World Library  
Flag as Inappropriate
Email this Article

Newmont Mining

Article Id: WHEBN0017260158
Reproduction Date:

Title: Newmont Mining  
Author: World Heritage Encyclopedia
Language: English
Subject: Denver, Telluride, Colorado, Sleepy Hollow Cemetery, Virginia City, Montana, NEM, William Boyce Thompson, William Irwin Thompson, T. Boone Pickens, Seymour Schulich, AngloGold Ashanti
Publisher: World Heritage Encyclopedia

Newmont Mining

Newmont Mining Corporation
Traded as S&P 500 Component
Industry Metals and Mining
Headquarters Greenwood Village, Colorado, USA
Products Gold, copper and silver
Revenue Increase$9.5 billion USD (2010)
Employees 34,000, including contractors (2011). Most are Salaried. 3,500 industry professionals in Nevada.

Newmont Mining Corporation, based in Greenwood Village, Colorado, USA, is one of the world's largest producers of gold, with active mines in Nevada, Indonesia, Australia, New Zealand, Ghana and Peru. Holdings include Santa Fe Gold, Battle Mountain Gold, Normandy Mining, Franco-Nevada Corp and Fronteer Gold. Newmont also has many joint venture relationships.

As of December 31, 2010, Newmont produced approximately 5.4 million equity ounces of gold annually and held proven and probable reserves of about 93.5 million. Newmont employs approximately 34,000 employees and contractors worldwide. Other metals that the company mines include copper and silver.

Founded in 1916 by William Boyce Thompson as a diversified holding company, today Newmont remains the only gold company in the Standard & Poor's 500 Index.


Early years

Newmont Mining Corporation was founded in 1916 in New York by Colonel William Boyce Thompson as a holding company to invest in Worldwide mineral, oil, and related companies. According to company lore, the name "Newmont" is a portmanteau "New York" and "Montana", reflecting where Thompson made his fortune and where he grew up.[1]

In 1929, Newmont became a mining company with its first gold product in by acquiring California's Empire Star Mine. By 1939, Newmont was operating 12 gold mines in North America.

The company acquired interests overseas. For decades around the middle of the 20th century, Newmont had a controlling interest in the Tsumeb mine in Namibia and in the O'Okiep Copper Company in Namaqualand, South Africa.

Beginning in 1925, Newmont acquired interests in a Texas oil field. Eventually, Newmont's oil interests included more than 70 blocks in the Louisiana Gulf area and oil and gas production in the North Sea.

Newmont discovered the world’s first submicroscopic or “invisible” gold at Carlin, Nevada in the early 1960s and began production on the first open pit gold mine in the world. The "Carlin Trend" or "Carlin Unconformity" is the largest gold discovery in North America during the 20th century. In 1971, Newmont began using the heap leaching technology on sub-mill grade ores there.

In the 1980s, Newmont thwarts five takeover bids – from Consolidated Gold Fields (ConsGold), T. Boone Pickens, Minorco, Hanson Industries and Sir James Goldsmith – who sought to break Newmont apart and sell its assets to increase shareholder value.

Major growth

After 1987, the company undertook major restructuring. This included the payment of a US$33 per share dividend to all shareholders for a total of US$2.2 billion, of which US$1.75 billion was borrowed. To reduce this debt the company undertook a divestment program involving all of its copper, oil, gas, and coal interests.

As a further step in the restructuring, the company moved its headquarters from New York City to Denver in 1988. A decade later, Newmont Mining Corporation and Newmont Gold Company combined assets to form a unified worldwide gold company. Shareholders of both companies had identical interests in the reserves, production and earnings of Newmont Gold's operations.

Newmont then merged with Santa Fe Pacific Gold Corporation (a former Atchison, Topeka and Santa Fe Railway subsidiary, sold in preparation for the merger that produced the BNSF Railway[2]) to form North America's largest gold producer.

On June 21, 2000, Newmont announced a merger with Battle Mountain Gold Company. The merger was completed in January 2001.

In February 2002, Newmont completed the acquisition of Normandy Mining Limited and Franco-Nevada Mining Corporation Limited. Newmont faced competition in its bit for Normandy from AngloGold. By eventually outbiding the South African company, Newmont became the world's largest gold producer, with an annual production in excess of 8 million ounces.[3]

In 2007, the company eliminates its 1.5 million ounce legacy hedge book to make Newmont the world’s largest unhedged gold producer. The following year, Newmont acquired Miramar Mining Corporation and its Hope Bay deposit in the Canadian Arctic.

