NEWMONT MINING CORP /DE/, 10-Q filed on 4/21/2011
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2011
Apr. 12, 2011
Document and Entity Information [Abstract]
 
 
Entity Registrant Name
NEWMONT MINING CORP /DE/ 
 
Entity Central Index Key
0001164727 
 
Document Type
10-Q 
 
Document Period End Date
2011-03-31 
 
Amendment Flag
FALSE 
 
Document Fiscal Year Focus
2011 
 
Document Fiscal Period Focus
Q1 
 
Current Fiscal Year End Date
12/31 
 
Entity Well-known Seasoned Issuer
Yes 
 
Entity Voluntary Filers
No 
 
Entity Current Reporting Status
Yes 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
487,086,394 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) (USD $)
In Millions, except Per Share data
3 Months Ended
Mar. 31,
2011
2010
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) [Abstract]
 
 
Sales
$ 2,465 
$ 2,242 
Costs and expenses
 
 
Costs applicable to sales
940 1
869 1
Amortization
256 
224 
Reclamation and remediation
14 
13 
Exploration
62 
43 
Advanced projects, research and development
68 
46 
General and administrative
45 
45 
Other expense, net
73 
89 
Total costs and expenses
1,458 
1,329 
Other income (expense)
 
 
Other income, net
31 
48 
Interest expense, net
(65)
(75)
Total other income (expense)
(34)
(27)
Income before income and mining tax and other items
973 
886 
Income and mining tax expense
(305)
(141)
Equity income (loss) of affiliates
(2)
Net income
670 
743 
Net income attributable to noncontrolling interests
(156)
(197)
Net income attributable to Newmont stockholders
514 
546 
Income per common share, basic
 
 
Income per common share, basic
1.04 
1.11 
Income per common share, diluted
 
 
Income per common share, diluted
1.03 
1.11 
Cash dividends declared per common share
$ 0.15 
$ 0.10 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $)
In Millions
3 Months Ended
Mar. 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 
Net change in operating assets and liabilities
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
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
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 
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (USD $)
In Millions
Mar. 31, 2011
Dec. 31, 2010
Mar. 31, 2010
Dec. 31, 2009
ASSETS
 
 
 
 
Cash and cash equivalents
$ 4,533 
$ 4,056 
$ 3,364 
$ 3,215 
Trade receivables
439 
582 
 
 
Accounts receivable
113 
88 
 
 
Investments
129 
113 
 
 
Inventories
607 
658 
 
 
Stockpiles and ore on leach pads
657 
617 
 
 
Deferred income tax assets
178 
177 
 
 
Other current assets
1,228 
962 
 
 
Current assets
7,884 
7,253 
 
 
Property, plant and mine development, net
13,074 
12,907 
 
 
Investments
1,779 
1,568 
 
 
Stockpiles and ore on leach pads
1,846 
1,757 
 
 
Deferred income tax assets
1,456 
1,437 
 
 
Other long-term assets
815 
741 
 
 
Total assets
26,854 
25,663 
 
 
LIABILITIES
 
 
 
 
Debt
754 
259 
 
 
Accounts payable
420 
427 
 
 
Employee-related benefits
240 
288 
 
 
Income and mining taxes
474 
355 
 
 
Other current liabilities
1,613 
1,418 
 
 
Current liabilities
3,501 
2,747 
 
 
Debt
3,676 
4,182 
 
 
Reclamation and remediation liabilities
993 
984 
 
 
Deferred income tax liabilities
1,531 
1,488 
 
 
Employee-related benefits
336 
325 
 
 
Other long-term liabilities
196 
221 
 
 
Total liabilities
10,233 
9,947 
 
 
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 
13,405 
 
Total liabilities and equity
26,854 
25,663 
 
 
Basis of Presentation
BASIS OF PRESENTATION

NOTE 1    BASIS OF PRESENTATION

 

The interim Condensed Consolidated Financial Statements (“interim statements”) of Newmont Mining Corporation and its subsidiaries (collectively, “Newmont” or the “Company”) are unaudited. In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these interim statements have been included. The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year. These interim statements should be read in conjunction with Newmont's Consolidated Financial Statements for the year ended December 31, 2010 filed February 24, 2011 on Form 10-K. The year-end balance sheet data was derived from the audited financial statements, but does not include all disclosures required by United States generally accepted accounting principles (“GAAP”).

 

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

 

Summary of Significant Accounting Policies
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Recently Adopted Accounting Pronouncements

 

Business Combinations

In December 2010, 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.

 

Segment Information
SEGMENT INFORMATION

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.

      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.
Reclamation and Remediation
RECLAMATION AND REMEDIATION

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 
Advanced Projects, Research and Development
ADVANCED PROJECTS, RESEARCH AND DEVELOPMENT

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 
          

    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 
          
Other Expense, Net
OTHER EXPENSE, NET
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 
Other Income, Net
OTHER INCOME, NET
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 
Employee Pension and Other Benefits Plans
EMPLOYEE PENSION AND OTHER BENEFIT PLANS
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 
          
Stock Based Compensation
STOCK BASED COMPENSATION
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 
Income and Mining Taxes
INCOME AND MINING TAXES

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.

 

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)  
Net Income attributable to Noncontrolling Interests
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
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%).

 

Income Per Common Share
INCOME PER COMMON SHARE

NOTE 12    INCOME PER COMMON SHARE

 

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

 

      Three Months Ended 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.

 

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 
Comprehensive Income
COMPREHENSIVE INCOME
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 
Changes in Equity
CHANGES IN EQUITY
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   0  (220) 
   Other comprehensive income    2  0 
   Sale of subsidiary shares to noncontrolling interests, net  0  168 
  At end of period    2,529  2,055 
 Total equity   $16,621 $13,405 
           
Fair Value Accounting
FAIR VALUE ACCOUNTING

NOTE 15    FAIR VALUE ACCOUNTING

 

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

 

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

 

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

 

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

 

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

 

    Fair Value at 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.

 

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:

 

    Auction Rate Securities Asset Backed Commercial Paper Total Assets Boddington Contingent Consideration Total 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.

 

Derivative Instruments
DERIVATIVE INSTRUMENTS

NOTE 16    DERIVATIVE INSTRUMENTS

The Company's strategy is to provide shareholders with leverage to changes in gold and copper prices by selling its production at spot market prices. Consequently, the Company does not hedge its gold and copper sales. 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.

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%   

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 Assets Other Long-Term 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 Assets Other Long-Term 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.

 

 

    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.

 

Investments
INVESTMENTS
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 
                 

     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.

 

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

 

  Less than 12 Months  12 Months or Greater  Total
At March 31, 2011 Fair Value  Unrealized Losses  Fair Value  Unrealized Losses  Fair Value  Unrealized 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
At December 31, 2010 Fair Value  Unrealized Losses  Fair Value  Unrealized Losses  Fair Value  Unrealized Losses
Asset backed commercial paper $ - $ - $ 19 $ 6 $ 19 $ 6
Auction rate securities    -   -   5   2   5   2
 $ - $ - $ 24 $ 8 $ 24 $ 8

Included in the tables above are the unrealized 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.

 

Inventories
INVENTORIES
NOTE 18    INVENTORIES       
         
   At March 31, At December 31, 
  20112010 
 In-process $81 $142 
 Concentrate  101  111 
 Precious metals  11  4 
 Materials, supplies and other  414  401 
   $607 $658 
Stockpiles and Ore on Leach Pads
STOCKPILES AND ORE ON LEACH PADS
NOTE 19    STOCKPILES AND ORE ON LEACH PADS      
         
   At March 31, At December 31, 
   20112010 
 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 
Other Assets
OTHER ASSETS
NOTE 20    OTHER ASSETS      
   At March 31, At December 31, 
   20112010 
 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 
Debt
DEBT
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.

 

Other Liabilities
OTHER LIABILITIES
NOTE 22    OTHER LIABILITIES      
         
   At March 31, At December 31, 
   20112010 
 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 
         
Net Change in Operating Assets and Liabilities
NET CHANGE IN OPERATING ASSETS AND LIABILITIES

NOTE 23 NET CHANGE IN OPERATING ASSETS AND LIABILITIES

 

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

 

   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) 
Supplemental Cash Flow Information
SUPPLEMENTAL CASH FLOW INFORMATION
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 
Condensed Consolidating Financial Statements
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

NOTE 25    CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

Newmont USA, a 100% owned subsidiary of Newmont Mining Corporation, has fully and unconditionally guaranteed the 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.

 

                 
   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.

 

    Three Months Ended March 31, 2011
                Newmont
    Newmont         Mining
    MiningNewmontOther   Corporation
   Condensed Consolidating Statement of Cash FlowsCorporationUSASubsidiariesEliminationsConsolidated
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 

    Three Months Ended March 31, 2010
                Newmont
    Newmont         Mining
    MiningNewmontOther   Corporation
   Condensed Consolidating Statement of Cash FlowsCorporationUSASubsidiariesEliminationsConsolidated
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 

                  
    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
                  

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

NOTE 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”).

 

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.

 

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.

 

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.

 

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.

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, 2001 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.

 

Supplementary Data
SUPPLEMENTARY DATA

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.

 

Subsequent Events
SUBSEQUENT EVENTS

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.

 

Summary of Significant Accounting Policies (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.

