Edgar Filing: NEWMONT MINING CORP /DE/

Form 10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

Form 10-Q

(Mark One)


þ		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2010


o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-31240

NEWMONT MINING CORPORATION

(Exact name of registrant as specified in its charter)


Delaware (State or Other Jurisdiction of Incorporation or Organization)		84-1611629 (I.R.S. Employer Identification No.)


6363 South Fiddler’s Green Circle
Greenwood Village, Colorado (Address of Principal Executive Offices)		80111 (Zip Code)

Registrant’s telephone number, including area code (303) 863-7414

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. þ Yes o No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). þ Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “accelerated filer” and “large accelerated filer” in Rule 12-b2 of the Exchange Act. (Check one):


Large accelerated filer þ	Accelerated filer o	Non-accelerated filer o	Smaller reporting company o
		(Do not check if a smaller reporting company.)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12-b2 of the Exchange Act). o Yes þ No

There were 486,197,880 shares of common stock outstanding on October 25, 2010 (and 6,867,299 exchangeable shares).

TABLE OF CONTENTS


	Page
PART I

ITEM 1. FINANCIAL STATEMENTS		1

Condensed Consolidated Statements of Income		1

Condensed Consolidated Statements of Cash Flows		2

Condensed Consolidated Balance Sheets		3

Notes to Condensed Consolidated Financial Statements		4

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION		43

Overview		43

Selected Financial and Operating Results		44

Consolidated Financial Results		44

Results of Consolidated Operations		50

Liquidity and Capital Resources		56

Environmental		58

Accounting Developments		59

Non-GAAP Financial Measures		59

Safe Harbor Statement		60

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		61

ITEM 4. CONTROLS AND PROCEDURES		63

PART II

ITEM 1. LEGAL PROCEEDINGS		64

ITEM 1A. RISK FACTORS		64

ITEM 2. ISSUER PURCHASES OF EQUITY SECURITIES		64

ITEM 3. DEFAULTS UPON SENIOR SECURITIES		64

ITEM 5. OTHER INFORMATION		64

ITEM 6. EXHIBITS		67

SIGNATURES		68

EXHIBIT INDEX		69

Exhibit 12.1
Exhibit 31.1
Exhibit 31.2
Exhibit 32.1
Exhibit 32.2
EX-101 INSTANCE DOCUMENT
EX-101 SCHEMA DOCUMENT
EX-101 CALCULATION LINKBASE DOCUMENT
EX-101 LABELS LINKBASE DOCUMENT
EX-101 PRESENTATION LINKBASE DOCUMENT
EX-101 DEFINITION LINKBASE DOCUMENT

PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited, in millions except per share)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2010			2009			2010			2009

Sales (Note 3)	$	2,597		$	2,049		$	6,992		$	5,187

Costs and expenses
Costs applicable to sales ⁽¹⁾ (Note 3)		903			765			2,636			2,200
Amortization		242			199			697			566
Reclamation and remediation (Note 4)		18			10			44			34
Exploration		67			55			163			147
Advanced projects, research and development (Note 5)		46			27			149			100
General and administrative		45			39			133			118
Other expense, net (Note 6)		50			65			200			250

		1,371			1,160			4,022			3,415

Other income (expense)
Other income, net (Note 7)		5			25			97			43
Interest expense, net		(66	)		(10	)		(210	)		(65	)

		(61	)		15			(113	)		(22	)

Income from continuing operations before income tax and other items		1,165			904			2,857			1,750
Income tax expense (Note 10)		(348	)		(253	)		(756	)		(494	)
Equity income (loss) of affiliates		(3	)		(6	)		(7	)		(14	)

Income from continuing operations		814			645			2,094			1,242
Income (loss) from discontinued operations (Note 11)		—			—			—			(14	)

Net income		814			645			2,094			1,228
Net income attributable to noncontrolling interests (Note 12)		(277	)		(257	)		(629	)		(489	)

Net income attributable to Newmont stockholders	$	537		$	388		$	1,465		$	739


Net income attributable to Newmont stockholders:
Continuing operations	$	537		$	388		$	1,465		$	748
Discontinued operations		—			—			—			(9	)

	$	537		$	388		$	1,465		$	739

Income per common share (Note 13)
Basic:
Continuing operations	$	1.09		$	0.79		$	2.98		$	1.54
Discontinued operations		—			—			—			(0.02	)

	$	1.09		$	0.79		$	2.98		$	1.52

Diluted:
Continuing operations	$	1.07		$	0.79		$	2.94		$	1.54
Discontinued operations		—			—			—			(0.02	)

	$	1.07		$	0.79		$	2.94		$	1.52


Cash dividends declared per common share		0.15			0.10		$	0.35		$	0.30


⁽¹⁾		Exclusive of Amortization and Reclamation and remediation.

The accompanying notes are an integral part of the condensed consolidated financial statements.

NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in millions)


	Nine Months Ended
	September 30,
	2010			2009
Operating activities:
Net income	$	2,094		$	1,228
Adjustments:
Amortization		697			566
Loss from discontinued operations (Note 11)		—			14
Reclamation and remediation (Note 4)		44			34
Deferred income taxes		(52	)		7
Stock based compensation and other benefits		54			44
Other operating adjustments and write-downs		84			80
Net change in operating assets and liabilities (Note 24)		(586	)		(27	)


Net cash provided from continuing operations		2,335			1,946
Net cash provided from (used in) discontinued operations (Note 11)		(13	)		3


Net cash provided from operations		2,322			1,949


Investing activities:
Additions to property, plant and mine development		(972	)		(1,314	)
Investments in marketable debt and equity securities		(9	)		—
Acquisitions, net		(2	)		(766	)
Proceeds from sale of other assets		53			3
Other		(72	)		(11	)

Net cash used in investing activities		(1,002	)		(2,088	)


Financing activities:
Proceeds from debt, net		—			4,302
Repayment of debt		(274	)		(2,604	)
Sale of subsidiary shares to noncontrolling interests		229			—
Acquisition of subsidiary shares from noncontrolling interests		(109	)		—
Dividends paid to common stockholders		(172	)		(147	)
Dividends paid to noncontrolling interests		(360	)		(115	)
Proceeds from stock issuance, net		56			1,248
Change in restricted cash and other		46			5


Net cash provided from (used in) financing activities of continuing operations		(584	)		2,689
Net cash used in financing activities of discontinued operations (Note 11)		—			(2	)


Net cash provided from (used in) financing activities		(584	)		2,687


Effect of exchange rate changes on cash		—			39

Net change in cash and cash equivalents		736			2,587
Cash and cash equivalents at beginning of period		3,215			435

Cash and cash equivalents at end of period	$	3,951		$	3,022

The accompanying notes are an integral part of the condensed consolidated financial statements.

NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in millions)


	At September 30,		At December 31,
	2010		2009
ASSETS
Cash and cash equivalents	$	3,951	$	3,215
Trade receivables		489		438
Accounts receivable		93		102
Investments (Note 18)		46		56
Inventories (Note 19)		526		493
Stockpiles and ore on leach pads (Note 20)		538		403
Deferred income tax assets		195		215
Other current assets (Note 21)		1,218		900

Current assets		7,056		5,822
Property, plant and mine development, net		12,532		12,370
Investments (Note 18)		1,278		1,186
Stockpiles and ore on leach pads (Note 20)		1,722		1,502
Deferred income tax assets		1,086		937
Other long-term assets (Note 21)		702		482

Total assets	$	24,376	$	22,299

LIABILITIES
Debt (Note 22)	$	289	$	157
Accounts payable		396		396
Employee-related benefits		227		250
Income and mining taxes		265		200
Other current liabilities (Note 23)		1,621		1,317

Current liabilities		2,798		2,320
Debt (Note 22)		4,289		4,652
Reclamation and remediation liabilities (Note 4)		820		805
Deferred income tax liabilities		1,432		1,341
Employee-related benefits		349		381
Other long-term liabilities (Note 23)		169		174
Liabilities of operations held for sale (Note 11)		—		13

Total liabilities		9,857		9,686

Commitments and contingencies (Note 26)
EQUITY
Common stock		778		770
Additional paid-in capital		8,260		8,158
Accumulated other comprehensive income		768		626
Retained earnings		2,442		1,149

Newmont stockholders’ equity		12,248		10,703
Noncontrolling interests		2,271		1,910

Total equity		14,519		12,613

Total liabilities and equity	$	24,376	$	22,299

The accompanying notes are an integral part of the condensed consolidated financial statements.

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 1 BASIS OF PRESENTATION

The interim Condensed Consolidated Financial Statements (“interim statements”) of Newmont Mining Corporation and its subsidiaries (collectively, “Newmont” or the “Company”) are unaudited. In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these interim statements have been included. The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year. These interim statements should be read in conjunction with Newmont’s Consolidated Financial Statements for the year ended December 31, 2009 filed February 25, 2010 on Form 10-K. The year-end balance sheet data was derived from the audited financial statements, but does not include all disclosures required by United States generally accepted accounting principles (“GAAP”).

References to “A$” refer to Australian currency, “C$” to Canadian currency, “IDR” to Indonesian currency, “NZ$” to New Zealand currency and “$” to United States currency.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Recently Adopted Accounting Pronouncements

Variable Interest Entities

In June 2009, the Accounting Standards Codification (“ASC”) guidance for consolidation accounting was updated to require an entity to perform a qualitative analysis to determine whether the enterprise’s variable interest gives it a controlling financial interest in a Variable Interest Entity (“VIE”). This qualitative analysis identifies the primary beneficiary of a VIE as the entity that has both of the following characteristics: (i) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses or receive benefits from the entity that could potentially be significant to the VIE. The updated guidance also requires ongoing reassessments of the primary beneficiary of a VIE. Adoption of the updated guidance, effective for the Company’s fiscal year beginning January 1, 2010, had no impact on the Company’s condensed consolidated financial position, results of operations or cash flows.

The Company identified Nusa Tenggara Partnership (“NTP”), a partnership between Newmont and an affiliate of Sumitomo, that owns a 56% interest in PT Newmont Nusa Tenggara (“PTNNT” or “Batu Hijau”), as a VIE due to certain capital structures and contractual relationships. Newmont also identified PT Pukuafu Indah (“PTPI”), and PT Indonesia Masbaga Investama (“PTIMI”), unrelated noncontrolling partners of PTNNT, as VIEs. Newmont entered into transactions with PTPI and PTIMI, whereby the Company agreed to advance certain funds in exchange for a pledge of the noncontrolling partners’ combined 20% share of PTNNT dividends, net of withholding tax. The agreements also provide Newmont with certain voting rights and obligations related to the noncontrolling partners’ combined 20% share of PTNNT and commitments from PTPI and PTIMI to support the application of Newmont’s standards to the operation of the Batu Hijau mine. The Company has determined itself to be the primary beneficiary of these entities and to control the operations of Batu Hijau, and therefore consolidates PTNNT in the Company’s financial statements.

Fair Value Accounting

In January 2010, ASC guidance for fair value measurements and disclosure was updated to require additional disclosures related to transfers in and out of level 1 and 2 fair value measurements and enhanced detail in the level 3 reconciliation. The guidance was amended to clarify the level of disaggregation required for assets and liabilities and the disclosures required for inputs and valuation techniques used to measure the fair value of assets and liabilities that fall in either level 2 or level 3. The updated guidance was effective for the Company’s fiscal year beginning January 1, 2010, with the exception of the level 3 disaggregation which is effective for the Company’s fiscal year beginning January 1, 2011. The adoption had no impact on the Company’s condensed consolidated financial position, results of operations or cash flows. Refer to Note 16 for further details regarding the Company’s assets and liabilities measured at fair value.

