- In 1962, Newmont revolutionized the gold mining industry with the world’s first discovery of submicroscopic or “invisible gold.”
- Newmont helped found the ICMM, promoting sustainable development and social responsibility in mining.
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“Minerals Make Life” Initiative Launched
Washington, D.C.
Were you aware the technologies that define innovation today all depend on minerals — from lifesaving medical devices to smart phones and advanced energy technologies?
To showcase the role minerals play in everyday life, the National Mining Association (NMA) in the U.S. recently launched an education and advocacy initiative, "Minerals Make Life."
According to Hal Quinn, president and CEO of NMA, the program was designed, in part, to shape U.S. public policy to enable the growth of domestic minerals mining. Its website, www.mineralsmakelife.org, provides easy ways for supporters to take action on important issues affecting U.S. mining.
The site also includes information about what minerals mean to America, the challenges facing our supply chain and solutions to ensure that we can provide the minerals we need for economic prosperity and national security.
April 18, 2011
How Newmont Sells Gold, Copper
By Ed LeBlanc, senior director, Marketing and Sales
Denver, Colorado
Few people wearing gold jewelry or buying copper pipe know how these metals are produced while few Newmont employees are aware of how gold and copper are delivered, measured and priced.
That process, also known as Newmont's "sales cycle," is unique to precious metals. Bringing Newmont's gold and copper to market can take weeks or months, thousands of miles of travel and repeated sampling. The process also requires an extraordinary amount of communication and coordination between buyer and seller.
For both doré and copper concentrate, quantity and weight dictate their value. If conflicting values arise, an independent umpire is brought in to determine final content and value. All of this weighing and measuring is essential because an error of just 1 percent can make a difference of thousands of dollars. On average, Newmont performs 7,000 such samples each year across the globe.
Purchasing Process
Let's take a look at where the doré and copper concentrate travels, and how and when Newmont is compensated for what we mine:
Before leaving the mine site
In transit to refinery/smelter
At the refinery/smelter
How and When Prices are Determined
Newmont's metal prices are determined in London. Specifically, members of the London Bullion Market Association, whose five members include international banks and bullion traders, meet twice daily to set the price of gold based on supply and demand. The daily quoted price is called the London PM fix.
In an effort to avoid price fluctuations, Newmont spreads gold sales evenly throughout the year based on our production forecasts. As a result, we sell gold every business day of the year; therefore, our annual realized price of gold is very close to the annual average price of gold.
Copper prices are set daily by the London Metal Exchange, the world's premier, nonferrous metals market. Again, Newmont estimates copper production and schedules shipments and deliveries to smelters so that we can be selling copper in line with the annual average price of copper.
For 2010, Newmont sold 539 million pounds of copper and 6.296 million ounces of gold on a consolidated basis. We ended the year with a record $9.5 billion in revenue, up 24 percent from 2009.
April 18, 2011
How Mine Projects are Named
Did you know exploration geologists typically get to name new ore discoveries and ultimately our projects? Here's an interesting look at how some were named:
| Site | Meaning |
| Batu Hijau |
Green rock (from the heavy amounts of copper in the geologic formations) |
| Elang | Eagle (the project was initially named after the DoDo bird until geologists realized it was one of their most significant discoveries to date) |
| Yanacocha | Black lake (the deposit is located near a large, opaque lake) |
| Carachugo |
Ugly face (the first deposit in Peru was near a hill that resembled an unattractive woman’s face) |
April 18, 2011
O'Brien Finalist for CEO of the Year
Denver, Colorado
ColoradoBiz magazine named Newmont president and CEO Richard O'Brien a finalist for its 2010 CEO of the Year award. O'Brien was credited with "continuing a rigorous self-examination and sharpening of policies in recent years to earn some praise for environmental stewardship, as well as mining success after suffering from negative reviews from environmentalists a decade earlier."
The magazine, which covers Colorado businesses and the economy, named Newmont its top company winner in the energy/natural resources category last year, as well.
April 18, 2011
Newmont Acquires Fronteer Gold
Denver, Colorado
Following shareholder and regulatory approval, Newmont has acquired Vancouver-based Fronteer Gold for roughly $2.3 billion, expanding our development opportunities in Nevada.
Fronteer holds interests in three Nevada gold projects, which currently have 5.7 million ounces of measured, indicated and inferred resource. Its flagship property, Long Canyon, is located on a gold trend that is similar to the Carlin Trend in terms of its characteristics and potential. Based on exploration potential, the current 2.2 million ounces of measured, indicated and inferred resource at Long Canyon could double or triple in size.
"The acquisition of Fronteer Gold will contribute significantly to our anticipated growth profile in North America," said Richard O'Brien, president and CEO. "The Long Canyon project, with its Carlin trend-like metallurgical and geological characteristics, complements our existing project pipeline in Nevada. This combination of assets will allow Newmont to leverage our expertise and extensive infrastructure in the region."