 

Segment Information (Tables)
Financial Information of Newmont's Segments
     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.

      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.
Reclamation and Remediation (Tables)
   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 
   Three Months Ended March 31, 
   2011 2010 
 Accretion - operating   $12 $11 
 Accretion - non-operating  2  2 
   $14 $13 
Advanced Projects, Research and Development (Tables)
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 
          
Other Expense, Net (Tables)
Other Expense, Net
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 
Other Income, Net (Tables)
Other Income, Net
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 
Employee Pension and Other Benefits Plans (Tables)
Pension benefit costs, net
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 
          
Stock Based Compensation (Tables)
Stock Option and Other Stock Based Compensation
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 
Income and Mining Taxes (Tables)
Income and mining tax expense reconciliation
     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)  
Net Income attributable to Noncontrolling Interests (Tables)
Net income attributable to noncontrolling interests
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 
Income Per Common Share (Tables)
      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 
     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 
Comprehensive Income (Tables)
Comprehensive Income
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 
Changes in Equity (Tables)
Changes in Equity
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   0  (220) 
   Other comprehensive income    2  0 
   Sale of subsidiary shares to noncontrolling interests, net  0  168 
  At end of period    2,529  2,055 
 Total equity   $16,621 $13,405 
           
Fair Value Accounting (Tables)
    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 
    Auction Rate Securities Asset Backed Commercial Paper Total Assets Boddington Contingent Consideration Total 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 $76 
Derivative Instruments (Tables)
    Expected Maturity Date 
                Total/ 
    2011 2012 2013 2014 2015 2016 Average 
 A$ 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% -  -  -    
                         
    Expected Maturity Date 
          Total/ 
    2011 2012 2013 Average 
 Diesel Fixed Forward Contracts:              
  Diesel gallons (millions)    17  10  1  28 
  Average rate ($/gallon)    2.43  2.62  3.15  2.51 
  Expected hedge ratio  55% 25% 5%   
   Fair Value 
   At March 31, 2011 
   Other Current Assets Other Long-Term Assets 
 Foreign currency exchange contracts:      
  A$ 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 Assets Other Long-Term 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 
     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.

 

    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.

 

Investments (Tables)
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 
                 

     At December 31, 2010 
     Cost/Equity Unrealized Fair/Equity 
     Basis Gain Loss Basis 
 Current:              
  Marketable Equity Securities:             
   New Gold Inc. $5 $54 $- $59 
   Other  19  35  -  54 
     $24 $89 $- $113 
 Long-term:              
  Marketable Debt Securities:              
   Asset backed commercial paper  $25 $- $(6) $19 
   Auction rate securities    7  -  (2)  5 
   Corporate    7  3  -  10 
      39  3  (8)  34 
  Marketable Equity Securities:              
   Canadian Oil Sands Ltd.  308  508  -  816 
   Gabriel Resources Ltd.    78  325  -  403 
   Regis Resources Ltd.  23  148  -  171 
   Other    39  37  -  76 
      448  1,018  -  1,466 
                 
  Other investments, at cost     11  -  -  11 
                 
  Investment in Affiliates:              
   La Zanja  57  -  -  57 
     $555 $1,021 $(8) $1,568 
  Less than 12 Months  12 Months or Greater  Total
At March 31, 2011 Fair Value  Unrealized Losses  Fair Value  Unrealized Losses  Fair Value  Unrealized 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
At December 31, 2010 Fair Value  Unrealized Losses  Fair Value  Unrealized Losses  Fair Value  Unrealized Losses
Asset backed commercial paper $ - $ - $ 19 $ 6 $ 19 $ 6
Auction rate securities    -   -   5   2   5   2
 $ - $ - $ 24 $ 8 $ 24 $ 8
Inventories (Tables)
Summary of Inventories
NOTE 18    INVENTORIES       
         
   At March 31, At December 31, 
  20112010 
 In-process $81 $142 
 Concentrate  101  111 
 Precious metals  11  4 
 Materials, supplies and other  414  401 
   $607 $658 
Stockpiles and Ore on Leach Pads (Tables)
NOTE 19    STOCKPILES AND ORE ON LEACH PADS      
         
   At March 31, At December 31, 
   20112010 
 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 
Other Assets (Tables)
Other Assets
NOTE 20    OTHER ASSETS      
   At March 31, At December 31, 
   20112010 
 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 
Debt (Tables)
Debt
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 
             
Other Liabilities (Tables)
Other Liabilities
NOTE 22    OTHER LIABILITIES      
         
   At March 31, At December 31, 
   20112010 
 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 
         
Net Change in Operating Assets and Liabilities (Tables)
Net Changes in Operating Assets and Liabilities
   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) 
Supplemental Cash Flow Information (Tables)
Supplemental Cash Flow Information
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 
Condensed Consolidating Financial Statements (Tables)
                 
   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.

 

                 
   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.

 

    Three Months Ended March 31, 2011
                Newmont
    Newmont         Mining
    MiningNewmontOther   Corporation
   Condensed Consolidating Statement of Cash FlowsCorporationUSASubsidiariesEliminationsConsolidated
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 

    Three Months Ended March 31, 2010
                Newmont
    Newmont         Mining
    MiningNewmontOther   Corporation
   Condensed Consolidating Statement of Cash FlowsCorporationUSASubsidiariesEliminationsConsolidated
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 
                  
    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
                  

                  
    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
                  
Subsequent Events (Tables)
Subsequent events
 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 
Segment Information (Details) (USD $)
In Millions
3 Months Ended
Mar. 31,
2011
2010
Financial Information of Newmont's Segments
 
 
Sales
$ 2,465 
$ 2,242 
Costs Applicable to Sales
940 
869 
Amortization
256 
224 
Advanced Projects and Exploration
130 
89 
Pre-tax Income
973 
886 
Total Assets
26,854 
22,645 
Capital Expenditures
445 
272 
Segment Information (Textuals) [Abstract]
 
 
Change in accrued capital expenditures
43 
(37)
Consolidated capital expenditures on a cash basis
402 
309 
Batu Hijau [Member]
 
 
Financial Information of Newmont's Segments
 
 
Sales
509 
620 
Costs Applicable to Sales
123 
125 
Amortization
27 
37 
Advanced Projects and Exploration
Pre-tax Income
323 
407 
Total Assets
3,627 
2,988 
Capital Expenditures
40 
28 
Batu Hijau [Member] | Gold [Member]
 
 
Financial Information of Newmont's Segments
 
 
Sales
140 
165 
Costs Applicable to Sales
34 
34 
Amortization
10 
Batu Hijau [Member] | Copper [Member]
 
 
Financial Information of Newmont's Segments
 
 
Sales
369 
455 
Costs Applicable to Sales
89 
91 
Amortization
20 
27 
Nevada [Member]
 
 
Financial Information of Newmont's Segments
 
 
Sales
582 
468 
Costs Applicable to Sales
272 
252 
Amortization
72 
62 
Advanced Projects and Exploration
17 
17 
Pre-tax Income
216 
126 
Total Assets
3,414 
3,250 
Capital Expenditures
95 
48 
La Herradura [Member]
 
 
Financial Information of Newmont's Segments
 
 
Sales
65 
44 
Costs Applicable to Sales
18 
14 
Amortization
Advanced Projects and Exploration
Pre-tax Income
36 
25 
Total Assets
254 
155 
Capital Expenditures
16 
14 
Hope Bay [Member]
 
 
Financial Information of Newmont's Segments
 
 
Sales
Costs Applicable to Sales
Amortization
Advanced Projects and Exploration
44 
17 
Pre-tax Income
(48)
(20)
Total Assets
2,259 
1,965 
Capital Expenditures
19 
Other North America [Member]
 
 
Financial Information of Newmont's Segments
 
 
Sales
Costs Applicable to Sales
Amortization
Advanced Projects and Exploration
Pre-tax Income
(2)
(1)
Total Assets
125 
55 
Capital Expenditures
Total North America [Member]
 
 
Financial Information of Newmont's Segments
 
 
Sales
647 
512 
Costs Applicable to Sales
290 
266 
Amortization
79 
69 
Advanced Projects and Exploration
67 
35 
Pre-tax Income
202 
130 
Total Assets
6,052 
5,425 
Capital Expenditures
130 
71 
Yanacocha [Member]
 
 
Financial Information of Newmont's Segments
 
 
Sales
362 
460 
Costs Applicable to Sales
153 
154 
Amortization
53 
37 
Advanced Projects and Exploration
Pre-tax Income
149 
243 
Total Assets
2,677 
2,501 
Capital Expenditures
41 
40 
Other South America [Member]
 
 
Financial Information of Newmont's Segments
 
 
Sales
Costs Applicable to Sales
Amortization
Advanced Projects and Exploration
10 
Pre-tax Income
(10)
(5)
Total Assets
371 
145 
Capital Expenditures
64 
17 
Total South America [Member]
 
 
Financial Information of Newmont's Segments
 
 
Sales
362 
460 
Costs Applicable to Sales
153 
154 
Amortization
53 
37 
Advanced Projects and Exploration
16 
12 
Pre-tax Income
139 
238 
Total Assets
3,048 
2,646 
Capital Expenditures
105 
57 
Boddington [Member]
 
