Newmont Mining Corporation

Denver, Colorado

According to an analysis recently performed by Newmont’s Business Planning and Analysis department, on average, Newmont’s energy costs are estimated to be 20 percent of our overall operating costs, and almost 30 percent at some sites. This equates to approximately $761 million in 2010. With that number expected to rise almost 50 percent on a cost per ounce basis through 2020, Newmont is increasing our focus on solar powered energy, setting the foundation to make a positive difference.

In its most basic form, solar energy is defined as energy from the sun that is converted into thermal or electrical energy. There are two main types of solar energy: Photovoltaic (PV) and Concentrated Solar Power (CSP). PV solar uses panels to generate electricity and CSP uses special mirrors to generate power.

“We have started development of a 20 to 25-megawatt facility in Nevada,” said Cathy Ramsey, director of Renewable Energy. “If determined feasible, the Nevada solar facility can begin operating by late 2011 and possibly expand to a 150-megawatt facility in the future.”

Newmont is also evaluating the benefits of solar at the Tanami mine in Australia. Bryan Williams, APAC climate change principal advisor, also will lead an investigation for the development of a flag ship solar project of two megawatts at Boddington or Tanami. His team plans to collaborate with the potential joint venture partners Newmont is working with in Nevada to develop the business case and partnering strategies for these Australian projects.

“With increasing energy costs in Australia, and a reliance on coal and diesel generation in the mining sector, it makes good sense to seriously consider the benefits of renewable energy such as PV solar at our operations,” Williams said.  “Technological advances have reduced the price of solar, and with a carbon constrained economy on our doorstep, it further increases our business case for solar.”

November 30, 2010