Table of Contents

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form 10-Q
(Mark One)
 	 	 	
þ	 	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934	
For the Quarterly Period Ended March 31, 2011
or
 	 	 	
o	 	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934	
For the transition period from                      to                     
Commission File Number: 001-31240

NEWMONT MINING CORPORATION
(Exact name of registrant as specified in its charter)

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

Large accelerated filer þ	 	Accelerated filer o	 	Non-accelerated filer o	 	Smaller reporting company o	
 	 	 	 	(Do not check if a smaller reporting company.)	 	 	
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12-b2 of the Exchange Act). o Yes þ No
There were 487,086,394 shares of common stock outstanding on April 12, 2011 (and 6,603,235 exchangeable shares).

 

 

TABLE OF CONTENTS
 	 	 	 	 	
 	 	Page	 	
 	 	 	 	 	
PART I	
 	 	 	 	 	
ITEM 1. FINANCIAL STATEMENTS	 	 	1	 	
 	 	 	 	 	
Condensed Consolidated Statements of Income	 	 	1	 	
 	 	 	 	 	
Condensed Consolidated Statements of Cash Flows	 	 	2	 	
 	 	 	 	 	
Condensed Consolidated Balance Sheets	 	 	3	 	
 	 	 	 	 	
Notes to Condensed Consolidated Financial Statements	 	 	4	 	
 	 	 	 	 	
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	 	 	38	 	
 	 	 	 	 	
Overview	 	 	38	 	
 	 	 	 	 	
Selected Financial and Operating Results	 	 	40	 	
 	 	 	 	 	
Consolidated Financial Results	 	 	41	 	
 	 	 	 	 	
Results of Consolidated Operations	 	 	46	 	
 	 	 	 	 	
Liquidity and Capital Resources	 	 	49	 	
 	 	 	 	 	
Environmental	 	 	52	 	
 	 	 	 	 	
Accounting Developments	 	 	52	 	
 	 	 	 	 	
Non-GAAP Financial Measures	 	 	53	 	
 	 	 	 	 	
Safe Harbor Statement	 	 	55	 	
 	 	 	 	 	
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	 	 	56	 	
 	 	 	 	 	
ITEM 4. CONTROLS AND PROCEDURES	 	 	58	 	
 	 	 	 	 	
PART II	
 	 	 	 	 	
ITEM 1. LEGAL PROCEEDINGS	 	 	59	 	
 	 	 	 	 	
ITEM 1A. RISK FACTORS	 	 	59	 	
 	 	 	 	 	
ITEM 2. ISSUER PURCHASES OF EQUITY SECURITIES	 	 	59	 	
 	 	 	 	 	
ITEM 3. DEFAULTS UPON SENIOR SECURITIES	 	 	59	 	
 	 	 	 	 	
ITEM 5. OTHER INFORMATION	 	 	59	 	
 	 	 	 	 	
ITEM 6. EXHIBITS	 	 	59	 	
 	 	 	 	 	
SIGNATURES	 	 	60	 	
 	 	 	 	 	
EXHIBIT INDEX	 	 	62	 	
 	 	 	 	 	
  Exhibit 10.1	
  Exhibit 12.1	
  Exhibit 31.1	
  Exhibit 31.2	
  Exhibit 32.1	
  Exhibit 32.2	
  Exhibit 99.1	
  EX-101 INSTANCE DOCUMENT	
  EX-101 SCHEMA DOCUMENT	
  EX-101 CALCULATION LINKBASE DOCUMENT	
  EX-101 LABELS LINKBASE DOCUMENT	
  EX-101 PRESENTATION LINKBASE DOCUMENT	
  EX-101 DEFINITION LINKBASE DOCUMENT	

Table of Contents
PART I—FINANCIAL INFORMATION

ITEM 1.	 	FINANCIAL STATEMENTS.	
NEWMONT MINING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME 
(unaudited, in millions except per share)
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	
 	 	March 31,	 	
 	 	2011	 	 	2010	 	
 	 	 	 	 	 	 	 	 	
Sales (Note 3)	 	$	2,465	 	 	$	2,242	 	
 	 	 	 	 	 	 	 	 	
Costs and expenses	 	 	 	 	 	 	 	 	
Costs applicable to sales (1) (Note 3)	 	 	940	 	 	 	869	 	
Amortization (Note 3)	 	 	256	 	 	 	224	 	
Reclamation and remediation (Note 4)	 	 	14	 	 	 	13	 	
Exploration	 	 	62	 	 	 	43	 	
Advanced projects, research and development (Note 5)	 	 	68	 	 	 	46	 	
General and administrative	 	 	45	 	 	 	45	 	
Other expense, net (Note 6)	 	 	73	 	 	 	89	 	
 	 	 	 	 	 	 	
 	 	 	1,458	 	 	 	1,329	 	

Other income (expense)	 	 	 	 	 	 	 	 	
Other income, net (Note 7)	 	 	31	 	 	 	48	 	
Interest expense, net	 	 	(65	)	 	 	(75	)	
 	 	 	 	 	 	 	
 	 	 	(34	)	 	 	(27	)	
 	 	 	 	 	 	 	
Income before income and mining tax and other items	 	 	973	 	 	 	886	 	
Income and mining tax expense (Note 10)	 	 	(305	)	 	 	(141	)	
Equity income (loss) of affiliates	 	 	2	 	 	 	(2	)	
 	 	 	 	 	 	 	
Net income	 	 	670	 	 	 	743	 	
Net income attributable to noncontrolling interests (Note 11)	 	 	(156	)	 	 	(197	)	
 	 	 	 	 	 	 	
Net income attributable to Newmont stockholders	 	$	514	 	 	$	546	 	

Income per common share (Note 12)	 	 	 	 	 	 	 	 	
Basic	 	$	1.04	 	 	$	1.11	 	
Diluted	 	$	1.03	 	 	$	1.11	 	
 	 	 	 	 	 	 	 	 	
Cash dividends declared per common share	 	$	0.15	 	 	$	0.10	 	

			
(1)	 	Excludes Amortization and Reclamation and remediation .	
The accompanying notes are an integral part of the condensed consolidated financial statements.
 
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Table of Contents

NEWMONT MINING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
(unaudited, in millions)
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	
 	 	March 31,	 	
 	 	2011	 	 	2010	 	
Operating activities:	 	 	 	 	 	 	 	 	
Net income	 	$	670	 	 	$	743	 	
Adjustments:	 	 	 	 	 	 	 	 	
Amortization	 	 	256	 	 	 	224	 	
Reclamation and remediation	 	 	14	 	 	 	13	 	
Deferred income taxes	 	 	(33	)	 	 	(102	)	
Stock based compensation and other non-cash benefits	 	 	19	 	 	 	18	 	
Other operating adjustments and write-downs	 	 	42	 	 	 	5	 	
Net change in operating assets and liabilities (Note 23)	 	 	21	 	 	 	(173	)	
 	 	 	 	 	 	 	
Net cash provided from continuing operations	 	 	989	 	 	 	728	 	
Net cash used in discontinued operations	 	 	—	 	 	 	(13	)	
 	 	 	 	 	 	 	
Net cash provided from operations	 	 	989	 	 	 	715	 	
 	 	 	 	 	 	 	
Investing activities:	 	 	 	 	 	 	 	 	
Additions to property, plant and mine development	 	 	(402	)	 	 	(309	)	
Purchases of marketable securities	 	 	(12	)	 	 	(3	)	
Acquisitions, net	 	 	(7	)	 	 	—	 	
Proceeds from sale of other assets	 	 	6	 	 	 	38	 	
Other	 	 	(3	)	 	 	(11	)	
 	 	 	 	 	 	 	
Net cash used in investing activities	 	 	(418	)	 	 	(285	)	
 	 	 	 	 	 	 	
Financing activities:	 	 	 	 	 	 	 	 	
Repayment of debt	 	 	(31	)	 	 	(250	)	
Sale of subsidiary shares to noncontrolling interests	 	 	—	 	 	 	229	 	
Acquisition of subsidiary shares from noncontrolling interests	 	 	—	 	 	 	(39	)	
Dividends paid to common stockholders	 	 	(74	)	 	 	(49	)	
Dividends paid to noncontrolling interests	 	 	(15	)	 	 	(220	)	
Proceeds from stock issuance, net	 	 	3	 	 	 	3	 	
Change in restricted cash and other	 	 	—	 	 	 	46	 	
 	 	 	 	 	 	 	
Net cash used in financing activities	 	 	(117	)	 	 	(280	)	
 	 	 	 	 	 	 	
Effect of exchange rate changes on cash	 	 	23	 	 	 	(1	)	
 	 	 	 	 	 	 	
Net change in cash and cash equivalents	 	 	477	 	 	 	149	 	
Cash and cash equivalents at beginning of period	 	 	4,056	 	 	 	3,215	 	
 	 	 	 	 	 	 	
Cash and cash equivalents at end of period	 	$	4,533	 	 	$	3,364	 	
 	 	 	 	 	 	 	
The accompanying notes are an integral part of the condensed consolidated financial statements.
 
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Table of Contents

NEWMONT MINING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS 
(unaudited, in millions)
 	 	 	 	 	 	 	 	 	
 	 	At March 31,	 	 	At December 31,	 	
 	 	2011	 	 	2010	 	
ASSETS	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	$	4,533	 	 	$	4,056	 	
Trade receivables	 	 	439	 	 	 	582	 	
Accounts receivable	 	 	113	 	 	 	88	 	
Investments (Note 17)	 	 	129	 	 	 	113	 	
Inventories (Note 18)	 	 	607	 	 	 	658	 	
Stockpiles and ore on leach pads (Note 19)	 	 	657	 	 	 	617	 	
Deferred income tax assets	 	 	178	 	 	 	177	 	
Other current assets (Note 20)	 	 	1,228	 	 	 	962	 	
 	 	 	 	 	 	 	
Current assets	 	 	7,884	 	 	 	7,253	 	
Property, plant and mine development, net	 	 	13,074	 	 	 	12,907	 	
Investments (Note 17)	 	 	1,779	 	 	 	1,568	 	
Stockpiles and ore on leach pads (Note 19)	 	 	1,846	 	 	 	1,757	 	
Deferred income tax assets	 	 	1,456	 	 	 	1,437	 	
Other long-term assets (Note 20)	 	 	815	 	 	 	741	 	
 	 	 	 	 	 	 	
Total assets	 	$	26,854	 	 	$	25,663	 	
 	 	 	 	 	 	 	
LIABILITIES	 	 	 	 	 	 	 	 	
Debt (Note 21)	 	$	754	 	 	$	259	 	
Accounts payable	 	 	420	 	 	 	427	 	
Employee-related benefits	 	 	240	 	 	 	288	 	
Income and mining taxes	 	 	474	 	 	 	355	 	
Other current liabilities (Note 22)	 	 	1,613	 	 	 	1,418	 	
 	 	 	 	 	 	 	
Current liabilities	 	 	3,501	 	 	 	2,747	 	
Debt (Note 21)	 	 	3,676	 	 	 	4,182	 	
Reclamation and remediation liabilities (Note 4)	 	 	993	 	 	 	984	 	
Deferred income tax liabilities	 	 	1,531	 	 	 	1,488	 	
Employee-related benefits	 	 	336	 	 	 	325	 	
Other long-term liabilities (Note 22)	 	 	196	 	 	 	221	 	
 	 	 	 	 	 	 	
Total liabilities	 	 	10,233	 	 	 	9,947	 	
 	 	 	 	 	 	 	
Commitments and contingencies (Note 26)	 	 	 	 	 	 	 	 	
EQUITY	 	 	 	 	 	 	 	 	
Common stock	 	 	779	 	 	 	778	 	
Additional paid-in capital	 	 	8,304	 	 	 	8,279	 	
Accumulated other comprehensive income	 	 	1,389	 	 	 	1,108	 	
Retained earnings	 	 	3,620	 	 	 	3,180	 	
 	 	 	 	 	 	 	
Newmont stockholders’ equity	 	 	14,092	 	 	 	13,345	 	
Noncontrolling interests	 	 	2,529	 	 	 	2,371	 	
 	 	 	 	 	 	 	
Total equity	 	 	16,621	 	 	 	15,716	 	
 	 	 	 	 	 	 	
Total liabilities and equity	 	$	26,854	 	 	$	25,663	 	
 	 	 	 	 	 	 	
The accompanying notes are an integral part of the condensed consolidated financial statements.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 1 BASIS OF PRESENTATION
The interim Condensed Consolidated Financial Statements (“interim statements”) of Newmont Mining Corporation and its subsidiaries (collectively, “Newmont” or the “Company”) are unaudited. In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these interim statements have been included. The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year. These interim statements should be read in conjunction with Newmont’s Consolidated Financial Statements for the year ended December 31, 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.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Recently Adopted Accounting Pronouncements
Business Combinations
In December 2010, the 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 15 for further details regarding the Company’s assets and liabilities measured at fair value.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 3 SEGMENT INFORMATION
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Costs	 	 	 	 	 	 	Advanced	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Applicable to	 	 	 	 	 	 	Projects and	 	 	Pre-Tax	 	 	Total	 	 	Capital	 	
 	 	Sales	 	 	Sales	 	 	Amortization	 	 	Exploration	 	 	Income	 	 	Assets	 	 	Expenditures (1)	 	
Three Months Ended March 31, 2011	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Nevada	 	$	582	 	 	$	272	 	 	$	72	 	 	$	17	 	 	$	216	 	 	$	3,414	 	 	$	95	 	
La Herradura	 	 	65	 	 	 	18	 	 	 	4	 	 	 	6	 	 	 	36	 	 	 	254	 	 	 	16	 	
Hope Bay	 	 	—	 	 	 	—	 	 	 	3	 	 	 	44	 	 	 	(48	)	 	 	2,259	 	 	 	19	 	
Other North America	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(2	)	 	 	125	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
North America	 	 	647	 	 	 	290	 	 	 	79	 	 	 	67	 	 	 	202	 	 	 	6,052	 	 	 	130	 	

Yanacocha	 	 	362	 	 	 	153	 	 	 	53	 	 	 	6	 	 	 	149	 	 	 	2,677	 	 	 	41	 	
Other South America	 	 	—	 	 	 	—	 	 	 	—	 	 	 	10	 	 	 	(10	)	 	 	371	 	 	 	64	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
South America	 	 	362	 	 	 	153	 	 	 	53	 	 	 	16	 	 	 	139	 	 	 	3,048	 	 	 	105	 	

Boddington:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gold	 	 	232	 	 	 	100	 	 	 	28	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Copper	 	 	53	 	 	 	28	 	 	 	7	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	285	 	 	 	128	 	 	 	35	 	 	 	1	 	 	 	104	 	 	 	4,393	 	 	 	49	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Batu Hijau:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gold	 	 	140	 	 	 	34	 	 	 	7	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Copper	 	 	369	 	 	 	89	 	 	 	20	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	509	 	 	 	123	 	 	 	27	 	 	 	—	 	 	 	323	 	 	 	3,627	 	 	 	40	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Australia/New Zealand	 	 	415	 	 	 	166	 	 	 	35	 	 	 	12	 	 	 	197	 	 	 	1,049	 	 	 	62	 	
Other Asia Pacific	 	 	—	 	 	 	—	 	 	 	1	 	 	 	1	 	 	 	—	 	 	 	548	 	 	 	2	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asia Pacific	 	 	1,209	 	 	 	417	 	 	 	98	 	 	 	14	 	 	 	624	 	 	 	9,617	 	 	 	153	 	

Ahafo	 	 	247	 	 	 	80	 	 	 	22	 	 	 	7	 	 	 	136	 	 	 	1,049	 	 	 	15	 	
Other Africa	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	(2	)	 	 	316	 	 	 	28	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Africa	 	 	247	 	 	 	80	 	 	 	22	 	 	 	8	 	 	 	134	 	 	 	1,365	 	 	 	43	 	

Corporate and Other	 	 	—	 	 	 	—	 	 	 	4	 	 	 	25	 	 	 	(126	)	 	 	6,772	 	 	 	14	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated	 	$	2,465	 	 	$	940	 	 	$	256	 	 	$	130	 	 	$	973	 	 	$	26,854	 	 	$	445	 	

			
(1)	 	Includes an increase in accrued capital expenditures of $43; consolidated capital expenditures on a cash basis were $402.	
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Costs	 	 	 	 	 	 	Advanced	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Applicable to	 	 	 	 	 	 	Projects and	 	 	Pre-Tax	 	 	Total	 	 	Capital	 	
 	 	Sales	 	 	Sales	 	 	Amortization	 	 	Exploration	 	 	Income	 	 	Assets	 	 	Expenditures (1)	 	
Three Months Ended March 31, 2010	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Nevada	 	$	468	 	 	$	252	 	 	$	62	 	 	$	17	 	 	$	126	 	 	$	3,250	 	 	$	48	 	
La Herradura	 	 	44	 	 	 	14	 	 	 	4	 	 	 	1	 	 	 	25	 	 	 	155	 	 	 	14	 	
Hope Bay	 	 	—	 	 	 	—	 	 	 	3	 	 	 	17	 	 	 	(20	)	 	 	1,965	 	 	 	9	 	
Other North America	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(1	)	 	 	55	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
North America	 	 	512	 	 	 	266	 	 	 	69	 	 	 	35	 	 	 	130	 	 	 	5,425	 	 	 	71	 	

Yanacocha	 	 	460	 	 	 	154	 	 	 	37	 	 	 	7	 	 	 	243	 	 	 	2,501	 	 	 	40	 	
Other South America	 	 	—	 	 	 	—	 	 	 	—	 	 	 	5	 	 	 	(5	)	 	 	145	 	 	 	17	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
South America	 	 	460	 	 	 	154	 	 	 	37	 	 	 	12	 	 	 	238	 	 	 	2,646	 	 	 	57	 	

Boddington	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gold	 	 	167	 	 	 	80	 	 	 	22	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Copper	 	 	38	 	 	 	24	 	 	 	6	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	205	 	 	 	104	 	 	 	28	 	 	 	1	 	 	 	68	 	 	 	4,108	 	 	 	48	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Batu Hijau:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gold	 	 	165	 	 	 	34	 	 	 	10	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Copper	 	 	455	 	 	 	91	 	 	 	27	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	620	 	 	 	125	 	 	 	37	 	 	 	—	 	 	 	407	 	 	 	2,988	 	 	 	28	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Australia/New Zealand	 	 	314	 	 	 	156	 	 	 	31	 	 	 	5	 	 	 	126	 	 	 	864	 	 	 	36	 	
Other Asia Pacific	 	 	—	 	 	 	—	 	 	 	1	 	 	 	5	 	 	 	17	 	 	 	314	 	 	 	2	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asia Pacific	 	 	1,139	 	 	 	385	 	 	 	97	 	 	 	11	 	 	 	618	 	 	 	8,274	 	 	 	114	 	

Ahafo	 	 	131	 	 	 	64	 	 	 	17	 	 	 	3	 	 	 	42	 	 	 	981	 	 	 	21	 	
Other Africa	 	 	—	 	 	 	—	 	 	 	—	 	 	 	4	 	 	 	(4	)	 	 	214	 	 	 	6	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Africa	 	 	131	 	 	 	64	 	 	 	17	 	 	 	7	 	 	 	38	 	 	 	1,195	 	 	 	27	 	

Corporate and Other	 	 	—	 	 	 	—	 	 	 	4	 	 	 	24	 	 	 	(138	)	 	 	5,105	 	 	 	3	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated	 	$	2,242	 	 	$	869	 	 	$	224	 	 	$	89	 	 	$	886	 	 	$	22,645	 	 	$	272	 	

			
(1)	 	Includes a decrease in accrued capital expenditures of $37; consolidated capital expenditures on a cash basis were $309.	
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 4 RECLAMATION AND REMEDIATION
At March 31, 2011 and December 31, 2010, $913 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 March 31, 2011 and December 31, 2010, $142 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:
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	
Balance at beginning of period	 	$	1,048	 	 	$	859	 	
Additions, changes in estimates and other	 	 	1	 	 	 	(3	)	
Liabilities settled	 	 	(8	)	 	 	(8	)	
Accretion expense	 	 	14	 	 	 	13	 	
 	 	 	 	 	 	 	
Balance at end of period	 	$	1,055	 	 	$	861	 	
 	 	 	 	 	 	 	
The current portion of Reclamation and remediation liabilities of $62 and $64 at March 31, 2011 and December 31, 2010, respectively, are included in Other current liabilities (see Note 22).
The Company’s reclamation and remediation expenses consisted of:
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	
Accretion — operating	 	$	12	 	 	$	11	 	
Accretion — non-operating	 	 	2	 	 	 	2	 	
 	 	 	 	 	 	 	
 	 	$	14	 	 	$	13	 	
 	 	 	 	 	 	 	
NOTE 5 ADVANCED PROJECTS, RESEARCH AND DEVELOPMENT
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	
Major projects:	 	 	 	 	 	 	 	 	
Hope Bay	 	$	38	 	 	$	10	 	
Conga	 	 	1	 	 	 	1	 	
Akyem	 	 	—	 	 	 	3	 	
Other projects:	 	 	 	 	 	 	 	 	
Technical and project services	 	 	15	 	 	 	12	 	
Corporate	 	 	3	 	 	 	12	 	
Other	 	 	11	 	 	 	8	 	
 	 	 	 	 	 	 	