 
Financial Information of Newmont's Segments
 
 
Sales
285 
205 
Costs Applicable to Sales
128 
104 
Amortization
35 
28 
Advanced Projects and Exploration
Pre-tax Income
104 
68 
Total Assets
4,393 
4,108 
Capital Expenditures
49 
48 
Boddington [Member] | Gold [Member]
 
 
Financial Information of Newmont's Segments
 
 
Sales
232 
167 
Costs Applicable to Sales
100 
80 
Amortization
28 
22 
Boddington [Member] | Copper [Member]
 
 
Financial Information of Newmont's Segments
 
 
Sales
53 
38 
Costs Applicable to Sales
28 
24 
Amortization
Other Australia New Zealand [Member]
 
 
Financial Information of Newmont's Segments
 
 
Sales
415 
314 
Costs Applicable to Sales
166 
156 
Amortization
35 
31 
Advanced Projects and Exploration
12 
Pre-tax Income
197 
126 
Total Assets
1,049 
864 
Capital Expenditures
62 
36 
Other Asia Pacific [Member]
 
 
Financial Information of Newmont's Segments
 
 
Sales
Costs Applicable to Sales
Amortization
Advanced Projects and Exploration
Pre-tax Income
17 
Total Assets
548 
314 
Capital Expenditures
Total Asia Pacific [Member]
 
 
Financial Information of Newmont's Segments
 
 
Sales
1,209 
1,139 
Costs Applicable to Sales
417 
385 
Amortization
98 
97 
Advanced Projects and Exploration
14 
11 
Pre-tax Income
624 
618 
Total Assets
9,617 
8,274 
Capital Expenditures
153 
114 
Ahafo [Member]
 
 
Financial Information of Newmont's Segments
 
 
Sales
247 
131 
Costs Applicable to Sales
80 
64 
Amortization
22 
17 
Advanced Projects and Exploration
Pre-tax Income
136 
42 
Total Assets
1,049 
981 
Capital Expenditures
15 
21 
Other Africa [Member]
 
 
Financial Information of Newmont's Segments
 
 
Sales
Costs Applicable to Sales
Amortization
Advanced Projects and Exploration
Pre-tax Income
(2)
(4)
Total Assets
316 
214 
Capital Expenditures
28 
Total Africa [Member]
 
 
Financial Information of Newmont's Segments
 
 
Sales
247 
131 
Costs Applicable to Sales
80 
64 
Amortization
22 
17 
Advanced Projects and Exploration
Pre-tax Income
134 
38 
Total Assets
1,365 
1,195 
Capital Expenditures
43 
27 
Corporate and Other [Member]
 
 
Financial Information of Newmont's Segments
 
 
Sales
Costs Applicable to Sales
Amortization
Advanced Projects and Exploration
25 
24 
Pre-tax Income
(126)
(138)
Total Assets
6,772 
5,105 
Capital Expenditures
$ 14 
$ 3 
Reclamation and Remediation (Details) (USD $)
In Millions
3 Months Ended
Mar. 31,
2011
2010
Reconciliation of Reclamation and Remediation Liabilities
 
 
Balance at beginning of period
$ 1,048 
$ 859 
Additions, changes in estimates and other
(3)
Liabilities settled
(8)
(8)
Accretion expense
14 
13 
Balance at end of period
1,055 
861 
Reclamation and Remediation Expenses
 
 
Accretion - operating
12 
11 
Accretion - non-operating
Reclamation and remediation expense, total
14 
13 
Reclamation And Remediation (Textuals) [Abstract]
 
 
Accrued for reclamation obligations relating to mineral properties
913 
 
Accrued obligation associated with former, primarily historic, mining activities
142 
 
Reclamation and remediation liabilities
62 
 
Advanced Projects, Research and Development (Details) (USD $)
In Millions
3 Months Ended
Mar. 31,
2011
2010
Advanced Projects, Research and Development
 
 
Advanced projects, research and development
$ 68 
$ 46 
Hope Bay [Member] | Major projects [Member]
 
 
Advanced Projects, Research and Development
 
 
Advanced projects, research and development
38 
10 
Other projects [Member] | Technical and project services [Member]
 
 
Advanced Projects, Research and Development
 
 
Advanced projects, research and development
15 
12 
Other projects [Member] | Corporate [Member]
 
 
Advanced Projects, Research and Development
 
 
Advanced projects, research and development
12 
Other projects [Member] | Other Project [Member]
 
 
Advanced Projects, Research and Development
 
 
Advanced projects, research and development
11 
Major projects [Member] | Conga [Member]
 
 
Advanced Projects, Research and Development
 
 
Advanced projects, research and development
Major projects [Member] | Akyem [Member]
 
 
Advanced Projects, Research and Development
 
 
Advanced projects, research and development
$ 0 
$ 3 
Other Expense, Net (Details) (USD $)
In Millions
3 Months Ended
Mar. 31,
2011
2010
Other Expense, Net
 
 
Indonesian value added tax settlement
$ 21 
$ 0 
Community development
17 
55 
Regional administration
16 
13 
Western Australia power plant
World Gold Council dues
Other
13 
12 
Other expense, total
$ 73 
$ 89 
Other Income, Net (Details) (USD $)
In Millions
3 Months Ended
Mar. 31,
2011
2010
Other Income, Net
 
 
Income from developing projects, net
$ 24 
$ 0 
Canadian Oil Sands distributions
10 
Interest income
Gain on asset sales, net
33 
Foreign currency exchange losses, net
(11)
(9)
Other
11 
Total
$ 31 
$ 48 
Employee Pension and Other Benefits Plans (Details) (USD $)
In Millions
3 Months Ended
Mar. 31,
2011
2010
Pension benefit costs [Member]
 
 
Pension benefit costs, net
 
 
Service cost
$ 6 
$ 5 
Interest cost
10 
Expected return on plan assets
(10)
(7)
Amortization, net
Pension benefit costs, net
11 
11 
Other benefit costs, net
 
 
Service cost
Interest cost
10 
Other benefit costs, net
11 
11 
Other benefit costs [Member]
 
 
Pension benefit costs, net
 
 
Service cost
Interest cost
Pension benefit costs, net
Other benefit costs, net
 
 
Service cost
Interest cost
Other benefit costs, net
$ 2 
$ 2 
Stock Based Compensation (Details) (USD $)
In Millions
3 Months Ended
Mar. 31,
2011
2010
Stock Option and Other Stock Based Compensation
 
 
Share-based Compensation
$ 15 
$ 14 
Common Stock [Member]
 
 
Stock Option and Other Stock Based Compensation
 
 
Share-based Compensation
Stock options [Member]
 
 
Stock Option and Other Stock Based Compensation
 
 
Share-based Compensation
Restricted stock unit [Member]
 
 
Stock Option and Other Stock Based Compensation
 
 
Share-based Compensation
Performance leveraged stock units [Member]
 
 
Stock Option and Other Stock Based Compensation
 
 
Share-based Compensation
Restricted stock [Member]
 
 
Stock Option and Other Stock Based Compensation
 
 
Share-based Compensation
Deferred stock [Member]
 
 
Stock Option and Other Stock Based Compensation
 
 
Share-based Compensation
$ 2 
$ 2 
Income and Mining Taxes (Details) (USD $)
In Millions
3 Months Ended
Mar. 31,
2011
2010
Income And Mining Taxes (Textuals) [Abstract]
 
 
Estimated Income tax expense
$ 305 
$ 141 
Effective tax rate
0.31 
0.16 
Tax benefit generated on change in form of a non-U.S. subsidiary
127 
Total unrecognized tax benefit
128 
 
United States statutory corporate income tax rate
0.35 
0.35 
Unrecognized tax benefit, If recognized
37 
 
Income Tax Reconciliation [Abstract]
 
 
Income before income and mining tax and other items
973 
886 
United States statutory corporate income tax rate
0.35 
0.35 
Income and mining tax expense computed at United States statutory corporate income tax rate
341 
310 
Tax benefit generated on change in form of a non-U.S. subsidiary
127 
Percentage depletion
55 
33 
Other
(19)
Income and mining tax expense
(305)
(141)
High Range [Member]
 
 
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items]
 
 
Decrease in net unrecognized income tax benefits
10 
 
Low Range [Member]
 
 
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items]
 
 
Decrease in net unrecognized income tax benefits
 
Net Income Attributable to Noncontrolling Interests (Details) (USD $)
In Millions
3 Months Ended
Mar. 31,
2011
2010
2011
Net Income Attributable to Noncontrolling Interests (Textuals) (Abstract)
 
 
 
Sale and transfer of shares of interest in PTNNT, percent
 
0.07 
 
Share transfers gains
 
15 
 
Share transfers gains tax
 
34 
 
Additional effective economic interest in PTNNT, In percent
0.17 
 
 
Noncontrolling interest, ownership percentage by noncontrolling owners
0.2 
 
 
Ownership interest in subsidiaries
 
 
0.56 
Effective economic interest percent
 
 
0.485 
Other
(2)
(1)
 
Net income attributable to noncontrolling interests
$ 156 
$ 197 
$ 102 
Income Per Common Share (Details) (USD $)
Share data in Millions, except Per Share data
3 Months Ended
Mar. 31,
2011
2010
Weighted average common shares (millions):
 
 
Basic
493 
491 
Effect of employee stock-based awards
Effect of convertible notes
Diluted
501 
493 
Income per common share, basic
 