As part of the acquisition agreement, Fronteer has spun off its other exploration properties in Nevada, Turkey and Peru and form a new entity, Pilot Gold. Newmont holds a 19.9 percent interest in that company with Fronteer's existing shareholders owning the balance.
April 18, 2011
Land Granted Back to Indonesian Government
Ratatotok, Indonesia
PT Newmont Minahasa Raya (PTNMR) returned nearly 1,100 acres (443.4 hectares) of reclaimed land to the Indonesian Ministry of Forestry in January. The land was borrowed from the Indonesian government when PTNMR was operating, and Newmont was pleased to be able return this valuable forested and species-filled parcel back to its owners.
PTNMR is the first mining company entering closure in Indonesia and has vegetated 100 percent of the land. It scored 93 out of 100 to fulfill the stipulated government regulation (80 is considered good standard).
“It took years of everyone’s effort and we are very proud of it,” said David Sompie, PTNMR site manager.
Additionally, the Ratatotok-Buyat Hospital was handed over to the Ministry of Health of Indonesia. The North Sulawesi Sustainable Development Foundation, founded by Newmont and the government, funded its construction.
The Foundation also provided $1.3 million (11,93 billion rupiahs) in venture capital assistance and community development aid in 2010.
April 18, 2011
Leeville Delivers 2 Millionth Ounce
Leeville, Nevada
More than 500 employees and contractors celebrated the pouring of the 2 millionth ounce of gold at Leeville recently.
April 18, 2011
Celebrating Cajamarca’s 156th Anniversary
Cajamarca, Peru
Bells in baroque temples rung and thousands of inhabitants serenaded throughout Cajamarca to celebrate the city's 156th anniversary on February 11.
As a prelude to the annual parade that honors the city's history, beauty, people and riches, a delegation of more than 50 people – from Minera Yanacocha, its Foundation, Asociación Los Andes de Cajamarca (ALAC), and members of Foncreagro, a private farming nonprofit – celebrated the historic city they call home. Currently, about 10,000 mine employees live in or near this historic city, which supports Minera Yanacocha.
"When the squad armed with instruments played the notes of Cajamarca's anthem, what reached our ears was more than an anthem; it was an essential trip through the history of our Cajamarca," said Luis Cornejo Peralta, communications manager for Minera Yanacocha.
According to Peralta, the anthem tells the story of:
· The creators of one of the most brilliant cultures of ancient Peru, who were part of an army that the native Incas found difficult to integrate.
· The clarín, an instrument declared a cultural heritage artifact due to its ancient origin.
· Local heroes who were critical to Cajamarca's independence on February 11, 1855.
"Today, 156 years later, being the child of Cajamarca, our company joined the people and their authorities together to honor the land that supports us," he said. "We marched proud through the city we love and to which we are thankful for. We made a golden pact with the commitment of contributing to the sustainable and comprehensive development of our region."
April 18, 2011
Newmont Celebrates Our 90th Anniversary
Newmont Mining Corporation’s rich legacy spans most of the 20th century and is intimately linked to many of the key industrial milestones of the 1900s.
Our company’s story begins with Newmont managing private mining investments, while adapting, over the years, to meet growing global demand for natural resources and to drive industry innovation. Today, Newmont’s vision is to become the most valued and respected mining company through industry leading performance, as our approximately 34,000 employees and contractors mine gold, copper and silver in eight countries on five continents.
As one of a relatively small number of companies still listed on the New York Stock Exchange since joining in 1940, Newmont continues to create value and opportunities for our shareholders, employees and host communities.
In 2007, this value creation was further recognized as Newmont became the first gold company to be included in the Dow Jones Sustainability World Index. May 2, 2011 marks a milestone in Newmont’s history as we celebrate 90 years since being officially incorporated. This remarkable achievement is a testament to our company’s ability to adapt, innovate and lead over the decades.
Today, Newmont is the world’s second largest gold producer and in 2011 is ranked 394 on Forbes’ Global 2000 list and 295 on the Fortune 500. In 1940, when Newmont’s shares began trading on the New York Stock Exchange, it was one of approximately 1,000 companies on that Exchange. Today, only 77 of those 1,000 companies continue to be traded on the NYSE.
Click on the links below to learn more about Newmont’s diverse and storied past that provides a strong foundation to grow our business in a profitable and responsible manner.
- Our History Timeline
- International Mining Magazine: Newmont at 90 (January 2011)
- Going for Gold by Jack Morris
April 28, 2011
Production Milestone Reached
Cajamarca, Peru September 7 was a momentous day for Newmont and our South American employees as our world-class Minera Yanacocha gold mine poured its 30 millionth ounce and our La Zanja joint venture poured its first ounce. Newmont is the minority partner with Buenaventura at La Zanja, which is located 40 miles from Yanacocha.
From the first gold pour in August 1993, Yanacocha quickly grew to boast the largest heap leach facility in the world and to become a major employer in Peru. With the support of our longtime partner, Buenaventura, Yanacocha also is a global leader in social responsibility through its support for improved health care, education, responsible water management and the Improved Kitchens Program.
November 30, 2010