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 3 SEGMENT INFORMATION

The Company’s reportable segments are based upon the Company’s management structure that is focused on the geographic region for the Company’s operations. The financial information relating to the Company’s segments is as follows:


			Costs				Advanced
			Applicable to				Projects and		Pre-Tax
	Sales		Sales		Amortization		Exploration		Income
Three Months Ended September 30, 2010
Nevada	$	568	$	267	$	68	$	27	$	196
La Herradura		52		20		5		2		25
Hope Bay		—		—		4		20		(23	)
Other North America		—		—		—		—		(1	)

North America		620		287		77		49		197


Yanacocha		436		149		42		6		225
Other South America		—		—		—		11		(15	)

South America		436		149		42		17		210


Boddington:
Gold		181		91		25
Copper		38		19		5

Total		219		110		30		1		46

Batu Hijau:
Gold		260		47		12
Copper		543		96		26

Total		803		143		38		1		607

Other Australia/New Zealand		351		157		26		10		145
Other Asia Pacific		—		—		1		5		(9	)

Asia Pacific		1,373		410		95		17		789


Ahafo		168		57		22		9		87
Other Africa		—		—		—		1		(2	)

Africa		168		57		22		10		85


Corporate and Other		—		—		6		20		(116	)

Consolidated	$	2,597	$	903	$	242	$	113	$	1,165

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)


			Costs				Advanced
			Applicable to				Projects and		Pre-Tax
	Sales		Sales		Amortization		Exploration		Income
Three Months Ended September 30, 2009
Nevada	$	481	$	273	$	69	$	13	$	118
La Herradura		23		8		2		1		12
Hope Bay		—		—		3		20		(24	)
Other North America		—		—		—		—		(2	)

North America		504		281		74		34		104


Yanacocha		535		163		43		6		299
Other South America		—		—		—		1		(2	)

South America		535		163		43		7		297


Boddington		—		—		—		12		(11	)
Batu Hijau:
Gold		201		37		10
Copper		396		71		18

Total		597		108		28		—		445

Other Australia/New Zealand		282		152		32		6		77
Other Asia Pacific		—		—		1		4		(17	)

Asia Pacific		879		260		61		22		494


Ahafo		131		61		17		2		46
Other Africa		—		—		—		2		(2	)

Africa		131		61		17		4		44


Corporate and Other		—		—		4		15		(35	)

Consolidated	$	2,049	$	765	$	199	$	82	$	904

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)


			Costs				Advanced
			Applicable to				Projects and		Pre-Tax			Total		Capital
	Sales		Sales		Amortization		Exploration		Income			Assets		Expenditures⁽¹⁾
Nine Months Ended September 30, 2010
Nevada	$	1,540	$	776	$	194	$	64	$	475		$	3,306	$	200
La Herradura		149		52		13		5		79			198		33
Hope Bay		—		—		10		70		(80	)		2,046		88
Other North America		—		—		—		1		(4	)		51		—

North America		1,689		828		217		140		470			5,601		321


Yanacocha		1,321		442		119		17		686			2,645		109
Other South America		—		—		—		26		(26	)		256		86

South America		1,321		442		119		43		660			2,901		195


Boddington:
Gold		582		284		81
Copper		117		68		18

Total		699		352		99		5		206			4,181		106

Batu Hijau:
Gold		595		123		34
Copper		1,256		261		72

Total		1,851		384		106		1		1,284			3,281		48

Other Australia/New Zealand		973		454		82		21		409			913		111
Other Asia Pacific		—		—		2		15		—			388		11

Asia Pacific		3,523		1,190		289		42		1,899			8,763		276


Ahafo		459		176		58		15		203			1,039		80
Other Africa		—		—		—		7		(7	)		269		49

Africa		459		176		58		22		196			1,308		129


Corporate and Other		—		—		14		65		(368	)		5,803		23

Consolidated	$	6,992	$	2,636	$	697	$	312	$	2,857		$	24,376	$	944


⁽¹⁾		Includes a decrease in accrued capital expenditures of $28; consolidated capital expenditures on a cash basis were $972.

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)


			Costs				Advanced
			Applicable to				Projects and		Pre-Tax			Total		Capital
	Sales		Sales		Amortization		Exploration		Income			Assets		Expenditures⁽¹⁾
Nine Months Ended September 30, 2009
Nevada	$	1,321	$	764	$	183	$	40	$	309		$	3,215	$	154
La Herradura		75		30		7		2		36			116		34
Hope Bay		—		—		9		56		(64	)		1,818		4
Other North America		—		—		—		1		(6	)		55		—

North America		1,396		794		199		99		275			5,204		192


Yanacocha		1,451		488		128		16		747			2,182		78
Other South America		—		—		—		15		(13	)		28		16

South America		1,451		488		128		31		734			2,210		94


Boddington		—		—		—		29		(87	)		3,832		961
Batu Hijau:
Gold		358		88		23
Copper		786		217		55

Total		1,144		305		78		—		713			3,024		30

Other Australia/New Zealand		814		438		94		18		243			843		75
Other Asia Pacific		—		—		2		9		(32	)		215		2

Asia Pacific		1,958		743		174		56		837			7,914		1,068


Ahafo		382		175		51		9		131			965		42
Other Africa		—		—		—		7		(3	)		198		4

Africa		382		175		51		16		128			1,163		46


Corporate and Other ⁽²⁾		—		—		14		45		(224	)		4,656		12

Consolidated	$	5,187	$	2,200	$	566	$	247	$	1,750		$	21,147	$	1,412


⁽¹⁾		Includes an increase in accrued capital expenditures of $98; consolidated capital expenditures on a cash basis were $1,314.

⁽²⁾		Corporate and Other includes $31 of Assets held for sale.

NOTE 4 RECLAMATION AND REMEDIATION

At September 30, 2010 and December 31, 2009, $719 and $698, respectively, were accrued for reclamation obligations relating to mineral properties. In addition, the Company is involved in several matters concerning environmental obligations associated with former, primarily historic, mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. At September 30, 2010 and December 31, 2009, $148 and $161, respectively, were accrued for such obligations.

The following is a reconciliation of reclamation and remediation liabilities:


	Nine Months Ended September 30,
	2010			2009
Balance at beginning of period	$	859		$	757
Additions, changes in estimates and other		1			21
Liabilities settled		(32	)		(35	)
Accretion expense		39			34

Balance at end of period	$	867		$	777

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

The current portion of Reclamation and remediation liabilities of $47 and $54 at September 30, 2010 and December 31, 2009, respectively, are included in Other current liabilities (see Note 23).

The Company’s reclamation and remediation expenses consisted of:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009
Reclamation	$	5	$	—	$	5	$	—
Accretion — operating		11		7		33		25
Accretion — non-operating		2		3		6		9

	$	18	$	10	$	44	$	34


Asset retirement cost amortization ⁽¹⁾	$	8	$	7	$	22	$	21


⁽¹⁾		Asset retirement cost amortization is a component of Amortization.

