Newmont Mining Corporation (United States, NYSE: NEM) mines in the USA, Peru, Bolivia, Australia, New Zealand, Uzbekistan and with projects in Ghana. The company has reserves of 95 million oz. Newmont was the world's largest gold producer before Barrick's $US10 billion purchase of Placer Dome in 2006. In 2006, Newmont's gold sales fell to 5,87 million oz from 6,49 million oz in 2005 as the company mined less ore at its Peruvian, Australian and New Zealand mines. Newmont expects gold sales in 2007 to fall further, to between 5,2 million oz and 5,6 million oz, as it plans to mine less ore at Yanacocha in Peru and existing mines in Australia. However, that trend will reverse in 2008 as newer mines go into full production. The company will spend millions of dollars on its Phoenix and Leeville mines in Nevada and its Ahafo mine in Ghana to get them to full production. The three mines could produce close to 1 million ounces of gold in 2007.
The Boddington mine in Australia is scheduled to become one of Newmont's most important assets in the coming years. The mine, expected to go online in late 2008 or early 2009, could produce up to 700,000 ounces per year. Newmont Mining agreed in October, 2007, to buy Miramar Mining of Vancouver, British Columbia, for about 1.5 billion Canadian dollars ($1.52 billion) in cash to gain access to the target's reserves in the Canadian Arctic. The proposed acquisition of Miramar gives Newmont the chance to establish a new, core gold mining district in the largely underdeveloped and still prospective territory of Nunavut. The Hope Bay Project alone extends over 1,000 square kilometers and encompasses one of the most prospective undeveloped greenstone belts in North America. The project alone is believed to contain a resource of 10.7 million oz of gold.
Newmont Sells 5.3 Million Equity Ounces of Gold in 2007 and Expects Comparable Gold Sales in 2008
2007 EXPLORATION AND RESERVE RESULTS
The Company reported year end 2007 proven and probable reserves of 86.5 million equity ounces compared with 93.9 million equity ounces at the end of 2006. As shown in the chart on the following page, during 2007 the Company added 4.2 million equity ounces of gold reserves due to margin changes and additional drilling. The gold price basis for the Company's reserve calculations increased to $575 per ounce in 2007 from $500 per ounce in 2006. Gold reserves were revised down at Ahafo in Ghana by 2.4 million equity ounces due to increasing operating and capital costs, by 0.8 million equity ounces at Nevada due to geotechnical and metallurgical changes, as well as higher operating costs, and by 0.2 million equity ounces at various locations due to operating cost inflation. Gold reserves were also impacted by 0.9 million ounces as a result of the previously announced reduction of the Company's economic ownership at Batu Hijau in Indonesia and by the sale of Pajingo in Australia. For 2007, the reserve additions from exploration of roughly 3.5 million equity ounces were primarily due to further extension drilling at Boddington, Jundee and Tanami in Australia, with 2.5 million equity ounces added to reserves in 2007, and the remaining additions coming from Batu Hijau, several open pit and underground sites in Nevada, and La Herradura in Mexico. For 2007, the Company's reserve grade remained relatively constant at 0.033 ounces per ton compared to 0.034 ounces per ton in 2006 in spite of downward pressure on grade due to both higher metal prices and the average depletion grade of 0.042 ounces per ton in 2007.
By THE CANADIAN PRESS
Friday, January 18, 2008
DENVER - Newmont Mining Corp. (TSX:NMC) says it has completed its $1.5 billion takeover offer for Miramar Mining Corp. (TSX:MAE) after receiving 96 per cent of shares by Friday deadline.
Newmont extended the deadline earlier this month after increasing its ownership to about 93 per cent.
The takeover offer is worth $6.25 per share and gives Newmont a new foothold in Nunavut’s core mining district.
Miramar controls the Hope Bay project in Nunavut, one of the largest undeveloped gold sites in North America.
Miramar shares closed at $6.24 on the Toronto Stock Exchange Friday, up a cent, while Newmont shares closed at $54.33, down 16 cents.