In late 2008, Newmont moved its headquarters from Denver to the suburb of Greenwood Village, Colorado.[4]

In 2009, Newmont purchased the remaining one-third interest in Boddington Gold Mine from AngloGold Ashanti, bringing its ownership to 100 percent.

In April 2011, the company acquired Canada's Fronteer Gold Inc. for Cdn $2.3 billion. This made the company the world's second-largest gold producer.[5]

Operations and major projects


As of 2011, Newmont’s Nevada 14 open-pit and four underground operations include Carlin, located west of the city of Elko on the geologic feature known as the Carlin Trend; the Phoenix gold/copper mine, located 10 miles south of Battle Mountain, the Twin Creeks mine, located approximately 15 miles (24 km) north of Golconda; and the Midas mine, near the town of the same name. It also participates in the Turquoise Ridge joint venture with a subsidiary of Barrick Gold Corporation, which utilizes mill capacity at Twin Creeks.

With the acquisition of Fronteer Gold, over sixty additional projects were added to the Newmont portfolio. The flagship property, Long Canyon, is located on a gold trend that is similar to the Carlin Trend in terms of its characteristics and potential.

Yanacocha, Peru

The properties of Minera Yanacocha S.R.L. (“Yanacocha”) are located approximately 375 miles (604 kilometers) north of Lima and 30 miles (48 kilometers) north of Cajamarca, in Peru. Yanacocha began production in 1993. Newmont holds a 51.35% interest in Yanacocha with the remaining interest held by Compañia de Minas Buenaventura, S.A. (43.65%) and the International Finance Corporation (5%).

Yanacocha’s mining rights consist of concessions granted by the Peruvian government to Yanacocha and a related entity. Yanacocha currently has three active open pit mines, Cerro Yanacocha, La Quinua and Chaquicocha. In addition, reclamation and/or backfilling activities at Carachugo, San Jose and Maqui Maqui are currently underway.

Yanacocha’s gold production for 2010 was 1.5 million ounces (750,000 attributable ounces). As of December 31, 2010, Newmont reported 5.0 million ounces of gold reserves.

In 2011, Newmont’s board of directors granted approval to develop the Conga Project, located in the provinces of Celendín, and Sorochuco Huasmín districts and Cajamarca district of Encañada. Newmont’s ownership interest is identical to Yanacocha. If all permits are secured, the commencement of production is expected in late 2014 or early 2015.[6]


Newmont acquired its Australian assets with the acquisition of Normandy Mining in 2002.[7][8]

Boddington. Newmont’s newest Australian asset is Boddington, which is now Australia's largest gold producer. It has been wholly owned since June 2009, when Newmont acquired the final 33.33% interest from AngloGold Ashanti Australia Limited (“AngloGold”). Boddington poured its first gold in September 2009 and commenced commercial production in November 2009. Boddington produced 728,000 ounces of gold and 58 million pounds of copper in 2010. As of year-end 2010, it reported 20.3 million ounces of gold reserves and 2,360 million pounds of copper reserves.

Jundee. Newmont began production at Jundee operations in 1995. It is 100% owned and located approximately 435 miles (700 kilometers) northeast of Perth, Western Australia. Newmont mined ore at Jundee solely from underground sources in 2010, and produced 335,000 ounces of gold in 2010. As of December 31, 2010, Jundee had a reported 0.8 million ounces of gold reserves.

Tanami. The Tanami operations (100% owned) include The Granites treatment plant and associated mining operations, which are located in the Northern Territory approximately 342 miles (550 kilometers) northwest of Alice Springs, adjacent to the Tanami highway, and the Dead bullock Soak mining operations, approximately 25 miles (40 kilometers) west of The Granites.

The Tanami operations have been wholly owned since April 2003, when Newmont acquired the minority interests. Operations today are predominantly focused on the Callie underground mine at Dead Bullock Soak and ore is processed through the Granites treatment plant. During 2010, the Tanami operations produced 250,000 ounces of gold. As of December 31, 2010, it had a reported 2.0 million ounces of gold reserves.