 	 	$	68	 	 	$	46	 	

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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 6 OTHER EXPENSE, NET
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	
Indonesian value added tax settlement	 	$	21	 	 	$	—	 	
Community development	 	 	17	 	 	 	55	 	
Regional administration	 	 	16	 	 	 	13	 	
Western Australia power plant	 	 	4	 	 	 	6	 	
World Gold Council dues	 	 	2	 	 	 	3	 	
Other	 	 	13	 	 	 	12	 	
 	 	 	 	 	 	 	
 	 	$	73	 	 	$	89	 	
 	 	 	 	 	 	 	
NOTE 7 OTHER INCOME, NET
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	
Income from developing projects, net	 	$	24	 	 	$	—	 	
Canadian Oil Sands distributions	 	 	6	 	 	 	10	 	
Interest income	 	 	4	 	 	 	3	 	
Gain on asset sales, net	 	 	3	 	 	 	33	 	
Foreign currency exchange losses, net	 	 	(11	)	 	 	(9	)	
Other	 	 	5	 	 	 	11	 	
 	 	 	 	 	 	 	
 	 	$	31	 	 	$	48	 	
 	 	 	 	 	 	 	
NOTE 8 EMPLOYEE PENSION AND OTHER BENEFIT PLANS
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	
Pension benefit costs, net	 	 	 	 	 	 	 	 	
Service cost	 	$	6	 	 	$	5	 	
Interest cost	 	 	10	 	 	 	9	 	
Expected return on plan assets	 	 	(10	)	 	 	(7	)	
Amortization, net	 	 	5	 	 	 	4	 	
 	 	 	 	 	 	 	
 	 	$	11	 	 	$	11	 	

 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	
Other benefit costs, net	 	 	 	 	 	 	 	 	
Service cost	 	$	1	 	 	$	1	 	
Interest cost	 	 	1	 	 	 	1	 	
 	 	 	 	 	 	 	
 	 	$	2	 	 	$	2	 	

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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 9 STOCK BASED COMPENSATION
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	
Stock options	 	$	3	 	 	$	3	 	
Restricted stock units	 	 	7	 	 	 	4	 	
Performance leveraged stock units	 	 	2	 	 	 	3	 	
Common stock	 	 	1	 	 	 	1	 	
Restricted stock	 	 	—	 	 	 	1	 	
Deferred stock	 	 	2	 	 	 	2	 	
 	 	 	 	 	 	 	
 	 	$	15	 	 	$	14	 	
 	 	 	 	 	 	 	
NOTE 10 INCOME AND MINING TAXES
During the first quarter of 2011, the Company recorded estimated income and mining tax expense of $305 resulting in an effective tax rate of 31%. Estimated income and mining tax expense during the first quarter of 2010 was $141 for an effective tax rate of 16%. The lower effective tax rate in 2010 resulted from a tax benefit of $127 recorded in connection with the 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. Aside from the above mentioned 2010 transaction, the effective tax rates in the first quarter of 2011 and 2010 are different from the United States statutory rate of 35% primarily due to the U.S. percentage depletion deduction.
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 March 31, 2011, the Company’s total unrecognized tax benefit was $128 for uncertain income tax positions taken or expected to be taken on income tax returns. Of this, $37 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.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
The Company’s 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 March 31,	 	
 	 	2011	 	 	2010	 	
Income before income and mining tax and other items	 	$	973	 	 	$	886	 	
United States statutory corporate income tax rate	 	 	35	%	 	 	35	%	
 	 	 	 	 	 	 	
Income and mining tax expense computed at United States statutory corporate income tax rate	 	 	(341	)	 	 	(310	)	
Reconciling items:	 	 	 	 	 	 	 	 	
Tax benefit generated on change in form of a non- U.S. subsidiary	 	 	—	 	 	 	127	 	
Percentage depletion	 	 	55	 	 	 	33	 	
Other	 	 	(19	)	 	 	9	 	
 	 	 	 	 	 	 	
Income and mining tax expense	 	$	(305	)	 	$	(141	)	
 	 	 	 	 	 	 	
NOTE 11 NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	
Batu Hijau	 	$	102	 	 	$	118	 	
Yanacocha	 	 	56	 	 	 	80	 	
Other	 	 	(2	)	 	 	(1	)	
 	 	 	 	 	 	 	
 	 	$	156	 	 	$	197	 	
 	 	 	 	 	 	 	
In June 2010, PT Pakuafu Indah (“PTPI”), an unrelated noncontrolling partner of PT Newmont Nusa Tenggara (“PTNNT”), completed the sale of a 2.2% interest in PTNNT to PT Indonesia Masbaga Investama (“PTIMI”). To enable the transaction to proceed, the Company released its rights to the dividends payable on this 2.2% interest and released the security interest in the associated shares. The Company further agreed to advance certain funds to PTIMI to enable it to purchase the interest in exchange for an assignment by PTIMI to the Company of the dividends payable on the 2.2% interest (net of withholding tax), a pledge of the shares as security on the advance, and certain voting rights and obligations. The funds that the Company advanced to PTIMI and which it paid to PTPI for the shares were used by PTPI to reduce its outstanding balance with the Company. Upon completion of this transaction, PTPI requested and was allowed to borrow additional funds under the Company’s agreement with PTPI. The Company’s economic interest in PTPI’s and PTIMI’s combined 20% interest in PTNNT remains at 17% and has not changed as a result of these transactions.
In March 2010, the Company, through Nusa Tengarra Partnership (“NTP”), a partnership between Newmont and an affiliate of Sumitomo, completed the sale and transfer of shares for a 7% interest in PTNNT, to PT Multi Daerah Bersaing (“PTMDB”) in compliance with divestiture obligations under the Contract of Work, reducing NTP’s ownership interest to 56% from 63%. The 2010 share transfers resulted in gains of approximately $15 (after tax of $34) that were recorded as Additional paid-in capital . For information on the Batu Hijau Contract of Work and divestiture requirements, see the discussion in Note 26 to the Condensed Consolidated Financial Statements.
At March 31, 2011, Newmont had a 48.5% effective economic interest in PTNNT. 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%).
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 12 INCOME PER COMMON SHARE
Basic income per common share is computed by dividing income available to Newmont common stockholders by the weighted average number of common shares outstanding during the period. Diluted income per common share is computed similarly to basic income per common share except that weighted average common shares is increased to include the potential issuance of dilutive common shares.
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	
 	 	 	 	 	 	 	 	 	
Net income attributable to Newmont stockholders	 	$	514	 	 	$	546	 	
 	 	 	 	 	 	 	 	 	
Weighted average common shares (millions):	 	 	 	 	 	 	 	 	
Basic	 	 	493	 	 	 	491	 	
Effect of employee stock-based awards	 	 	2	 	 	 	1	 	
Effect of convertible notes	 	 	6	 	 	 	1	 	
 	 	 	 	 	 	 	
Diluted	 	 	501	 	 	 	493	 	

Net income attributable to Newmont stockholders per common share	 	 	 	 	 	 	 	 	
Basic	 	$	1.04	 	 	$	1.11	 	
Diluted	 	$	1.03	 	 	$	1.11	 	
Options to purchase 2 and 1 million shares of common stock at average exercise prices of $57 and $55 were outstanding at March 31, 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 $46.13 and $46.09, 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 months ended March 31, 2011 exceeded the conversion price of $46.13 and $46.09 for the notes issued in 2009 and 2007, respectively, and therefore, 6 million additional shares were included in the computation of diluted weighted average common shares for the three months ended March 31, 2011.
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 $46.09 was effectively increased to $60.11. Should the warrant transactions become dilutive to the Company’s earnings per share (Newmont’s average share price exceeds $60.11) the effect of the warrant transactions on diluted earnings per share will be calculated in accordance with the net share settlement method.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
The Net income attributable to Newmont stockholders and transfers from noncontrolling interests was:
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	
 	 	 	 	 	 	 	 	 	
Net income attributable to Newmont stockholders	 	$	514	 	 	$	546	 	
Transfers from noncontrolling interests:	 	 	 	 	 	 	 	 	
Increase in Additional paid in capital from sale of PTNNT shares, net of tax of $34	 	 	—	 	 	 	15	 	
 	 	 	 	 	 	 	
Net income attributable to Newmont stockholders and transfers from noncontrolling interests	 	$	514	 	 	$	561	 	
 	 	 	 	 	 	 	
NOTE 13 COMPREHENSIVE INCOME
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	
 	 	 	 	 	 	 	 	 	
Net income	 	$	670	 	 	$	743	 	
Other comprehensive income, net of tax:	 	 	 	 	 	 	 	 	
Unrealized gain on marketable securities	 	 	168	 	 	 	49	 	
Foreign currency translation adjustments	 	 	89	 	 	 	56	 	
Pension and other benefit liability adjustments	 	 	4	 	 	 	2	 	
Change in fair value of cash flow hedge instruments:	 	 	 	 	 	 	 	 	
Net change from periodic revaluations	 	 	55	 	 	 	29	 	
Net amount reclassified to income	 	 	(33	)	 	 	(19	)	
 	 	 	 	 	 	 	
Net unrecognized gain on derivatives	 	 	22	 	 	 	10	 	
 	 	 	 	 	 	 	
 	 	 	283	 	 	 	117	 	
 	 	 	 	 	 	 	
Comprehensive income	 	$	953	 	 	$	860	 	

Comprehensive income attributable to:	 	 	 	 	 	 	 	 	
Newmont stockholders	 	$	795	 	 	$	663	 	
Noncontrolling interests	 	 	158	 	 	 	197	 	
 	 	 	 	 	 	 	
 	 	$	953	 	 	$	860	 	

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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 14 CHANGES IN EQUITY
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	
Common stock:	 	 	 	 	 	 	 	 	
At beginning of period	 	$	778	 	 	$	770	 	
Stock based awards	 	 	1	 	 	 	1	 	
Shares issued in exchange for exchangeable shares	 	 	—	 	 	 	2	 	
 	 	 	 	 	 	 	
At end of period	 	 	779	 	 	 	773	 	

Additional paid-in capital:	 	 	 	 	 	 	 	 	
At beginning of period	 	 	8,279	 	 	 	8,158	 	
Stock based awards	 	 	25	 	 	 	17	 	
Shares issued in exchange for exchangeable shares	 	 	—	 	 	 	(2	)	
Sale of subsidiary shares to noncontrolling interests	 	 	—	 	 	 	15	 	
 	 	 	 	 	 	 	
At end of period	 	 	8,304	 	 	 	8,188	 	

Accumulated other comprehensive income:	 	 	 	 	 	 	 	 	
At beginning of period	 	 	1,108	 	 	 	626	 	
Other comprehensive income	 	 	281	 	 	 	117	 	
 	 	 	 	 	 	 	
At end of period	 	 	1,389	 	 	 	743	 	

Retained earnings:	 	 	 	 	 	 	 	 	
At beginning of period	 	 	3,180	 	 	 	1,149	 	
Net income attributable to Newmont stockholders	 	 	514	 	 	 	546	 	
Dividends paid	 	 	(74	)	 	 	(49	)	
 	 	 	 	 	 	 	
At end of period	 	 	3,620	 	 	 	1,646	 	

Noncontrolling interests:	 	 	 	 	 	 	 	 	
At beginning of period	 	 	2,371	 	 	 	1,910	 	
Net income attributable to noncontrolling interests	 	 	156	 	 	 	197	 	
Dividends paid	 	 	—	 	 	 	(220	)	
Other comprehensive income	 	 	2	 	 	 	—	 	
Sale of subsidiary shares to noncontrolling interests, net	 	 	—	 	 	 	168	 	
 	 	 	 	 	 	 	
At end of period	 	 	2,529	 	 	 	2,055	 	
 	 	 	 	 	 	 	
Total equity	 	$	16,621	 	 	$	13,405	 	

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Table of Contents
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 15 FAIR VALUE ACCOUNTING
Fair value accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:

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

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

 	Level 3	 	Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).	
The following table sets forth the Company’s assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Fair Value at March 31, 2011	 	
 	 	Total	 	 	Level 1	 	 	Level 2	 	 	Level 3	 	
Assets:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash equivalents	 	$	2,022	 	 	$	2,022	 	 	$	—	 	 	$	—	 	
Marketable equity securities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Extractive industries	 	 	1,796	 	 	 	1,796	 	 	 	—	 	 	 	—	 	
Other	 	 	6	 	 	 	6	 	 	 	—	 	 	 	—	 	
Marketable debt securities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asset backed commercial paper	 	 	20	 	 	 	—	 	 	 	—	 	 	 	20	 	
Corporate	 	 	11	 	 	 	11	 	 	 	—	 	 	 	—	 	
Auction rate securities	 	 	5	 	 	 	—	 	 	 	—	 	 	 	5	 	
Trade receivable from provisional copper and gold concentrate sales, net	 	 	342	 	 	 	342	 	 	 	—	 	 	 	—	 	
Derivative instruments, net:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Foreign exchange forward contracts	 	 	319	 	 	 	—	 	 	 	319	 	 	 	—	 	
Diesel forward contracts	 	 	20	 	 	 	—	 	 	 	20	 	 	 	—	 	
Interest rate swap contracts	 	 	3	 	 	 	—	 	 	 	3	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	4,544	 	 	$	4,177	 	 	$	342	 	 	$	25	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
8 5/8% debentures ($222 hedged portion)	 	$	226	 	 	$	—	 	 	$	226	 	 	$	—	 	
Boddington contingent consideration	 	 	76	 	 	 	—	 	 	 	—	 	 	 	76	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	302	 	 	$	—	 	 	$	226	 	 	$	76	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
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.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
The Company’s marketable 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 has fixed to floating swap contracts to hedge a portion of the interest rate risk exposure of its 8 5/8% debentures due May 2011. The hedged portion of the Company’s 8 5/8% debentures are valued using pricing models which require inputs, including risk-free interest rates and credit spreads. Because the inputs are derived from observable market data, the hedged portion of the 8 5/8% debentures is classified within Level 2 of the fair value hierarchy.
The Company recorded a contingent consideration liability related to the 2009 acquisition of the final 33.33% interest in Boddington. The value of the contingent consideration was determined using a valuation model which simulates future gold and copper prices and costs applicable to sales to estimate fair value. The contingent consideration liability is classified within Level 3 of the fair value hierarchy.
The table below sets forth a summary of changes in the fair value of the Company’s Level 3 financial assets and liabilities for the three months ended March 31, 2011:
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Asset Backed	 	 	 	 	 	 	Boddington	 	 	 	 	
 	 	Auction Rate	 	 	Commercial	 	 	 	 	 	 	Contingent	 	 	Total	 	
 	 	Securities	 	 	Paper	 	 	Total Assets	 	 	Consideration	 	 	Liabilities	 	
Balance at beginning of period	 	$	5	 	 	$	19	 	 	$	24	 	 	$	83	 	 	$	83	 	
Unrealized gain	 	 	—	 	 	 	1	 	 	 	1	 	 	 	—	 	 	 	—	 	
Settlements	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(7	)	 	 	(7	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at end of period	 	$	5	 	 	$	20	 	 	$	25	 	 	$	76	 	 	$	76	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unrealized gains of $1 were included in Accumulated other comprehensive income as a result of changes in C$ exchange rates from December 31, 2010. At March 31, 2011, assets and liabilities classified within Level 3 of the fair value hierarchy represent 1% and 25%, respectively, of total assets and liabilities measured at fair value.
NOTE 16 DERIVATIVE INSTRUMENTS
The Company’s strategy is to provide shareholders with leverage to changes in gold and copper prices by selling its production at spot market prices. Consequently, the Company does not hedge its gold and copper sales. Newmont continues to manage certain risks associated with commodity input costs, interest rates and foreign currencies using the derivative market. All of the cash flow and fair value derivative instruments described below were transacted for risk management purposes and qualify as hedging instruments. The maximum period over which hedged transactions are expected to occur is five years.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Cash Flow Hedges
The foreign currency and diesel contracts are designated as cash flow hedges, and as such, the effective portion of unrealized changes in market value have been recorded in Accumulated other comprehensive income and are 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.
Newmont had the following foreign currency derivative contracts outstanding at March 31, 2011:
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Expected Maturity Date	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total/	 	
 	 	2011	 	 	2012	 	 	2013	 	 	2014	 	 	2015	 	 	2016	 	 	Average	 	
A$ Fixed Forward Contracts:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
A$ notional (millions)	 	 	843	 	 	 	781	 	 	 	473	 	 	 	353	 	 	 	163	 	 	 	10	 	 	 	2,623	 	
Average rate ($/A$)	 	 	0.84	 	 	 	0.86	 	 	 	0.87	 	 	 	0.85	 	 	 	0.82	 	 	 	0.86	 	 	 	0.85	 	
Expected hedge ratio	 	 	78	%	 	 	54	%	 	 	35	%	 	 	27	%	 	 	13	%	 	 	3	%	 	 	 	 	
NZ$ Fixed Forward Contracts:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NZ$ notional (millions)	 	 	50	 	 	 	29	 	 	 	1	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	80	 	
Average rate ($/NZ$)	 	 	0.70	 	 	 	0.70	 	 	 	0.72	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	0.70	 	
Expected hedge ratio	 	 	58	%	 	 	25	%	 	 	5	%	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	
Diesel Fixed Forward Contracts
Newmont hedges a portion of its operating cost exposure related to diesel consumed at its Nevada operations to reduce the variability in realized diesel prices. The hedging instruments consist of a series of financially settled fixed forward contracts with expiration dates ranging up to two years from the date of issue.
Newmont had the following diesel derivative contracts outstanding at March 31, 2011:
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Expected Maturity Date	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total/	 	
 	 	2011	 	 	2012	 	 	2013	 	 	Average	 	
Diesel Fixed Forward Contracts:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diesel gallons (millions)	 	 	17	 	 	 	10	 	 	 	1	 	 	 	28	 	
Average rate ($/gallon)	 	 	2.43	 	 	 	2.62	 	 	 	3.15	 	 	 	2.51	 	
Expected hedge ratio	 	 	55	%	 	 	25	%	 	 	5	%	 	 	 	 	
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Fair Value Hedges
Interest Rate Swap Contracts
At March 31, 2011, Newmont had $222 fixed to floating swap contracts designated as a hedge against its 8 5/8% debentures due May 2011. The interest rate swap contracts assist in managing the Company’s mix of fixed and floating rate debt. Under the hedge contract terms, Newmont receives fixed-rate interest payments at 8.63% and pays floating-rate interest amounts based on periodic London Interbank Offered Rate (“LIBOR”) settings plus a spread, ranging from 2.60% to 7.63%. The interest rate swap contracts were designated as fair value hedges and changes in fair value have been recorded in income in each period, consistent with recording changes to the mark-to-market value of the underlying hedged liability in income.
Derivative Instrument Fair Values
Newmont had the following derivative instruments designated as hedges at March 31, 2011 and December 31, 2010:
 	 	 	 	 	 	 	 	 	
 	 	Fair Value	 	
 	 	At March 31, 2011	 	
 	 	Other Current	 	 	Other Long-Term	 	
 	 	Assets	 	 	Assets	 	
Foreign currency exchange contracts:	 	 	 	 	 	 	 	 	
A$ fixed forward contracts	 	$	183	 	 	$	131	 	
NZ$ fixed forward contracts	 	 	4	 	 	 	1	 	
Diesel fixed forward contracts	 	 	17	 	 	 	3	 	
Interest rate swap contracts	 	 	3	 	 	 	—	 	
 	 	 	 	 	 	 	
Total derivative instruments (Note 20)	 	$	207	 	 	$	135	 	

 	 	Fair Value	 	
 	 	At December 31, 2010	 	
 	 	Other Current	 	 	Other Long-Term	 	
 	 	Assets	 	 	Assets	 	
Foreign currency exchange contracts:	 	 	 	 	 	 	 	 	
A$ fixed forward contracts	 	$	181	 	 	$	114	 	
NZ$ fixed forward contracts	 	 	5	 	 	 	1	 	
Diesel fixed forward contracts	 	 	7	 	 	 	1	 	
Interest rate swap contracts	 	 	3	 	 	 	—	 	
 	 	 	 	 	 	 	
Total derivative instruments (Note 20)	 	$	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 March 31,	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash flow hedging relationships:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gain recognized in other comprehensive income (effective portion)	 	$	67	 	 	$	41	 	 	$	15	 	 	$	1	 	
Gain reclassified from Accumulated other comprehensive income into income (effective portion) (1)	 	 	42	 	 	 	24	 	 	 	4	 	 	 	1	 	

(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 .	
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Interest Rate	 	 	8 5/8% Debentures	 	
 	 	Swap Contracts	 	 	(Hedged Portion)	 	
 	 	2011	 	 	2010	 	 	2011	 	 	2010	 	
For the three months ended March 31,	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fair value hedging relationships:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gain (loss) recognized in income (effective portion) (1)	 	$	2	 	 	$	2	 	 	$	(5	)	 	$	—	 	
Loss recognized in income (ineffective portion) (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 $141.
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 $4.38 per pound during the first quarter of 2011, compared with the Company’s recorded average provisional price of $4.37 per pound before mark-to-market losses and treatment and refining charges. During the first quarter of 2011, changes in copper prices resulted in a provisional pricing mark-to-market loss of $12 ($0.12 per pound). At March 31, 2011, Newmont had copper sales of 111 million pounds priced at an average of $4.27 per pound, subject to final pricing over the next several months.
The average London P.M. fix for gold was $1,386 per ounce during the first quarter of 2011, consistent with the Company’s recorded average provisional price before mark-to-market gains and treatment and refining charges. During the first quarter of 2011, changes in gold prices resulted in a provisional pricing mark-to-market gain of $8 ($5 per ounce). At March 31, 2011, Newmont had gold sales of 146,000 ounces priced at an average of $1,439 per ounce, subject to final pricing over the next several months.
 
