Newmont Mining Corporation
Annual Report 2009
Annual Report 2009
Conga allows us the opportunity to organically grow our portfolio of assets in South America. Located near our world-class Yanacocha mining district in Peru, Conga is a gold and copper porphyry that will leverage the infrastructure and expertise of the Yanacocha operations. With a twenty year mine-life and positive indications of significant long-term reserve expansion, Conga is a cornerstone of Newmont’s future in South America.
| CONGA (1) | |
| Average Prod: (1st five years) |
Au 650 - 750 koz/year Cu 160 - 210 Mlb/year |
| Average CAS: (1st five years) |
Au $300 - $400/oz (2) Cu $0.95 - $1.25/lb (2) |
| First Production: | Late 2014 – 2015 (3) |
| Initial Capex: | $2.5 - $3.4B (3)(4) |
| Reserves: | ~11.8 Moz Au; ~3.2 Blbs Cu |
| Life of Mine: | +20 years with significant reserve expansion potential |
(1) All figures are based on a 100% equity interest; Newmont’s current interest is 51.35% (2) All figures are unescalated and based upon current business plan assumptions. Allocation of CAS based on co-product accounting (3) Assumes permits received by end of 2010 (4) Excluding capitalized interest and sunk costs
Allowing us the potential to double our production in Ghana, Akyem holds the largest known undeveloped pit resource in West Africa. With the Environmental Impact Statement and the Mining Lease approvals from the government of Ghana, we are now able to advance engineering studies and mine planning. The development decision for Akyem in the second half of 2010 will also offer us the opportunity to define our approach to an integrated regional workforce concept, which leverages and optimizes our Ahafo experience in order to achieve increased efficiency, effectiveness and business excellence at Akyem.
| AKYEM | |
| Average Prod: (1st five years) | 480 - 550 koz/year |
| Average CAS: (1st five years) | $350 - $450/oz (1) |
| First Production: | Late 2013 – 2014 (2) |
| Initial Capex: | $0.7 – $1.0B (3) |
| Reserves: | 7.66 Moz Au |
| Life of Mine: | ~15 years |
(1) All figures are unescalated and based upon current business plan assumptions (2) Assumes development decision made by mid 2010 (3) Excluding capitalized interest and sunk costs
Across our extensive Nevada operations and land package, we have multiple opportunities from exploration through the advanced stages of development that could provide additional production at competitive costs applicable to sales beginning in 2011 or early 2012. This portfolio of assets will leverage both our existing infrastructure and the technical expertise of our employees. Advanced projects include opportunities like the Gold Quarry West Wall layback, multiple underground and pit expansions and Emigrant development. We also have a renewed focus on optimizing core assets like Leeville-Turf and Gold Quarry, further extending the life of our worldclass portfolio and land position in Nevada.
Positive 2009 drilling and regional exploration results have reinforced our positive view of gold resource potential at our Hope Bay project in Canada. We are advancing development with an underground focus, to be initiated with underground mine development at the Doris North deposit. Although still in early stages, we are energized about the opportunity and the experienced team and key contractors we now have in place. With near-term operational plans and district exploration across the 80 kilometer greenstone belt, Hope Bay is a highly valued asset within our portfolio.