NOTE 5 ADVANCED PROJECTS, RESEARCH AND DEVELOPMENT


	Three Months Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009
Major projects:
Hope Bay	$	13	$	2	$	48	$	18
Subika underground		4		—		6		1
Conga		2		1		5		2
Akyem		—		2		4		5
Boddington		—		11		—		24
Other projects:
Technical and project services		12		6		35		18
Corporate		4		3		25		10
South America growth		7		1		11		5
Nevada growth		2		1		8		13
Other		2		—		7		4

	$	46	$	27	$	149	$	100

NOTE 6 OTHER EXPENSE, NET


	Three Months Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009
Community development	$	13	$	12	$	73	$	33
Regional administration		16		14		47		40
Peruvian royalty		5		8		17		19
World Gold Council dues		3		2		9		8
Western Australia power plant		—		18		7		27
Workforce reduction		—		—		—		15
Boddington acquisition costs		—		—		—		67
Batu Hijau divestiture		—		3		—		9
Other		13		8		47		32

	$	50	$	65	$	200	$	250

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 7 OTHER INCOME, NET


	Three Months Ended September 30,					Nine Months Ended September 30,
	2010			2009		2010			2009
Gain on asset sales, net	$	—		$	—	$	42		$	1
Canadian Oil Sands Trust income		14			7		39			16
Refinery income (EGR)⁽¹⁾		12			9		17			13
Income from developing projects, net		13			—		13			—
Gain on sale of investments, net		5			2		12			2
Interest income		3			2		8			11
Foreign currency gain (loss) net		(44	)		2		(48	)		—
Other		2			3		14			—

	$	5		$	25	$	97		$	43

⁽¹⁾ European Gold Refineries

NOTE 8 EMPLOYEE PENSION AND OTHER BENEFIT PLANS


	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
Pension benefit costs, net
Service cost	$	5		$	5		$	16		$	14
Interest cost		9			8			27			24
Expected return on plan assets		(8	)		(8	)		(24	)		(22	)
Amortization, net		5			4			14			12

	$	11		$	9		$	33		$	28


	Three Months Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009
Other benefit costs, net
Service cost	$	1	$	1	$	2	$	2
Interest cost		1		1		4		4

	$	2	$	2	$	6	$	6

NOTE 9 STOCK BASED COMPENSATION


	Three Months Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009
Stock options	$	3	$	3	$	12	$	11
Restricted stock units		4		1		12		4
Performance leveraged stock units		1		—		5		—
Common stock		—		1		2		2
Restricted stock		1		1		2		3
Deferred stock		2		2		7		10

	$	11	$	8	$	40	$	30

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 10 INCOME TAXES

During the third quarter of 2010, the Company recorded estimated income tax expense of $348 resulting in an effective tax rate of 29.9%. Estimated income tax expense during the third quarter of 2009 was $253 for an effective tax rate of 28.0%. The increase in the effective tax rate from 2009 to 2010 resulted from the change in the jurisdictional blend of the Company’s taxable income and the effect of the percentage depletion deduction. During the first nine months of 2010, estimated income tax expense was $756 resulting in an effective tax rate of 26.5%. Estimated income tax expense during the first nine months of 2009 was $494 for an effective tax rate of 28.2%. The decrease in the effective tax rate from 2009 to 2010 resulted from a tax benefit of $127 being recorded in the first quarter of 2010 from the conversion of non-US tax-paying entities to entities currently subject to U.S. income tax resulting in an increase in net deferred tax assets, partially offset by the change in the jurisdictional blend of the Company’s taxable income and the effect it has on the overall rate impact from percentage depletion. The effective tax rates in the third quarter of 2010 and 2009 are different from the United States statutory rate of 35% primarily due to the U.S. percentage depletion deduction and the effect of different income tax rates in countries where earnings are indefinitely reinvested.

The Company operates in numerous countries around the world and accordingly it is subject to, and pays annual income taxes under, the various income tax regimes in the countries in which it operates. Some of these tax regimes are defined by contractual agreements with the local government, and others are defined by the general corporate income tax laws of the country. The Company has historically filed, and continues to file, all required income tax returns and pay the income taxes reasonably determined to be due. The tax rules and regulations in many countries are highly complex and subject to interpretation. From time to time the Company is subject to a review of its historic income tax filings and in connection with such reviews, disputes can arise with the taxing authorities over the interpretation or application of certain rules to the Company’s business conducted within the country involved. PTNNT, the Company’s partially owned subsidiary in Indonesia, received a final tax assessment from the Indonesian Tax Office during the third quarter. Although required to pay $132 (of which, $119 related to corporate income tax matters) of tax and penalties upon receipt of the tax assessment, PTNNT intends to vigorously defend its positions through all processes available to it. PTNNT believes it is more likely than not that they will prevail and therefore has recorded a corresponding receivable (see Note 21).

At September 30, 2010, the Company’s total unrecognized tax benefit was $122 for uncertain income tax positions taken or expected to be taken on income tax returns. Of this, $53 represents the amount of unrecognized tax benefits that, if recognized, would affect the Company’s effective income tax rate.

As a result of the statute of limitations that expire in the next 12 months in various jurisdictions, and possible settlements of audit-related issues with taxing authorities in various jurisdictions with respect to which none of the issues are individually significant, the Company believes that it is reasonably possible that the total amount of its net unrecognized income tax benefits will decrease by approximately $1 to $3 in the next 12 months.

On January 1, 2010, various U.S. tax laws expired, and as of September 30, 2010, they have not been reinstated. These expired tax laws do not have a material effect on the Company’s financial statements.

NOTE 11 DISCONTINUED OPERATIONS

Discontinued operations relate to the Kori Kollo operation in Bolivia, sold in July 2009.

The Company has reclassified the 2009 balance sheet amounts and income statement results from the historical presentation to Assets and Liabilities of operations held for sale on the Condensed Consolidated Balance Sheets and to Income (loss) from discontinued operations in the Condensed Consolidated Statements of Income. The Condensed Consolidated Statements of Cash Flows have been reclassified for assets held for sale and discontinued operations for all periods presented.