Kalgoorlie. The Kalgoorlie operations comprise the Fimiston open pit (commonly referred to as the Super Pit) and Mt. Charlotte underground mine at Kalgoorlie-Boulder, 373 miles (600 kilometers) east of Perth. The mines are managed by Kalgoorlie Consolidated Gold Mines Pty Ltd for the joint venture owners, Newmont and Barrick, each of which holds a 50% interest.

During 2010, the Kalgoorlie operations produced 754,000 ounces of gold (377,000 attributable ounces). It reported 3.8 million ounces of gold reserves on December 31, 2010.

New Zealand

Newmont acquired its Waihi assets as part of the with the acquisition of Normandy Mining in 2002. The Waihi operation produced 108,000 ounces of gold in 2010 and reported 0.5 million ounces of gold reserves at year-end.

Martha. The Martha Mine operations (100% owned) are located within the town of Waihi, located approximately 68 miles (110 kilometers) southeast of Auckland, New Zealand. The open pit mine has operated over historic underground gold mine workings since 1988.

Favona. The Favona underground mine began extracting ore at the end of 2006.

Batu Hijau, Sumbawa, Indonesia

Newmont operates the Batu Hijau mine on the island of Sumbawa in the Indonesia in the province of West Nusa Tenggara through its subsidiary company P.T. Newmont Nusa Tenggara which is a joint venture between Newmont, Sumitomo Corporation and P.T. Pukuafu Indah.

Batu Hijau is a large porphyry copper/gold deposit, which Newmont discovered in 1990. Development and construction activities began in 1997 and start-up occurred in late 1999. In 2010, Batu Hijau produced 542 million pounds of copper (269 million attributable pounds) and 737,000 ounces of gold (364,000 attributable ounces). At December 31, 2010, it reported 3,760 million pounds of copper reserves and 3.7 million ounces of gold reserves.

In 2008, the Indonesian government threatened to terminate the contract of P.T. Newmont Nusa Tenggara after accusing it of failing to meet its divestment obligations. On April 1, 2009 international arbitrators and its partner sided with Newmont rejecting Jakarta's request to have their contract revoked, which would have forced the company to walk away from the property without any compensation, instead Newmont is forced to sell a 17% stake in an Indonesian subsidiary within 180 days.[9]

In 2011, subsidiaries of Newmont and Sumitomo Corporation divested a 7 percent investment in PTNNT. Pusat Investasi Pemerintah (PIP), designated as the buyer by the Indonesian Government, signed a sale and purchase agreement for the shares worth $246.8 million. Nusa Tenggara Partnership B.V., which holds Newmont’s shares in PTNNT – together with shares held by a subsidiary of Sumitomo Corporation of Japan – now owns 49 percent of PTNNT. Of that amount, Newmont will directly own 27.56 percent of PTNNT and has another 17 percent economic interest through financing arrangements with existing shareholders.[10]


The Ahafo operation (100% owned) is located in the Brong Ahafo Region of Ghana, approximately 180 miles (290 kilometers) northwest of Accra. Ahafo poured its first gold on July 18, 2006 and commenced commercial production in August 2006. Newmont operates four open pits at Ahafo with reserves contained in 11 pits. Commercial production in the fourth pit, Amoma, began in October 2010.

Ahafo produced 545,000 ounces of gold in 2010 and at December 31, 2010, reported 10.0 million ounces of gold reserves.

Additionally, Newmont’s Akyem project (100% owned) is located approximately 80 miles (125 kilometers) northwest of Accra. In January 2010, Newmont received the mining lease. Upon permit approval, production is slated to begin in late 2013 or early 2014. At December 31, 2010, Newmont reported 7.2 million ounces of gold reserves.

Other operations


Newmont owns 100% of the Hope Bay project, a large undeveloped gold project in the Kitikmeot Region of Canada. Hope Bay is an 80 kilometer district in the Canadian arctic and is one of the last known undeveloped greenstone belts in the world.

In 2010, Newmont commenced an underground decline at the Doris North deposit. A construction decision should be made by the end of 2011.