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Table of Contents
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 17 INVESTMENTS
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	At March 31, 2011	 	
 	 	Cost/Equity	 	 	Unrealized	 	 	Fair/Equity	 	
 	 	Basis	 	 	Gain	 	 	Loss	 	 	Basis	 	
Current:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketable Equity Securities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
New Gold Inc.	 	$	5	 	 	$	67	 	 	$	—	 	 	$	72	 	
Other	 	 	19	 	 	 	39	 	 	 	(1	)	 	 	57	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	24	 	 	$	106	 	 	$	(1	)	 	$	129	 	

Long-term:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketable Debt Securities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asset backed commercial paper	 	$	26	 	 	$	—	 	 	$	(6	)	 	$	20	 	
Auction rate securities	 	 	7	 	 	 	—	 	 	 	(2	)	 	 	5	 	
Corporate	 	 	7	 	 	 	4	 	 	 	—	 	 	 	11	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	40	 	 	 	4	 	 	 	(8	)	 	 	36	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketable Equity Securities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Canadian Oil Sands Ltd.	 	 	318	 	 	 	721	 	 	 	—	 	 	 	1,039	 	
Gabriel Resources Ltd.	 	 	80	 	 	 	297	 	 	 	—	 	 	 	377	 	
Regis Resources Ltd.	 	 	23	 	 	 	139	 	 	 	—	 	 	 	162	 	
Other	 	 	54	 	 	 	41	 	 	 	—	 	 	 	95	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	475	 	 	 	1,198	 	 	 	—	 	 	 	1,673	 	

Other investments, at cost	 	 	9	 	 	 	—	 	 	 	—	 	 	 	9	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Investment in Affiliates:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
La Zanja	 	 	61	 	 	 	—	 	 	 	—	 	 	 	61	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	585	 	 	$	1,202	 	 	$	(8	)	 	$	1,779	 	

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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	At December 31, 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 March 31, 2011 and December 31, 2010 are $11 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.
During the first quarter of 2011 and 2010, the Company purchased other marketable securities for $12 and $3, respectively.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
The following tables present the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by length of time that the individual securities have been in a continuous unrealized loss position:
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Less than 12 Months	 	 	12 Months or Greater	 	 	Total	 	
 	 	 	 	 	 	Unrealized	 	 	 	 	 	 	Unrealized	 	 	 	 	 	 	Unrealized	 	
At March 31, 2011	 	Fair Value	 	 	Losses	 	 	Fair Value	 	 	Losses	 	 	Fair Value	 	 	Losses	 	
Asset backed commercial paper	 	$	—	 	 	$	—	 	 	$	20	 	 	$	6	 	 	$	20	 	 	$	6	 	
Auction rate securities	 	 	—	 	 	 	—	 	 	 	5	 	 	 	2	 	 	 	5	 	 	 	2	 	
Marketable equity securities	 	 	2	 	 	 	1	 	 	 	—	 	 	 	—	 	 	 	2	 	 	 	1	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	2	 	 	$	1	 	 	$	25	 	 	$	8	 	 	$	27	 	 	$	9	 	

 	 	Less than 12 Months	 	 	12 Months or Greater	 	 	Total	 	
 	 	 	 	 	 	Unrealized	 	 	 	 	 	 	Unrealized	 	 	 	 	 	 	Unrealized	 	
At December 31, 2010	 	Fair Value	 	 	Losses	 	 	Fair Value	 	 	Losses	 	 	Fair Value	 	 	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 loss of $9 and $8 at March 31, 2011 and December 31, 2010, respectively, relate to the Company’s investments in asset backed commercial paper, auction rate securities and marketable equity securities as listed in the tables above. While the fair values of these investments are below their respective cost, the Company views these declines as temporary. The Company intends to hold its investment in auction rate securities and asset backed commercial paper until maturity or such time that the market recovers and therefore considers these losses temporary.
NOTE 18 INVENTORIES
 	 	 	 	 	 	 	 	 	
 	 	At March 31,	 	 	At December 31,	 	
 	 	2011	 	 	2010	 	
In-process	 	$	81	 	 	$	142	 	
Concentrate	 	 	101	 	 	 	111	 	
Precious metals	 	 	11	 	 	 	4	 	
Materials, supplies and other	 	 	414	 	 	 	401	 	
 	 	 	 	 	 	 	
 	 	$	607	 	 	$	658	 	

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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 19 STOCKPILES AND ORE ON LEACH PADS
 	 	 	 	 	 	 	 	 	
 	 	At March 31,	 	 	At December 31,	 	
 	 	2011	 	 	2010	 	
Current:	 	 	 	 	 	 	 	 	
Stockpiles	 	$	402	 	 	$	389	 	
Ore on leach pads	 	 	255	 	 	 	228	 	
 	 	 	 	 	 	 	
 	 	$	657	 	 	$	617	 	
 	 	 	 	 	 	 	
Long-term:	 	 	 	 	 	 	 	 	
Stockpiles	 	$	1,498	 	 	$	1,397	 	
Ore on leach pads	 	 	348	 	 	 	360	 	
 	 	 	 	 	 	 	
 	 	$	1,846	 	 	$	1,757	 	

 	 	At March 31,	 	 	At December 31,	 	
 	 	2011	 	 	2010	 	
Stockpiles and ore on leach pads:	 	 	 	 	 	 	 	 	
Nevada	 	$	466	 	 	$	479	 	
La Herradura	 	 	10	 	 	 	6	 	
Yanacocha	 	 	518	 	 	 	496	 	
Boddington	 	 	306	 	 	 	248	 	
Batu Hijau	 	 	924	 	 	 	879	 	
Other Australia/New Zealand	 	 	151	 	 	 	145	 	
Ahafo	 	 	128	 	 	 	121	 	
 	 	 	 	 	 	 	
 	 	$	2,503	 	 	$	2,374	 	
 	 	 	 	 	 	 	
NOTE 20 OTHER ASSETS
 	 	 	 	 	 	 	 	 	
 	 	At March 31,	 	 	At December 31,	 	
 	 	2011	 	 	2010	 	
Other current assets:	 	 	 	 	 	 	 	 	
Refinery metal inventory and receivable	 	$	813	 	 	$	617	 	
Derivative instruments	 	 	207	 	 	 	196	 	
Prepaid assets	 	 	128	 	 	 	65	 	
Other	 	 	80	 	 	 	84	 	
 	 	 	 	 	 	 	
 	 	$	1,228	 	 	$	962	 	

Other long-term assets:	 	 	 	 	 	 	 	 	
Goodwill	 	$	188	 	 	$	188	 	
Intangible assets	 	 	154	 	 	 	91	 	
Derivative instruments	 	 	135	 	 	 	116	 	
Income tax receivable	 	 	119	 	 	 	119	 	
Debt issuance costs	 	 	37	 	 	 	39	 	
Restricted cash	 	 	26	 	 	 	25	 	
Other receivables	 	 	17	 	 	 	19	 	
Other	 	 	139	 	 	 	144	 	
 	 	 	 	 	 	 	
 	 	$	815	 	 	$	741	 	

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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 21 DEBT
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	At March 31, 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)	 	 	221	 	 	 	—	 	 	 	217	 	 	 	—	 	
2012 convertible senior notes, net of discount	 	 	494	 	 	 	—	 	 	 	—	 	 	 	488	 	
2014 convertible senior notes, net of discount	 	 	—	 	 	 	495	 	 	 	—	 	 	 	489	 	
2017 convertible senior notes, net of discount	 	 	—	 	 	 	438	 	 	 	—	 	 	 	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	 	
Ahafo project facility	 	 	10	 	 	 	55	 	 	 	10	 	 	 	55	 	
Other capital leases	 	 	1	 	 	 	1	 	 	 	2	 	 	 	1	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	754	 	 	$	3,676	 	 	$	259	 	 	$	4,182	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Scheduled minimum debt repayments are $232 for the remainder of 2011, $565 in 2012, $42 in 2013, $538 in 2014, $18 in 2015 and $3,035 thereafter.
NOTE 22 OTHER LIABILITIES
 	 	 	 	 	 	 	 	 	
 	 	At March 31,	 	 	At December 31,	 	
 	 	2011	 	 	2010	 	
Other current liabilities:	 	 	 	 	 	 	 	 	
Refinery metal payable	 	$	813	 	 	$	617	 	
Accrued operating costs	 	 	240	 	 	 	217	 	
Accrued capital expenditures	 	 	124	 	 	 	83	 	
Taxes other than income and mining	 	 	97	 	 	 	135	 	
Interest	 	 	92	 	 	 	66	 	
Reclamation and remediation liabilities	 	 	62	 	 	 	64	 	
Deferred income tax	 	 	58	 	 	 	54	 	
Royalties	 	 	44	 	 	 	90	 	
Boddington contingent consideration	 	 	38	 	 	 	32	 	
Other	 	 	45	 	 	 	60	 	
 	 	 	 	 	 	 	
 	 	$	1,613	 	 	$	1,418	 	

Other long-term liabilities:	 	 	 	 	 	 	 	 	
Power supply agreements	 	$	45	 	 	$	45	 	
Boddington contingent consideration	 	 	38	 	 	 	51	 	
Income and mining taxes	 	 	29	 	 	 	36	 	
Other	 	 	84	 	 	 	89	 	
 	 	 	 	 	 	 	
 	 	$	196	 	 	$	221	 	

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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 23 NET CHANGE IN OPERATING ASSETS AND LIABILITIES
Net cash provided from operations attributable to the net change in operating assets and liabilities is composed of the following:
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	
Decrease (increase) in operating assets:	 	 	 	 	 	 	 	 	
Trade and accounts receivable	 	$	119	 	 	$	(52	)	
Inventories, stockpiles and ore on leach pads	 	 	(56	)	 	 	(69	)	
EGR refinery assets	 	 	(175	)	 	 	185	 	
Other assets	 	 	(38	)	 	 	(23	)	
Increase (decrease) in operating liabilities:	 	 	 	 	 	 	 	 	
Accounts payable and other accrued liabilities	 	 	4	 	 	 	(21	)	
EGR refinery liabilities	 	 	175	 	 	 	(185	)	
Reclamation liabilities	 	 	(8	)	 	 	(8	)	
 	 	 	 	 	 	 	
 	 	$	21	 	 	$	(173	)	

NOTE 24 SUPPLEMENTAL CASH FLOW INFORMATION
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	
Income and mining taxes, net of refunds	 	$	278	 	 	$	209	 	
Interest, net of amounts capitalized	 	$	20	 	 	$	26	 	
 
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Table of Contents
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 25 CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
Newmont USA, a 100% owned subsidiary of Newmont Mining Corporation, has fully and unconditionally guaranteed the 5 7/8%, 5 1/8% and 6 1/4% publicly traded notes and the 2012, 2014 and 2017 convertible senior notes. The following consolidating financial statements are provided for Newmont USA, as guarantor, and for Newmont Mining Corporation, as issuer, as an alternative to providing separate financial statements for the guarantor. The accounts of Newmont Mining Corporation are presented using the equity method of accounting for investments in subsidiaries.
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31, 2011	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Newmont	 	
 	 	Newmont	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Mining	 	
 	 	Mining	 	 	Newmont	 	 	Other	 	 	 	 	 	 	Corporation	 	
Condensed Consolidating Statement of Income	 	Corporation	 	 	USA	 	 	Subsidiaries	 	 	Eliminations	 	 	Consolidated	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Sales	 	$	—	 	 	$	1,518	 	 	$	947	 	 	$	—	 	 	$	2,465	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs and expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs applicable to sales (1)	 	 	—	 	 	 	566	 	 	 	384	 	 	 	(10	)	 	 	940	 	
Amortization	 	 	—	 	 	 	159	 	 	 	97	 	 	 	—	 	 	 	256	 	
Reclamation and remediation	 	 	1	 	 	 	10	 	 	 	3	 	 	 	—	 	 	 	14	 	
Exploration	 	 	—	 	 	 	34	 	 	 	28	 	 	 	—	 	 	 	62	 	
Advanced projects, research and development	 	 	—	 	 	 	27	 	 	 	41	 	 	 	—	 	 	 	68	 	
General and administrative	 	 	—	 	 	 	34	 	 	 	1	 	 	 	10	 	 	 	45	 	
Other expense, net	 	 	—	 	 	 	54	 	 	 	19	 	 	 	—	 	 	 	73	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	1	 	 	 	884	 	 	 	573	 	 	 	—	 	 	 	1,458	 	

Other income (expense)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other income, net	 	 	(5	)	 	 	25	 	 	 	11	 	 	 	—	 	 	 	31	 	
Interest income — intercompany	 	 	36	 	 	 	2	 	 	 	2	 	 	 	(40	)	 	 	—	 	
Interest expense — intercompany	 	 	(3	)	 	 	—	 	 	 	(37	)	 	 	40	 	 	 	—	 	
Interest expense, net	 	 	(54	)	 	 	(9	)	 	 	(2	)	 	 	—	 	 	 	(65	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	(26	)	 	 	18	 	 	 	(26	)	 	 	—	 	 	 	(34	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before income and mining tax and other items items	 	 	(27	)	 	 	652	 	 	 	348	 	 	 	—	 	 	 	973	 	
Income and mining tax expense	 	 	10	 	 	 	(208	)	 	 	(107	)	 	 	—	 	 	 	(305	)	
Equity income (loss) of affiliates	 	 	531	 	 	 	1	 	 	 	89	 	 	 	(619	)	 	 	2	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	 	514	 	 	 	445	 	 	 	330	 	 	 	(619	)	 	 	670	 	
Net income attributable to noncontrolling interests	 	 	—	 	 	 	(192	)	 	 	(20	)	 	 	56	 	 	 	(156	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Newmont stockholders	 	$	514	 	 	$	253	 	 	$	310	 	 	$	(563	)	 	$	514	 	

(1)	 	Excludes Amortization and Reclamation and remediation .	
 
 25 

Table of Contents
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31, 2010	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Newmont	 	
 	 	Newmont	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Mining	 	
 	 	Mining	 	 	Newmont	 	 	Other	 	 	 	 	 	 	Corporation	 	
Condensed Consolidating Statement of Income	 	Corporation	 	 	USA	 	 	Subsidiaries	 	 	Eliminations	 	 	Consolidated	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Sales	 	$	—	 	 	$	1,592	 	 	$	650	 	 	$	—	 	 	$	2,242	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs and expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs applicable to sales (1)	 	 	—	 	 	 	545	 	 	 	329	 	 	 	(5	)	 	 	869	 	
Amortization	 	 	—	 	 	 	143	 	 	 	81	 	 	 	—	 	 	 	224	 	
Reclamation and remediation	 	 	—	 	 	 	9	 	 	 	4	 	 	 	—	 	 	 	13	 	
Exploration	 	 	—	 	 	 	24	 	 	 	19	 	 	 	—	 	 	 	43	 	
Advanced projects, research and development	 	 	—	 	 	 	29	 	 	 	17	 	 	 	—	 	 	 	46	 	
General and administrative	 	 	—	 	 	 	38	 	 	 	1	 	 	 	6	 	 	 	45	 	
Other expense, net	 	 	—	 	 	 	76	 	 	 	14	 	 	 	(1	)	 	 	89	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	—	 	 	 	864	 	 	 	465	 	 	 	—	 	 	 	1,329	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other income (expense)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other income, net	 	 	—	 	 	 	1	 	 	 	47	 	 	 	—	 	 	 	48	 	
Interest income — intercompany	 	 	36	 	 	 	2	 	 	 	1	 	 	 	(39	)	 	 	—	 	
Interest expense — intercompany	 	 	(2	)	 	 	—	 	 	 	(37	)	 	 	39	 	 	 	—	 	
Interest expense, net	 	 	(62	)	 	 	(12	)	 	 	(1	)	 	 	—	 	 	 	(75	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	(28	)	 	 	(9	)	 	 	10	 	 	 	—	 	 	 	(27	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before income and mining tax and other items	 	 	(28	)	 	 	719	 	 	 	195	 	 	 	—	 	 	 	886	 	
Income and mining tax expense	 	 	141	 	 	 	(239	)	 	 	(43	)	 	 	—	 	 	 	(141	)	
Equity income (loss) of affiliates	 	 	433	 	 	 	—	 	 	 	67	 	 	 	(502	)	 	 	(2	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	 	546	 	 	 	480	 	 	 	219	 	 	 	(502	)	 	 	743	 	
Net income attributable to noncontrolling interests	 	 	—	 	 	 	(243	)	 	 	5	 	 	 	41	 	 	 	(197	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Newmont stockholders	 	$	546	 	 	$	237	 	 	$	224	 	 	$	(461	)	 	$	546	 	

(1)	 	Excludes Amortization and Reclamation and remediation .	
 
 26 

Table of Contents
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31, 2011	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Newmont	 	
 	 	Newmont	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Mining	 	
 	 	Mining	 	 	Newmont	 	 	Other	 	 	 	 	 	 	Corporation	 	
Condensed Consolidating Statement of Cash Flows	 	Corporation	 	 	USA	 	 	Subsidiaries	 	 	Eliminations	 	 	Consolidated	 	
Operating activities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	$	514	 	 	$	445	 	 	$	330	 	 	$	(619	)	 	$	670	 	
Adjustments	 	 	21	 	 	 	174	 	 	 	(516	)	 	 	619	 	 	 	298	 	
Net change in operating assets and liabilities	 	 	8	 	 	 	(54	)	 	 	67	 	 	 	—	 	 	 	21	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided from operations	 	 	543	 	 	 	565	 	 	 	(119	)	 	 	—	 	 	 	989	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Investing activities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Additions to property, plant and mine development	 	 	—	 	 	 	(238	)	 	 	(164	)	 	 	—	 	 	 	(402	)	
Purchases of marketable securities	 	 	—	 	 	 	(1	)	 	 	(11	)	 	 	—	 	 	 	(12	)	
Acquisitions, net	 	 	—	 	 	 	—	 	 	 	(7	)	 	 	—	 	 	 	(7	)	
Proceeds from sale of other assets	 	 	—	 	 	 	6	 	 	 	—	 	 	 	—	 	 	 	6	 	
Other	 	 	—	 	 	 	—	 	 	 	(3	)	 	 	—	 	 	 	(3	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash used in investing activities	 	 	—	 	 	 	(233	)	 	 	(185	)	 	 	—	 	 	 	(418	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Financing activities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net repayments	 	 	—	 	 	 	(31	)	 	 	—	 	 	 	—	 	 	 	(31	)	
Net intercompany borrowings (repayments)	 	 	(472	)	 	 	(1,948	)	 	 	2,420	 	 	 	—	 	 	 	—	 	
Dividends paid to common stockholders	 	 	(74	)	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(74	)	
Dividends paid to noncontrolling interests	 	 	—	 	 	 	(15	)	 	 	—	 	 	 	—	 	 	 	(15	)	
Proceeds from stock issuance, net	 	 	3	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	3	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash used in financing activities	 	 	(543	)	 	 	(1,994	)	 	 	2,420	 	 	 	—	 	 	 	(117	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Effect of exchange rate changes on cash	 	 	—	 	 	 	(1	)	 	 	24	 	 	 	—	 	 	 	23	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net change in cash and cash equivalents	 	 	—	 	 	 	(1,663	)	 	 	2,140	 	 	 	—	 	 	 	477	 	
Cash and cash equivalents at beginning of period	 	 	—	 	 	 	3,877	 	 	 	179	 	 	 	—	 	 	 	4,056	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents at end of period	 	$	—	 	 	$	2,214	 	 	$	2,319	 	 	$	—	 	 	$	4,533	 	