 
Income per common share, basic
$ 1.04 
$ 1.11 
Income per common share, diluted
 
 
Income per common share, diluted
1.03 
1.11 
Net income attributable to Newmount stockholders and transfers from noncontrolling interest [Abstract]
 
 
Net income attributable to Newmont stockholders
$ 514,000,000 
$ 546,000,000 
Transfers from noncontrolling interests:
 
 
Increase in Additional paid in capital from sale of PTNNT shares, net of tax of $34
15,000,000 
Net income attributable to Newmont stockholders and transfers from noncontrolling interests
514,000,000 
561,000,000 
Income Per Common Share (Textuals) Abstract
 
 
Anti-dilutive shares - stock options
Options to purchase common shares average exercise price
57 
55 
Anti-dilutive shares - convertible notes
Share transfers gains tax
 
34,000,000 
Convertible Senior Notes Net Of Discount 2012 [Member]
 
 
Income Per Common Share (Textuals) Abstract
 
 
Convertible notes
518,000,000 
 
Conversion price on convertible notes
46.13 
 
Convertible Senior Notes Net Of Discount 2014 And 2017 [Member]
 
 
Income Per Common Share (Textuals) Abstract
 
 
Convertible notes
1,150,000,000 
 
Conversion price on convertible notes
46.09 
 
Conversion price on call spread transaction
60.11 
 
Comprehensive Income (Details) (USD $)
In Millions
3 Months Ended
Mar. 31,
2011
2010
Comprehensive Income
 
 
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
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 
Other comprehensive income, net of tax
283 
117 
Comprehensive income
953 
860 
Comprehensive income attributable to:
 
 
Newmont stockholders
795 
663 
Noncontrolling interests
158 
197 
Comprehensive income
$ 953 
$ 860 
Changes in Equity (Details) (USD $)
In Millions
3 Months Ended
Mar. 31,
2011
2010
Changes in Equity
 
 
Beginning Balance
15,716 
 
Net income attributable to Newmont stockholders
514 
546 
Net income attributable to noncontrolling interests
(156)
(197)
Other comprehensive income
283 
117 
Ending Balance
16,621 
13,405 
Common Stock [Member]
 
 
Changes in Equity
 
 
Beginning Balance
778 
770 
Common stock offering
Stock based awards
Shares issued in exchange for exchangeable shares
Ending Balance
779 
773 
Additional paid-in capital [Member]
 
 
Changes in Equity
 
 
Beginning Balance
8,279 
8,158 
Common stock offering
Convertible debt issuance
Dividends paid
Stock based awards
25 
17 
Shares issued in exchange for exchangeable shares
(2)
Sale of subsidiary shares to noncontrolling interests
15 
Ending Balance
8,304 
8,188 
Accumulated other comprehensive income [Member]
 
 
Changes in Equity
 
 
Beginning Balance
1,108 
626 
Other comprehensive income
281 
117 
Ending Balance
1,389 
743 
Retained earnings [Member]
 
 
Changes in Equity
 
 
Beginning Balance
3,180 
1,149 
Net income attributable to Newmont stockholders
514 
546 
Dividends paid
(74)
(49)
Ending Balance
3,620 
1,646 
Noncontrolling interests [Member]
 
 
Changes in Equity
 
 
Beginning Balance
2,371 
1,910 
Net income attributable to noncontrolling interests
156 
197 
Dividends paid
(220)
Other comprehensive income
Sale of subsidiary shares to noncontrolling interests
168 
Ending Balance
$ 2,529 
$ 2,055 
Fair Value Accounting (Details)
In Millions
3 Months Ended
Mar. 31, 2011
Year Ended
Dec. 31, 2010
Assets:
 
 
Cash equivalents
2,022 
 
Derivative instruments, net:
 
 
Fair value assets measured on recurring basis
4,544 
 
Fair Value Accounting (Textuals) [Abstract]
 
 
Unrealized gain
 
Assets measured at fair value hierarchy, percent
0.01 
 
Liabilities measured at fair value hierarchy, percent
0.25 
 
Changes in the Fair Value of the Company's Level 3 Financial Assets
 
 
Balance at beginning of period, assets
24 
 
Unrealized gain
 
Balance at end of period, assets
25 
24 
Liabilities:
 
 
Fair Value Liabilities Measured On Recurring Basis
302 
 
Changes in the Fair Value of the Company's Level 3 Financial Liabilities
 
 
Balance at beginning of period, liabilities
76 
83 
Settlements
(7)
 
Balance at end of period, liabilities
76 
83 
Level 1 [Member]
 
 
Assets:
 
 
Cash equivalents
2,022 
 
Derivative instruments, net:
 
 
Fair value assets measured on recurring basis
4,177 
 
Level 1 [Member] | Marketable Equity Securities [Member] | Extractive industries [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
1,796 
 
Marketable debt securities:
 
 
Marketable Debt securities
1,796 
 
Level 1 [Member] | Marketable Equity Securities [Member] | Other Industries [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
 
Marketable debt securities:
 
 
Marketable Debt securities
 
Level 1 [Member] | Debt Securities [Member] | Corporate Debt Securities [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
11 
 
Marketable debt securities:
 
 
Marketable Debt securities
11 
 
Level 1 [Member] | Trade receivable from provisional copper and gold concentrate sales, net [Member]
 
 
Marketable debt securities:
 
 
Trade receivable from provisional copper and gold concentrate sales, net
342 
 
Level 2 [Member]
 
 
Derivative instruments, net:
 
 
Fair value assets measured on recurring basis
342 
 
Level 2 [Member] | Interest Rate Swap Contracts [Member]
 
 
Derivative instruments, net:
 
 
Derivative instruments, net:
 
Level 2 [Member] | Diesel forward contracts [Member]
 
 
Derivative instruments, net:
 
 
Derivative instruments, net:
20 
 
Level 2 [Member] | Foreign exchange forward contracts [Member]
 
 
Derivative instruments, net:
 
 
Derivative instruments, net:
319 
 
Level 3 [Member]
 
 
Derivative instruments, net:
 
 
Fair value assets measured on recurring basis
25 
 
Level 3 [Member] | Debt Securities [Member] | Asset Backed Commercial Paper [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
20 
 
Marketable debt securities:
 
 
Marketable Debt securities
20 
 
Level 3 [Member] | Debt Securities [Member] | Auction Rate Securities [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
 
Marketable debt securities:
 
 
Marketable Debt securities
 
Level 1 [Member]
 
 
Liabilities:
 
 
Fair Value Liabilities Measured On Recurring Basis
 
Level 2 [Member]
 
 
Liabilities:
 
 
Fair Value Liabilities Measured On Recurring Basis
226 
 
Level 2 [Member] | Debenture [Member]
 
 
Liabilities:
 
 
8 5/8% debentures ($222 hedged portion)
226 
 
Level 3 [Member]
 
 
Liabilities:
 
 
Fair Value Liabilities Measured On Recurring Basis
76 
 
Level 3 [Member] | Boddington Contingent Consideration [Member]
 
 
Liabilities:
 
 
Boddington contingent consideration
76 
 
Debenture [Member]
 
 
Liabilities:
 
 
8 5/8% debentures ($222 hedged portion)
226 
 
Boddington Contingent Consideration [Member]
 
 
Liabilities:
 
 
Boddington contingent consideration
76 
 
Changes in the Fair Value of the Company's Level 3 Financial Liabilities
 
 
Balance at beginning of period, liabilities
76 
83 
Settlements
(7)
 
Balance at end of period, liabilities
76 
83 
Marketable Equity Securities [Member] | Extractive industries [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
1,796 
 
Marketable debt securities:
 
 
Marketable Debt securities
1,796 
 
Marketable Equity Securities [Member] | Other Industries [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
 
Marketable debt securities:
 
 
Marketable Debt securities
 
Debt Securities [Member] | Asset Backed Commercial Paper [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
20 
 
Marketable debt securities:
 
 
Marketable Debt securities
20 
 
Fair Value Accounting (Textuals) [Abstract]
 
 
Unrealized gain
 
Changes in the Fair Value of the Company's Level 3 Financial Assets
 
 
Balance at beginning of period, assets
19 
 
Unrealized gain
 
Balance at end of period, assets
20 
 
Debt Securities [Member] | Corporate Debt Securities [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
11 
 
Marketable debt securities:
 
 
Marketable Debt securities
11 
 
Debt Securities [Member] | Auction Rate Securities [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
 
Marketable debt securities:
 
 
Marketable Debt securities
 
Changes in the Fair Value of the Company's Level 3 Financial Assets
 
 
Balance at beginning of period, assets
Balance at end of period, assets
Trade receivable from provisional copper and gold concentrate sales, net [Member]
 
 
Marketable debt securities:
 
 
Trade receivable from provisional copper and gold concentrate sales, net
342 
 
Interest Rate Swap Contracts [Member]
 
 
Derivative instruments, net:
 
 
Derivative instruments, net:
 
Diesel forward contracts [Member]
 
 
Derivative instruments, net:
 
 
Derivative instruments, net:
20 
 
Foreign exchange forward contracts [Member]
 
 
Derivative instruments, net:
 