As of January 31, 2012 Newmont has decided to put the Hope Bay project on care and maintenance until further notice. ref>[2]


Newmont has a 44% interest in La Herradura, which is located in Mexico’s Sonora desert. La Herradura is operated by Fresnillo PLC (which owns the remaining 56% interest) and comprises an open pit operation with run-of-mine heap leach processing. La Herradura produced 174,000 attributable ounces of gold in 2010. As of December 31, 2010, it had 2.3 million ounces of gold reserves.

Former operations

Newmont has purchased and sold a number of operations in recent years:

  • Pajingo: Pajingo (100% owned) is an underground mine located approximately 93 miles (150 kilometers) southwest of Townsville, Queensland and 45 miles (72 kilometers) south of the local township of Charters Towers. Newmont sold the mine in late 2007; it is now owned by Conquest Mining.
  • Bronzewing Gold Mine: View Resources purchased the mine in July 2004 from Newmont for A$9.0 million, a package that also included the McClure mining operation, 8 km west of Bronzewing.[13]
  • Wiluna Gold Mine: Also part of the Normandy acquisition, Gowit Limited, later Agincourt Resources, purchased the mine on 10 December 2003 from Newmont for shares and $3.65 million in cash.[14][15]
  • Zarafshan: Newmont was part of a joint venture gold project in Uzbekistan, the first major Western investment in the region since the breakup of the Soviet Union. A difficult place to operate, Uzbekistan expropriates the company’s assets in 2006.
  • Kori Kollo: The Kori Kollo open pit mine is on a high plain in northwestern Bolivia near Oruro, on government mining concessions issued to a Bolivian corporation, Empresa Minera Inti Raymi S.A. (“Inti Raymi”), in which Newmont had an 88% interest. The remaining 12% was owned by Mrs. Beatriz Rocabado. Inti Raymi owned and operated the mine. On July 23, 2009, Newmont announced the transfer of its interest in Empresa Minera Inti Raymi S.A., which owned the Kori Kollo gold mine and Kori Chaca gold mine, to Compania Procesadora de Minerales S.A. ("CPM"), a company controlled by Newmont's long-time Bolivian partner Jose Mercado.
  • Minahasa: Newmont owns 80% of Minahasa and the remaining 20% interest is a carried interest held by P.T. Tanjung Serapung, an unrelated Indonesian company. Minahasa is located on the island of Sulawesi, approximately 1,500 miles (2,414 kilometers) northeast of Jakarta. Mining was completed in late 2001 and gold production was completed in 2004.
  • Golden Giant: Newmont's Canadian operations previously included two underground mines. Golden Giant (100% owned) was located approximately 25 miles (40 kilometers) east of Marathon, Ontario, Canada, and had been in production since 1985. Mining operations at Golden Giant were completed in December 2005 with remnant mining and milling production continuing throughout most of 2006.
  • Holloway: Holloway was located approximately 35 miles (56 kilometers) east of Matheson, Ontario, and about 400 miles (644 kilometers) northeast of Golden Giant. It was in production since 1996. On November 6, 2006, Newmont completed the sale of the Holloway mine to St. Andrews Goldfields Ltd. resulting in a $13 pre-tax gain.


Years of taking questionably legal tax deductions in Nevada

Despite an outdated tax structure built into the Nevada Constitution in the 1800s that significantly favors only the mining industry by allowing mines to pay tax on net proceeds, as opposed to gross proceeds, the mining industry may have further been engaged in depriving the State of Nevada of money by taking questionably legal tax deductions.[16]

In March 2011, Nevada Governor Brian Sandoval replaced his director of taxation, citing problems in auditing these tax deductions.[17] Statements by both Nevada Mining Association President Tim Crowley[18] and Republican Assembly Minority Floor Leader Pete Goicoechea of Eureka County in Nevada (the county where a majority of Newmont's Nevada operations are located)[19] make it even more plausible that the deductions claimed by the mining industry in Nevada have been illegal.[16] This prompted a call for "emergency regulations" applied to the mining companies, as opposed to punitive fines, the implication being that the mining companies had not done anything illegal but should still pay more taxes.[20]

It is possible that the lack of sufficient oversight was due to regulatory capture, a situation in which a regulating body advances the commercial or special concerns of the industry it should be regulating.[17] This is shown also in the close ties between regulators and industry employees, such as Robert J Miller, who served a director of Newmont Mining Corporation right after being Governor of Nevada for a decade.[16] Miller was succeeded by the late Kenny Guinn, who proposed a tax restructuring during the 2003 legislative session that was met with opposition from anti-tax business groups and many anti-tax Republicans.