 27 

Table of Contents
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31, 2010	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Newmont	 	
 	 	Newmont	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Mining	 	
 	 	Mining	 	 	Newmont	 	 	Other	 	 	 	 	 	 	Corporation	 	
Condensed Consolidating Statement of Cash Flows	 	Corporation	 	 	USA	 	 	Subsidiaries	 	 	Eliminations	 	 	Consolidated	 	
Operating activities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	$	546	 	 	$	480	 	 	$	219	 	 	$	(502	)	 	$	743	 	
Adjustments	 	 	(121	)	 	 	174	 	 	 	(397	)	 	 	502	 	 	 	158	 	
Net change in operating assets and liabilities	 	 	30	 	 	 	(98	)	 	 	(105	)	 	 	—	 	 	 	(173	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided from continuing operations	 	 	455	 	 	 	556	 	 	 	(283	)	 	 	—	 	 	 	728	 	
Net cash used in discontinued operations	 	 	—	 	 	 	(13	)	 	 	—	 	 	 	—	 	 	 	(13	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided from operations	 	 	455	 	 	 	543	 	 	 	(283	)	 	 	—	 	 	 	715	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Investing activities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Additions to property, plant and mine development	 	 	—	 	 	 	(146	)	 	 	(163	)	 	 	—	 	 	 	(309	)	
Purchases of marketable securities	 	 	—	 	 	 	—	 	 	 	(3	)	 	 	—	 	 	 	(3	)	
Proceeds from sale of other assets	 	 	—	 	 	 	—	 	 	 	38	 	 	 	—	 	 	 	38	 	
Other	 	 	—	 	 	 	—	 	 	 	(11	)	 	 	—	 	 	 	(11	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash used in investing activities	 	 	—	 	 	 	(146	)	 	 	(139	)	 	 	—	 	 	 	(285	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Financing activities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net repayments	 	 	—	 	 	 	(250	)	 	 	—	 	 	 	—	 	 	 	(250	)	
Net intercompany borrowings (repayments)	 	 	(417	)	 	 	(28	)	 	 	492	 	 	 	(47	)	 	 	—	 	
Sale of subsidiary shares to noncontrolling interests	 	 	—	 	 	 	229	 	 	 	—	 	 	 	—	 	 	 	229	 	
Acquisition of subsidiary shares from noncontrolling interest	 	 	—	 	 	 	—	 	 	 	(39	)	 	 	—	 	 	 	(39	)	
Dividends paid to common stockholders	 	 	(49	)	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(49	)	
Dividends paid to noncontrolling interests	 	 	—	 	 	 	(267	)	 	 	—	 	 	 	47	 	 	 	(220	)	
Proceeds from stock issuance, net	 	 	3	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	3	 	
Change in restricted cash and other	 	 	—	 	 	 	47	 	 	 	(1	)	 	 	—	 	 	 	46	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash used in financing activities	 	 	(463	)	 	 	(269	)	 	 	452	 	 	 	—	 	 	 	(280	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Effect of exchange rate changes on cash	 	 	—	 	 	 	—	 	 	 	(1	)	 	 	—	 	 	 	(1	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net change in cash and cash equivalents	 	 	(8	)	 	 	128	 	 	 	29	 	 	 	—	 	 	 	149	 	
Cash and cash equivalents at beginning of period	 	 	8	 	 	 	3,067	 	 	 	140	 	 	 	—	 	 	 	3,215	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents at end of period	 	$	—	 	 	$	3,195	 	 	$	169	 	 	$	—	 	 	$	3,364	 	

 28 

Table of Contents
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	At March 31, 2011	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Newmont	 	
 	 	Newmont	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Mining	 	
 	 	Mining	 	 	Newmont	 	 	Other	 	 	 	 	 	 	Corporation	 	
Condensed Consolidating Balance Sheet	 	Corporation	 	 	USA	 	 	Subsidiaries	 	 	Eliminations	 	 	Consolidated	 	
Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	$	—	 	 	$	2,214	 	 	$	2,319	 	 	$	—	 	 	$	4,533	 	
Trade receivables	 	 	—	 	 	 	342	 	 	 	97	 	 	 	—	 	 	 	439	 	
Accounts receivable	 	 	1,621	 	 	 	2,263	 	 	 	198	 	 	 	(3,969	)	 	 	113	 	
Investments	 	 	—	 	 	 	86	 	 	 	43	 	 	 	—	 	 	 	129	 	
Inventories	 	 	—	 	 	 	359	 	 	 	248	 	 	 	—	 	 	 	607	 	
Stockpiles and ore on leach pads	 	 	—	 	 	 	543	 	 	 	114	 	 	 	—	 	 	 	657	 	
Deferred income tax assets	 	 	—	 	 	 	171	 	 	 	7	 	 	 	—	 	 	 	178	 	
Other current assets	 	 	—	 	 	 	153	 	 	 	1,075	 	 	 	—	 	 	 	1,228	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Current assets	 	 	1,621	 	 	 	6,131	 	 	 	4,101	 	 	 	(3,969	)	 	 	7,884	 	
Property, plant and mine development, net	 	 	—	 	 	 	5,394	 	 	 	7,699	 	 	 	(19	)	 	 	13,074	 	
Investments	 	 	—	 	 	 	24	 	 	 	1,755	 	 	 	—	 	 	 	1,779	 	
Investments in subsidiaries	 	 	15,165	 	 	 	36	 	 	 	2,032	 	 	 	(17,233	)	 	 	—	 	
Stockpiles and ore on leach pads	 	 	—	 	 	 	1,375	 	 	 	471	 	 	 	—	 	 	 	1,846	 	
Deferred income tax assets	 	 	638	 	 	 	697	 	 	 	121	 	 	 	—	 	 	 	1,456	 	
Other long-term assets	 	 	2,596	 	 	 	560	 	 	 	594	 	 	 	(2,935	)	 	 	815	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	 	$	20,020	 	 	$	14,217	 	 	$	16,773	 	 	$	(24,156	)	 	$	26,854	 	

Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Debt	 	$	494	 	 	$	250	 	 	$	10	 	 	$	—	 	 	$	754	 	
Accounts payable	 	 	1,770	 	 	 	743	 	 	 	1,873	 	 	 	(3,966	)	 	 	420	 	
Employee-related benefits	 	 	—	 	 	 	178	 	 	 	62	 	 	 	—	 	 	 	240	 	
Income and mining taxes	 	 	2	 	 	 	288	 	 	 	184	 	 	 	—	 	 	 	474	 	
Other current liabilities	 	 	81	 	 	 	343	 	 	 	3,155	 	 	 	(1,966	)	 	 	1,613	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Current liabilities	 	 	2,347	 	 	 	1,802	 	 	 	5,284	 	 	 	(5,932	)	 	 	3,501	 	
Debt	 	 	3,514	 	 	 	107	 	 	 	55	 	 	 	—	 	 	 	3,676	 	
Reclamation and remediation liabilities	 	 	—	 	 	 	682	 	 	 	311	 	 	 	—	 	 	 	993	 	
Deferred income tax liabilities	 	 	—	 	 	 	510	 	 	 	1,021	 	 	 	—	 	 	 	1,531	 	
Employee-related benefits	 	 	4	 	 	 	246	 	 	 	86	 	 	 	—	 	 	 	336	 	
Other long-term liabilities	 	 	373	 	 	 	45	 	 	 	2,732	 	 	 	(2,954	)	 	 	196	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	 	 	6,238	 	 	 	3,392	 	 	 	9,489	 	 	 	(8,886	)	 	 	10,233	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Preferred stock	 	 	—	 	 	 	—	 	 	 	61	 	 	 	(61	)	 	 	—	 	
Common stock	 	 	779	 	 	 	—	 	 	 	1	 	 	 	(1	)	 	 	779	 	
Additional paid-in capital	 	 	7,994	 	 	 	2,722	 	 	 	5,955	 	 	 	(8,367	)	 	 	8,304	 	
Accumulated other comprehensive income	 	 	1,389	 	 	 	(58	)	 	 	1,443	 	 	 	(1,385	)	 	 	1,389	 	
Retained earnings	 	 	3,620	 	 	 	5,103	 	 	 	(807	)	 	 	(4,296	)	 	 	3,620	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Newmont stockholders’ equity	 	 	13,782	 	 	 	7,767	 	 	 	6,653	 	 	 	(14,110	)	 	 	14,092	 	
Noncontrolling interests	 	 	—	 	 	 	3,058	 	 	 	631	 	 	 	(1,160	)	 	 	2,529	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total equity	 	 	13,782	 	 	 	10,825	 	 	 	7,284	 	 	 	(15,270	)	 	 	16,621	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities and equity	 	$	20,020	 	 	$	14,217	 	 	$	16,773	 	 	$	(24,156	)	 	$	26,854	 	

 29 

Table of Contents
NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	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	 	

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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 26 COMMITMENTS AND CONTINGENCIES
General
The Company follows ASC guidance in determining its accruals and disclosures with respect to loss contingencies. Accordingly, estimated losses from loss contingencies are accrued by a charge to income when information available prior to issuance of the financial statements indicates that it is probable (greater than a 75% probability) that a liability could be incurred and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred.
Operating Segments
The Company’s operating segments are identified in Note 3. Except as noted in this paragraph, all of the Company’s commitments and contingencies specifically described in this Note 26 relate to the Corporate and Other reportable segment. The PT Newmont Minahasa Raya and PT Newmont Nusa Tenggara matters relate to the Asia Pacific reportable segment. The Minera Yanacocha S.R.L. 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 March 31, 2011 and December 31, 2010, $913 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 $45 and $46 at March 31, 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, $142 and $144 were accrued for such obligations at March 31, 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 165% greater or 4% lower than the amount accrued at March 31, 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”).
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
In 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 0.00013 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. If the Court of Appeals upholds the lower court ruling, Newmont will be liable for the sliding scale royalty, which would equal a 13% royalty at a quarterly average gold price of $1,000, minus a 0.013% of net smelter returns. There is no cap on the royalty at issue and it increases or decreases with the gold price, based upon the multiplication of 0.00013 by the quarterly average gold price. The court of appeals heard oral argument on the matter on March 28, 2011 and is expected to issue a ruling within six months following the date of such oral argument. Newmont Canada intends to continue to vigorously defend this matter but cannot reasonably predict the outcome.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Newmont USA Limited — 100% Newmont Owned
Grey Eagle Mine Site . By letter dated September 3, 2002, the EPA notified Newmont that the EPA had expended $3 in response costs to address environmental conditions associated with a historic tailings pile located at the Grey Eagle Mine site near Happy Camp, California, and requested that Newmont pay those costs. The EPA has identified four potentially responsible parties, including Newmont. Newmont does not believe it has any liability for environmental conditions at the Grey Eagle Mine site, and intends to vigorously defend any formal claims by the EPA. Newmont cannot reasonably predict the likelihood or outcome of any future action against it arising from this matter.
Ross-Adams Mine Site. By letter dated June 5, 2007, the U.S. Forest Service notified Newmont that it had expended approximately $0.3 in response costs to address environmental conditions at the Ross-Adams mine in Prince of Wales, Alaska, and requested Newmont USA Limited pay those costs and perform an Engineering Evaluation/Cost Analysis (“EE/CA”) to assess what future response activities might need to be completed at the site. Newmont intends to vigorously defend any formal claims by the EPA. Newmont has agreed to perform the EE/CA. Newmont cannot reasonably predict the likelihood or outcome of any future action against it arising from this matter.
PT Newmont Minahasa Raya (“PTNMR”) — 80% Newmont Owned
On March 22, 2007, an Indonesian non-governmental organization named Wahana Lingkungan Hidup Indonesia (“WALHI”) filed a civil suit against PTNMR, the Newmont subsidiary that operated the Minahasa mine in Indonesia, and Indonesia’s Ministry of Energy and Mineral Resources and Ministry for the Environment, alleging pollution from the disposal of mine tailings into Buyat Bay, and seeking a court order requiring PTNMR to fund a 25-year monitoring program in relation to Buyat Bay. In December 2007, the court ruled in PTNMR’s favor and found that WALHI’s allegations of pollution in Buyat Bay were without merit. In March 2008, WALHI appealed this decision to the Indonesian High Court. On January 27, 2010, the Indonesian High Court upheld the December 2007 ruling in favor of PTNMR. On May 17, 2010, WALHI filed an appeal of the January 27, 2010 Indonesian High Court ruling seeking review from the Indonesian Supreme Court. The appeal by WALHI is being reviewed by the South Jakarta District Court before review by the Indonesian Supreme Court. Independent sampling and testing of Buyat Bay water and fish, as well as area residents, conducted by the World Health Organization and the Australian Commonwealth Scientific and Industrial Research Organization, confirm that PTNMR has not polluted the Buyat Bay environment, and, therefore, has not adversely affected the fish in Buyat Bay or the health of nearby residents. The Company remains steadfast that it has not caused pollution or health problems.
Other Legal Matters
Minera Yanacocha S.R.L. (“Yanacocha”) — 51.35% Newmont Owned
Choropampa . In June 2000, a transport contractor of Yanacocha spilled approximately 151 kilograms of elemental mercury near the town of Choropampa, Peru, which is located 53 miles (85 kilometers) southwest of the Yanacocha mine. Elemental mercury is not used in Yanacocha’s operations but is a by-product of gold mining and was sold to a Lima firm for use in medical instruments and industrial applications. A comprehensive health and environmental remediation program was undertaken by Yanacocha in response to the incident. In August 2000, Yanacocha paid under protest a fine of 1,740,000 Peruvian soles (approximately $0.5) to the Peruvian government. Yanacocha has entered into settlement agreements with a number of individuals impacted by the incident. As compensation for the disruption and inconvenience caused by the incident, Yanacocha entered into agreements with and provided a variety of public works in the three communities impacted by this incident. Yanacocha cannot predict the likelihood of additional expenditures related to this matter.
Additional lawsuits relating to the Choropampa incident were filed against Yanacocha in the local courts of Cajamarca, Peru, in May 2002 by over 900 Peruvian citizens. A significant number of the plaintiffs in these lawsuits entered into settlement agreements with Yanacocha prior to filing such claims. In April 2008, the Peruvian Supreme Court upheld the validity of these settlement agreements, which 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 20 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.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
PT Newmont Nusa Tenggara (“PTNNT”) — 31.5% Newmont Direct Ownership
Under the Batu Hijau Contract of Work, beginning in 2006 and continuing through 2010, a portion of PTNNT’s shares were required to be offered for sale, first, to the Indonesian government or, second, to Indonesian nationals, equal to the difference between the following percentages and the percentage of shares already owned by the Indonesian government or Indonesian nationals (if such number is positive): 23% by March 31, 2006; 30% by March 31, 2007; 37% by March 31, 2008; 44% by March 31, 2009; and 51% by March 31, 2010. As PTPI, an Indonesian national, has owned a 20% interest in PTNNT at all relevant times, in 2006, a 3% interest was required to be offered for sale and, in each of 2007 through 2010, an additional 7% interest was required to be offered (for an aggregate 31% interest). The price at which such interests were to be offered for sale to the Indonesian parties is the highest of the then-current replacement cost, the price at which shares would be accepted for listing on the Indonesian Stock Exchange, or the fair market value of such interest as a going concern, as agreed with the Indonesian government.
In accordance with the Contract of Work, an offer to sell a 3% interest was made to the Indonesian government in 2006 and an offer for an additional 7% interest was made in each of 2007, 2008, 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 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 April 18, 2011, the Company’s subsidiaries and PIP reached an agreement under which the parties, acting in good faith, intend to finalize the terms for the purchase and sale, which is anticipated to occur by mid-2011. Further disputes may arise in regard to the divestiture of the 2010 shares.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
As part of the negotiation of the sale agreements with PTMDB, the parties executed an operating agreement (the “Operating Agreement”) under which each recognizes the rights of the Company and Sumitomo to apply their operating standards to the management of PTNNT’s operations, including standards for safety, environmental stewardship and community responsibility. The Operating Agreement became effective upon the completion of the sale of the 2009 shares in February 2010 and will continue for so long as the Company and Sumitomo own more shares of PTNNT than PTMDB. If the Operating Agreement terminates, then the Company may lose control over the applicable operating standards for Batu Hijau and will be at risk for operations conducted in a manner that either detracts from value or results in safety, environmental or social standards below those adhered to by the Company and Sumitomo.
In the event of any future disputes under the Contract of Work or Operating Agreement, there can be no assurance that the Company would prevail in any such dispute and any termination of such contracts could result in substantial diminution in the value of the Company’s interests in PTNNT.
Additionally, in February 2010, PTNNT was notified by the tax authorities of the Indonesian government that PTNNT may be obligated to pay value added taxes on certain goods imported after the year 2000. PTNNT believed that pursuant to the terms of its Contract of Work, it was only required to pay value added taxes on these types of goods imported after February 28, 2010. The Company and PTNNT worked with the applicable government authorities and were able to settle this matter on March 31, 2011.
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. 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. 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.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
Despite the rulings in the civil cases, 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 order or whether PTPI and its shareholders will, in any event, abide by the order.
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 order and will continue to do so with regard to the April 7, 2011 order in Indonesian and Singapore courts.
The Company intends to continue vigorously defending the PTPI lawsuits and pursuing its claims against PTPI.
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 March 31, 2011 and December 31, 2010, there were $1,339 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.
 
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NEWMONT MINING CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)
NOTE 27 SUPPLEMENTARY DATA
Ratio of Earnings to Fixed Charges
The ratio of earnings to fixed charges for the three months ended March 31, 2011 was 13.8. The ratio of earnings to fixed charges represents income before income and mining tax expense, equity income (loss) of affiliates 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.
NOTE 28 SUBSEQUENT EVENTS
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 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 $1 in the first quarter of 2011, 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	 	 	3,107	 	
Investments	 	 	281	 	
Other assets	 	 	4	 	
 	 	 	 	
 	 	$	3,394	 	
 	 	 	 	
Liabilities:	 	 	 	 	
Deferred income tax liability	 	$	1,127	 	
Other liabilities	 	 	8	 	
 	 	 	 	
 	 	 	1,135	 	
 	 	 	 	
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.
 
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ITEM 2.	 	MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION (dollars in millions, except per share, per ounce and per pound amounts)	
The following discussion provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations of Newmont Mining Corporation and its subsidiaries (collectively, “Newmont,” the “Company,” “our” and “we”). We use certain non-GAAP financial performance measures in our MD&A. For a detailed description of each of the non-GAAP financial measures used in this MD&A, please see the discussion under “Non-GAAP Financial Performance Measures” beginning on page 53. References to “A$” refer to Australian currency, “C$” to Canadian currency, “NZ$” to New Zealand currency and “$” to United States currency.
This item should be read in conjunction with our interim unaudited Condensed Consolidated Financial Statements and the notes thereto included in this quarterly report. Additionally, the following discussion and analysis should be read in conjunction with Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations and the consolidated financial statements included in Part II of our Annual Report on Form 10-K for the year ended December 31, 2010.
Overview
Newmont is one of the world’s largest gold producers and is the only gold company included in the S&P 500 Index and Fortune 500, and was the first gold company included in the Dow Jones Sustainability Index-World. We are also engaged in the exploration for and acquisition of gold and gold/copper properties. We have significant assets and/or operations in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand and Mexico.
Our vision is to be the most valued and respected mining company through industry leading performance. We remain focused on progressing the development of our next generation of mining projects. Approximately 40% of our 2011 capital expenditures will be invested in these projects and the development of our pipeline, funded primarily from Net cash from continuing operations , as we continue to deliver solid leverage to the gold price. First quarter 2011 highlights are included below and discussed further in Results of Consolidated Operations .
Delivered strong operating performance

 	•	 	Attributable gold production of 1.3 million ounces at consolidated Costs applicable to sales of $557 per ounce;	

 	•	 	Attributable copper production of 57 million pounds at consolidated Costs applicable to sales of $1.11 per pound;	

 	•	 	Sales of $2,465, an increase of 10% over the same period in 2010;	

 	•	 	Record operating cash flow of $989; and	

 	•	 	Maintaining 2011 outlook for gold and copper production, costs applicable to sales and capital expenditures.	
Comprehensive development plan
At our annual Investor Day conference held on April 7, 2011 we disclosed our comprehensive plan for the development of our current portfolio of assets that could potentially increase annual attributable gold production to approximately 7 million ounces by 2017. This production target represents a potential aggregate increase of approximately 35% in anticipated 2017 annual production from our previously announced 2011 attributable gold production outlook of 5.1 to 5.3 million ounces. We also announced a new dividend policy that will link our quarterly dividend payment to Newmont’s average realized price of gold sales. With our strong balance sheet and cash flow generation from operations in the current metal price environment, we are positioned to fund profitable growth and to pay a new gold price-linked dividend.
Our comprehensive development plan includes the following key points:
Production growth — We have the potential to achieve approximately 7 million ounces of attributable annual gold production and 400 million pounds of attributable annual copper production by 2017, representing approximately 35% and 90% growth, respectively, from our expected 2011 production outlook.
 