 
Derivative instruments, net:
319 
 
Derivative Instruments (Details)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31,
Mar. 31, 2011
2011
2010
2011
2010
2011
2010
2011
2010
Mar. 31, 2011
Dec. 31, 2010
Mar. 31, 2011
Dec. 31, 2010
Mar. 31, 2011
Dec. 31, 2010
Mar. 31, 2011
Dec. 31, 2010
Mar. 31, 2011
Dec. 31, 2010
Mar. 31, 2011
Dec. 31, 2010
Mar. 31, 2011
Dec. 31, 2010
Mar. 31, 2011
Dec. 31, 2010
Mar. 31, 2011
Dec. 31, 2010
Mar. 31, 2011
Dec. 31, 2010
3 Months Ended
Mar. 31, 2011
Mar. 31, 2011
3 Months Ended
Mar. 31, 2011
Mar. 31, 2011
Mar. 31, 2011
Mar. 31, 2011
Mar. 31, 2011
Mar. 31, 2011
Diesel Derivative Contracts Outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diesel gallons
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
17,000,000 
10,000,000 
1,000,000 
28,000,000 
Fair values of Derivative Instruments Designated as Hedges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Current and Long Term Assets
 
 
 
 
 
 
 
 
 
135 
116 
131 
114 
207 
196 
17 
183 
181 
 
 
 
 
 
 
 
 
Derivative Instruments (Textuals) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed to floating swap contracts, amount
222 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed rate interest payments received
0.0863 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Spread rate, minimum
0.026 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Spread rate, maximum
0.0763 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,386 
 
4.38 
 
 
 
 
 
Recorded average provisional price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,386 
 
4.37 
 
 
 
 
 
Applicable forward price at the end of the quarter
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provisional pricing mark-to-market gain (loss)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(12)
 
 
 
 
 
Provisional pricing mark-to-market gain (loss) rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(0.12)
 
 
 
 
 
Provisional pricing quantity sales
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
146,000 
 
111,000,000 
 
 
 
 
Average price, subject to final pricing
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,439 
 
4.27 
 
 
 
 
Location and Amount of Gains (Losses) Reported in Condensed Consolidated Financial Statements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) recognized in other comprehensive income (effective portion)
 
 
 
 
 
67 
41 
15 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) reclassified from Accumulated other comprehensive income into income (effective portion)
 
 
 
 
 
42 
24 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gains (Losses) Recorded for Hedged Item Related to Fair Value Hedges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) recognized in income (effective portion)
 
(5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) recognized in income (ineffective portion)
 
(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash Flow Hedging Relationships (Textuals) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Approximate gain amount to be reclassified from accumulated other comprehensive income, net of tax to income
141 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments (Details) (USD $)
In Millions
3 Months Ended
Mar. 31, 2011
Year Ended
Dec. 31, 2010
Investment in Marketable Securities
 
 
Current Investments
$ 129 
$ 113 
Long-Term Investments
1,779 
1,568 
Available For Sale Securities Continuous Unrealized Loss Position Aggregate Losses Abstract
 
 
Securities continuous unrealized losses less than 12 months - unrealized losses
Securities continuous unrealized losses greater than 12 months - unrealized losses
Securities continuous unrealized losses - unrealized losses
Available For Sale Securities Continuous Unrealized Loss Position Fair Value Abstract
 
 
Securities continuous unrealized losses less than 12 months - fair value
Securities continuous unrealized losses greater than 12 months - fair value
25 
24 
Securities continuous unrealized losses - fair value
27 
24 
Investments (Textuals) [Abstract]
 
 
Payments to Acquire Marketable Securities
12 
 
Securities continuous unrealized losses - unrealized losses
New Gold Inc [Member] | Current [Member]
 
 
Investment in Marketable Securities
 
 
Cost/Equity Basis
Unrealized Gain
67 
54 
Unrealized Loss
Fair/Equity Basis - Current Marketable Equity Securities
72 
59 
Other Equity Securities [Member] | Current [Member]
 
 
Investment in Marketable Securities
 
 
Cost/Equity Basis
19 
19 
Unrealized Gain
39 
35 
Unrealized Loss
(1)
Fair/Equity Basis - Current Marketable Equity Securities
57 
54 
Other Equity Securities [Member] | Long-term [Member]
 
 
Investment in Marketable Securities
 
 
Cost/Equity Basis
54 
39 
Unrealized Gain
41 
37 
Unrealized Loss
Fair/Equity Basis - Long-Term Marketable Equity Securities
95 
76 
Marketable Equity Securities [Member]
 
 
Available For Sale Securities Continuous Unrealized Loss Position Aggregate Losses Abstract
 
 
Securities continuous unrealized losses less than 12 months - unrealized losses
 
Securities continuous unrealized losses greater than 12 months - unrealized losses
 
Securities continuous unrealized losses - unrealized losses
 
Available For Sale Securities Continuous Unrealized Loss Position Fair Value Abstract
 
 
Securities continuous unrealized losses less than 12 months - fair value
 
Securities continuous unrealized losses greater than 12 months - fair value
 
Securities continuous unrealized losses - fair value
 
Investments (Textuals) [Abstract]
 
 
Asset retirement obligation restricted asset
Securities continuous unrealized losses - unrealized losses
 
Marketable Equity Securities [Member] | Long-term [Member]
 
 
Investment in Marketable Securities
 
 
Cost/Equity Basis
475 
448 
Unrealized Gain
1,198 
1,018 
Unrealized Loss
Fair/Equity Basis - Long-Term Marketable Equity Securities
1,673 
1,466 
Asset Backed Commercial Paper [Member]
 
 
Available For Sale Securities Continuous Unrealized Loss Position Aggregate Losses Abstract
 
 
Securities continuous unrealized losses less than 12 months - unrealized losses
Securities continuous unrealized losses greater than 12 months - unrealized losses
Securities continuous unrealized losses - unrealized losses
Available For Sale Securities Continuous Unrealized Loss Position Fair Value Abstract
 
 
Securities continuous unrealized losses less than 12 months - fair value
Securities continuous unrealized losses greater than 12 months - fair value
20 
19 
Securities continuous unrealized losses - fair value
20 
19 
Investments (Textuals) [Abstract]
 
 
Securities continuous unrealized losses - unrealized losses
Asset Backed Commercial Paper [Member] | Long-term [Member]
 
 
Investment in Marketable Securities
 
 
Cost/Equity Basis
26 
25 
Unrealized Gain
Unrealized Loss
(6)
(6)
Fair/Equity Basis - Long-Term Marketable Debt Securities
20 
19 
Auction Rate Securities [Member]
 
 
Available For Sale Securities Continuous Unrealized Loss Position Aggregate Losses Abstract
 
 
Securities continuous unrealized losses less than 12 months - unrealized losses
Securities continuous unrealized losses greater than 12 months - unrealized losses
Securities continuous unrealized losses - unrealized losses
Available For Sale Securities Continuous Unrealized Loss Position Fair Value Abstract
 
 
Securities continuous unrealized losses less than 12 months - fair value
Securities continuous unrealized losses greater than 12 months - fair value
Securities continuous unrealized losses - fair value
Investments (Textuals) [Abstract]
 
 
Securities continuous unrealized losses - unrealized losses
Auction Rate Securities [Member] | Long-term [Member]
 
 
Investment in Marketable Securities
 
 
Cost/Equity Basis
Unrealized Gain
Unrealized Loss
(2)
(2)
Fair/Equity Basis - Long-Term Marketable Debt Securities
Corporate Debt Securities [Member] | Long-term [Member]
 
 
Investment in Marketable Securities
 
 
Cost/Equity Basis
Unrealized Gain
Unrealized Loss
Fair/Equity Basis - Long-Term Marketable Debt Securities
11 
10 
Debt Securities [Member]
 
 
Investments (Textuals) [Abstract]
 
 
Asset retirement obligation restricted asset
11 
10 
Debt Securities [Member] | Long-term [Member]
 
 
Investment in Marketable Securities
 
 
Cost/Equity Basis
40 
39 
Unrealized Gain
Unrealized Loss
(8)
(8)
Fair/Equity Basis - Long-Term Marketable Debt Securities
36 
34 
Canadian Oil Sands Ltd [Member] | Long-term [Member]
 
 
Investment in Marketable Securities
 
 
Cost/Equity Basis
318 
308 
Unrealized Gain
721 
508 
Unrealized Loss
Fair/Equity Basis - Long-Term Marketable Equity Securities
1,039 
816 
Gabriel Resources Ltd [Member] | Long-term [Member]
 
 
Investment in Marketable Securities
 
 
Cost/Equity Basis
80 
78 
Unrealized Gain
297 
325 
Unrealized Loss
Fair/Equity Basis - Long-Term Marketable Equity Securities
377 
403 
Regis [Member] | Long-term [Member]
 
 
Investment in Marketable Securities
 
 
Cost/Equity Basis
23 
23 
Unrealized Gain
139 
148 
Unrealized Loss
Fair/Equity Basis - Long-Term Marketable Equity Securities
162 
171 
La Zanja [Member] | Long-term [Member]
 
 
Investment in Marketable Securities
 
 
Equity Method Investments
61 
57 
Current [Member]
 
 
Investment in Marketable Securities
 
 
Cost/Equity Basis
24 
24 
Unrealized Gain
106 
89 
Unrealized Loss
(1)
Long-term [Member]
 