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

The following table details selected financial information included in the Income (loss) from discontinued operations in the consolidated statements of income:


	Nine Months Ended
	September 30, 2009
Sales	$	32


Income from operations	$	1
Loss on impairment		(44	)

Pre-tax loss		(43	)
Income tax benefit		29

Income (loss) from discontinued operations	$	(14	)

Liabilities of operations held for sale include Other liabilities of $13 at December 31, 2009.

Net operating cash provided from (used in) discontinued operations was $(13) and $3 in the first nine months of 2010 and 2009, respectively.

Net cash used in financing activities of discontinued operations was $2 in the first nine months of 2009 for repayment of debt.

NOTE 12 NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS


	Three Months Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009
Batu Hijau	$	203	$	156	$	405	$	248
Yanacocha		72		99		223		243
Other		2		2		1		(2	)

	$	277	$	257	$	629	$	489

In June 2010, PTPI completed the sale of an approximate 2.2% interest in PTNNT to PTIMI. To enable the transaction to proceed, the Company released its rights to the dividends payable on this 2.2% interest and released the security interest in the associated shares. The Company further agreed to advance certain funds to PTIMI to enable it to purchase the interest in exchange for an assignment by PTIMI to the Company of the dividends payable on the 2.2% interest (net of withholding tax), a pledge of the shares as security on the advance, and certain voting rights and obligations. The funds that the Company advanced to PTIMI and which PTIMI paid to PTPI for the shares were used by PTPI to reduce its outstanding balance with the Company. Upon completion of this transaction, PTPI requested and was allowed to make additional draw-downs under the agreement with PTPI. The Company’s economic interest in PTPI’s and PTIMI’s combined 20% interest in PTNNT remains at 17% and has not changed as a result of these transactions.

In March 2010, the Company (through NTP) completed the sale and transfer of shares representing a 7% interest in PTNNT, the Indonesian subsidiary that operates Batu Hijau, to PT Multi Daerah Bersaing (“PTMDB”) in compliance with the divestiture obligations under the Contract of Work (the “COW”), reducing NTP’s ownership interest to 56% from 63%. In 2009, the Company (through NTP) completed the sale and transfer of shares for a 17% interest in PTNNT to PTMDB in compliance with divestiture obligations under the COW, reducing NTP’s ownership interest to 63% from 80%. The 2010 and 2009 share transfers resulted in gains of approximately $9 (after tax of $40) and $63 (after tax of $115), respectively, that were recorded as Additional paid-in capital. For information on the COW and divestiture requirements, see the discussion in Note 26 to the Condensed Consolidated Financial Statements.

In December 2009, the Company entered into a transaction with PTPI, whereby the Company agreed to advance certain funds to PTPI in exchange for a pledge of the noncontrolling partner’s 20% share of PTNNT dividends, net of withholding tax, and certain voting rights and obligations, and a commitment from PTPI to support the application of Newmont’s standards to the operation of Batu Hijau. Based on the transaction with PTPI, the Company recognized an additional 17% effective economic interest in PTNNT.

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

At September 30, 2010, Newmont continued to have a 48.50% effective economic interest in PTNNT. Based on the accounting guidance for variable interest entities, Newmont continues to consolidate PTNNT in its Consolidated Financial Statements.

Newmont has a 51.35% ownership interest in Minera Yanacocha SR.L. (“Yanacocha”), with the remaining interests held by Compañia de Minas Buenaventura, S.A.A. (43.65%) and the International Finance Corporation (5%).

NOTE 13 INCOME PER COMMON SHARE

Basic income per common share is computed by dividing income available to Newmont common stockholders by the weighted average number of common shares outstanding during the period. Diluted income per common share is computed similarly to basic income per common share except that weighted average common shares is increased to include the potential issuance of dilutive common shares.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009

Net income attributable to Newmont stockholders
Continuing operations	$	537	$	388	$	1,465	$	748
Discontinued operations		—		—		—		(9	)

	$	537	$	388	$	1,465	$	739


Weighted average common shares (millions):
Basic		493		490		492		485
Effect of employee stock-based awards		1		1		1		1
Effect of convertible notes		8		—		5		—

Diluted		502		491		498		486


Net income attributable to Newmont stockholders per common share
Basic:
Continuing operations	$	1.09	$	0.79	$	2.98	$	1.54
Discontinued operations		—		—		—		(0.02	)

	$	1.09	$	0.79	$	2.98	$	1.52

Diluted:
Continuing operations	$	1.07	$	0.79	$	2.94	$	1.54
Discontinued operations		—		—		—		(0.02	)

	$	1.07	$	0.79	$	2.94	$	1.52

Options to purchase 2 and 5 million shares of common stock at average exercise prices of $57 and $46 were outstanding at September 30, 2010 and 2009, respectively, but were not included in the computation of diluted weighted average number of common shares because their effect would have been anti-dilutive under the treasury stock method.

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

In February 2009 and July 2007, Newmont issued $518 and $1,150, respectively, of convertible notes that, if converted in the future, would have a potentially dilutive effect on the Company’s weighted average number of common shares. Under the indenture for the convertible notes, upon conversion Newmont is required to settle the principal amount of the convertible notes in cash and may elect to settle the remaining conversion obligation (stock price in excess of the conversion price) in cash, shares or a combination thereof. The effect of contingently convertible instruments on diluted earnings per share is calculated under the net share settlement method. Under the net share settlement method, the Company includes the amount of shares it would take to satisfy the conversion obligation, assuming that all of the convertible notes are surrendered. The average closing price of the Company’s common stock for each of the periods presented is used as the basis for determining dilution. The average price of the Company’s common stock for the three and nine months ended September 30, 2010 exceeded the conversion price of $46.21 and $46.17 for the notes issued in 2009 and 2007, respectively, and therefore, 8 and 5 million additional shares were included in the computation of diluted weighted average common shares for the three and nine months ended September 30, 2010, respectively.

In connection with the 2007 convertible senior notes offering, the Company entered into Call Spread Transactions which included the purchase of call options and the sale of warrants. As a result of the Call Spread Transactions, the conversion price of $46.17 was effectively increased to $60.22. Should the warrant transactions become dilutive to the Company’s earnings per share (if Newmont’s average share price exceeds $60.22) the underlying shares will be included in the computation of diluted income per common share.