Although the Nevada Department of Taxation seemed to fail to regulate the mining industry, and despite the notion that Mining Oversight and Accountability Commission is supposed to oversee regulations for mining safety and taxation, it appears too that the "world's best auditors" of the publicly traded mines may have also failed to disclose this questionably legal behavior to the Securities and Exchange Commission, as required by FIN 48. FIN 48 an interpretation of FASB 109 requires companies to analyze the technical merits of their tax positions and determine the likelihood that these positions will be sustained if they were ever examined by the taxing authorities (or litigation).[21]

However, in the 76th Session of the Nevada Legislature (2011), despite opposition from the mining industry, Senate Bill 493 was passed, which was one of two controversial mining-related measures. Senate Bill 493 "...creates the Mining Oversight and Accountability Commission, a seven-member panel to oversee regulations for mining safety and taxation. An amendment to the measure also eliminates the major deductions mining companies may take when calculating net proceeds of minerals taxes." However, some representatives of the mining industry appeared reluctant to adhere to some of the measures: "'If you don’t let us deduct this, we’ll deduct something else.'" A Newmont Mining Corp. staffer used this argument to win the employee housing deduction, saying employee housing cut travel costs." [17]

Regardless of the threatening statements made by Newmont's staffer, the mines in Nevada, including Newmont Mining Corporation, will have to report all of their deductions to the Mining Oversight and Accountability Commission, which was created under S.B. 493.

S.B. 493; Nevada's response to the mining industry's behavior

according to memo issued by Deloitte, an independent accounting firm with offices in Nevada,

"S.B. 493 creates the Mining Oversight and Accountability Commission (“MOAC”) that will provide oversight relating to the NTC and the NDOT with respect to the “taxation of the net proceeds of minerals.” Members of MOAC will be appointed by the Governor.5 Effective January 1, 2012, S.B. 493 also makes various changes pertaining to the deductions available in calculating the Net Proceeds of Minerals Tax. For example, among various changes in this regard, the new law: (1) limits [sp]deductible mineral extraction costs to “direct costs for activities performed in the State of Nevada;” (2) excludes from deduction employee severance costs, employee housing costs, trade association dues, 'costs of mineral exploration,' and expenses for 'governmental relations' or to 'influence legislative decisions;' and (3) includes employee travel costs as an allowable deduction, but limits the [sp]deductible amount to those costs for travel within Nevada that is directly related to mining operations within the state.” S.B. 493 also specifies that the “manner prescribed” by NTC regulation for calculating the depreciation deduction (based on amortization of the original cost of specified assets) shall be subject to approval by the MOAC. Further, S.B. 493 requires the NDOT to report annually to the MOAC “the expenses and deductions of each mining operation in … Nevada.” [22]

S.B. 493, on the surface, appears to help with transparency, accountability, and scaling back on regulatory capture, by expressly stating that the mines will have to report their deductions, and that they will be disallowed from being able to deduct "...expenses for 'governmental relations' or to 'influence legislative decisions." However, this apparently does not prevent the mines from continuing to spend shareholders investments "...for 'governmental relations' or to 'influence legislative decisions." Consequently, "influence monies" paid by the mines and mining industry to politicians to exert influence in their favor may even become more obscured than what was intended to be addressed by the legislation; such expenses may not be required to be disclosed on the annual report to the MOAC, as those deductions are expressly disallowed. Furthermore, those expenses relating to "influence monies," while they could be very large for the recipient politician, may never show up on Newmont's Form 10-K submitted to the Securities and Exchange Commission, so long as it does not trigger an amount that is considered to be "material."

