations
 
 
913 
811 
 
Net cash used in discontinued operations
 
 
 
Net cash provided from operations
 
 
913 
811 
 
Investing activities:
 
 
 
 
 
Additions to property, plant and mine development
 
 
 
Proceeds from sale of marketable securities
 
 
 
Purchases of marketable securities
 
 
 
Acquisitions, net
 
 
 
 
Proceeds from sale of other assets
 
 
 
Other
 
 
 
Net cash used in investing activities
 
 
 
Financing activities:
 
 
 
 
 
Net (borrowings) repayments
 
 
83 
 
Net intercompany borrowings (repayments)
 
 
(831)
(751)
 
Sale of noncontrolling interests
 
 
 
Acquisition of noncontrolling interests
 
 
 
 
Dividends paid to common stockholders
 
 
(173)
(98)
 
Dividends paid to noncontrolling interests
 
 
 
Proceeds from stock issuance, net
 
 
30 
 
Change in restricted cash and other
 
 
 
Net cash used in financing activities
 
 
(913)
(819)
 
Effect of exchange rate changes on cash
 
 
 
Net change in cash and cash equivalents
 
 
(8)
 
Cash and cash equivalents at beginning of period
 
 
Cash and cash equivalents at end of period
 
Assets
 
 
 
 
 
Cash and cash equivalents
 
Trade receivables
 
 
Accounts receivable
1,608 
 
1,608 
 
2,222 
Investments
141 
 
141 
 
Inventories
 
 
Stockpiles and ore on leach pads
 
 
Deferred income tax assets
 
 
Other current assets
 
 
Current assets
1,758 
 
1,758 
 
2,222 
Property, plant and mine development, net
 
 
Investments
 
 
Investments in subsidiaries
16,569 
 
16,569 
 
12,295 
Stockpiles and ore on leach pads
 
 
Deferred income tax assets
661 
 
661 
 
638 
Other long-term assets
2,617 
 
2,617 
 
2,675 
Total assets
21,605 
 
21,605 
 
17,830 
Liabilities
 
 
 
 
 
Debt
501 
 
501 
 
Accounts payable
3,008 
 
3,008 
 
355 
Employee-related benefits
 
 
Income and mining taxes
 
 
19 
Other current liabilities
66 
 
66 
 
56 
Current liabilities
3,575 
 
3,575 
 
430 
Debt
3,614 
 
3,614 
 
3,991 
Reclamation and remediation liabilities
 
 
Deferred income tax liabilities
 
 
Employee-related benefits
 
 
Other long-term liabilities
389 
 
389 
 
375 
Total liabilities
7,589 
 
7,589 
 
4,801 
Equity
 
 
 
 
 
Preferred stock
 
 
Common stock
780 
 
780 
 
778 
Additional paid-in capital
8,018 
 
8,018 
 
7,963 
Accumulated other comprehensive income
1,310 
 
1,310 
 
1,108 
Retained earnings
3,908 
 
3,908 
 
3,180 
Newmont stockholders' equity
14,016 
 
14,016 
 
13,029 
Noncontrolling interests
 
 
Total equity
14,016 
 
14,016 
 
13,029 
Total liabilities and equity
21,605 
 
21,605 
 
17,830 
Newmont USA [Member]
 
 
 
 
 
Condensed Consolidating Statement of Income
 
 
 
 
 
Sales
1,468 
1,410 
2,986 
3,002 
 
Costs and expenses
 
 
 
 
 
Costs applicable to sales
551 
519 
1,117 
1,064 
 
Amortization
156 
143 
315 
286 
 
Reclamation and remediation
37 
10 
48 
19 
 
Exploration
47 
32 
81 
56 
 
Advanced projects, research and development
41 
25 
68 
54 
 
General and administrative
39 
37 
73 
75 
 
Other expense, net
67 
39 
121 
115 
 
Total costs and expenses
938 
805 
1,823 
1,669 
 
Other income (expense)
 
 
 
 
 
Other income, net
41 
13 
67 
14 
 
Interest income-intercompany
 
Interest expense-intercompany
 
Interest expense, net
(3)
(4)
(12)
(16)
 
Total other income (expense)
40 
11 
59 
 
Income before income and mining tax and other items
570 
616 
1,222 
1,335 
 
Income and mining tax expense
(111)
(227)
(319)
(466)
 
