Founded in 1921
Newmont Mining Corporation was founded in 1921 in New York by Colonel William Boyce Thompson as a holding company to invest in worldwide mineral, oil, and relations companies. The name Newmont was chosen by Thompson as a contraction of New York, and Montana, because, as one biographer put it, "he grew up in the latter and made his money in the former."
1n 1929, Newmont became a mining company with its first gold production by acquiring California's Empire Star Mine. By 1939, Newmont was operating 12 gold mines in North America. The following year, O'okiep Copper Company came into full production in South Africa. O'okiep formed the base for Newmont to eventually become the world's third largest copper producer, with interests in eight copper operations worldwide.
Beginning in 1925 Newmont acquired interests in a Texas oil field. Eventually, Newmont's oil interests included more than 70 blocks in the Louisiana Gulf area and oil and gas production in the North Sea.
Gold at Carlin
Newmont discovered disseminated gold at Carlin, Nevada in 1962 and began operating its first mill there in 1965 under the name Carlin Gold Mining Company. The Carlin Trend is the largest gold discovery in North America over the past 100 years. In 1971, Newmont began using the heap leach technology on sub-mill grade ores at Carlin. It was one of the first in the gold industry to use heap leaching. In 1986, the company's name was changed to Newmont Gold Company, and five million shares were sold publicly for $47.5 million. Newmont Mining held a 90 percent interest.
In 1977, Newmont was instrumental in organizing the consortium that purchased Peabody Holding Company, Inc., the largest coal producer in the nation. Newmont held a 50 percent interest in Peabody following the purchase.
A decade later, Newmont's assets were over $1.9 billion and income from continuing operations reached $338 million.
Major Restructuring
In August 1987, Newmont became the target of an unsolicited tender offer for control and dismemberment of the company. As a result, the company undertook a major restructuring. This included the payment of a $33 per share dividend to all shareholders for a total of $2.2 billion, of which $1.75 billion was borrowed. To reduce this debt the company undertook a divestment program involving all of its copper, oil, gas, and coal interests.
As a further step in the restructuring, the company moved its headquarters from New York City to Denver in February 1989. January 1, 1994, Newmont Mining Corporation and Newmont Gold Company, combined assets to form a unified worldwide gold company. Shareholders of both companies had identical interests in the reserves, production, and earnings of Newmont Gold's operations.
The Gold Company of Choice
In May of 1997, Newmont merged with Santa Fe Pacific Gold Corp. to form North America's largest gold producer. And, in October of 1998, Newmont Mining and Newmont Gold merged, with Newmont Mining acquiring the remaining shares of Newmont Gold that were outstanding at that time. On June 21, 2000, Newmont announced a merger with Battle Mountain Gold Company. The merger was completed in January 2001.
In February 2002, Newmont completed the acquisition of Normandy Mining Limited and Franco-Nevada Mining Corporation Limited, making it the world's largest gold producer at the time. Newmont continues to be well positioned as The Gold Company of choice.