Batu Hijau mine: employees walking out for overtime pay

"A strike...ended on Friday, 6 August, after some 1,500 miners of the PT NNT labour union, affiliated to the Chemical, Energy, Mine Workers’ Union of the Indonesia Workers’ Union, agreed to await an overtime pay judgment from a provincial government. The strike started on 1 August and completely shut US-based Newmont Mining Corp.’s rich Batu Hijau mines and operations on Sumbawa Island. The dispute started some three weeks after the Manpower and Transmigration Ministry of West Nusa Tenggara Province issued an order that management was in arrears on Rp 126 billion (US$13.8 million) in overtime wages to some 1,919 workers dating back to 2008." [23]

Nevada operations: mine managers fined for death in Nevada mine

"The Mine Safety and Health Administration also announced Tuesday that four supervisors for the Denver-based mining company have agreed to pay a combined $60,000 in individual penalties for their role in the accident at the Midas Mine north of Elko in June 2007. The agency said managers "showed a disregard for the miners' welfare" and acted with "more than ordinary negligence" before the victim fell through a sinkhole while operating a large loader about 200 feet below the entrance of the mine." [24]

Yanacocha mine

The Yanacocha gold mine in northern Peru is considered one of the largest and most profitable in the world, producing over US$7 billion worth of gold to date. Before 1994 the mine was co-owned by Newmont, Buenaventura (a Peruvian mining company), and Bureau de Recherches Géologiques et Minières (BRGM), a French government-owned company. This partnership collapsed in 1994 after BRGM tried to sell part of its shares in the company to an Australian company which was a rival of Newmont. Newmont and Buenaventura would both go to court to challenge the trade.

Larry Kurlander, then a senior executive at Newmont, claimed the French President Jacques Chirac had sent a letter to then Peruvian President Alberto Fujimori asking him to intervene in the court case in favor of the French owned company. Kurlander had been sent by Newmont to Peru to try to get a favorable outcome for Newmont in the dispute. The legal battle would eventually make it all the way up to the Peruvian Supreme Court.

During this period Kurlander acknowledges having met with CIA payroll and thus would naturally side with the U.S-based company.

After the fall of Fujimori in 2000 a number of videos Montesinos had taped of himself meeting with several domestic and foreign leaders and offering bribes and accepting them had emerged. In October 2005 Frontline in co-production with The New York Times found a February 1998 recording of a telephone conversation between Montesinos and Kurlander. The following is an excerpt from the tape:

Kurlander:...we have a very serious problem in Peru with our company (Newmont) and Minera Buenaventura so I have enlisted the support of some of my friends from a variety of intelligence communities. I need it especially because the other side (the French government) has been acting quite strangely.
Montesinos (to interpreter): Tell him that I am perfectly aware of the problem he has and the people he represents have with the French, as well as the problem he has with the judiciary.
Kurlander: So now you have a friend for life. I want a friend for life.
Montesinos (to interpreter): I thank you very much for what you have just told me and well you already have a friend. Tell him I'm going to help him with the voting. I would like to know the tricky practices of the French. The French Connection!
Kurlander: The French Connection!
(laughter) [5]

Along with this telephone conversation, Frontline and The New York Times also re-broadcast three other videos. One was filmed in April 1998 and shows Montesinos talking to "Don Arabian", the CIA station chief in Peru, in an attempt to get CIA to pressure the U.S. to back Newmont in the case. In the video Montesinos claims to have found e-mails from Paris to Peru of French officials trying to influence the court to get a decision favorable to France.

Another video recorded in May 1998 shows Montesinos meeting with Peruvian Supreme Court Justice, and former classmate, Jaime Beltran Quiroga. In it Montesinos states that state interests are at stake in the case between Newmont and BRGM. He tells Quiroga that if the decision goes to Newmont that the United States will back Peru in its boarder dispute with Ecuador which had a few years ago exploded into the Cenepa War. He also tells Quiroga to deny any connection with him to the press. Quiroga would later play a crucial role in the case, his vote would be the deciding vote in the Newmont victory. After the video was first broadcast in Peru in 2001, on a Peruvian local television station the French Ambassador Antoine Blanca was quoted as saying "Now I know why Newmont won".

In the final July 1999 video, Montesinos is again seen with the now departing CIA station chief "Don Arabian" giving him a gift and thanking him for the help he has given Peru stating "[W]e hope that when you're back their [in Washington] you'll remember your friends".