Equity income (loss) of affiliates
 
Income from continuing operations
461 
 
906 
 
 
Loss from discontinued operations
 
 
 
Net income
468 
390 
913 
870 
 
Net income attributable to noncontrolling interests
(173)
(185)
(365)
(428)
 
Net income attributable to Newmont stockholders
295 
205 
548 
442 
 
Operating activities:
 
 
 
 
 
Net income
468 
390 
913 
870 
 
Adjustments
 
 
362 
319 
 
Net change in operating assets and liabilities
 
 
(509)
(160)
 
Net cash provided from continuing operations
 
 
766 
1,029 
 
Net cash used in discontinued operations
 
 
(13)
 
Net cash provided from operations
 
 
766 
1,016 
 
Investing activities:
 
 
 
 
 
Additions to property, plant and mine development
 
 
(671)
(283)
 
Proceeds from sale of marketable securities
 
 
55 
 
Purchases of marketable securities
 
 
 
Acquisitions, net
 
 
 
 
Proceeds from sale of other assets
 
 
(56)
 
Other
 
 
 
Net cash used in investing activities
 
 
(672)
(275)
 
Financing activities:
 
 
 
 
 
Net (borrowings) repayments
 
 
(276)
(257)
 
Net intercompany borrowings (repayments)
 
 
(2,018)
(23)
 
Sale of noncontrolling interests
 
 
229 
 
Acquisition of noncontrolling interests
 
 
 
 
Dividends paid to common stockholders
 
 
 
Dividends paid to noncontrolling interests
 
 
(17)
(388)
 
Proceeds from stock issuance, net
 
 
 
Change in restricted cash and other
 
 
48 
 
Net cash used in financing activities
 
 
(2,310)
(391)
 
Effect of exchange rate changes on cash
 
 
 
Net change in cash and cash equivalents
 
 
(2,215)
350 
 
Cash and cash equivalents at beginning of period
 
 
3,877 
3,067 
3,067 
Cash and cash equivalents at end of period
1,662 
3,417 
1,662 
3,417 
 
Assets
 
 
 
 
 
Cash and cash equivalents
1,662 
3,417 
1,662 
3,417 
 
Trade receivables
355 
 
355 
 
501 
Accounts receivable
2,497 
 
2,497 
 
802 
Investments
16 
 
16 
 
72 
Inventories
363 
 
363 
 
388 
Stockpiles and ore on leach pads
591 
 
591 
 
513 
Deferred income tax assets
254 
 
254 
 
170 
Other current assets
144 
 
144 
 
77 
Current assets
5,882 
 
5,882 
 
6,400 
Property, plant and mine development, net
5,687 
 
5,687 
 
5,364 
Investments
22 
 
22 
 
25 
Investments in subsidiaries
33 
 
33 
 
35 
Stockpiles and ore on leach pads
1,413 
 
1,413 
 
1,347 
Deferred income tax assets
685 
 
685 
 
690 
Other long-term assets
653 
 
653 
 
496 
Total assets
14,375 
 
14,375 
 
14,357 
Liabilities
 
 
 
 
 
Debt
28 
 
28 
 
249 
Accounts payable
920 
 
920 
 
1,269 
Employee-related benefits
159 
 
159 
 
222 
Income and mining taxes
15 
 
15 
 
261 
Other current liabilities
388 
 
388 
 
373 
Current liabilities
1,510 
 
1,510 
 
2,374 
Debt
107 
 
107 
 
135 
Reclamation and remediation liabilities
719 
 
719 
 
676 
Deferred income tax liabilities
554 
 
554 
 
513 
Employee-related benefits
255 
 
255 
 
244 
Other long-term liabilities
47 
 
47 
 
56 
Total liabilities
3,192 
 
3,192 
 
3,998 
Equity
 
 
 
 
 
Preferred stock
 
 
Common stock
 
 
Additional paid-in capital
2,721 
 
2,721 
 
2,722 
Accumulated other comprehensive income
(107)
 
(107)
 
(75)
Retained earnings
5,394 
 
5,394 
 
4,850 
Newmont stockholders' equity
8,008 
 
8,008 
 
7,497 
Noncontrolling interests
3,175 
 
3,175 
 
2,862 
Total equity
11,183 
 
11,183 
 
10,359 
Total liabilities and equity
14,375 
 
14,375 
 
14,357 
Other Subsidiaries [Member]
 
 
 