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Project returns — Internal rates of return on key strategic projects are expected to average greater than 20% at an assumed $1,300 gold price and $4.00 copper price. Attributable capital expenditures associated with these projects are estimated at approximately $7,000 in aggregate over the next six to seven years, substantially funded through anticipated free cash flow and existing balance sheet strength.
Reserves and exploration upside — We had approximately 93.5 million ounces of gold in reserves at December 31, 2010 and significant non-reserve mineralization and the potential to add from existing targets the equivalent of the Company’s current reserves over the next decade.
Balance sheet strength — At March 31, 2011 we have consolidated cash of $4,533 (before the use of $2,259 in the Fronteer transaction which closed on April 6, 2011) and marketable securities of $1,838; we also anticipate strong cash flow at planned production levels and current metals prices.
Gold price-linked dividend — Our gold price-linked dividend policy contemplates a quarterly payable dividend based on our average realized gold price for the preceding quarter. Under the policy, unless otherwise determined by the Board of Directors (the “Board”), the dividend will be calculated based upon the average realized gold price during the preceding quarter (subject to certain adjustments) in the manner contemplated by the table below:
 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Annualized	 	
Prior Quarter Average	 	Associated Quarterly	 	 	Equivalent Payout/	 	
Realized Gold Price	 	Dividend Payout/share	 	 	share	 	
$1,100 – $1,199	 	$	0.10	 	 	$	0.40	 	
$1,200 – $1,299	 	$	0.15	 	 	$	0.60	 	
$1,300 – $1,399	 	$	0.20	 	 	$	0.80	 	
$1,400 – $1,499	 	$	0.25	 	 	$	1.00	 	
$1,500 – $1,599	 	$	0.30	 	 	$	1.20	 	
As noted above, the quarterly payout is anticipated to increase at a rate of $0.05 per share for each $100 per ounce rise in the average realized gold price for the preceding quarter. At the current gold price, between $1,400 — $1,499 per ounce, our annual dividend would be $1.00 per share. The first quarterly dividend under this policy of $0.20 per share (based on a first quarter 2011 average realized gold price of $1,382 per ounce) will be payable on June 29, 2011 to shareholders of record on June 16, 2011, which represents an increase of 33% over the $0.15 dividend paid in the first quarter of 2011, and an increase of 100% over the second quarter 2010 dividend. This dividend policy is intended as a non-binding guideline, which will be periodically reviewed and reassessed by the Board. The declaration and payment of future dividends remains at the discretion of the Board and will depend on the Company’s financial results, cash requirements, future prospects and other factors deemed relevant by the Board.
Advancing our project pipeline
Long Canyon, Nevada — We completed the acquisition of Fronteer Gold, Inc. on April 6, 2011 and control the first discovery of what we expect to be the Long Canyon Trend. We are planning a 40km drilling program in 2011. Our intention is to bring the project into production in 2017 with initial estimated gold production of approximately 300,000 ounces per year.
Hope Bay, Canada — Hope Bay is an 80 kilometer district in the Canadian arctic and is one of the last known undeveloped greenstone belts. Successful 2010 exploration and sealift programs have confirmed our view of the 10 million ounce potential and we are poised to carry out a 90km drilling program in 2011. We continue driving the Doris North development drift to provide access for test stoping and development drilling.
Conga, Peru — We continue to advance geotechnical drilling, engineering, procurement of long lead items, early infrastructure works and securing remaining permits needed for construction. Board approval is expected to be finalized in the second half of 2011 and if all permits are secured, production is expected to commence in late 2014 or early 2015 with initial estimated attributable production of approximately 400,000 gold ounces and 100 million copper pounds per year for the first five years. At December 31, 2010 we reported 6.1 million attributable ounces of gold reserves and 1,660 million pounds of copper reserves at Conga.
 
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Akyem, Ghana — Board approval was obtained in the first quarter of 2011 and our project and contractor teams are fully mobilized. We are completing detailed engineering and continue the procurement of long lead items. We expect production to begin in late 2013 with initial estimated gold production of approximately 400,000 ounces per year for the first five years, nearly doubling our annual production in Africa. At December 31, 2010 we had 7.2 million ounces of gold reserves at Akyem.
Selected Financial and Operating Results
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	
Sales	 	$	2,465	 	 	$	2,242	 	
Net income	 	$	670	 	 	$	743	 	
Net income attributable to Newmont stockholders	 	$	514	 	 	$	546	 	
 	 	 	 	 	 	 	 	 	
Per common share, basic:	 	 	 	 	 	 	 	 	
Net income attributable to Newmont stockholders	 	$	1.04	 	 	$	1.11	 	
 	 	 	 	 	 	 	 	 	
Adjusted net income (1)	 	$	513	 	 	$	408	 	
Adjusted net income per share (1)	 	$	1.04	 	 	$	0.83	 	
 	 	 	 	 	 	 	 	 	
Consolidated gold ounces (thousands)	 	 	 	 	 	 	 	 	
Produced (2)	 	 	1,516	 	 	 	1,616	 	
Sold	 	 	1,478	 	 	 	1,581	 	
 	 	 	 	 	 	 	 	 	
Consolidated copper pounds (millions)	 	 	 	 	 	 	 	 	
Produced (3)	 	 	102	 	 	 	159	 	
Sold	 	 	105	 	 	 	148	 	
 	 	 	 	 	 	 	 	 	
Average price realized, net:	 	 	 	 	 	 	 	 	
Gold (per ounce)	 	$	1,382	 	 	$	1,106	 	
Copper (per pound)	 	$	4.00	 	 	$	3.33	 	
 	 	 	 	 	 	 	 	 	
Consolidated costs applicable to sales:	 	 	 	 	 	 	 	 	
Gold (per ounce)	 	$	557	 	 	$	476	 	
Copper (per pound)	 	$	1.11	 	 	$	0.78	 	
 	 	 	 	 	 	 	 	 	
Attributable costs applicable to sales:	 	 	 	 	 	 	 	 	
Gold (per ounce)	 	$	562	 	 	$	506	 	
Copper (per pound)	 	$	1.23	 	 	$	0.87	 	

(1)	 	See “Non-GAAP Financial Measures” on page 53.	
 		
(2)	 	Contained basis (attributable production net of smelter recoveries were 1,338 and 1,327 thousand gold ounces for 2011 and 2010, respectively).	
 		
(3)	 	Contained basis (attributable production net of smelter recoveries were 54 and 86 million copper pounds for 2011 and 2010, respectively).	
 
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Consolidated Financial Results
Net income attributable to Newmont stockholders for the first quarter of 2011 was $514, or $1.04 per share, compared to $546, or $1.11 per share, for the first quarter of 2010. Results for the first quarter of 2011 compared to the first quarter of 2010 were impacted by a $127 tax benefit in 2010 related to the conversion of non-U.S. entities for income tax purposes and decreased sales volumes, partially offset by higher realized gold and copper prices.
Gold Sales increased 17% in the first quarter of 2011 compared to the first quarter of 2010 due to higher realized prices, partially offset by decreased sales volume. The following analysis summarizes the changes in consolidated gold sales:
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	
Consolidated gold sales:	 	 	 	 	 	 	 	 	
Gross before provisional pricing	 	$	2,050	 	 	$	1,759	 	
Provisional pricing mark-to-market gain	 	 	8	 	 	 	2	 	
 	 	 	 	 	 	 	
Gross after provisional pricing	 	 	2,058	 	 	 	1,761	 	
Less: Treatment and refining charges	 	 	(15	)	 	 	(12	)	
 	 	 	 	 	 	 	
Net	 	$	2,043	 	 	$	1,749	 	
 	 	 	 	 	 	 	
Consolidated gold ounces sold (thousands):	 	 	1,478	 	 	 	1,581	 	
Average realized gold price (per ounce):	 	 	 	 	 	 	 	 	
Gross before provisional pricing	 	$	1,387	 	 	$	1,113	 	
Provisional pricing mark-to-market gain	 	 	5	 	 	 	1	 	
 	 	 	 	 	 	 	
Gross after provisional pricing	 	 	1,392	 	 	 	1,114	 	
Less: Treatment and refining charges	 	 	(10	)	 	 	(8	)	
 	 	 	 	 	 	 	
Net	 	$	1,382	 	 	$	1,106	 	
 	 	 	 	 	 	 	
The change in consolidated gold sales is due to:
 	 	 	 	 	
 	 	Three Months Ended	 	
 	 	March 31,	 	
 	 	2011 vs. 2010	 	
Decrease in consolidated ounces sold	 	$	(115	)	
Increase in average realized gold price	 	 	412	 	
Increase in treatment and refining charges	 	 	(3	)	
 	 	 	 	
 	 	$	294	 	

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Copper Sales decreased 14% in the first quarter of 2011 compared to the first quarter of 2010 due to decreased sales volume, partially offset by higher realized prices. The following analysis summarizes the changes in consolidated copper sales:
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	
Consolidated copper sales:	 	 	 	 	 	 	 	 	
Gross before provisional pricing	 	$	461	 	 	$	492	 	
Provisional pricing mark-to-market gain (loss)	 	 	(12	)	 	 	31	 	
 	 	 	 	 	 	 	
Gross after provisional pricing	 	 	449	 	 	 	523	 	
Less: Treatment and refining charges	 	 	(27	)	 	 	(30	)	
 	 	 	 	 	 	 	
Net	 	$	422	 	 	$	493	 	
 	 	 	 	 	 	 	
Consolidated copper pounds sold (millions):	 	 	105	 	 	 	148	 	
Average realized copper price (per pound):	 	 	 	 	 	 	 	 	
Gross before provisional pricing	 	$	4.37	 	 	$	3.32	 	
Provisional pricing mark-to-market gain (loss)	 	 	(0.12	)	 	 	0.21	 	
 	 	 	 	 	 	 	
Gross after provisional pricing	 	 	4.25	 	 	 	3.53	 	
Less: Treatment and refining charges	 	 	(0.25	)	 	 	(0.20	)	
 	 	 	 	 	 	 	
Net	 	$	4.00	 	 	$	3.33	 	
 	 	 	 	 	 	 	
The change in consolidated copper sales is due to:
 	 	 	 	 	
 	 	Three Months Ended	 	
 	 	March 31,	 	
 	 	2011 vs. 2010	 	
Decrease in consolidated pounds sold	 	$	(149	)	
Increase in average realized copper price	 	 	75	 	
Decrease in treatment and refining charges	 	 	3	 	
 	 	 	 	
 	 	$	(71	)	

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The following is a summary of consolidated gold and copper sales, net:
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	
Gold	 	 	 	 	 	 	 	 	
North America:	 	 	 	 	 	 	 	 	
Nevada	 	$	582	 	 	$	468	 	
La Herradura	 	 	65	 	 	 	44	 	
 	 	 	 	 	 	 	
 	 	 	647	 	 	 	512	 	
 	 	 	 	 	 	 	
South America:	 	 	 	 	 	 	 	 	
Yanacocha	 	 	362	 	 	 	460	 	
 	 	 	 	 	 	 	 	 	
Asia Pacific:	 	 	 	 	 	 	 	 	
Boddington	 	 	232	 	 	 	167	 	
Batu Hijau	 	 	140	 	 	 	165	 	
Other Australia/New Zealand	 	 	415	 	 	 	314	 	
 	 	 	 	 	 	 	
 	 	 	787	 	 	 	646	 	
 	 	 	 	 	 	 	
Africa:	 	 	 	 	 	 	 	 	
Ahafo	 	 	247	 	 	 	131	 	

 	 	 	2,043	 	 	 	1,749	 	

Copper	 	 	 	 	 	 	 	 	
Asia Pacific:	 	 	 	 	 	 	 	 	
Batu Hijau	 	 	369	 	 	 	455	 	
Boddington	 	 	53	 	 	 	38	 	
 	 	 	 	 	 	 	
 	 	 	422	 	 	 	493	 	
 	 	 	 	 	 	 	
 	 	$	2,465	 	 	$	2,242	 	
 	 	 	 	 	 	 	
Costs applicable to sales for gold increased in the first quarter of 2011 compared to the first quarter of 2010 due to consumption of in-process inventory at Nevada, higher mining and milling costs at Boddington and higher production at Ahafo, partially offset by higher by-product credits. Costs applicable to sales for copper increased in the first quarter of 2011 compared to the first quarter of 2010 due to higher mining and milling costs at Boddington. For a complete discussion regarding variations in operations, see Results of Consolidated Operations below.
Amortization increased in the first quarter of 2011 compared to the first quarter of 2010 due to higher mine development costs at Yanacocha and Other Australia/New Zealand, higher asset retirement costs at Boddington and higher production at Ahafo, partially offset by lower production at Batu Hijau. We expect Amortization expense to be approximately $1,025 to $1,035 in 2011.
 
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The following is a summary of Costs applicable to sales and Amortization by operation:
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Costs Applicable	 	 	 	 	
 	 	to Sales	 	 	Amortization	 	
 	 	Three Months Ended March 31,	 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	 	2011	 	 	2010	 	
Gold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
North America:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Nevada	 	$	272	 	 	$	252	 	 	$	72	 	 	$	62	 	
La Herradura	 	 	18	 	 	 	14	 	 	 	4	 	 	 	4	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	290	 	 	 	266	 	 	 	76	 	 	 	66	 	
South America:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Yanacocha	 	 	153	 	 	 	154	 	 	 	53	 	 	 	37	 	
Asia Pacific:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Boddington	 	 	100	 	 	 	80	 	 	 	28	 	 	 	22	 	
Batu Hijau	 	 	34	 	 	 	34	 	 	 	7	 	 	 	10	 	
Other Australia/New Zealand	 	 	166	 	 	 	156	 	 	 	35	 	 	 	31	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	300	 	 	 	270	 	 	 	70	 	 	 	63	 	
Africa:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ahafo	 	 	80	 	 	 	64	 	 	 	22	 	 	 	17	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	823	 	 	 	754	 	 	 	221	 	 	 	183	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Copper	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asia Pacific:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Batu Hijau	 	 	89	 	 	 	91	 	 	 	20	 	 	 	27	 	
Boddington	 	 	28	 	 	 	24	 	 	 	7	 	 	 	6	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	117	 	 	 	115	 	 	 	27	 	 	 	33	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Hope Bay	 	 	—	 	 	 	—	 	 	 	3	 	 	 	3	 	
Asia Pacific	 	 	—	 	 	 	—	 	 	 	1	 	 	 	1	 	
Corporate and other	 	 	—	 	 	 	—	 	 	 	4	 	 	 	4	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	—	 	 	 	—	 	 	 	8	 	 	 	8	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	940	 	 	$	869	 	 	$	256	 	 	$	224	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Exploration expense increased $19 in the first quarter of 2011 compared to the first quarter of 2010 due to additional near mine expenditures in all regions in support of our growth plans. We expect 2011 Exploration expense to be approximately $335 to $345.
Advanced projects, research and development in the first quarter of 2011 and 2010 is summarized as follows:
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	
Major projects:	 	 	 	 	 	 	 	 	
Hope Bay	 	$	38	 	 	$	10	 	
Conga	 	 	1	 	 	 	1	 	
Akyem	 	 	—	 	 	 	3	 	
Other projects:	 	 	 	 	 	 	 	 	
Technical and project services	 	 	15	 	 	 	12	 	
Corporate	 	 	3	 	 	 	12	 	
Other	 	 	11	 	 	 	8	 	
 	 	 	 	 	 	 	
 	 	$	68	 	 	$	46	 	

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We expect Advanced projects, research and development expenses to be approximately $405 to $415 in 2011, with a focus on the major projects above.
General and administrative expenses were consistent in the first quarter of 2011 compared to the first quarter of 2010. We expect 2011 General and administrative expenses to be approximately $190 to $200.
Other expense, net was $73 and $89 for the three months ended March 31, 2011 and 2010, respectively. The decrease is due to lower community development expenses of $38 at Batu Hijau, partially offset by expense of $21 to settle a value added tax dispute in Indonesia.
Other income, net was $31 and $48 for the three months ended March 31, 2011 and 2010, respectively. The decrease is primarily related to the sale of non-core assets in Asia Pacific in 2010, partially offset by income from developing projects in Peru, Africa and Nevada in 2011.
Interest expense, net decreased by $10 in the first quarter of 2011 compared to the first quarter of 2010 due to the prepayment in 2010 of the PTNNT project financing and Yanacocha senior notes and credit facility and higher capitalized interest. Capitalized interest increased $5 in the first quarter of 2011 compared to the first quarter of 2010 due to spending on our internal growth opportunities. We expect 2011 Interest expense, net to be approximately $235 to $245.
Income and mining tax expense during the first quarter of 2011 was $305 resulting in an effective tax rate of 31%. Income and mining tax expense during the first quarter of 2010 was $141 for an effective tax rate of 16%. The lower effective tax rate in 2010 resulted from a tax benefit of $127 recorded in connection with the conversion of non-US tax-paying entities to entities currently subject to U.S. income tax resulting in an increase in net deferred tax assets. The effective tax rates in the first quarter of 2011 and 2010 are different from the United States statutory rate of 35% primarily due to the above mentioned tax benefit in 2010 and U.S. percentage depletion. For a complete discussion of the factors that influence our effective tax rate, see Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations in Newmont’s Annual Report on Form 10-K for the year ended December 31, 2010 filed February 24, 2011. We expect the 2011 full year tax rate to be approximately 28% to 32%, assuming an average gold price of $1,300 per ounce.
Net income attributable to noncontrolling interests decreased to $156 in the first quarter of 2011 compared to $197 in the first quarter of 2010 as a result of decreased earnings at Yanacocha and Batu Hijau.
 
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Results of Consolidated Operations
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Gold or Copper Produced (1)	 	 	Costs Applicable to Sales (2)	 	 	Amortization	 	
 	 	2011	 	 	2010	 	 	2011	 	 	2010	 	 	2011	 	 	2010	 	
 	 	(ounces in thousands)	 	 	($ per ounce)	 	 	($ per ounce)	 	
Three Months Ended March 31,	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
North America	 	 	482	 	 	 	473		 	$	617	 	 	$	577		 	$	162	 	 	$	142		
South America	 	 	288	 	 	 	423		 	 	583	 	 	 	371		 	 	204	 	 	 	90		
Asia Pacific	 	 	560	 	 	 	600		 	 	527	 	 	 	458		 	 	123	 	 	 	107		
Africa	 	 	186	 	 	 	120		 	 	451	 	 	 	542		 	 	123	 	 	 	145		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total/Weighted-Average	 	 	1,516	 	 	 	1,616		 	$	557	 	 	$	476		 	$	150	 	 	$	116		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Attributable to Newmont (3)(4)	 	 	1,342	 	 	 	1,332		 	$	562	 	 	$	506		 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Attributable to Newmont (4)	 	 	 	 	 	 	 	 	 	$	438	 	 	$	349		 	 	 	 	 	 	 	 	

 	 	(pounds in millions)	 	 	($  per pound)	 	 	($  per pound)	 	
Copper	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asia Pacific	 	 	102	 	 	 	159		 	$	1.11	 	 	$	0.78		 	$	0.25	 	 	$	0.23		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Attributable to Newmont (4)	 	 	57	 	 	 	90		 	$	1.23	 	 	$	0.87		 	 	 	 	 	 	 	 	

			
(1)	 	Contained basis (attributable production after smelter recoveries was 1,338 and 1,327 thousand gold ounces and 54 and 86 million copper pounds for 2011 and 2010, respectively).	
 		
(2)	 	Consolidated Costs applicable to sales excludes Amortization and Reclamation and remediation .	
 		
(3)	 	Includes 12 and 4 thousand ounces in 2011 from our non-consolidated interests in La Zanja and Duketon, respectively.	
 		
(4)	 	Attributable and Net Attributable Costs applicable to sales are non-GAAP financial measures. See page 53 for a reconciliation.	
First quarter 2011 compared to 2010
Consolidated gold ounces produced decreased 6% due to lower leach production from South America and production from lower grade stockpiles at Batu Hijau, partially offset by higher production from Africa and Other Australia/New Zealand. Consolidated copper pounds produced decreased 36% due to production from lower grade stockpiles at Batu Hijau.
Costs applicable to sales per consolidated gold ounce sold increased 17% due to lower production from South America and Batu Hijau and higher waste mining and milling costs, partially offset by higher production from Africa and Other Australia/New Zealand, higher by-product credits and lower workers’ participation costs at Yanacocha. Costs applicable to sales per consolidated copper pound sold increased 42% due to lower production at Batu Hijau.
Amortization per consolidated gold ounce sold increased 29% due to lower production, higher mine development costs in South America and Other Australia/New Zealand and higher asset retirement costs at Boddington. Amortization per consolidated copper pound sold increased 9% due to lower production at Batu Hijau.
We continue to expect 2011 gold production of approximately 5.1 to 5.3 million ounces attributable to Newmont at consolidated Costs applicable to sales per ounce of approximately $560 to $590 and 2011 copper production of approximately 190 to 220 million pounds attributable to Newmont at consolidated Costs applicable to sales per pound of approximately $1.25 to $1.50.
 
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North America Operations
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Gold Ounces Produced	 	 	Costs Applicable to Sales (1)	 	 	Amortization	 	
 	 	2011	 	 	2010	 	 	2011	 	 	2010	 	 	2011	 	 	2010	 	
 	 	(in thousands)	 	 	($ per ounce)	 	 	($ per ounce)	 	
Three Months Ended March 31,	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Nevada	 	 	433	 	 	 	433	 	 	$	643	 	 	$	599	 	 	$	170	 	 	$	147	 	
La Herradura (2)	 	 	49	 	 	 	40	 	 	 	390	 	 	 	344	 	 	 	92	 	 	 	95	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total/Weighted-Average	 	 	482	 	 	 	473	 	 	$	617	 	 	$	577	 	 	$	162	 	 	$	142	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Attributable to Newmont	 	 	482	 	 	 	473	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

			
(1)	 	Consolidated Costs applicable to sales excludes Amortization and Reclamation and remediation .	
 		