The Net income attributable to Newmont stockholders and transfers from noncontrolling interests was:


	Three Months Ended September 30,					Nine Months Ended September 30,
	2010			2009		2010		2009

Net income attributable to Newmont stockholders	$	537		$	388	$	1,465	$	739
Transfers from noncontrolling interests:
Increase in Additional paid in capital from sale of PTNNT shares, net of tax of $40		(7	)		—		9		—

Net income attributable to Newmont stockholders and transfers from noncontrolling interests	$	530		$	388	$	1,474	$	739

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 14 COMPREHENSIVE INCOME


	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009

Net income	$	814		$	645		$	2,094		$	1,228
Other comprehensive income, net of tax:
Unrealized gain on marketable securities		58			120			30			312
Foreign currency translation adjustments		34			118			35			207
Pension and other benefit liability adjustments		3			3			8			6
Change in fair value of cash flow hedge instruments:
Net change from periodic revaluations		163			79			120			165
Net amount reclassified to income		(15	)		(5	)		(50	)		19

Net unrecognized gain on derivatives		148			74			70			184

		243			315			143			709

Comprehensive income	$	1,057		$	960		$	2,237		$	1,937


Comprehensive income attributable to:
Newmont stockholders	$	779		$	702		$	1,607		$	1,446
Noncontrolling interests		278			258			630			491

	$	1,057		$	960		$	2,237		$	1,937

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 15 CHANGES IN EQUITY


	Nine Months Ended September 30,
	2010			2009
Common stock:
At beginning of period	$	770		$	709
Common stock offering		—			55
Stock based awards		4			2
Shares issued in exchange for exchangeable shares		4			2

At end of period		778			768


Additional paid-in capital:
At beginning of period		8,158			6,831
Common stock offering		—			1,178
Convertible debt issuance		—			46
Common stock dividends		—			(45	)
Stock based awards		97			53
Shares issued in exchange for exchangeable shares		(4	)		(3	)
Sale of subsidiary shares to noncontrolling interests		9			—

At end of period		8,260			8,060


Accumulated other comprehensive income:
At beginning of period		626			(253	)
Other comprehensive income		142			707

At end of period		768			454


Retained earnings:
At beginning of period		1,149			4
Net income attributable to Newmont stockholders		1,465			739
Common stock dividends		(172	)		(102	)

At end of period		2,442			641


Noncontrolling interests:
At beginning of period		1,910			1,370
Net income attributable to noncontrolling interests		629			489
Dividends paid to noncontrolling interests		(367	)		(115	)
Other comprehensive income		1			2
Sale of subsidiary shares to noncontrolling interests, net		98			—

At end of period		2,271			1,746

Total equity	$	14,519		$	11,669

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 16 FAIR VALUE ACCOUNTING

Fair value accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:


Level 1		Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2		Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and

Level 3		Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

The following table sets forth the Company’s assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.


	Fair Value at September 30, 2010
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	2,073	$	2,073	$	—	$	—
Marketable equity securities:
Extractive industries		1,230		1,230		—		—
Other		7		7		—		—
Marketable debt securities:
Asset backed commercial paper		18		—		—		18
Corporate		8		8		—		—
Auction rate securities		5		—		—		5
Trade receivable from provisional copper and gold concentrate sales, net		403		403		—		—
Derivative instruments, net:
Foreign exchange forward contracts		237		—		237		—
Interest rate swap contracts		5		—		5		—
Diesel forward contracts		3		—		3		—

	$	3,989	$	3,721	$	245	$	23

Liabilities:
8 5/8% debentures ($222 hedged portion)	$	232	$	—	$	232	$	—
Boddington contingent consideration		83		—		—		83

	$	315	$	—	$	232	$	83

The Company’s cash equivalent instruments are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The cash equivalent instruments that are valued based on quoted market prices in active markets are primarily money market securities and U.S. Treasury securities.

The Company’s marketable equity securities are valued using quoted market prices in active markets and as such are classified within Level 1 of the fair value hierarchy. The securities are segregated based on industry. The fair value of the marketable equity securities is calculated as the quoted market price of the marketable equity security multiplied by the quantity of shares held by the Company.

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

The Company’s marketable debt securities include investments in auction rate securities and asset backed commercial paper. The Company reviews the fair value for auction rate securities and asset backed commercial paper on at least a quarterly basis. The auction rate securities are traded in markets that are not active, trade infrequently and have little price transparency. The Company estimated the fair value of the auction rate securities based on weighted average risk calculations using probabilistic cash flow assumptions. In January 2009, the investments in the Company’s asset backed commercial paper were restructured by court order. The restructuring allowed an interest distribution to be made to investors. The Company estimated the fair value of the asset backed commercial paper using a probability of return to each class of notes reflective of information reviewed regarding the separate classes of securities. The auction rate securities and asset backed commercial paper are classified within Level 3 of the fair value hierarchy. The Company’s corporate marketable debt securities are valued using quoted market prices in active markets and as such are classified within Level 1 of the fair value hierarchy.

The Company’s net trade receivable from provisional copper and gold concentrate sales is valued using quoted market prices based on forward curves and, as such, is classified within Level 1 of the fair value hierarchy.

The Company’s derivative instruments are valued using pricing models and the Company generally uses similar models to value similar instruments. Where possible, the Company verifies the values produced by its pricing models to market prices. Valuation models require a variety of inputs, including contractual terms, market prices, yield curves, credit spreads, measures of volatility, and correlations of such inputs. The Company’s derivatives trade in liquid markets, and as such, model inputs can generally be verified and do not involve significant management judgment. Such instruments are classified within Level 2 of the fair value hierarchy.

The Company has fixed to floating swap contracts to hedge a portion of the interest rate risk exposure of its 8 5/8% debentures due May 2011. The hedged portion of the Company’s 8 5/8% debentures are valued using pricing models which require inputs, including risk-free interest rates and credit spreads. Because the inputs are derived from observable market data, the hedged portion of the 8 5/8% debentures is classified within Level 2 of the fair value hierarchy.

The Company has recorded a contingent consideration liability related to the 2009 acquisition of the final 33.33% interest in Boddington. The value of the contingent consideration was determined using a valuation model which simulates future gold and copper prices and costs applicable to sales to estimate fair value. The contingent consideration liability is classified within Level 3 of the fair value hierarchy.

The table below sets forth a summary of changes in the fair value of the Company’s Level 3 financial assets and liabilities for the nine months ended September 30, 2010.