 
 
Condensed Consolidating Statement of Income
 
 
 
 
 
Sales
916 
743 
1,863 
1,393 
 
Costs and expenses
 
 
 
 
 
Costs applicable to sales
375 
335 
759 
664 
 
Amortization
94 
89 
191 
170 
 
Reclamation and remediation
 
Exploration
42 
21 
70 
40 
 
Advanced projects, research and development
46 
32 
87 
49 
 
General and administrative
 
Other expense, net
20 
21 
39 
35 
 
Total costs and expenses
584 
501 
1,157 
966 
 
Other income (expense)
 
 
 
 
 
Other income, net
31 
20 
78 
 
Interest income-intercompany
 
Interest expense-intercompany
(41)
(35)
(78)
(72)
 
Interest expense, net
(1)
(1)
(3)
(2)
 
Total other income (expense)
(31)
(4)
(57)
 
Income before income and mining tax and other items
301 
238 
649 
433 
 
Income and mining tax expense
(81)
(65)
(188)
(108)
 
Equity income (loss) of affiliates
50 
63 
139 
130 
 
Income from continuing operations
270 
 
600 
 
 
Loss from discontinued operations
(143)
 
(143)
 
 
Net income
127 
236 
457 
455 
 
Net income attributable to noncontrolling interests
30 
(10)
10 
(5)
 
Net income attributable to Newmont stockholders
157 
226 
467 
450 
 
Operating activities:
 
 
 
 
 
Net income
127 
236 
457 
455 
 
Adjustments
 
 
(729)
(725)
 
Net change in operating assets and liabilities
 
 
(4)
(89)
 
Net cash provided from continuing operations
 
 
(276)
(359)
 
Net cash used in discontinued operations
 
 
(2)
 
Net cash provided from operations
 
 
(278)
(359)
 
Investing activities:
 
 
 
 
 
Additions to property, plant and mine development
 
 
(349)
(345)
 
Proceeds from sale of marketable securities
 
 
 
Purchases of marketable securities
 
 
(15)
(7)
 
Acquisitions, net
 
 
(2,291)
 
 
Proceeds from sale of other assets
 
 
62 
44 
 
Other
 
 
(15)
(23)
 
Net cash used in investing activities
 
 
(2,608)
(330)
 
Financing activities:
 
 
 
 
 
Net (borrowings) repayments
 
 
(5)
(6)
 
Net intercompany borrowings (repayments)
 
 
2,849 
855 
 
Sale of noncontrolling interests
 
 
 
Acquisition of noncontrolling interests
 
 
 
(109)
 
Dividends paid to common stockholders
 
 
 
Dividends paid to noncontrolling interests
 
 
 
Proceeds from stock issuance, net
 
 
 
Change in restricted cash and other
 
 
(1)
 
Net cash used in financing activities
 
 
2,843 
740 
 
Effect of exchange rate changes on cash
 
 
57 
(6)
 
Net change in cash and cash equivalents
 
 
14 
45 
 
Cash and cash equivalents at beginning of period
 
 
179 
140 
140 
Cash and cash equivalents at end of period
193 
185 
193 
185 
 
Assets
 
 
 
 
 
Cash and cash equivalents
193 
185 
193 
185 
 
Trade receivables
63 
 
63 
 
81 
Accounts receivable
1,356 
 
1,356 
 
265 
Investments
46 
 
46 
 
41 
Inventories
308 
 
308 
 
270 
Stockpiles and ore on leach pads
105 
 
105 
 
104 
Deferred income tax assets
51 
 
51 
 
Other current assets
1,463 
 
1,463 
 
885 
Current assets
3,585 
 
3,585 
 
1,832 
Property, plant and mine development, net
10,997 
 
10,997 
 
7,562 
Investments
1,653 
 
1,653 
 
1,543 
Investments in subsidiaries
2,692 
 
2,692 
 
1,909 
Stockpiles and ore on leach pads
537 
 
537 
 
410 
Deferred income tax assets
159 
 
159 
 
109 
Other long-term assets
829 
 
829 
 
584 
Total assets
20,452 
 
20,452 
 
13,949 
Liabilities
 
 
 
 
 