(2)	 	Our proportionately consolidated 44%.	
First quarter 2011 compared to 2010
Nevada, USA. Gold ounces produced were consistent with the prior year quarter as higher mill production from a reduction of in-process inventory was offset by lower leach placement due to mine sequencing. Costs applicable to sales per ounce increased 7% due to lower leach production, a higher proportion of waste mining and higher fuel costs, partially offset by higher copper and silver by-product credits. Amortization per ounce increased 16% due to higher inventory drawdown costs.
La Herradura, Mexico . Gold ounces produced increased 23% due to higher leach placement at Soledad-Dipolos. Costs applicable to sales per ounce increased 13% due to higher mining and leaching costs, partially offset by higher by-product credits. Amortization per ounce decreased 3% due to higher production.
We continue to expect gold production in North America of approximately 2.0 to 2.1 million ounces at Costs applicable to sales per ounce of approximately $560 to $600 in 2011.
South America Operations
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Gold Ounces Produced	 	 	Costs Applicable to Sales (1)	 	 	Amortization	 	
 	 	2011	 	 	2010	 	 	2011	 	 	2010	 	 	2011	 	 	2010	 	
 	 	(in thousands)	 	 	($ per ounce)	 	 	($ per ounce)	 	
Three Months Ended March 31,	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Yanacocha (51.35% owned)	 	 	288	 	 	 	423	 	 	$	583	 	 	$	371	 	 	$	204	 	 	$	90	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Attributable to Newmont (2)	 	 	160	 	 	 	217	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

			
(1)	 	Consolidated Costs applicable to sales excludes Amortization and Reclamation and remediation .	
 		
(2)	 	Includes 12 thousand ounces in 2011 from our 46.94% non-consolidated interest in La Zanja.	
First quarter 2011 compared to 2010
Yanacocha, Peru . Gold ounces produced decreased 32% due to lower leach placement, lower mill grade and transitional ore stockpiling at La Quinua. Leach tons placed decreased 55% due to mine sequencing and pit stability issues at La Quinua and adverse working conditions at El Tapado Oeste. Costs applicable to sales per ounce increased 57% due to lower production and higher labor costs, partially offset by lower workers’ participation costs and higher by-product credits. Amortization per ounce increased 127% due to lower production and higher mine development costs.
We continue to expect attributable gold production in South America of approximately 715,000 to 775,000 ounces at consolidated Costs applicable to sales per ounce of approximately $500 to $550 in 2011.
 
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Asia Pacific Operations
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Gold or Copper Produced (1)	 	 	Costs Applicable to Sales (2)	 	 	Amortization	 	
 	 	2011	 	 	2010	 	 	2011	 	 	2010	 	 	2011	 	 	2010	 	
 	 	(ounces in thousands)	 	 	($ per ounce)	 	 	($ per ounce)	 	
Three Months Ended March 31,	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Boddington	 	 	165	 	 	 	158	 	 	$	596	 	 	$	532	 	 	$	166	 	 	$	146	 	
Batu Hijau (3)	 	 	96	 	 	 	166	 	 	 	322	 	 	 	215	 	 	 	71	 	 	 	63	 	
Other Australia/New Zealand	 	 	299	 	 	 	276	 	 	 	560	 	 	 	556	 	 	 	117	 	 	 	112	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total/Weighted-Average	 	 	560	 	 	 	600	 	 	$	527	 	 	$	458	 	 	$	123	 	 	$	107	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Attributable to Newmont (4)	 	 	514	 	 	 	522	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

 	 	(pounds in millions)	 	 	($  per pound)	 	 	($  per pound)	 	
Copper	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Boddington	 	 	14	 	 	 	14	 	 	$	2.19	 	 	$	2.15	 	 	$	0.55	 	 	$	0.56	 	
Batu Hijau (3)	 	 	88	 	 	 	145	 	 	 	0.96	 	 	 	0.67	 	 	 	0.21	 	 	 	0.20	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total/Weighted-Average	 	 	102	 	 	 	159	 	 	$	1.11	 	 	$	0.78	 	 	$	0.25	 	 	$	0.23	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Attributable to Newmont	 	 	57	 	 	 	90	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

			
(1)	 	Contained basis (attributable production after smelter recoveries was 510 and 517 thousand gold ounces and 54 and 86 million copper pounds for 2011 and 2010, respectively).	
 		
(2)	 	Consolidated Costs applicable to sales excludes Amortization and Reclamation and remediation .	
 		
(3)	 	Our economic interest was 48.50% and 52.44% in the first quarter of 2011 and 2010, respectively. See Note 11 to the Condensed Consolidated Financial Statements for a discussion of the changes in our ownership in Batu Hijau.	
 		
(4)	 	Includes 4 thousand ounces in 2011 from our 16.29% non-consolidated interest in Duketon.	
First quarter 2011 compared to 2010
Boddington, Australia. Gold ounces produced increased 4% due to higher throughput. Copper pounds produced were consistent with the prior year quarter as higher throughput was offset by lower grade and recovery. Costs applicable to sales per ounce and per pound increased 12% and 2%, respectively, due to the stronger Australian dollar and higher mining and mill maintenance costs, partially offset by higher by-product credits. Amortization per ounce increased 14% due to higher asset retirement costs and a higher allocation of costs to gold.
Batu Hijau, Indonesia. Copper pounds and gold ounces produced decreased 39% and 42% due to lower throughput, grade and recovery as a result of processing more stockpiled material compared to higher grade Phase 5 ore. Costs applicable to sales per pound and per ounce increased 43% and 50%, respectively, due to lower production and higher waste mining costs, partially offset by higher by-product credits and lower royalty costs. Amortization per pound and per ounce increased 5% and 13%, respectively, due to lower production.
Other Australia/New Zealand . Gold ounces produced increased 8% due to higher ore grade milled at Tanami and Jundee and a reduction of in-process inventory at Jundee. Costs applicable to sales per ounce increased 1% due to the stronger Australian dollar offset by higher production. Amortization per ounce increased 4% due to higher mine development costs at Jundee.
We continue to expect attributable gold production for Asia Pacific of approximately 1.9 to 2.0 million ounces at consolidated Costs applicable to sales per ounce of approximately $600 to $675 in 2011. We expect attributable copper production for Asia Pacific to be approximately 190 to 220 million pounds at consolidated Costs applicable to sales per pound of approximately $1.25 to $1.50 in 2011.
 
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Africa Operations
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Gold Ounces Produced	 	 	Costs Applicable to Sales (1)	 	 	Amortization	 	
 	 	2011	 	 	2010	 	 	2011	 	 	2010	 	 	2011	 	 	2010	 	
 	 	(in thousands)	 	 	($ per ounce)	 	 	($ per ounce)	 	
Three Months Ended March 31,	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ahafo	 	 	186	 	 	 	120	 	 	$	451	 	 	$	542	 	 	$	123	 	 	$	145	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Attributable to Newmont	 	 	186	 	 	 	120	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

			
(1)	 	Consolidated Costs applicable to sales excludes Amortization and Reclamation and remediation .	
First quarter 2011 compared to 2010
Ahafo, Ghana. Gold ounces produced increased 55% due to higher mill ore grade and recovery as a result of mine sequencing. Costs applicable to sales per ounce decreased 17% due to higher production and lower waste mining costs, partially offset by higher diesel and royalty costs. Amortization per ounce decreased 15% due to higher production.
We continue to expect gold production in Africa of approximately 550,000 to 590,000 ounces at Costs applicable to sales per ounce of approximately $485 to $535 in 2011.
Foreign Currency Exchange Rates
Our foreign operations sell their gold and copper production based on U.S. dollar metal prices. Approximately 39% of our Costs applicable to sales were paid in local currencies during the first quarter of 2011 and 2010. Variations in the local currency exchange rates in relation to the U.S. dollar at our foreign mining operations increased consolidated Costs applicable to sales per ounce by approximately $9, net of hedging gains and losses, during the first quarter of 2011 as compared to the first quarter of 2010.
Liquidity and Capital Resources
Cash Provided from Operating Activities
Net cash provided from continuing operations was a record $989 in the first quarter of 2011, an increase of $261 from the first quarter of 2010 due to higher realized gold and copper prices of $412 and $75, respectively, and a net reduction in working capital of $194, partially offset by lower gold and copper sales volumes of $115 and $149, respectively, and higher costs applicable to sales of $71 due to higher production from Ahafo and higher mining and milling costs, as discussed above in Consolidated Financial Results .
 
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Investing Activities
Net cash used in investing activities increased to $418 during the first quarter of 2011 compared to $285 during the same period of 2010, due largely to increased capital spending at Nevada, Hope Bay, Conga and Akyem. Additions to property, plant and mine development were as follows:
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	
North America:	 	 	 	 	 	 	 	 	
Nevada	 	$	95	 	 	$	48	 	
Hope Bay	 	 	19	 	 	 	9	 	
La Herradura	 	 	16	 	 	 	14	 	
 	 	 	 	 	 	 	
 	 	 	130	 	 	 	71	 	
 	 	 	 	 	 	 	
South America:	 	 	 	 	 	 	 	 	
Yanacocha	 	 	41	 	 	 	40	 	
Conga	 	 	64	 	 	 	17	 	
 	 	 	 	 	 	 	
 	 	 	105	 	 	 	57	 	
 	 	 	 	 	 	 	
Asia Pacific:	 	 	 	 	 	 	 	 	
Boddington	 	 	49	 	 	 	48	 	
Batu Hijau	 	 	40	 	 	 	28	 	
Other Australia/New Zealand	 	 	62	 	 	 	36	 	
Other Asia Pacific	 	 	2	 	 	 	2	 	
 	 	 	 	 	 	 	
 	 	 	153	 	 	 	114	 	
 	 	 	 	 	 	 	
Africa:	 	 	 	 	 	 	 	 	
Ahafo	 	 	15	 	 	 	21	 	
Akyem	 	 	28	 	 	 	6	 	
 	 	 	 	 	 	 	
 	 	 	43	 	 	 	27	 	
 	 	 	 	 	 	 	 	 	
Corporate and Other	 	 	14	 	 	 	3	 	
 	 	 	 	 	 	 	
Accrual basis	 	 	445	 	 	 	272	 	
Decrease (increase) in accrued capital expenditures	 	 	(43	)	 	 	37	 	
 	 	 	 	 	 	 	
Cash basis	 	$	402	 	 	$	309	 	
 	 	 	 	 	 	 	
Capital expenditures in North America during the first quarter of 2011 were primarily related to development at the Turf/Leeville and Exodus underground projects in Nevada, infrastructure at the Hope Bay project in Canada and sustaining mine development. Capital expenditures in South America were primarily related to Conga project development and leach pad and surface mine development at Yanacocha. The majority of capital expenditures in Asia Pacific were for surface and underground development, mining equipment, tailings facility construction and infrastructure improvements. Capital expenditures in Africa were primarily related to Akyem development and the Subika Expansion project at Ahafo. We expect 2011 capital expenditures to be approximately $2,700 to $3,000.
Capital expenditures in North America during the first quarter of 2010 were primarily related to development at the Turf/Leeville underground project in Nevada, the Hope Bay project and sustaining mine development. Capital expenditures in South America were primarily related to Conga development and leach pad development at Yanacocha. The majority of capital expenditures in Asia Pacific were for surface and underground development, mining equipment and infrastructure improvements. Capital expenditures in Africa were primarily related to the development of the Akyem project, tailings dam construction and sustaining mine development at Ahafo.
Purchases of marketable securities. During first quarter of 2011 and 2010, we purchased marketable securities of $12 and $3, respectively.
Acquisitions, net. During the first quarter of 2011, we paid $7 of contingent payments in accordance with the 2009 Boddington acquisition agreement.
Proceeds from sale of other assets. During the first quarter of 2011, we received $6 primarily from the sale of investments. During the first quarter of 2010 proceeds included $6 from the sale of our 40% interest in AGR Matthey Joint Venture (“AGR”) and $32 from the sale of other assets including non-core assets held at Tanami.
 
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Financing Activities
Net cash used in financing activities was $117 and $280 during the first quarter of 2011 and 2010, respectively.
Repayment of debt. During the first quarter of 2011, we repaid $31 of debt, including scheduled debt repayments of $30 related to the sale-leaseback of the refractory ore treatment plant (classified as a capital lease). At March 31, 2011, $244 of the $2,000 revolving credit facility is currently used to secure the issuance of letters of credit, primarily supporting reclamation obligations (see “Off-Balance Sheet Arrangements” below). During the first quarter of 2010, we repaid $250 of debt, including scheduled debt repayments of $24 related to the sale-leaseback of the refractory ore treatment plant and $6 on other credit facilities and capital leases. In addition, PTNNT repaid the entire $220 balance under its project financing facility.
Scheduled minimum debt repayments are $232 for the remainder of 2011, $565 in 2012, $42 in 2013, $538 in 2014, $18 in 2015, and $3,035 thereafter. We expect to be able to fund maturities of debt from Net cash provided by operating activities , short-term investments, existing cash balances and available credit facilities.
At March 31, 2011 and 2010, we were in compliance with all required debt covenants and other restrictions related to debt agreements.
Sale of subsidiary shares to noncontrolling interests. In March 2010, Nusa Tenggara Partnership (“NTP”) completed the sale of 7% of shares in PTNNT to a third party buyer. Cash proceeds from the sale were $229, with our 56.25% share being $129 and the balance of $100 was paid to our NTP partner.
Dividends paid to common stockholders. We declared regular quarterly dividends totaling $0.15 and $0.10 per common share for the three months ended March 31, 2011 and 2010, respectively. Additionally, Newmont Mining Corporation of Canada Limited, a subsidiary of the Company, declared regular quarterly dividends on its exchangeable shares totaling C$0.1489 per share through March 31, 2011 and C$0.1055 through March 31, 2010. We paid dividends of $74 and $49 to common stockholders in the first quarter of 2011 and 2010, respectively.
Dividends paid to noncontrolling interest. We paid dividends of $15 and $220 to noncontrolling interests during the first quarter of 2011 and 2010, respectively. The $15 payment in the first quarter of 2011 was for Indonesian withholding taxes related to dividends paid to noncontrolling interests in December 2010. The dividends paid during the first quarter of 2010 included $100 for our NTP partner’s share of the sale of the 7% interest in Batu Hijau and $120 for our partners’ share of a $276 PTNNT dividend.
Proceeds from stock issuance. We received proceeds of $3 during the first quarter of 2011 and 2010 from the issuance of common stock.
Discontinued Operations
Net operating cash used in discontinued operations of $13 in the first quarter of 2010 related to the Kori Kollo operation in Bolivia which was sold in 2009.
 
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Off-Balance Sheet Arrangements
We have the following off-balance sheet arrangements: operating leases (as discussed in Note 29 to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2010, filed on February 24, 2011) and $1,339 of outstanding letters of credit, surety bonds and bank guarantees (see Note 26 to the Condensed Consolidated Financial Statements).
We also have sales agreements to sell copper and gold concentrates at market prices as follows (in thousands of tons):
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	2011	 	 	2012	 	 	2013	 	 	2014	 	 	2015	 	 	Thereafter	 	
Batu Hijau	 	 	237	 	 	 	440	 	 	 	430	 	 	 	518	 	 	 	—	 	 	 	—	 	
Boddington	 	 	176	 	 	 	259	 	 	 	243	 	 	 	254	 	 	 	231	 	 	 	672	 	
Nevada	 	 	48	 	 	 	75	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	461	 	 	 	774	 	 	 	673	 	 	 	772	 	 	 	231	 	 	 	672	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Environmental
Our mining and exploration activities are subject to various federal and state laws and regulations governing the protection of the environment. We have made, and expect to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures. At March 31, 2011 and December 31, 2010, $913 and $904, respectively, were accrued for reclamation costs relating to currently or recently producing mineral properties.
In addition, we are involved in several matters concerning environmental obligations associated with former mining activities. Based upon our best estimate of our liability for these matters, $142 and $144 were accrued for such obligations at March 31, 2011 and December 31, 2010, respectively. We spent $2 and $4 during the first quarter of 2011 and 2010, respectively, for environmental obligations related to the former, primarily historic, mining activities and have classified $17 as a current liability at March 31, 2011.
During the first quarter of 2011 and 2010, capital expenditures were approximately $21 and $19, respectively, to comply with environmental regulations. Ongoing costs to comply with environmental regulations have not been a significant component of operating costs.
For more information on the Company’s reclamation and remediation liabilities, see Notes 4 and 26 to the Condensed Consolidated Financial Statements.
Accounting Developments
For a discussion of Recently Adopted Accounting Pronouncements, see Note 2 to the Condensed Consolidated Financial Statements.
 
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Non-GAAP Financial Measures
Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles (“GAAP”). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.
Adjusted net income
Management of the Company uses Adjusted net income to evaluate the Company’s operating performance, and for planning and forecasting future business operations. The Company believes the use of Adjusted net income allows investors and analysts to compare results of the continuing operations of the Company and its direct and indirect subsidiaries relating to the production and sale of minerals to similar operating results of other mining companies, by excluding exceptional or unusual items. Management’s determination of the components of Adjusted net income are evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts. Net income attributable to Newmont stockholders is reconciled to Adjusted net income as follows:
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	
Net income attributable to Newmont stockholders	 	$	514	 	 	$	546	 	
Impairment of assets	 	 	1	 	 	 	1	 	
Net gain on asset sales	 	 	(2	)	 	 	(25	)	
Income tax benefit from internal restructuring	 	 	—	 	 	 	(127	)	
PTNNT community contribution	 	 	—	 	 	 	13	 	
 	 	 	 	 	 	 	
Adjusted net income	 	$	513	 	 	$	408	 	
 	 	 	 	 	 	 	
Adjusted net income per share (1)	 	$	1.04	 	 	$	0.83	 	

(1)	 	Calculated using weighted average number of shares outstanding, basic.	
Costs applicable to sales per ounce/pound
Costs applicable to sales per ounce/pound are non-GAAP financial measures. These measures are calculated by dividing the costs applicable to sales of gold and copper by gold ounces or copper pounds sold, respectively. These measures are calculated on a consistent basis for the periods presented on both a consolidated and attributable to Newmont basis. Attributable costs applicable to sales are based on our economic interest in production from our mines. For operations where we hold less than a 100% economic share in the production, we exclude the share of gold or copper production attributable to the noncontrolling interest. We include attributable costs applicable to sales per ounce/pound to provide management, investors and analysts with information with which to compare our performance to other gold producers. Costs applicable to sales per ounce/pound statistics are intended to provide additional information only and do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Other companies may calculate these measures differently.
Net attributable costs applicable to sales per ounce measures the benefit of copper produced in conjunction with gold, as a credit against the cost of producing gold. A number of other gold producers present their costs net of the contribution from copper and other non-gold sales. We believe that including a measure on this basis provides management, investors and analysts with information with which to compare our performance to other gold producers, and to better assess the overall performance of our business. In addition, this measure provides information to enable investors and analysts to understand the importance of non-gold revenues to our cost structure.
 
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The following tables reconcile these non-GAAP measures to the most directly comparable GAAP measures.
Costs applicable to sales per ounce/pound
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Gold	 	 	Copper	 	
 	 	Three Months Ended March 31,	 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	 	2011	 	 	2010	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs applicable to sales:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated per financial statements	 	$	823	 	 	$	754	 	 	$	117	 	 	$	115	 	
Noncontrolling interests (1)	 	 	(94	)	 	 	(94	)	 	 	(46	)	 	 	(44	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Attributable to Newmont	 	$	729	 	 	$	660	 	 	$	71	 	 	$	71	 	

Gold/Copper sold (thousand ounces/million pounds):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated	 	 	1,478	 	 	 	1,581	 	 	 	105	 	 	 	148	 	
Noncontrolling interests (1)	 	 	(182	)	 	 	(276	)	 	 	(48	)	 	 	(65	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Attributable to Newmont	 	 	1,296	 	 	 	1,305	 	 	 	57	 	 	 	83	 	

Costs applicable to sales per ounce/pound:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated	 	$	557	 	 	$	476	 	 	$	1.11	 	 	$	0.78	 	
Attributable to Newmont	 	$	562	 	 	$	506	 	 	$	1.23	 	 	$	0.87	 	
Net attributable costs applicable to sales per ounce
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31,	 	
 	 	2011	 	 	2010	 	
 	 	 	 	 	 	 	 	 	
Attributable costs applicable to sales:	 	 	 	 	 	 	 	 	
Gold	 	$	729	 	 	$	660	 	
Copper	 	 	71	 	 	 	71	 	
 	 	 	 	 	 	 	
 	 	 	800	 	 	 	731	 	

Copper revenue:	 	 	 	 	 	 	 	 	
Consolidated	 	 	(422	)	 	 	(493	)	
Noncontrolling interests (1)	 	 	190	 	 	 	216	 	
 	 	 	 	 	 	 	
 	 	 	(232	)	 	 	(277	)	
 	 	 	 	 	 	 	
Net attributable costs applicable to sales	 	$	568	 	 	$	454	 	

Attributable gold ounces sold (thousands)	 	 	1,296	 	 	 	1,305	 	
 	 	 	 	 	 	 	 	 	
Net attributable costs applicable to sales per ounce	 	$	438	 	 	$	349	 	

(1)	 	Relates to partners’ interests in Batu Hijau and Yanacocha.	
 