			Asset Backed				Boddington
	Auction Rate		Commercial				Contingent			Total
	Securities		Paper		Total Assets		Consideration			Liabilities
Balance at beginning of period	$	5	$	18	$	23	$	85		$	85
Settlements		—		—		—		(2	)		(2	)

Balance at end of period	$	5	$	18	$	23	$	83		$	83

At September 30, 2010, assets and liabilities classified within Level 3 of the fair value hierarchy represent 1% and 26%, respectively, of total assets and liabilities measured at fair value.

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 17 DERIVATIVE INSTRUMENTS

The Company’s strategy is to provide shareholders with leverage to changes in gold and copper prices by selling its production at spot market prices. Consequently, the Company does not hedge its gold and copper sales. Newmont has and will continue to manage risks associated with commodity input costs, interest rates and foreign currencies using the derivative market. All of the cash flow and fair value derivative instruments were transacted for risk management purposes and qualify as hedging instruments. The maximum period over which hedged transactions are expected to occur is five years.

Cash Flow Hedges

The foreign currency and diesel contracts are designated as cash flow hedges, and as such, the effective portion of unrealized changes in market value have been recorded in Accumulated other comprehensive income and are recorded in earnings during the period in which the hedged transaction affects earnings. Gains and losses from hedge ineffectiveness are recognized in current earnings.

Foreign Currency Contracts

Newmont utilizes foreign currency contracts to reduce the variability of the US dollar amount of forecasted foreign currency expenditures caused by changes in exchange rates. Newmont hedges a portion of the Company’s A$, NZ$ and IDR denominated operating expenditures which results in a blended rate realized each period. The hedging instruments are fixed forward contracts with expiration dates ranging up to five years from the date of issue. The principal hedging objective is reduction in the volatility of realized period-on-period $/A$, $/NZ$ and IDR/$ rates, respectively.

Newmont had the following foreign currency derivative contracts outstanding at September 30, 2010:


	Expected Maturity Date
																			Total/
	2010			2011			2012			2013			2014			2015			Average
A$ Fixed Forward Contracts:
$ (millions)	$	215		$	688		$	395		$	134		$	77		$	44		$	1,553
Average rate ($/A$)		0.81			0.80			0.81			0.81			0.80			0.78			0.81
A$ notional (millions)		264			862			486			165			96			56			1,929
Expected hedge ratio		80	%		63	%		36	%		12	%		8	%		6	%		30	%
NZ$ Fixed Forward Contracts:
$ (millions)	$	12		$	39		$	10		$	—		$	—		$	—		$	61
Average rate ($/NZ$)		0.66			0.68			0.67			—			—			—			0.67
NZ$ notional (millions)		18			58			15			—			—			—			91
Expected hedge ratio		70	%		50	%		18	%		—	%		—	%		—	%		40	%
IDR Fixed Forward Contracts:
$ (millions)	$	2		$	—		$	—		$	—		$	—		$	—		$	2
Average rate (IDR/$)		10,062			—			—			—			—			—			10,062
IDR notional (millions)		20,123			—			—			—			—			—			20,123
Expected hedge ratio		18	%		—	%		—	%		—	%		—	%		—	%		18	%

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

Diesel Fixed Forward Contracts

Newmont hedges a portion of its operating cost exposure related to diesel consumed at its Nevada operations to reduce the variability in realized diesel prices. The hedging instruments consist of a series of financially settled fixed forward contracts with expiration dates ranging up to two years from the date of issue.

Newmont had the following diesel derivative contracts outstanding at September 30, 2010:


	Expected Maturity Date
										Total/
	2010			2011			2012			Average
Diesel Fixed Forward Contracts:
$ (millions)	$	13		$	39		$	10		$	62
Average rate ($/gallon)		2.10			2.25			2.38			2.24
Diesel gallons (millions)		6			17			4			27
Expected Nevada hedge ratio		63	%		41	%		13	%		33	%

Fair Value Hedges

Interest Rate Swap Contracts

At September 30, 2010, Newmont had $222 fixed to floating swap contracts designated as a hedge against its 8 5/8% debentures due 2011. The interest rate swap contracts assist in managing the Company’s mix of fixed and floating rate debt. Under the hedge contract terms, Newmont receives fixed-rate interest payments at 8.63% and pays floating-rate interest amounts based on periodic London Interbank Offered Rate (“LIBOR”) settings plus a spread, ranging from 2.60% to 7.63%. The interest rate swap contracts were designated as fair value hedges and changes in fair value have been recorded in income in each period, consistent with recording changes to the mark-to-market value of the underlying hedged liability in income.

Derivative Instrument Fair Values

Newmont had the following derivative instruments designated as hedges with fair values at September 30, 2010 and December 31, 2009:


	Fair Values of Derivative Instruments
	At September 30, 2010
	Other Current		Other Long-Term		Other Current		Other Long-Term
	Assets		Assets		Liabilities		Liabilities
Foreign currency exchange contracts:
A$ fixed forward contracts	$	138	$	95	$	—	$	—
NZ$ fixed forward contracts		3		1		—		—
Diesel fixed forward contracts		3		—		—		—
Interest rate swap contracts		5		—		—		—

Total derivative instruments (Note 21)	$	149	$	96	$	—	$	—

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)


	Fair Values of Derivative Instruments
	At December 31, 2009
	Other Current		Other Long-Term		Other Current		Other Long-Term
	Assets		Assets		Liabilities		Liabilities
Foreign currency exchange contracts:
A$ fixed forward contracts	$	78	$	53	$	—	$	1
NZ$ fixed forward contracts		5		1		—		—
IDR fixed forward contracts		1		—		—		—
Diesel fixed forward contracts		5		1		—		—
Interest rate swap contracts		3		4		—		—

Total derivative instruments (Note 21)	$	92	$	59	$	—	$	1

The following tables show the location and amount of gains (losses) reported in the Company’s Condensed Consolidated Financial Statements related to the Company’s cash flow and fair value hedges and the gains (losses) recorded for the hedged item related to the fair value hedges.