Debt
10 
 
10 
 
10 
Accounts payable
1,877 
 
1,877 
 
1,996 
Employee-related benefits
70 
 
70 
 
66 
Income and mining taxes
169 
 
169 
 
75 
Other current liabilities
3,517 
 
3,517 
 
2,959 
Current liabilities
5,643 
 
5,643 
 
5,106 
Debt
50 
 
50 
 
56 
Reclamation and remediation liabilities
313 
 
313 
 
308 
Deferred income tax liabilities
2,175 
 
2,175 
 
975 
Employee-related benefits
93 
 
93 
 
76 
Other long-term liabilities
3,053 
 
3,053 
 
2,824 
Total liabilities
11,327 
 
11,327 
 
9,345 
Equity
 
 
 
 
 
Preferred stock
61 
 
61 
 
61 
Common stock
 
 
Additional paid-in capital
6,991 
 
6,991 
 
3,894 
Accumulated other comprehensive income
1,545 
 
1,545 
 
1,180 
Retained earnings
(637)
 
(637)
 
(1,109)
Newmont stockholders' equity
7,960 
 
7,960 
 
4,026 
Noncontrolling interests
1,165 
 
1,165 
 
578 
Total equity
9,125 
 
9,125 
 
4,604 
Total liabilities and equity
20,452 
 
20,452 
 
13,949 
Eliminations [Member]
 
 
 
 
 
Condensed Consolidating Statement of Income
 
 
 
 
 
Sales
 
Costs and expenses
 
 
 
 
 
Costs applicable to sales
(9)
(6)
(19)
(11)
 
Amortization
(1)
(1)
 
Reclamation and remediation
 
Exploration
 
Advanced projects, research and development
(1)
(1)
 
General and administrative
10 
20 
12 
 
Other expense, net
 
Total costs and expenses
 
Other income (expense)
 
 
 
 
 
Other income, net
 
Interest income-intercompany
(44)
(38)
(84)
(77)
 
Interest expense-intercompany
44 
38 
84 
77 
 
Interest expense, net
 
Total other income (expense)
 
Income before income and mining tax and other items
 
Income and mining tax expense
 
Equity income (loss) of affiliates
(458)
(471)
(1,077)
(973)
 
Income from continuing operations
(458)
 
(1,077)
 
 
Loss from discontinued operations
 
 
 
Net income
(458)
(471)
(1,077)
(973)
 
Net income attributable to noncontrolling interests
40 
62 
81 
 
Net income attributable to Newmont stockholders
(452)
(431)
(1,015)
(892)
 
Operating activities:
 
 
 
 
 
Net income
(458)
(471)
(1,077)
(973)
 
Adjustments
 
 
1,077 
973 
 
Net change in operating assets and liabilities
 
 
 
Net cash provided from continuing operations
 
 
 
Net cash used in discontinued operations
 
 
 
Net cash provided from operations
 
 
 
Investing activities:
 
 
 
 
 
Additions to property, plant and mine development
 
 
 
Proceeds from sale of marketable securities
 
 
 
Purchases of marketable securities
 
 
 
Acquisitions, net
 
 
 
 
Proceeds from sale of other assets
 
 
 
Other
 
 
 
Net cash used in investing activities
 
 
 
Financing activities:
 
 
 
 
 
Net (borrowings) repayments
 
 
 
Net intercompany borrowings (repayments)
 
 
(81)
 
Sale of noncontrolling interests
 
 
 
Acquisition of noncontrolling interests
 
 
 
 
Dividends paid to common stockholders
 
 
 
Dividends paid to noncontrolling interests
 
 
81 
 
Proceeds from stock issuance, net
 
 
 
Change in restricted cash and other
 
 
 
Net cash used in financing activities
 
 
 
Effect of exchange rate changes on cash
 
 
 
Net change in cash and cash equivalents
 
 
 
Cash and cash equivalents at beginning of period
 
 
Cash and cash equivalents at end of period
 
Assets
 
 
 
 
 
Cash and cash equivalents
 
Trade receivables
 
 
Accounts receivable
(5,326)
 
(5,326)
 
(3,201)
Investments
 
 
Inventories
 
 
Stockpiles and ore on leach pads
 
 
Deferred income tax assets
 
 
Other current assets
 
 
Current assets
(5,326)
 
(5,326)
 
(3,201)
Property, plant and mine development, net
(21)
 
(21)
 
(19)
Investments
 
 
Investments in subsidiaries
(19,294)
 
(19,294)
 
(14,239)
Stockpiles and ore on leach pads
 
 
Deferred income tax assets
 
 
Other long-term assets
(3,153)
 