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Safe Harbor Statement
Certain statements contained in this report (including information incorporated by reference) are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provided for under these sections. Our forward-looking statements include, without limitation: (a) statements regarding future earnings, and the sensitivity of earnings to gold and other metal prices; (b) estimates of future mineral production and sales for specific operations and on a consolidated basis; (c) estimates of future production costs and other expenses, for specific operations and on a consolidated basis; (d) estimates of future cash flows and the sensitivity of cash flows to gold and other metal prices; (e) estimates of future capital expenditures and other cash needs for specific operations and on a consolidated basis and expectations as to the funding thereof; (f) statements as to the projected development of certain ore deposits, including estimates of development and other capital costs, financing plans for these deposits, and expected production commencement dates; (g) estimates of future costs and other liabilities for certain environmental matters; (h) estimates of reserves, and statements regarding future exploration results and reserve replacement; (i) statements regarding modifications to Newmont’s hedge positions; (j) statements regarding future transactions relating to portfolio management or rationalization efforts; and (k) projected synergies and costs associated with acquisitions and related matters.
Where we express an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected, or implied by those forward-looking statements. Important factors that could cause actual results to differ materially from such forward-looking statements (“cautionary statements”) are disclosed under “Risk Factors” in the Newmont Annual Report on Form 10-K for the year ended December 31, 2010, as well as in other filings with the Securities and Exchange Commission. Many of these factors are beyond Newmont’s ability to control or predict. Given these uncertainties, readers are cautioned not to place undue reliance on our forward-looking statements.
All subsequent written and oral forward-looking statements attributable to Newmont or to persons acting on its behalf are expressly qualified in their entirety by the cautionary statements. Newmont disclaims any intention or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
 
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ITEM 3.	 	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
(dollars in millions, except per ounce and per pound amounts).	
Metal Prices
Changes in the market price of gold significantly affect our profitability and cash flow. Gold prices can fluctuate widely due to numerous factors, such as demand; forward selling by producers; central bank sales, purchases and lending; investor sentiment; the strength of the U.S. dollar; inflation, deflation, or other general price instability; and global mine production levels. Changes in the market price of copper also affect our profitability and cash flow. Copper is traded on established international exchanges and copper prices generally reflect market supply and demand, but can also be influenced by speculative trading in the commodity or by currency exchange rates.
Hedging
Our strategy is to provide shareholders with leverage to changes in gold and copper prices by selling our production at spot market prices. Consequently, we do not hedge our gold and copper sales. We have and will continue to manage certain risks associated with commodity input costs, interest rates and foreign currencies using the derivative market.
By using derivatives, we are affected by credit risk, market risk and market liquidity risk. Credit risk is the risk that a third party might fail to fulfill its performance obligations under the terms of a financial instrument. We mitigate credit risk by entering into derivatives with high credit quality counterparties, limiting the amount of exposure to each counterparty, and monitoring the financial condition of the counterparties. Market risk is the risk that the fair value of a derivative might be adversely affected by a change in underlying commodity prices, interest rates, or currency exchange rates, and that this in turn affects our financial condition. We manage market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. We mitigate this potential risk to our financial condition by establishing trading agreements with counterparties under which we are not required to post any collateral or make any margin calls on our derivatives. Our counterparties cannot require settlement solely because of an adverse change in the fair value of a derivative. Market liquidity risk is the risk that a derivative cannot be eliminated quickly, by either liquidating it or by establishing an offsetting position. Under the terms of our trading agreements, counterparties cannot require us to immediately settle outstanding derivatives, except upon the occurrence of customary events of default such as covenant breeches, including financial covenants, insolvency or bankruptcy. We further mitigate market liquidity risk by spreading out the maturity of our derivatives over time.
Cash Flow Hedges
We utilize foreign currency contracts to reduce the variability of the US dollar amount of forecasted foreign currency expenditures caused by changes in exchange rates. We hedge a portion of our A$ 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. We use diesel contracts to reduce the variability of our operating cost exposure related to diesel prices of fuel consumed at our Nevada operations. All of the currency and diesel contracts have been designated as cash flow hedges of future expenditures, and as such, changes in the market value have been recorded in Accumulated other comprehensive income . Gains and losses from hedge ineffectiveness are recognized in current earnings .
 
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Foreign Currency Exchange Risk
We had the following foreign currency derivative contracts outstanding at March 31, 2011:
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Expected Maturity Date	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	
 	 	2011	 	 	2012	 	 	2013	 	 	2014	 	 	2015	 	 	2016	 	 	Average	 	
A$ Fixed Forward Contracts:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
A$ notional (millions)	 	 	843	 	 	 	781	 	 	 	473	 	 	 	353	 	 	 	163	 	 	 	10	 	 	 	2,623	 	
Average rate ($/A$)	 	 	0.84	 	 	 	0.86	 	 	 	0.87	 	 	 	0.85	 	 	 	0.82	 	 	 	0.86	 	 	 	0.85	 	
Expected hedge ratio	 	 	78	%	 	 	54	%	 	 	35	%	 	 	27	%	 	 	13	%	 	 	3	%	 	 	 	 	
NZ$ Fixed Forward Contracts:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NZ$ notional (millions)	 	 	50	 	 	 	29	 	 	 	1	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	80	 	
Average rate ($/NZ$)	 	 	0.70	 	 	 	0.70	 	 	 	0.72	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	0.70	 	
Expected hedge ratio	 	 	58	%	 	 	25	%	 	 	5	%	 	 	—	%	 	 	—	%	 	 	—	%	 	 	 	 	
The fair value of the A$ foreign currency derivative contracts was $314 and $295 at March 31, 2011 and December 31, 2010, respectively. The fair value of the NZ$ foreign currency derivative contracts was $5 and $6 at March 31, 2011 and December 31, 2010, respectively.
Diesel Price Risk
We had the following diesel derivative contracts outstanding at March 31, 2011:
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Expected Maturity Date	 	
 	 	2011	 	 	2012	 	 	2013	 	 	Total Average	 	
Diesel Fixed Forward Contracts:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diesel gallons (millions)	 	 	17	 	 	 	10	 	 	 	1	 	 	 	28	 	
Average rate ($/gallon)	 	 	2.43	 	 	 	2.62	 	 	 	3.15	 	 	 	2.51	 	
Expected hedge ratio	 	 	55	%	 	 	25	%	 	 	5	%	 	 	 	 	
The fair value of the diesel derivative contracts was $20 and $8 at March 31, 2011 and December 31, 2010, respectively.
Fair Value Hedges
Interest Rate Risk
At March 31, 2011, we had $222 fixed to floating swap contracts designated as a hedge against our 8 5/8% debentures due May 2011. The interest rate swap contracts assist in managing our targeted mix of fixed and floating rate debt. Under the hedge contract terms, we receive fixed-rate interest payments at 8.63% and pay floating-rate interest amounts based on periodic London Interbank Offered Rate (“LIBOR”) settings plus a spread, ranging from 2.60% to 7.63%. The interest rate swap contracts were designated as fair value hedges and changes in fair value have been recorded in income in each period, consistent with recording changes to the mark-to-market value of the underlying hedged liability in income. The fair value of the interest rate swaps was $3 at March 31, 2011 and December 31, 2010.
Commodity Price Risk
Our provisional copper and gold sales contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the gold and copper concentrates at the prevailing indices’ prices at the time of sale. The embedded derivative, which does not qualify for hedge accounting, is marked to market through earnings each period prior to final settlement.
 
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LME copper prices averaged $4.38 per pound during the first quarter of 2011, compared with our recorded average provisional price of $4.37 per pound before mark-to-market losses and treatment and refining charges. During the first quarter of 2011, changes in copper prices resulted in a provisional pricing mark-to-market loss of $12 ($0.12 per pound). At March 31, 2011, we had copper sales of 111 million pounds priced at an average of $4.27 per pound, subject to final pricing over the next several months. Each $0.10 change in the price for provisionally priced sales would have an approximate $4 effect on our Net income attributable to Newmont stockholders .
The average London P.M. fix for gold was $1,386 per ounce during the first quarter of 2011, consistent with our recorded average provisional price before mark-to-market gains and treatment and refining charges. During the first quarter of 2011, changes in gold prices resulted in a provisional pricing mark-to-market gain of $8 ($5 per ounce). At March 31, 2011, we had gold sales of 146,000 ounces priced at an average of $1,439 per ounce, subject to final pricing over the next several months. Each $10 change in the price for provisionally priced gold sales would have an approximate $1 effect on our Net income attributable to Newmont stockholders .

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

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

ITEM 1A.	 	RISK FACTORS.	
There were no material changes to the risk factors disclosed in Item 1A of Part 1 in our Annual Report on Form 10-K for the year ended December 31, 2010, as filed with the SEC on February 24, 2011.

ITEM 2.	 	ISSUER PURCHASES OF EQUITY SECURITIES.	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	(a)	 	 	(b)	 	 	(c)	 	 	(d)	 	
 	 	 	 	 	 	 	 	Total Number of	 	 	Maximum Number (or	 	
 	 	Total	 	 	Average	 	 	Shares Purchased	 	 	Approximate Dollar Value)	 	
 	 	Number of	 	 	Price	 	 	as Part of Publicly	 	 	of Shares that may yet be	 	
 	 	Shares	 	 	Paid Per	 	 	Announced Plans	 	 	Purchased under the	 	
Period	 	Purchased	 	 	Share	 	 	or Programs	 	 	Plans or Programs	 	
January 1, 2011 through January 31, 2011	 	 	—	 	 	 	—	 	 	 	—	 	 	 	N/A	 	
February 1, 2011 through February 28, 2011	 	 	472	(1)	 	 	54.72	 	 	 	—	 	 	 	N/A	 	
March 1, 2011 through March 31, 2011	 	 	—	 	 	 	—	 	 	 	—	 	 	 	N/A	 	

			
(1)	 	Represents shares delivered to the Company from restricted stock units held by a Company employee upon vesting for purpose of covering the recipient’s tax withholding obligations.	

ITEM 3.	 	DEFAULTS UPON SENIOR SECURITIES.	
None.

ITEM 5.	 	OTHER INFORMATION.	
Mine Safety Disclosure
At Newmont, safety is a core value and we strive for superior performance. Our health and safety management system, which includes detailed standards and procedures for safe production, addresses topics such as employee training, risk management, workplace inspection, emergency response, accident investigation and program auditing. In addition to strong leadership and involvement from all levels of the organization, these programs and procedures form the cornerstone of safety at Newmont, ensuring that employees are provided a superior safe and healthy environment and are intended as a means to reduce workplace accidents, incidents and losses, comply with all mining-related regulations and provide support for both regulators and the industry to improve mine safety.
In addition, we have an established “Rapid Response” process to mitigate and prevent the escalation of adverse consequences in the event that existing risk management controls fail, particularly in the event of an incident that may have the potential to seriously impact the safety of employees, the community or the environment. This process provides appropriate support to an affected site to complement their technical response to an incident, minimizes the impact by considering the environmental, strategic, legal, financial and public image aspects of the incident, ensures communications are being carried out in accordance with legal and ethical requirements and identifies actions that need to be taken on a broader scale than can be predicted by those involved in overcoming the immediate hazards.
The operation of our U.S. based mines is subject to regulation by the Federal Mine Safety and Health Administration (“MSHA”) under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”). MSHA inspects our mines on a regular basis and issues various citations and orders when it believes a violation has occurred under the Mine Act. Following passage of The Mine Improvement and New Emergency Response Act of 2006, MSHA significantly increased the numbers of citations and orders charged against mining operations. The dollar penalties assessed for citations issued has also increased in recent years.
Newmont is required to report certain mine safety violations in this Quarterly Report on Form 10-Q pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and that required information is included in exhibit 99.1 and is incorporated by reference into this Quarterly Report.

ITEM 6.	 	EXHIBITS.	
(a) The exhibits to this report are listed in the Exhibit Index.
 
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 	 	 	 	 	
 	Newmont Mining Corporation
(Registrant)
 	 	
Date: April 20, 2011 	/s/ RUSSELL BALL  	 	
 	Russell Ball  	 	
 	Executive Vice President and Chief Financial Officer
(Principal Financial Officer)  	 	
 	 	 	
Date: April 20, 2011 	/s/ DAVID OTTEWELL  	 	
 	David Ottewell  	 	
 	Interim Controller and Chief Accounting Officer
(Principal Accounting Officer)	 	
 
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NEWMONT MINING CORPORATION
EXHIBIT INDEX
 	 	 	 	 	
Exhibit	 	 	
Number	 	Description	
 	 	 	 	 	
 	2.1	 	 	Arrangement Agreement, dated as of February 3, 2011, by and among Registrant, Fronteer Gold Inc. and Pilot Gold Inc. Incorporated by reference to Exhibit 2.1 to Registrant’s Form 8-K filed with the Securities and Exchange Commission on February 8, 2011.	
 	 	 	 	 	
 	10.1	 	 	Settlement and Release Deed dated March 2011 between Timothy Netscher and Newmont Mining Services Pty Ltd, filed herewith	
 	 	 	 	 	
 	12.1	 	 	Computation of Ratio of Earnings to Fixed Charges, filed herewith	
 	 	 	 	 	
 	31.1	 	 	Certification Pursuant to Rule 13A-14 or 15-D-14 of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 signed by the Principal Executive Officer, filed herewith.	
 	 	 	 	 	
 	31.2	 	 	Certification Pursuant to Rule 13A-14 or 15-D-14 of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 signed by the Chief Financial Officer, filed herewith.	
 	 	 	 	 	
 	32.1	 	 	Statement Required by 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 signed by Principal Executive Officer, filed herewith. (1)	
 	 	 	 	 	
 	32.2	 	 	Statement Required by 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 signed by Chief Financial Officer, filed herewith. (1)	
 	 	 	 	 	
 	99.1	 	 	Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, filed herewith.	
 	 	 	 	 	
 	101	 	 	The following materials are filed herewith: (i) XBRL Instance, (ii) XBRL Taxonomy Extension Schema, (iii) XBRL Taxonomy Extension Calculation, (iv) XBRL Taxonomy Extension Labels, (v) XBRL Taxonomy Extension Presentation, and (vi) XBRL Taxonomy Extension Definition. In accordance with Rule 406T of Regulation S-T, the information in these exhibits is furnished and deemed not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Exchange Act of 1934, and otherwise is not subject to liability under these sections and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, except as expressly set forth by the specific reference in such filing.	
 	 	 	
(1)	 	This document is being furnished in accordance with SEC Release Nos. 33-8212 and 34-47551.	

Exhibit 10.1
Deed
Settlement and release deed
Timothy Netscher
Newmont Mining Services Pty Ltd

 

Contents
Table of contents
 	 	 	 	 	
1 Definitions and interpretation	 	 	2	 	
 	 	 	 	 	
1.1 Definitions	 	 	2	 	
1.2 Interpretation	 	 	3	 	
 	 	 	 	 	
2 Agreement between the parties	 	 	3	 	
 	 	 	 	 	
2.1 Settlement Terms	 	 	3	 	
2.2 Settlement Sum	 	 	4	 	
2.3 Additional benefits	 	 	4	 	
2.4 No further payments	 	 	5	 	
2.5 Compliance and approvals	 	 	5	 	
2.6 Taxation	 	 	5	 	
 	 	 	 	 	
3 Release and indemnity	 	 	6	 	
 	 	 	 	 	
4 Confidentiality	 	 	6	 	
 	 	 	 	 	
5 Breach of deed	 	 	6	 	
 	 	 	 	 	
6 Bar to further proceedings	 	 	6	 	
 	 	 	 	 	
7 Other	 	 	6	 	
 	 	 	 	 	
8 General	 	 	7	 	
 	 	 	 	 	
Signing page	 	 	8	 	
Settlement and release deed     Contents 1

 

Settlement and release deed
Date ► March 2011
Between the parties
 	 	 	 	 	 	 	
Employee	 	Timothy Netscher	
 	 	of 12 Rossello Lane, Subiaco, WA 6008	
 	 	(Mr Netscher)	
 	 	 	 	 	 	 	
Employer	 	Newmont Mining Services Pty Ltd	
 	 	ACN 008 087 778 of Level 1 388 Hay Street Subiaco WA 6008	
 	 	(Newmont Mining)	
 	 	 	 	 	 	 	
Recitals	 	1	 	 	 	Mr Netscher commenced Employment within the Newmont Group on May 18, 2009.	
 	 	 	 	 	 	 	
 	 	2	 	 	 	Mr Netscher and Newmont Mining have agreed that Mr Netscher’s employment with Newmont Mining will cease on March 31, 2011.	
 	 	 	 	 	 	 	
 	 	3	 	 	 	Mr Netscher has agreed that he will resign as a director of any company within the Newmont Group, and will also resign as a director or officer of Newmont Australia Pty Ltd, PT Newmont Pacific Nusantara, Newmont Indonesia Investment Limited, Newmont Mining Corporation, Newmont Ventures Limited, PT Newmont Minahasa Raya and PT Newmont Nusa Tenggara with effect from the End Date.	
 	 	 	 	 	 	 	
 	 	4	 	 	 	The parties have agreed to settle all matters between them on the terms contained in this deed.	
Settlement and release deed     page 1

 

This deed witnesses as follows:

1	 	Definitions and interpretation	
 		
1.1	 	Definitions	
The meanings of the terms used in this deed are set out below.
 	 	 	 	 	 	 	
Term	 	Meaning	
 	 	 	 	 	 	 	
Cessation of Employment	 	all of the circumstances relating to or connected with the cessation of the Employment, including negotiations relating to the terms and conditions upon which that event would occur.	
 	 	 	 	 	 	 	
Claims	 	all actions, claims, demands, suits, proceedings, liabilities, sums of money, damages and costs arising, whether directly or indirectly, from:	
 	 	 	 	 	 	 	
 	 	1	 	 	 	the Employment;	
 	 	 	 	 	 	 	
 	 	2	 	 	 	the Cessation of Employment;	
 	 	 	 	 	 	 	
 	 	3	 	 	 	the Employment Agreement;	
 	 	 	 	 	 	 	
 	 	4	 	 	 	Mr Netscher’s resignation as a director of any company within the Newmont Group and director or officer of Newmont Australia Pty Ltd, PT Newmont Pacific Nusantara, Newmont Indonesia Investment Limited, Newmont Mining Corporation, Newmont Ventures Limited, PT Newmont Minahasa Raya and PT Newmont Nusa Tenggara; and	
 	 	 	 	 	 	 	
 	 	5	 	 	 	any act or omission of Newmont Mining or the Newmont Group during the Employment	
 		
 	 	but does not include such actions, claims, demands, suits, proceedings, liabilities, sums of money, damages and costs arising under any applicable workers’ compensation legislation.	
 		
Corporations Act	 	Corporations Act 2001 (Cth).	
 	 	 	 	 	 	 	
Employment	 	Mr Netscher’s employment by Newmont Mining or its Related Bodies Corporate including negotiations with Mr Netscher or any other person relating to the terms and conditions on which that employment would take place.	
 	 	 	 	 	 	 	
Employment Agreement	 	the agreement between Mr Netscher and Newmont Mining dated April 2, 2009 and any other contract, arrangement or understanding which governs, or has governed, any of the terms and conditions of the Employment.	
 	 	 	 	 	 	 	
End Date	 	31 March 2011	
Settlement and release deed     page 2

 

2     Agreement between the parties
 	 	 	 	 	 	 	
Term	 	Meaning	
 	 	 		
Newmont Group	 	Newmont Mining, all Related Bodies Corporate of Newmont Mining, and all directors, officers, trustees, agents, contractors and employees of Newmont Mining and Related Bodies Corporate of Newmont Mining, jointly and severally.		
 	 	 		
Related Bodies
Corporate	 	has the meaning given to it in section 50 of the Corporations Act.		
 	 	 		
Resignation	 	all of the circumstances relating to or connected with Mr Netscher’s resignation as a director of any company within or associated with the Newmont Group, including negotiations relating to the terms and conditions upon which that event would occur.		

1.2	 	Interpretation	
 		
 	 	In this deed:	

 	(a)	 	Headings and bold type are for convenience only and do not affect the interpretation of this deed.	

 	(b)	 	The singular includes the plural and the plural includes the singular.	

 	(c)	 	Words of any gender include all genders.	

 	(d)	 	Other parts of speech and grammatical forms of a word or phrase defined in this deed have a corresponding meaning.	

 	(e)	 	An expression importing a person includes any company, partnership, joint venture, association, corporation or other body corporate and any Government Agency as well as an individual.	

 	(f)	 	A reference to a clause, party, schedule, attachment or exhibit is a reference to a clause of, and a party, schedule, attachment or exhibit to, this deed.	

 	(g)	 	A reference to any legislation includes all delegated legislation made under it and amendments, consolidations, replacements or re enactments of any of them.	

 	(h)	 	A reference to a party to a document includes that party’s successors and permitted assignees.	

 	(i)	 	A promise on the part of 2 or more persons binds them jointly and severally.	