 
Investment in Marketable Securities
 
 
Cost/Equity Basis
585 
555 
Unrealized Gain
1,202 
1,021 
Unrealized Loss
(8)
(8)
Other Investments, at Cost
$ 9 
$ 11 
Inventories (Details) (USD $)
In Millions
Mar. 31, 2011
Dec. 31, 2010
Summary of Inventories
 
 
In-process
$ 81 
$ 142 
Concentrate
101 
111 
Precious metals
11 
Materials, supplies and other
414 
401 
Total Inventories
$ 607 
$ 658 
Stockpiles and Ore on Leach Pads (Details) (USD $)
In Millions
Mar. 31, 2011
Dec. 31, 2010
Current:
 
 
Stockpiles
$ 402 
$ 389 
Ore on leach pads
255 
228 
Total
657 
617 
Long-term:
 
 
Stockpiles
1,498 
1,397 
Ore On leach pads
348 
360 
Total
1,846 
1,757 
Stockpiles And Ore On Leach Pads Segment [Abstract]
 
 
Stockpiles and ore on leach pads
2,503 
2,374 
Batu Hijau [Member]
 
 
Stockpiles And Ore On Leach Pads Segment [Abstract]
 
 
Stockpiles and ore on leach pads
924 
879 
Nevada [Member]
 
 
Stockpiles And Ore On Leach Pads Segment [Abstract]
 
 
Stockpiles and ore on leach pads
466 
479 
La Herradura [Member]
 
 
Stockpiles And Ore On Leach Pads Segment [Abstract]
 
 
Stockpiles and ore on leach pads
10 
Yanacocha [Member]
 
 
Stockpiles And Ore On Leach Pads Segment [Abstract]
 
 
Stockpiles and ore on leach pads
518 
496 
Boddington [Member]
 
 
Stockpiles And Ore On Leach Pads Segment [Abstract]
 
 
Stockpiles and ore on leach pads
306 
248 
Other Australia New Zealand [Member]
 
 
Stockpiles And Ore On Leach Pads Segment [Abstract]
 
 
Stockpiles and ore on leach pads
151 
145 
Ahafo [Member]
 
 
Stockpiles And Ore On Leach Pads Segment [Abstract]
 
 
Stockpiles and ore on leach pads
$ 128 
$ 121 
Other Assets (Details) (USD $)
In Millions
Mar. 31, 2011
Dec. 31, 2010
Other current assets:
 
 
Refinery metal inventory and receivable
$ 813 
$ 617 
Derivative instruments
207 
196 
Other prepaid assets
128 
65 
Other
80 
84 
Other current assets, total
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 
Other long-term assets, total
$ 815 
$ 741 
Debt (Details) (USD $)
In Millions
Mar. 31, 2011
Dec. 31, 2010
Debt
 
 
Total Debt Current
$ 754 
$ 259 
Total Debt Non-Current
3,676 
4,182 
Debt (Textuals)
 
 
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months
232 
 
Long-term Debt, Maturities, Repayments of Principal in Year Two
565 
 
Long-term Debt, Maturities, Repayments of Principal in Year Three
42 
 
Long-term Debt, Maturities, Repayments of Principal in Year Four
538 
 
Long-term Debt, Maturities, Repayments of Principal in Year Five
18 
 
Long-term Debt, Maturities, Repayments of Principal after Year Five
3,035 
 
Convertible Senior Notes Net Of Discount 2012 [Member] | Current [Member]
 
 
Debt
 
 
Convertible senior notes, net of discount
494 
Convertible Senior Notes Net Of Discount 2012 [Member] | Non-current [Member]
 
 
Debt
 
 
Convertible senior notes, net of discount
488 
Convertible Senior Notes Net Of Discount 2014 [Member] | Current [Member]
 
 
Debt
 
 
Convertible senior notes, net of discount
Convertible Senior Notes Net Of Discount 2014 [Member] | Non-current [Member]
 
 
Debt
 
 
Convertible senior notes, net of discount
495 
489 
Convertible Senior Notes Net Of Discount 2017 [Member] | Current [Member]
 
 
Debt
 
 
Convertible senior notes, net of discount
Convertible Senior Notes Net Of Discount 2017 [Member] | Non-current [Member]
 
 
Debt
 
 
Convertible senior notes, net of discount
438 
434 
Senior Notes Net Of Discount 2019 [Member] | Current [Member]
 
 
Debt
 
 
Senior notes, net of discount
Senior Notes Net Of Discount 2019 [Member] | Non-current [Member]
 
 
Debt
 
 
Senior notes, net of discount
896 
896 
Senior Notes Net Of Discount 2035 [Member] | Current [Member]
 
 
Debt
 
 
Senior notes, net of discount
Senior Notes Net Of Discount 2035 [Member] | Non-current [Member]
 
 
Debt
 
 
Senior notes, net of discount
598 
598 
Senior Notes Net Of Discount 2039 [Member] | Current [Member]
 
 
Debt
 
 
Senior notes, net of discount
Senior Notes Net Of Discount 2039 [Member] | Non-current [Member]
 
 
Debt
 
 
Senior notes, net of discount
1,087 
1,087 
Current [Member]
 
 
Debt
 
 
Sale-leaseback of refractory ore treatment plant
28 
30 
8 5/8% debentures, net of discount (due 2011)
221 
217 
Ahafo project facility
10 
10 
Other capital leases
Non-current [Member]
 
 
Debt
 
 
Sale-leaseback of refractory ore treatment plant
106 
134 
8 5/8% debentures, net of discount (due 2011)
Ahafo project facility
55 
55 
Other capital leases
$ 1 
$ 1 
Other Liabilities (Details) (USD $)
In Millions
Mar. 31, 2011
Dec. 31, 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 
Other current liabilities, total
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 
Other long-term liabilities, total
$ 196 
$ 221 
Net Change in Operating Assets and Liabilities (Details) (USD $)
In Millions
3 Months Ended
Mar. 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
(21)
EGR refinery liabilities
175 
(185)
Reclamation liabilities
(8)
(8)
Net change in operating assets and liabilities
$ 21 
$ (173)
Supplemental Cash Flow Information (Details) (USD $)
In Millions
3 Months Ended
Mar. 31,
2011
2010
Supplemental Cash Flow Information (Details) [Abstract]
 
 
Income and mining taxes, net of refunds
$ 278 
$ 209 
Interest, net of amounts capitalized
$ 20 
$ 26 
Condensed Consolidating Financial Statements (Details)
In Millions
3 Months Ended
Mar. 31,
2011
2010
Dec. 31, 2010
Condensed Consolidating Statement of Income
 
 
 
Sales
2,465 
2,242 
 
Costs and expenses
 
 
 
Costs applicable to sales
940 1
869 1
 
Amortization
256 
224 
 
Reclamation and remediation
14 
13 
 
Exploration
62 
43 
 
Advanced projects, research and development
68 
46 
 
General and administrative
45 
45 
 
Other expense, net
73 
89 
 
Total costs and expenses
1,458 
1,329 
 
Other income (expense)
 
 
 
Other income, net
31 
48 
 
Interest income-intercompany
 
Interest expense-intercompany
 
Interest expense, net
(65)
(75)
 
Total other income (expense)
(34)
(27)
 
Income before income and mining tax and other items
973 
886 
 
Income and mining tax expense
(305)
(141)
 
Equity income (loss) of affiliates
(2)
 
Net income
670 
743 
 
Net income attributable to noncontrolling interests
(156)
(197)
 
Net income attributable to Newmont stockholders
514 
546 
 
Operating activities:
 
 
 
Net income
670 
743 
 
Adjustments
298 
158 
 
Net change in operating assets and liabilities
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
38 
 
Other
(3)
(11)
 
Net cash used in investing activities
(418)
(285)
 
Financing activities:
 
 
 
Net repayments
(31)
(250)
 
Net intercompany borrowings (repayments)
 
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
 
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 
 
Assets
 
 
 
Cash and cash equivalents
4,533 
3,364 
 
Trade receivables
439 
 
582 
Accounts receivable
113 
 
88 
Investments
129 
 
113 
Inventories
607 
 
658 
Stockpiles and ore on leach pads
657 
 
617 
Deferred income tax assets
178 
 
177 
Other current assets
1,228 
 
962 
Current assets
7,884 
 
7,253 
Property, plant and mine development, net
13,074 
 
12,907 
Investments
1,779 
 
1,568 
Investments in subsidiaries
 
Stockpiles and ore on leach pads
1,846 
 
1,757 
Deferred income tax assets
1,456 
 
1,437 
Other long-term assets
815 
 
741 
Total assets
26,854 
 
25,663 
Liabilities
 
 
 
Debt
754 
 
259 
Accounts payable
420 
 
427 
Employee-related benefits
240 
 
288 
Income and mining taxes
474 
 
355 
Other current liabilities
1,613 
 
1,418 
Current liabilities
3,501 
 
2,747 
Debt
3,676 
 
4,182 
Reclamation and remediation liabilities
993 
 
984 
Deferred income tax liabilities
1,531 
 
1,488 
Employee-related benefits
336 
 
325 
Other long-term liabilities
196 
 
221 
Total liabilities
10,233 
 
9,947 
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 
13,405 
15,716 
Total liabilities and equity
26,854 
 
25,663 
Newmont Mining Corporation [Member]
 
 
 