(3,153)
 
(3,014)
Total assets
(27,794)
 
(27,794)
 
(20,473)
Liabilities
 
 
 
 
 
Debt
 
 
Accounts payable
(5,315)
 
(5,315)
 
(3,193)
Employee-related benefits
 
 
Income and mining taxes
 
 
Other current liabilities
(1,973)
 
(1,973)
 
(1,970)
Current liabilities
(7,288)
 
(7,288)
 
(5,163)
Debt
 
 
Reclamation and remediation liabilities
 
 
Deferred income tax liabilities
 
 
Employee-related benefits
 
 
Other long-term liabilities
(3,175)
 
(3,175)
 
(3,034)
Total liabilities
(10,463)
 
(10,463)
 
(8,197)
Equity
 
 
 
 
 
Preferred stock
(61)
 
(61)
 
(61)
Common stock
 
 
Additional paid-in capital
(9,400)
 
(9,400)
 
(6,300)
Accumulated other comprehensive income
(1,438)
 
(1,438)
 
(1,105)
Retained earnings
(4,757)
 
(4,757)
 
(3,741)
Newmont stockholders' equity
(15,656)
 
(15,656)
 
(11,207)
Noncontrolling interests
(1,675)
 
(1,675)
 
(1,069)
Total equity
(17,331)
 
(17,331)
 
(12,276)
Total liabilities and equity
$ (27,794)
 
$ (27,794)
 
$ (20,473)
Commitments and Contingencies (Details)
6 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
USD ($)
2011
PEN (S/.)
Dec. 31, 2010
USD ($)
Jun. 30, 2010
Mar. 31, 2009
Mar. 31, 2008
Mar. 31, 2007
Mar. 31, 2006
2011
Minimum royalty payable year one [Member]
USD ($)
2011
Minimum royalty payable year two [Member]
USD ($)
2011
Minimum royalty payable year three [Member]
USD ($)
2011
Minimum royalty payable year four [Member]
USD ($)
2011
Minimum royalty payable year five [Member]
USD ($)
2011
Minimum royalty payable thereafter [Member]
USD ($)
Jun. 30, 2011
Dawn [Member]
Jun. 30, 2011
NCC [Member]
Jun. 30, 2011
NUSA [Member]
Jun. 30, 2011
PTMDB [Member]
Jun. 30, 2011
PTNMR [Member]
2011
To PTPI From NIL NTMC [Member]
USD ($)
2011
To NVL From PTPI [Member]
USD ($)
Jun. 30, 2011
NWG Ownership In NewWest Gold [Member]
Jun. 30, 2011
Jacob Safra Ownership In NWG [Member]
Jun. 30, 2011
Fronteer Ownership In Aurora [Member]
Jun. 30, 2011
Yanacocha [Member]
Commitments and Contingencies (Textuals)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued for reclamation obligations relating to mineral properties
$ 922,000,000 
 
$ 904,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued reclamation operating costs current
43,000,000 
 
46,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued obligation associated with former, primarily historic, mining activities
172,000,000 
 
144,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Range of reclamation and remediation liabilities upper limit
137.00% 
137.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Range of reclamation and remediation liabilities lower limit
3.00% 
3.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ownership interest in subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
51.00% 
100.00% 
100.00% 
 
80.00% 
 
 
 
 
 
51.35% 
Expenses made by EPA on the Remedial Investigation/Feasibility Study
12,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assumed royalty obligations as a percent of net smelter returns from operations on the Holt Property
0.013% 
0.013% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Holt property sliding scale royalty percentage
0.013% 
0.013% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Holt property Barrick royalty
0.013% 
0.013% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grey Eagle EPA expenditures
3,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ross Adams US Forest Service expenditures
300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midnite Mine estimate of possible loss
150,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
20.00% 
20.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
86.00% 
100.00% 
42.00% 
 
Aggregate interest to be offered
31.00% 
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 
251,000,000 
 
 
 
 
 
 
 
 
 
 
 
Letters of Credit Surety Bonds and Bank Guarantees, outstanding
1,365,000,000 
 
1,191,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Legal damages
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 26,000,000 
$ 11,000,000 
 
 
 
 
Supplementary Data (Details)
Jun. 30, 2011
Supplementary Data (Textuals)
 
Ratio of earnings to fixed charges
12.9