 	(j)	 	No provision of this deed will be construed adversely to a party because that party was responsible for the preparation of this deed or that provision.	

2	 	Agreement between the parties	

2.1	 	Settlement Terms	

 	(a)	 	Mr Netscher agrees that:	

 	(1)	 	his Employment will cease with effect from the End Date;	
Settlement and release deed     page 3

   

 

2     Agreement between the parties

 	(2)	 	he will resign as a director of any company within or associated with the Newmont Group with effect from the End Date; and	

 	(3)	 	he irrevocably appoints Jeffrey Reeser as his attorney to do all acts and things required to be done by Mr Netscher to resign as a director of any company within or associated with the Newmont Group under clause 2.1(a)(2) of this deed and resign as director or officer of any additional Newmont entity named in clause 3 of the Recitals.	

 	(b)	 	Up to the End Date, Mr Netscher will remain subject to the lawful and reasonable directions of the Newmont Group.	

 	(c)	 	Employer will ensure that after the End Date, Mr Netscher will remain covered by the Employer’s director’s and officer’s liability insurance policies for his acts and omissions as a director and/or officer of any entities covered by Employer’s director and officer liability insurance policies, including his role as the Employer’s appointee as a director of the Minerals Council of Australia.	

2.2	 	Settlement Sum	

 	(a)	 	Subject to Mr Netscher’s compliance with his obligations in clause 2.1 of this deed, Newmont Mining will pay to Mr Netscher the following amounts less taxation deductions required by law:	

 	(1)	 	base salary payments, superannuation payments and health and welfare benefits until the End Date;	

 	(2)	 	payment in lieu of 9 months’ notice being $508,030 AUS;	

 	(3)	 	payment in lieu of accrued but untaken annual leave of $46,504 AUS; and	

 	 	 	together referred to as the Settlement Sum .	
 		
 	(b)	 	The Settlement Sum will be paid on the End Date, provided that Mr Netscher has returned to Newmont Mining by March 4, 2011:	

 	(1)	 	a copy of this deed executed by Mr Netscher; and	

 	(2)	 	a resignation letter signed by Mr Netscher which confirms his decision to resign as a director of any company within or associated with the Newmont Group with immediate effect.	

2.3	 	Additional benefits	

 	(a)	 	In addition to the Settlement Sum, and subject to clause 2.2(b) of this deed, Mr Netscher will be entitled to receive the following benefits:	

 	(1)	 	annual incentive compensation program payout for 2010 to be paid in early March 2011;	

 	(2)	 	pro-rata annual incentive compensation program cash bonus at target payout for 2011;	

 	(3)	 	accelerated vesting of financial performance shares granted prior to 31 March 2011 on Cessation of Employment, including but not limited to financial performance shares granted in 2011; and	

 	(4)	 	grant of actual performance leveraged stock unit payout for one-year 2010 performance year only (explicitly excluding performance leveraged stock units for performance periods of 2010 through 2011 and 2010 through 2012), to be paid according to Newmont Mining Corporation Board approval.	
 		
 	 	 	together referred to as the Additional Benefits .	
Settlement and release deed     page 4

 

3     Release and indemnity

 	(b)	 	Except as set out in clause 2.3(a) above, Mr Netscher has no further rights or entitlements to any incentive compensation, performance leveraged stock bonus or stock options previously granted to him, and those options cancel and stock units are forfeited immediately on Cessation of Employment. Mr. Netscher shall have no right or entitlement to any stock option grant in 2011.	

 	(c)	 	Newmont Mining shall reimburse Mr. Netscher for the cost to ship personal items from Perth to Brisbane and for the cost of airfare from Perth to Brisbane for Mr. Netscher and his spouse. Mr Netscher has a maximum of 12 months to exercise relocation. Alternatively, the parties can agree to make a taxable cash payment representing the cost of the relocation to Mr Netscher.	

 	(d)	 	In relation to Mr Netscher’s house in Perth, the company agrees to either pay a real estate agent or provide a taxable payment to Mr Netscher representing the cost of the standard Western Australia real estate agent’s fee for the sale of Mr Netscher’s residence in Perth, located at 12 Rossello Lane, Subiaco, WA 6008 (“Perth Residence”). The parties agree to establish the agent’s fee represented as a percentage of the Perth Residence. For this purpose, Mr Netscher’s residence in Perth will be valued by a registered Western Australia real estate valuation agent, at Employer’s cost. Alternatively, the parties can agree to make a taxable cash payment representing the real estate agent fee to Mr Netscher.	

 	(e)	 	The company agrees to pay 12 months of MBF medical insurance premium from April 1 2011.	

2.4	 	No further payments	
Mr Netscher acknowledges that the payment of the Settlement Sum and Additional Benefits under this deed are paid in full satisfaction of all obligations of the Newmont Group towards Mr Netscher and are made without any admission of liability by the Newmont Group.

2.5	 	Compliance and approvals	
The exercise of, or compliance with, any discretion, right or obligation under this deed is subject to any required board or shareholder approvals, any necessary regulatory consent and compliance with the Constitution, and all applicable laws.

2.6	 	Taxation	

 	(a)	 	Mr Netscher acknowledges that:	

 	(1)	 	tax will be withheld from the Settlement Sum and the Additional Benefits; and	

 	(2)	 	the amount of tax withheld may not represent the total tax payable on assessment.	

 	(b)	 	The Newmont Group makes no representations or warranties in relation to Mr Netscher’s tax liability.	

 	(c)	 	If Newmont Mining withholds tax from the Settlement Sum and the Additional Benefits, and the Australian Taxation Office determines that a greater amount of tax should have been withheld, Mr Netscher indemnifies and keeps indemnified the Newmont Group in respect of the difference.	
Settlement and release deed     page 5

 

3     Release and indemnity

3	 	Release and indemnity	
Mr Netscher:

 	(a)	 	unconditionally releases the Newmont Group from all Claims he has now or may have had in the future against the Newmont Group if the parties had not executed this deed;	

 	(b)	 	must not make, take or institute any Claims against the Newmont Group; and	

 	(c)	 	indemnifies and must keep indemnified the Newmont Group in relation to any loss or damage suffered by it as a result of any Claims by Mr Netscher.	

4	 	Confidentiality	
After the End Date, and without limiting Mr Netscher’s general law or contractual obligations, Mr Netscher must maintain the secrecy of, and not disclose, Confidential Information shall mean any confidential legal, financial, marketing, business, technical, or other information, including specifically but not exclusively, information which Mr. Netscher prepared, caused to be prepared, or received in connection with Mr. Netscher’s employment with Newmont Mining, such as management and business plans, business strategies, software, software evaluations, trade secrets, personnel information, marketing methods and techniques, and any of the above-recited information as it relates to Newmont Mining or any affiliate. Confidential Information does not include: (i) information or knowledge which may subsequently come into the public domain after the End Date other than by way of unauthorized disclosure by Mr. Netscher; or (ii) information or knowledge which Mr. Netscher is required to disclose by order of a governmental agency or court after timely notice has been provided to Newmont Mining of such order.

5	 	Breach of deed	
If Mr Netscher breaches any of his obligations under this deed, he must repay the Settlement Sum and the Additional Benefits to Newmont Mining on demand.

6	 	Bar to further proceedings	
The Newmont Group may plead this deed as a bar to any claim or proceeding by Mr Netscher in respect of any matters arising out of, touching on, referred to or contained in this deed.

7	 	[Other]	
On or before the End Date, unless otherwise agreed on or before the End Date, Mr Netscher shall return to Newmont Mining all Newmont Property. Newmont Property shall include, but not be limited to, keys, access cards, files, memoranda, reports, software, credit cards, computer disks, instructional and management manuals, books, cellular phones, blackberries and computer equipment of Newmont Mining.
Settlement and release deed     page 6

 

8     General

8	 	General	

 	(a)	 	Mr Netscher executes this deed for the benefit of each member of the Newmont Group. Mr Netscher acknowledges and agrees that each member of the Newmont Group may independently rely on and enforce this deed against Mr Netscher.	

 	(b)	 	Mr Netscher acknowledges that he has entered into this deed voluntarily and without any duress from any party and has had the opportunity to obtain legal advice.	

 	(c)	 	Mr Netscher is aware of and understands the consequences of entering into this deed, including the consequences of providing the release and indemnity in clause 3.	

 	(d)	 	Except as set out in this document, the Newmont Group has not made any promises, representations or inducements to Mr Netscher to enter into this deed.	

 	(e)	 	This deed is governed by the laws of Western Australia and the parties submit to the non-exclusive jurisdiction of the courts of Western Australia.	

 	(f)	 	This deed states all the express terms of agreement between the parties in respect of its subject matter. It supersedes all prior discussions, negotiations, understandings and agreements in respect of its subject matter.	

 	(g)	 	Each party must pay its own legal costs and expenses in respect of the negotiation, preparation and completion of this deed.	

 	(h)	 	Every clause and subclause will where the context permits be severable from every other.	

 	(i)	 	This deed may be executed in any number of counterparts and all counterparts, taken together, constitute one instrument. A party may execute this deed by executing any counterpart.	
Settlement and release deed     page 7

 

Signing page
 	 	 	 	 	
 	 	Executed as a deed	 	 	
 	 	 	 	 	
 	 	Employee	 	 	
 	 	 	 	 	
 	 	Signed by
Timothy Netscher	 	 	
 	 	 	 	 	
sign here ►	 	/s/ Timothy Netscher

print name	 	Timothy Netscher

 	 	in the presence of	 	 	
 	 	 	 	 	
sign here ►	 	/s/ Elizabeth Barton-Jones
 
Witness	 	 	
 	 	 	 	 	
print name	 	Elizabeth Barton-Jones

 	 	Newmont Mining	 	 	
 	 	 	 	 	
 	 	Executed as a deed on behalf of
Newmont Mining Services Pty Ltd
ACN 008 087 778
In accordance with section 127 of the Corporations Act 2001 (Cth) by:	 	 	
 	 	 	 	 	
sign here ►	 	/s/ Rubini Ventouras
 
Signature of Director	 	 	
 	 	 	 	 	
print name	 	Rubini Ventouras

sign here ►	 	/s/ Richard Jones
 
Signature of Director/Secretary	 	 	
 	 	 	 	 	
print name	 	Richard Jones	 	 	
Settlement and release deed     page 8

Exhibit 12.1
NEWMONT MINING CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in millions except ratio)
 	 	 	 	 	
 	 	Three Months Ended	 	
 	 	March 31, 2011	 	
Earnings:	 	 	 	 	
Income before income and mining tax and other items (1)	 	$	973	 	
Adjustments:	 	 	 	 	
Fixed charges added to earnings	 	 	68	 	
Amortization of capitalized interest	 	 	6	 	
 	 	 	 	
 	 	$	1,047	 	
 	 	 	 	
Fixed Charges:	 	 	 	 	
Net interest expense (2)	 	$	65	 	
Portion of rental expense representative of interest	 	 	4	 	
 	 	 	 	
Fixed charges added to earnings	 	 	69	 	
Capitalized interest	 	 	7	 	
 	 	 	 	
 	 	$	76	 	
 	 	 	 	
Ratio of earnings to fixed charges	 	 	13.8	 	

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

Exhibit 31.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
(Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002)
I, Richard T. O’Brien, certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of Newmont Mining Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 	 	 	 	 	
 	/s/ Richard T. O’Brien  	 	
 	Richard T. O’Brien  	 	
 	Chief Executive Officer  	 	
April 20, 2011

Exhibit 31.2
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
(Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002)
I, Russell Ball, certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of Newmont Mining Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 	 	 	 	 	
 	/s/ Russell Ball  	 	
 	Russell Ball  	 	
 	Chief Financial Officer  	 	
April 20, 2011

Exhibit 32.1
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
(Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002)
In connection with the Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 of Newmont Mining Corporation (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”) and pursuant to 18. U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, Richard T. O’Brien, Chief Executive Officer of the Company, certify, that to my knowledge:
1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 	 	 	 	 	
 	/s/ RICHARD T. O’BRIEN  	 	
 	Richard T. O’Brien  	 	
 	Chief Executive Officer  	 	
April 20, 2011
Note: A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

Exhibit 32.2
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
(Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002)
In connection with the Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 of Newmont Mining Corporation (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”) and pursuant to 18. U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, Russell Ball, Chief Financial Officer of the Company, certify, that to my knowledge:
1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 	 	 	 	 	
 	/s/ RUSSELL BALL  	 	
 	Russell Ball  	 	
 	Chief Financial Officer  	 	
April 20, 2011
Note: A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

Exhibit 99.1
The following disclosures are provided pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Act”) made law in July 2010, which requires certain disclosures by companies required to file periodic reports under the Securities Exchange Act of 1934, as amended, that operate mines regulated under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”). Under the Act, the Securities and Exchange Commission (the “SEC”) is authorized to issue rules and regulations to carry out the purposes of these provisions, but final rules have not yet been issued as of the date of the Form 10-Q for the quarter ended March 31, 2011. While we believe the following disclosures meet the requirements of the Act, it is possible that any rule-making by the SEC will require disclosures to be presented in a form that differs from this presentation. The disclosures reflect our U.S. mining operations only as the requirements of the Act do not apply to our mines operated outside the U.S.
Mine Safety Information. Whenever the Federal Mine Safety and Health Administration (“MSHA”) believes a violation of the Mine Act, any health or safety standard or any regulation has occurred, it may issue a citation which describes the alleged violation and fixes a time within which the U.S. mining operator (e.g. our subsidiary, Newmont USA Limited) must abate the alleged violation. In some situations, such as when MSHA believes that conditions pose a hazard to miners, MSHA may issue an order removing miners from the area of the mine affected by the condition until the alleged hazards are corrected. When MSHA issues a citation or order, it generally proposes a civil penalty, or fine, as a result of the alleged violation, that the operator is ordered to pay. Citations and orders can be contested and appealed, and as part of that process, are often reduced in severity and amount, and are sometimes dismissed. The number of citations, orders and proposed assessments vary depending on the size and type (underground or surface) of the mine as well as by the MSHA inspector(s) assigned.
The following table reflects citations and orders issued to us by MSHA during the quarter ended March 31, 2011 and pending legal actions before the Federal Mine Safety and Health Review Commission (the “Commission”) as of March 31, 2011. The proposed assessments for the quarter ended March 31, 2011 were taken from the MSHA data retrieval system as of April 12, 2011.
Additional information about the Act and MSHA references used in the table follows.

•	 	Section 104 Citations : Citations received from MSHA under section 104 of the Mine Act, which includes citations for health or safety standards that could significantly and substantially contribute to a serious injury if left unabated.	

•	 	Section  104(b) Orders : Orders issued by MSHA under section 104(b) of the Mine Act, which represents a failure to abate a citation under section 104(a) within the period of time prescribed by MSHA. This results in an order of immediate withdrawal from the area of the mine affected by the condition until MSHA determines that the violation has been abated.	

•	 	Section  104(d) Citations and Orders : Citations and orders issued by MSHA under section 104(d) of the Mine Act for unwarrantable failure to comply with mandatory health or safety standards.	

•	 	Section  110(b)(2) Violations : Flagrant violations issued by MSHA under section 110(b)(2) of the Mine Act.	

•	 	Section  107(a) Orders : Orders issued by MSHA under section 107(a) of the Mine Act for situations in which MSHA determined an “imminent danger” (as defined by MSHA) existed.	

•	 	Pending Legal Actions : Pending legal actions before the Commission as required to be reported by Section 1503(a)(3) of the Act. The Commission is an independent adjudicative agency that provides administrative trial and appellate review of legal disputes arising under the Mine Act. These cases may involve, among other questions, challenges by operators to citations, orders and penalties they have received from MSHA or complaints of discrimination by miners under Section 105 of the Mine Act. The following is a brief description of the types of legal actions that may be brought before the Commission.	

 	•	 	Contests of Citations and Orders — A contest proceeding may be filed with the Commission by operators, miners or miners’ representatives to challenge the issuance of a citation or order issued by MSHA.	

 	•	 	Contests of Proposed Penalties (Petitions for Assessment of Penalties) — A contest of a proposed penalty is an administrative proceeding before the Commission challenging a civil penalty that MSHA has proposed for the alleged violation contained in a citation or order. The validity of the citation may also be challenged in this proceeding as well.	

 

 	•	 	Complaints for Compensation — A complaint for compensation may be filed with the Commission by miners entitled to compensation when a mine is closed by certain withdrawal orders issued by MSHA. The purpose of the proceeding is to determine the amount of compensation, if any, due miners idled by the orders.	

 	•	 	Complaints of Discharge, Discrimination or Interference — A discrimination proceeding is a case that involves a miner’s allegation that he or she has suffered a wrong by the operator because he or she engaged in some type of activity protected under the Mine Act, such as making a safety complaint.	

 	•	 	Temporary Reinstatement Proceedings — Temporary reinstatement proceedings involve cases in which a miner has filed a complaint with MSHA stating he or she has suffered discrimination and the miner has lost his or her position.	

 	•	 	Emergency Response Plan (“ERP”) Dispute Proceedings — ERP dispute proceedings are cases brought before the Commission when an operator is issued a citation because it has not agreed to include a certain provision in its ERP.	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	Section	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	104(d)	 	 	 	 	 	 	 	 	 	 	($ in millions)	 	 	 	 	 	 	 	 	
 	 	Section	 	 	Section	 	 	Citations	 	 	Section	 	 	Section	 	 	Proposed	 	 	 	 	 	 	Pending	 	
 	 	104	 	 	104(b)	 	 	and	 	 	110(b)(2)	 	 	107(a)	 	 	MSHA	 	 	 	 	 	 	Legal	 	
Mine (1)(2)	 	Citations (3)	 	 	Orders (3)	 	 	Orders (3)	 	 	Violations	 	 	Orders (3)	 	 	Assessments (4)	 	 	Fatalities	 	 	Actions (5)	 	
Chukar	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	$	—	 	 	 	—	 	 	 	5	 	
Deep Post	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	$	—	 	 	 	—	 	 	 	8	 	
Exodus	 	 	2	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	$	—	 	 	 	 	 	 	 	—	 	
Genesis	 	 	8	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	$	—	 	 	 	—	 	 	 	10	 	
Leeville	 	 	30	 	 	 	—	 	 	 	3	 	 	 	—	 	 	 	—	 	 	$	0.01	 	 	 	—	 	 	 	20	 	
Midas	 	 	9	 	 	 	—	 	 	 	9	 	 	 	—	 	 	 	—	 	 	$	—	 	 	 	—	 	 	 	13	 	
Mill 6	 	 	2	 	 	 	—	 	 	 	1	 	 	 	—	 	 	 	—	 	 	$	—	 	 	 	—	 	 	 	4	 	
Phoenix	 	 	5	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	$	—	 	 	 	—	 	 	 	4	 	
South Area	 	 	5	 	 	 	—	 	 	 	5	 	 	 	—	 	 	 	—	 	 	$	0.01	 	 	 	—	 	 	 	8	 	
Twin Creeks	 	 	10	 	 	 	—	 	 	 	1	 	 	 	—	 	 	 	—	 	 	$	—	 	 	 	—	 	 	 	8	 	
Lone Tree	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	$	—	 	 	 	—	 	 	 	2	 	
Sage Mill	 	 	4	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	$	—	 	 	 	—	 	 	 	3	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TOTAL	 	 	75	 	 	 	—	 	 	 	19	 	 	 	—	 	 	 	—	 	 	$	0.02	 	 	 	—	 	 	 	85	 	

			
(1)	 	The table above reflects citations and orders issued to us by MSHA for the quarter ended March 31, 2011 and the pending legal actions before the Commission for the quarter ended March 31, 2011.	
 		
(2)	 	The definition of mine under section 3 of the Mine Act includes the mine, as well as other items used in, or to be used in, or resulting from, the work of extracting minerals, such as land, structures, facilities, equipment, machines, tools, and minerals preparation facilities. Unless otherwise indicated, any of these other items associated with a single mine have been aggregated in the totals for that mine. MSHA assigns an identification number to each mine and may or may not assign separate identification numbers to related facilities such as preparation facilities. We are providing the information in the table by mine rather than MSHA identification number because that is how we manage and operate our mining business and we believe this presentation will be more useful to investors than providing information based on MSHA identification numbers.	
 		
(3)	 	75 Section 104 Citations were subject to contest as of March 31, 2011.	
 		
(4)	 	Represents the total dollar value of the proposed assessment from MSHA under the Mine Act pursuant to the citations and or orders preceding such dollar value in the corresponding row.	
 		
(5)	 	The foregoing list includes legal actions which were initiated prior to the current reporting period and which do not necessarily relate to citations, orders or proposed assessments issued by MSHA for the quarter ended March 31, 2011. Of the 85 pending legal actions, 84 represent contests of 392 citations or orders (for which the aggregate amount assessed to date is of approximately $1.2 million) and the remaining 1 represents complaints of discrimination.	
Pattern or Potential Pattern of Violations . During the quarter ended March 31, 2011, none of the mines operated by us received written notice from MSHA of (a) a pattern of violations of mandatory health or safety standards that are of such nature as could have significantly and substantially contributed to the cause and effect of mine health or safety hazards under section 104(e) of the Mine Act or (b) the potential to have such a pattern.