Buyat Bay, Sulawesi, Indonesia

In August 2004, the Indonesian Ministry of Environment filed a US$133.6 million civil lawsuit against Newmont,[25] claiming tailings from the company's Minahasa Raya mine polluted Buyat Bay in the North Sulawesi province, contaminating local fish stocks and causing nearby villagers to become seriously ill. Newmont denied the allegations, arguing that the illnesses had more to do with poor hygiene and poverty. On November 15, 2005, a South Jakarta court dismissed the suit on technical grounds, saying the government had breached the terms of its contract with Newmont when it took legal action before seeking arbitration. Environmentalists urged for the suit to be appealed, but on December 1, 2005, Environment Minister Rachmat Witoelar said the government expected to reach an out-of-court settlement with Newmont's local subsidiary. "By negotiating a settlement, we hope to be able to quickly compensate people living near the mine," he said. The government negotiating team was led by chief Economics Minister Aburizal Bakrie. On February 16, 2006, the Indonesian government announced it would settle the civil suit for US$30 million to be paid over the next 10 years. The agreement also includes increased scientific monitoring and enhanced community development programs for the North Sulawesi province.

With the civil lawsuit settled, attention focused on the criminal charges against President Director Richard Ness. In December 2006, Newmont Mining Corp. objected to a documentary entitled Bye Bye Buyat being nominated for Indonesia's top film award, FFI's Citra Award. The company said that it interfered with Ness' ongoing trial.[26]

After a 21-month trial—one of the longest proceedings in Indonesian history—Ness was found innocent of the pollution charges on April 24, 2007.[27] The court found that the company was in compliance with all regulations and permits during its operations at the site, and failed to find evidence beyond a reasonable doubt that Nemont's subsidiary had polluted Buyat Bay. At the end of May, the prosecution appealed to the Supreme Court to overturn the ruling.[27]

A week after being found not guilty of criminal charges, Richard Ness sued The New York Times in Indonesian court for libel. The lawsuit asks for nearly US$65 million in damages, and that The New York Times print a page-one retraction of previously published articles.[28]

Akyem, Ghana: Hall of Shame 'winner' 2009 of the Public Eye award

Newmont received the 2009 Public Eye award for its Akyem project in Ghana. According to the jury it had destroyed unique natural habitats, carried out forced resettlement of local people and polluted soil and rivers.[29] Newmont described the information as misleading and said the project had been extensively studied by international and national environmental experts, members of the local communities, and by the appropriate governmental agencies and departments.[30] In March 2010 Newmont admits to pay a compensation "in accordance with the law".[31] January 2010: Ghanaian authorities litigate Newmont Mining for millions of dollars (reportedly 4.9 [32]). Newmont is accused of negligently spilling cyanide at its Ahafo gold mine in October 2009, resulting in water contamination and fish kills.[33]


Further reading

External links

  • Newmont Mining Corporation
  • maintained by Newmont Mining Corporation
  • Beyond the Mine - Newmont's Environmental Social Responsibility
  • Trust In Gold
  • International Council on Mining & Metals
  • Frontline/World, October 2005
  • "The
  • CorpWatch
  • Project Underground report
  • SEC allows Newmont Mining to Block NYC Pension Funds' Environmental Resolution
  • PublicEye
  • [6] Newmont public statement about Newmont's North American Regional Office and their Nevada Operations.

This article was sourced from Creative Commons Attribution-ShareAlike License; additional terms may apply. World Heritage Encyclopedia content is assembled from numerous content providers, Open Access Publishing, and in compliance with The Fair Access to Science and Technology Research Act (FASTR), Wikimedia Foundation, Inc., Public Library of Science, The Encyclopedia of Life, Open Book Publishers (OBP), PubMed, U.S. National Library of Medicine, National Center for Biotechnology Information, U.S. National Library of Medicine, National Institutes of Health (NIH), U.S. Department of Health & Human Services, and, which sources content from all federal, state, local, tribal, and territorial government publication portals (.gov, .mil, .edu). Funding for and content contributors is made possible from the U.S. Congress, E-Government Act of 2002.
Crowd sourced content that is contributed to World Heritage Encyclopedia is peer reviewed and edited by our editorial staff to ensure quality scholarly research articles.
By using this site, you agree to the Terms of Use and Privacy Policy. World Heritage Encyclopedia™ is a registered trademark of the World Public Library Association, a non-profit organization.

Copyright © World Library Foundation. All rights reserved. eBooks from Project Gutenberg are sponsored by the World Library Foundation,
a 501c(4) Member's Support Non-Profit Organization, and is NOT affiliated with any governmental agency or department.