Condensed Consolidating Statement of Income
 
 
 
Sales
 
Costs and expenses
 
 
 
Costs applicable to sales
 
Amortization
 
Reclamation and remediation
 
Exploration
 
Advanced projects, research and development
 
General and administrative
 
Other expense, net
 
Total costs and expenses
 
Other income (expense)
 
 
 
Other income, net
(5)
 
Interest income-intercompany
36 
36 
 
Interest expense-intercompany
(3)
(2)
 
Interest expense, net
(54)
(62)
 
Total other income (expense)
(26)
(28)
 
Income before income and mining tax and other items
(27)
(28)
 
Income and mining tax expense
10 
141 
 
Equity income (loss) of affiliates
531 
433 
 
Net income
514 
546 
 
Net income attributable to noncontrolling interests
 
Net income attributable to Newmont stockholders
514 
546 
 
Operating activities:
 
 
 
Net income
514 
546 
 
Adjustments
21 
(121)
 
Net change in operating assets and liabilities
30 
 
Net cash provided from continuing operations
 
455 
 
Net cash used in discontinued operations
 
 
Net cash provided from operations
543 
455 
 
Investing activities:
 
 
 
Additions to property, plant and mine development
 
Purchases of marketable securities
 
Acquisitions, net
 
 
Proceeds from sale of other assets
 
Other
 
Net cash used in investing activities
 
Financing activities:
 
 
 
Net repayments
 
Net intercompany borrowings (repayments)
(472)
(417)
 
Sale of subsidiary shares to noncontrolling interests
 
Acquisition of subsidiary shares from noncontrolling interests
 
Dividends paid to common stockholders
(74)
(49)
 
Dividends paid to noncontrolling interests
 
Proceeds from stock issuance, net
 
Change in restricted cash and other
 
Net cash used in financing activities
(543)
(463)
 
Effect of exchange rate changes on cash
 
Net change in cash and cash equivalents
(8)
 
Cash and cash equivalents at beginning of period
 
Cash and cash equivalents at end of period
 
Assets
 
 
 
Cash and cash equivalents
 
Trade receivables
 
Accounts receivable
1,621 
 
2,222 
Investments
 
Inventories
 
Stockpiles and ore on leach pads
 
Deferred income tax assets
 
Other current assets
 
Current assets
1,621 
 
2,222 
Property, plant and mine development, net
 
Investments
 
Investments in subsidiaries
15,165 
 
12,295 
Stockpiles and ore on leach pads
 
Deferred income tax assets
638 
 
638 
Other long-term assets
2,596 
 
2,675 
Total assets
20,020 
 
17,830 
Liabilities
 
 
 
Debt
494 
 
Accounts payable
1,770 
 
355 
Employee-related benefits
 
Income and mining taxes
 
19 
Other current liabilities
81 
 
56 
Current liabilities
2,347 
 
430 
Debt
3,514 
 
3,991 
Reclamation and remediation liabilities
 
Deferred income tax liabilities
 
Employee-related benefits
 
Other long-term liabilities
373 
 
375 
Total liabilities
6,238 
 
4,801 
Equity
 
 
 
Preferred stock
 
Common stock
779 
 
778 
Additional paid-in capital
7,994 
 
7,963 
Accumulated other comprehensive income
1,389 
 
1,108 
Retained earnings
3,620 
 
3,180 
Newmont stockholders' equity
13,782 
 
13,029 
Noncontrolling interests
 
Total equity
13,782 
 
13,029 
Total liabilities and equity
20,020 
 
17,830 
Newmont USA [Member]
 
 
 
Condensed Consolidating Statement of Income
 
 
 
Sales
1,518 
1,592 
 
Costs and expenses
 
 
 
Costs applicable to sales
566 
545 
 
Amortization
159 
143 
 
Reclamation and remediation
10 
 
Exploration
34 
24 
 
Advanced projects, research and development
27 
29 
 
General and administrative
34 
38 
 
Other expense, net
54 
76 
 
Total costs and expenses
884 
864 
 
Other income (expense)
 
 
 
Other income, net
25 
 
Interest income-intercompany
 
Interest expense-intercompany
 
Interest expense, net
(9)
(12)
 
Total other income (expense)
18 
(9)
 
Income before income and mining tax and other items
652 
719 
 
Income and mining tax expense
(208)
(239)
 
Equity income (loss) of affiliates
 
Net income
445 
480 
 
Net income attributable to noncontrolling interests
(192)
(243)
 
Net income attributable to Newmont stockholders
253 
237 
 
Operating activities:
 
 
 
Net income
445 
480 
 
Adjustments
174 
174 
 
Net change in operating assets and liabilities
(54)
(98)
 
Net cash provided from continuing operations
 
556 
 
Net cash used in discontinued operations
 
(13)
 
Net cash provided from operations
565 
543 
 
Investing activities:
 
 
 
Additions to property, plant and mine development
(238)
(146)
 
Purchases of marketable securities
(1)
 
Acquisitions, net
 
 
Proceeds from sale of other assets
 
Other
 
Net cash used in investing activities
(233)
(146)
 
Financing activities:
 
 
 
Net repayments
(31)
(250)
 
Net intercompany borrowings (repayments)
(1,948)
(28)
 
Sale of subsidiary shares to noncontrolling interests
229 
 
Acquisition of subsidiary shares from noncontrolling interests
 
Dividends paid to common stockholders
 
Dividends paid to noncontrolling interests
(15)
(267)
 
Proceeds from stock issuance, net
 
Change in restricted cash and other
47 
 
Net cash used in financing activities
(1,994)
(269)
 
Effect of exchange rate changes on cash
(1)
 
Net change in cash and cash equivalents
(1,663)
128 
 
Cash and cash equivalents at beginning of period
3,877 
3,067 
 
Cash and cash equivalents at end of period
2,214 
3,195 
 
Assets
 
 
 
Cash and cash equivalents
2,214 
3,195 
 
Trade receivables
342 
 
501 
Accounts receivable
2,263 
 
802 
Investments
86 
 
72 
Inventories
359 
 
388 
Stockpiles and ore on leach pads
543 
 
513 
Deferred income tax assets
171 
 
170 
Other current assets
153 
 
77 
Current assets
6,131 
 
6,400 
Property, plant and mine development, net
5,394 
 
5,364 
Investments
24 
 
25 
Investments in subsidiaries
36 
 
35 
Stockpiles and ore on leach pads
1,375 
 
1,347 
Deferred income tax assets
697 
 
690 
Other long-term assets
560 
 
496 
Total assets
14,217 
 
14,357 
Liabilities
 
 
 
Debt
250 
 
249 
Accounts payable
743 
 
1,269 
Employee-related benefits
178 
 
222 
Income and mining taxes
288 
 
261 
Other current liabilities
343 
 
373 
Current liabilities
1,802 
 
2,374 
Debt
107 
 
135 
Reclamation and remediation liabilities
682 
 
676 
Deferred income tax liabilities
510 
 
513 
Employee-related benefits
246 
 
244 
Other long-term liabilities
45 
 
56 
Total liabilities
3,392 
 
3,998 
Equity
 
 
 
Preferred stock
 
Common stock
 
Additional paid-in capital
2,722 
 
2,722 
Accumulated other comprehensive income
(58)
 
(75)
Retained earnings
5,103 
 
4,850 
Newmont stockholders' equity
7,767 
 
7,497 
Noncontrolling interests
3,058 
 
2,862 
Total equity
10,825 
 
10,359 
Total liabilities and equity
14,217 
 
14,357 
Condensed Consolidating Financial Statements (Textuals)
 
 
 
Percent ownership of Newmont USA by Newmont Mining Corporation
 
 
Other Subsidiaries [Member]
 
 
 
Condensed Consolidating Statement of Income
 
 
 
Sales
947 
650 
 
Costs and expenses
 
 
 
Costs applicable to sales
384 
329 
 
Amortization
97 
81 
 
Reclamation and remediation
 
Exploration
28 
19 
 
Advanced projects, research and development
41 
17 
 
General and administrative
 
Other expense, net
19 
14 
 
Total costs and expenses
573 
465 
 
Other income (expense)
 
 
 
Other income, net
11 
47 
 
Interest income-intercompany
 
Interest expense-intercompany
(37)
(37)
 
Interest expense, net
(2)
(1)
 
Total other income (expense)
(26)
10 
 
Income before income and mining tax and other items
348 
195 
 
Income and mining tax expense
(107)
(43)
 
Equity income (loss) of affiliates
89 
67 
 
Net income
330 
219 
 
Net income attributable to noncontrolling interests
(20)
 
Net income attributable to Newmont stockholders
310 
224 
 
Operating activities:
 
 
 
Net income
330 
219 
 
Adjustments
(516)
(397)
 
Net change in operating assets and liabilities
67 
(105)
 
Net cash provided from continuing operations
 
(283)
 
Net cash used in discontinued operations
 
 
Net cash provided from operations
(119)
(283)
 
Investing activities:
 
 
 
Additions to property, plant and mine development
(164)
(163)
 
Purchases of marketable securities
(11)
(3)
 
Acquisitions, net
(7)
 
 
Proceeds from sale of other assets
38 
 
Other
(3)
(11)
 
Net cash used in investing activities
(185)
(139)
 
Financing activities:
 
 
 
