Overview

Electric power prices in Nevada have risen significantly over the last five years, with one electric power provider raising rates 90% over the period. To address these rising costs, Newmont is building a 203- megawatt coal-fired power plant near the Carlin Trend. Newmont plans to sell excess capacity from the plant to local utility Sierra Pacific Power.

The plant specifications include state-of-the-art equipment to control emissions and the plant will use low sulfur coal sourced from the Powder River Basin in northwestern Wyoming.

At the end of 2006, construction was approximately 37% complete and remains on target to be completed in 2008.  Anticipated capital costs for the project are expected to be between $620 and $640 million.  The lower cost of self-generated electricity, when compared to projected future market prices in the region, is expected to reduce Nevada’s Costs Applicable to Sales by up to $25 per ounce.