Newmont to Acquire Remaining Interest in World-Class Boddington Project in Western Australia



    DENVER, Jan. 27 /CNW/ -- Newmont Mining Corporation (NYSE:   NEM)
("Newmont" or "the Company") announced today that it has entered into a
definitive purchase agreement to acquire from AngloGold Ashanti Australia
Limited, a wholly-owned subsidiary of AngloGold Ashanti Ltd., its 33.33%
interest in the Boddington project in Western Australia. Upon completion of
the acquisition, Newmont will own 100% of the Boddington project, which is the
largest gold project in Australia, and Newmont's proven and probable gold
reserves at Boddington will increase by 6.6 million ounces to 20.1 million
ounces.
    

    
    Richard O'Brien, President and Chief Executive Officer of Newmont said,
"We are very pleased to consolidate our interest in Boddington, a world-class
asset that we obviously know well. We expect Boddington will have low
operating costs, a mine life in excess of 20 years and significant exploration
potential in a favorable geo-political jurisdiction."
    

    
    The total consideration for the 33.33% interest consists of $750 million
payable in cash at closing, $240 million payable in cash and/or Newmont common
stock, at Newmont's option, in December 2009, and a royalty capped at $100
million, equal to 50% of the average realized operating margin (if any)
exceeding $600 per ounce, payable on one-third of gold sales from Boddington.
The transaction is expected to close in March 2009, subject to satisfaction or
waiver of certain conditions, including the receipt of approvals from the
Australian Foreign Investment Review Board, Western Australia Ministry of
Mines and South African Reserve Bank and the receipt of consents and
agreements from third parties. The valuation date for the transaction is
January 1, 2009, and closing adjustments will be made to reflect Newmont's
economic ownership position from that date, which will require Newmont to
reimburse AngloGold for all contributions made to the Boddington joint venture
after that date. As a result of the increased ownership interest in
Boddington, Newmont expects to incur an additional approximately $250 million
of capital expenditures in 2009.
    

    
    Newmont has received a commitment for a $1.0 billion, 364-day bridge
facility to support the transaction and for additional capital expenditures
that result from its increased ownership in the Boddington project. The bridge
facility is subject to customary closing conditions.
    

    About Boddington:
    
    Boddington is a large, open pit mine in Western Australia, located 130
kilometers southeast of Perth. At the end of 2008, the Boddington project was
89% complete, with start-up expected in mid-2009 and an anticipated 12-month
ramp-up schedule. The Company continues to expect total capital costs to be
between $2.6 and $2.9 billion on a 100% basis.
    

    
    Boddington will be Australia's largest gold producer upon completion,
with expected average annual gold production of approximately one million
ounces at costs applicable to sales of approximately $300 per ounce (on a
by-product basis) for the first five years of operation, and an expected mine
life in excess of 20 years. Newmont believes Boddington has significant
exploration potential, as demonstrated in 2008, with the reserves on a 100%
basis increasing from 16.6 in 2007 to 20.1 million ounces in 2008.
    

    Cautionary Statement:
    
    This news release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended that are intended to be
covered by the safe harbor created by such sections and other applicable laws.
Such forward-looking statements include, without limitation (i) estimates of
gold and copper production and sales; (ii) estimates of costs applicable to
sales; (iii) estimates of capital expenditures, project costs, and expenses;
(iv) estimates regarding timing of future development, construction,
production or closure activities; (v) statements regarding future exploration
results, exploration expenditures, and reserves; (vi) statements regarding
potential cost savings, productivity, operating performance, cost structure
and competitive position; (vii) expectations regarding the completion and
timing of the Boddington acquisition; and (viii) expectations regarding the
start-up time, design, mine life, production, costs applicable to sales and
exploration potential of the Boddington mine. Where the Company expresses or
implies an expectation or belief as to future events or results, such
expectation or belief is expressed in good faith and believed to have a
reasonable basis. However, forward-looking statements are subject to risks,
uncertainties and other factors, which could cause actual results to differ
materially from future results expressed, projected or implied by such
forward-looking statements. Such risks include, but are not limited to, gold
and other metals price volatility, currency fluctuations, increased production
costs and variances in ore grade or recovery rates from those assumed in
mining plans, political and operational risks in the countries in which we
operate, and governmental regulation and judicial outcomes. For a more
detailed discussion of such risks and other factors, see the Company's 2007
Annual Report on Form 10-K, filed February 21, 2008, and the Company's
Quarterly Report on Form 10-Q, filed October 28, 2008, each of which is on
file with the Securities and Exchange Commission, as well as the Company's
other SEC filings. The Company does not undertake any obligation to release
publicly revisions to any "forward-looking statement" to reflect events or
circumstances after the date of this news release, or to reflect the
occurrence of unanticipated events, except as may be required under applicable
securities laws.
    

    
    Ian Douglas, Newmont's Group Executive of Reserves and Geostatistics, is
the qualified person responsible for the preparation of the scientific and
technical information concerning its mineral properties in this press release.
For a description of mineral reserve estimates on the Boddington Property,
including a description of key assumptions, parameters and methods used in the
estimates and the extent to which the estimates may be affected by any known
environmental, permitting, legal, title, taxation, socio-political, marketing
or other relevant factors, please see the Company's 2007 Annual Report on Form
10-K, filed February 21, 2008, and the Company's Quarterly Report on Form
10-Q, filed October 28, 2008, each of which is on file with the SEC, as well
as the Company's other SEC filings, which are on EDGAR in the United States
and on SEDAR in Canada.
    






    




For further information:

For further information: Investors, John Seaberg, +1-303-837-5743,
john.seaberg@newmont.com, or Media, Omar Jabara, +1-303-837-5114,
omar.jabara@newmont.com, both of Newmont Mining Corporation Web Site:
http://www.newmont.com


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