Net repayments
 
Net intercompany borrowings (repayments)
2,420 
492 
 
Sale of subsidiary shares to noncontrolling interests
 
Acquisition of subsidiary shares from noncontrolling interests
(39)
 
Dividends paid to common stockholders
 
Dividends paid to noncontrolling interests
 
Proceeds from stock issuance, net
 
Change in restricted cash and other
(1)
 
Net cash used in financing activities
2,420 
452 
 
Effect of exchange rate changes on cash
24 
(1)
 
Net change in cash and cash equivalents
2,140 
29 
 
Cash and cash equivalents at beginning of period
179 
140 
 
Cash and cash equivalents at end of period
2,319 
169 
 
Assets
 
 
 
Cash and cash equivalents
2,319 
169 
 
Trade receivables
97 
 
81 
Accounts receivable
198 
 
265 
Investments
43 
 
41 
Inventories
248 
 
270 
Stockpiles and ore on leach pads
114 
 
104 
Deferred income tax assets
 
Other current assets
1,075 
 
885 
Current assets
4,101 
 
1,832 
Property, plant and mine development, net
7,699 
 
7,562 
Investments
1,755 
 
1,543 
Investments in subsidiaries
2,032 
 
1,909 
Stockpiles and ore on leach pads
471 
 
410 
Deferred income tax assets
121 
 
109 
Other long-term assets
594 
 
584 
Total assets
16,773 
 
13,949 
Liabilities
 
 
 
Debt
10 
 
10 
Accounts payable
1,873 
 
1,996 
Employee-related benefits
62 
 
66 
Income and mining taxes
184 
 
75 
Other current liabilities
3,155 
 
2,959 
Current liabilities
5,284 
 
5,106 
Debt
55 
 
56 
Reclamation and remediation liabilities
311 
 
308 
Deferred income tax liabilities
1,021 
 
975 
Employee-related benefits
86 
 
76 
Other long-term liabilities
2,732 
 
2,824 
Total liabilities
9,489 
 
9,345 
Equity
 
 
 
Preferred stock
61 
 
61 
Common stock
 
Additional paid-in capital
5,955 
 
3,894 
Accumulated other comprehensive income
1,443 
 
1,180 
Retained earnings
(807)
 
(1,109)
Newmont stockholders' equity
6,653 
 
4,026 
Noncontrolling interests
631 
 
578 
Total equity
7,284 
 
4,604 
Total liabilities and equity
16,773 
 
13,949 
Eliminations [Member]
 
 
 
Condensed Consolidating Statement of Income
 
 
 
Sales
 
Costs and expenses
 
 
 
Costs applicable to sales
(10)
(5)
 
Amortization
 
Reclamation and remediation
 
Exploration
 
Advanced projects, research and development
 
General and administrative
10 
 
Other expense, net
(1)
 
Total costs and expenses
 
Other income (expense)
 
 
 
Other income, net
 
Interest income-intercompany
(40)
(39)
 
Interest expense-intercompany
40 
39 
 
Interest expense, net
 
Total other income (expense)
 
Income before income and mining tax and other items
 
Income and mining tax expense
 
Equity income (loss) of affiliates
(619)
(502)
 
Net income
(619)
(502)
 
Net income attributable to noncontrolling interests
56 
41 
 
Net income attributable to Newmont stockholders
(563)
(461)
 
Operating activities:
 
 
 
Net income
(619)
(502)
 
Adjustments
619 
502 
 
Net change in operating assets and liabilities
 
Net cash provided from continuing operations
 
 
Net cash used in discontinued operations
 
 
Net cash provided from operations
 
Investing activities:
 
 
 
Additions to property, plant and mine development
 
Purchases of marketable securities
 
Acquisitions, net
 
 
Proceeds from sale of other assets
 
Other
 
Net cash used in investing activities
 
Financing activities:
 
 
 
Net repayments
 
Net intercompany borrowings (repayments)
(47)
 
Sale of subsidiary shares to noncontrolling interests
 
Acquisition of subsidiary shares from noncontrolling interests
 
Dividends paid to common stockholders
 
Dividends paid to noncontrolling interests
47 
 
Proceeds from stock issuance, net
 
Change in restricted cash and other
 
Net cash used in financing activities
 
Effect of exchange rate changes on cash
 
Net change in cash and cash equivalents
 
Cash and cash equivalents at beginning of period
 
Cash and cash equivalents at end of period
 
Assets
 
 
 
Cash and cash equivalents
 
Trade receivables
 
Accounts receivable
(3,969)
 
(3,201)
Investments
 
Inventories
 
Stockpiles and ore on leach pads
 
Deferred income tax assets
 
Other current assets
 
Current assets
(3,969)
 
(3,201)
Property, plant and mine development, net
(19)
 
(19)
Investments
 
Investments in subsidiaries
(17,233)
 
(14,239)
Stockpiles and ore on leach pads
 
Deferred income tax assets
 
Other long-term assets
(2,935)
 
(3,014)
Total assets
(24,156)
 
(20,473)
Liabilities
 
 
 
Debt
 
Accounts payable
(3,966)
 
(3,193)
Employee-related benefits
 
Income and mining taxes
 
Other current liabilities
(1,966)
 
(1,970)
Current liabilities
(5,932)
 
(5,163)
Debt
 
Reclamation and remediation liabilities
 
Deferred income tax liabilities
 
Employee-related benefits
 
Other long-term liabilities
(2,954)
 
(3,034)
Total liabilities
(8,886)
 
(8,197)
Equity
 
 
 
Preferred stock
(61)
 
(61)
Common stock
(1)
 
Additional paid-in capital
(8,367)
 
(6,300)
Accumulated other comprehensive income
(1,385)
 
(1,105)
Retained earnings
(4,296)
 
(3,741)
Newmont stockholders' equity
(14,110)
 
(11,207)
Noncontrolling interests
(1,160)
 
(1,069)
Total equity
(15,270)
 
(12,276)
Total liabilities and equity
(24,156)
 
(20,473)
Commitments and Contingencies (Details)
3 Months Ended
Mar. 31,
3 Months Ended
Mar. 31,
2011
2011
2010
2009
2008
2007
2006
Dec. 31, 2010
2011
2011
2011
2011
2011
2011
2011
2011
2011
Commitments and Contingencies (Textuals)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued for reclamation obligations relating to mineral properties
 
913,000,000 
 
 
 
 
 
904,000,000 
 
 
 
 
 
 
 
 
 
Accrued reclamation operating costs current
 
45,000,000 
 
 
 
 
 
46,000,000 
 
 
 
 
 
 
 
 
 
Accrued obligation associated with former, primarily historic, mining activities
 
142,000,000 
 
 
 
 
 
144,000,000 
 
 
 
 
 
 
 
 
 
Range of reclamation and remediation liabilities upper limit
 
1.65 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Range of reclamation and remediation liabilities lower limit
 
0.04 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling interest, ownership percentage by noncontrolling owners
 
0.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses made by EPA on the Remedial Investigation/Feasibility Study
 
12,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Holt property Barrick Royalty calculation
 
0.00013 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Holt property sliding scale royalty percentage
 
0.13 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Holt property sliding scale royalty average price
 
1,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assumed royalty obligations as a percent of net smelter returns from operations on the Holt Property
 
0.00013 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grey Eagle EPA expenditures
 
3,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ross Adams US Forest Service expenditures
 
300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midnite Mine estimate of possible loss
 
150,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fine paid under protest for spill of elementary mercury
1,740,000 
500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of ownership shares by the Indonesian government or Indonesian nationals in PTNNT
 
 
0.51 
0.44 
0.37 
0.3 
0.23 
 
 
 
 
 
 
 
 
 
 
PT Pukuafu Indah (PTPI) ownership
 
0.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aggregate interest to be offered
 
0.31 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sale and transfer of shares of interest percent
 
 
0.07 
0.07 
0.07 
0.07 
0.03 
 
 
 
 
 
 
 
 
 
 
PTMDB's ownership in PTNNT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.24 
 
 
Minimum royalty payable
 
 
 
 
 
 
 
 
28,000,000 
28,000,000 
28,000,000 
28,000,000 
28,000,000 
251,000,000 
 
 
 
Letters of Credit Surety Bonds and Bank Guarantees, outstanding
 
1,339,000,000 
 
 
 
 
 
1,191,000,000 
 
 
 
 
 
 
 
 
 
Legal damages
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
26,000,000 
11,000,000 
Supplementary Data (Details)
Mar. 31, 2011
Supplementary Data (Textuals)
 
Ratio of earnings to fixed charges
13.8 
Subsequent Events (Details) (Fronteer [Member])
Apr. 06, 2011
Apr. 06, 2011
Assets:
 
 
Cash
 
2,000,000 
Property, plant and mine development
 
3,107,000,000 
Investments
 
281,000,000 
Other assets
 
4,000,000 
Total assets
 
3,394,000,000 
Liabilities:
 
 
Deferred income tax liability
 
1,127,000,000 
Other liabilities
 
8,000,000 
Total liabilities
 
1,135,000,000 
Net assets acquired
 
2,259,000,000 
Subsequent Events (Textuals)
 
 
Acquisition common shares acquired
153,000,000 
153,000,000 
Cash per common share received by shareholders
14 
 
Acquisition transaction costs
 
1,000,000 
Purchase price
 
2,259,000,000