	Foreign Currency					Diesel Forward					Treasury Rate Lock
	Exchange Contracts					Contracts					Contracts
	2010		2009			2010		2009			2010		2009
For the three months ended September 30,
Cash flow hedging relationships:
Gain (loss) recognized in other comprehensive income (effective portion)	$	232	$	102		$	5	$	(1	)	$	—	$	11
Gain (loss) reclassified from Accumulated other comprehensive income into income (effective portion) ⁽¹⁾		18		2			1		(2	)		—		—

For the nine months ended September 30,
Cash flow hedging relationships:
Gain (loss) recognized in other comprehensive income (effective portion)	$	174	$	220		$	—	$	3		$	—	$	11
Gain (loss) reclassified from Accumulated other comprehensive income into income (effective portion) ⁽¹⁾		63		(28	)		3		(13	)		—		—


⁽¹⁾		The gain (loss) for the effective portion of foreign exchange and diesel cash flow hedges reclassified from Accumulated other comprehensive income is included in Costs applicable to sales.

The amount to be reclassified from Accumulated other comprehensive income, net of tax to income for derivative instruments during the next 12 months is a gain of approximately $103.

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)


	Interest Rate						8 5/8% Debentures
	Swap Contracts						(Hedged Portion)
	2010			2009			2010		2009
For the three months ended September 30,
Fair value hedging relationships:
Gain (loss) recognized in income (effective portion) ⁽¹⁾	$	1		$	1		$	2	$	(1	)
Gain (loss) recognized in income (ineffective portion) ⁽²⁾		(1	)		(1	)		1		—

For the nine months ended September 30,
Fair value hedging relationships:
Gain (loss) recognized in income (effective portion) ⁽¹⁾	$	4		$	3		$	4	$	(2	)
Gain (loss) recognized in income (ineffective portion) ⁽²⁾		(3	)		(2	)		2		(3	)


⁽¹⁾		The gain (loss) recognized for the effective portion of fair value hedges and the underlying hedged debt is included in Interest expense, net.

⁽²⁾		The ineffective portion recognized for fair value hedges and the underlying hedged debt is included in Other income, net.

Provisional Copper and Gold Sales

The Company’s provisional copper and gold sales contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the gold and copper concentrates at the prevailing indices’ prices at the time of sale. The embedded derivative, which does not qualify for hedge accounting, is marked to market through earnings each period prior to final settlement.

LME copper prices averaged $3.29 per pound during the three months ended September 30, 2010, compared with the Company’s recorded average provisional price of $3.41 per pound before mark-to-market gains and treatment and refining charges. LME copper prices averaged $3.26 per pound during the nine months ended September 30, 2010, compared with the Company’s recorded average provisional price of $3.31 per pound before mark-to-market gains and treatment and refining charges. The applicable forward copper price at the end of the third quarter was $3.65 per pound. During the three months ended September 30, 2010, changes in copper prices resulted in a provisional pricing mark-to-market gain of $78 ($0.49 per pound). During the nine months ended September 30, 2010, changes in copper prices resulted in a provisional pricing mark-to-market gain of $30 ($0.07 per pound). At September 30, 2010, Newmont had copper sales of 151 million pounds priced at an average of $3.65 per pound, subject to final pricing over the next several months.

The average London P.M. fix for gold was $1,222 per ounce during the three months ended September 30, 2010, compared with the Company’s recorded average provisional price of $1,227 per ounce before mark-to-market gains and treatment and refining charges. The average London P.M. fix for gold was $1,178 per ounce during the nine months ended September 30, 2010, equal to the Company’s recorded average provisional price per ounce before mark-to-market gains and treatment and refining charges. The applicable forward gold price at the end of the third quarter was $1,308 per ounce. During the three months ended September 30, 2010, changes in gold prices resulted in a provisional pricing mark-to-market gain of $5 ($3 per ounce). During the nine months ended September 30, 2010, changes in gold prices resulted in a provisional pricing mark-to-market gain of $27 ($6 per ounce). At September 30, 2010, Newmont had gold sales of 146,000 ounces priced at an average of $1,308 per ounce, subject to final pricing over the next several months.

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 18 INVESTMENTS


	At September 30, 2010
	Cost/Equity		Unrealized					Fair/Equity
	Basis		Gain		Loss			Basis
Current:
Marketable Equity Securities:
Other	$	15	$	31	$	—		$	46


Long-term:
Marketable Debt Securities:
Asset backed commercial paper	$	24	$	—	$	(6	)	$	18
Auction rate securities		7		—		(2	)		5
Corporate		5		3		—			8

		36		3		(8	)		31

Marketable Equity Securities:
Canadian Oil Sands Trust		298		463		—			761
Gabriel Resources Ltd.		75		218		—			293
Regis Resources		18		74		—			92
Shore Gold Inc.		5		8		—			13
Other		22		11		(1	)		32

		418		774		(1	)		1,191


Other investments, at cost		11		—		—			11

Investment in Affiliates:
La Zanja		45		—		—			45

	$	510	$	777	$	(9	)	$	1,278

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)


	At December 31, 2009
	Cost/Equity		Unrealized					Fair/Equity
	Basis		Gain		Loss			Basis
Current:
Marketable Equity Securities:
Regis Resources	$	5	$	29	$	—		$	34
Other		10		12		—			22

	$	15	$	41	$	—		$	56

Long-term:
Marketable Debt Securities:
Asset backed commercial paper	$	24	$	—	$	(6	)	$	18
Auction rate securities		7		—		(2	)		5
Corporate		8		2		—			10

		39		2		(8	)		33

Marketable Equity Securities:
Canadian Oil Sands Trust		292		584		—			876
Gabriel Resources Ltd.		74		136		—			210
Shore Gold Inc.		4		11		—			15
Other		11		7		—			18

		381		738		—			1,119


Other investments, at cost		6		—		—			6

Investment in Affiliates:
AGR Matthey Joint Venture		20		—		—			20
La Zanja		8		—		—			8

	$	454	$	740	$	(8	)	$	1,186

Included in Investments at September 30, 2010 and December 31, 2009 are $8 and $10, respectively, of long-term marketable debt securities and $7 and $5 of long-term marketable equity securities, respectively, that are legally pledged for purposes of settling asset retirement obligations related to the San Jose Reservoir at Yanacocha.

In March 2010, Regis Resources Ltd (“Regis”) issued an A$10 interest free convertible notes to Newmont which were repayable by December 31, 2012. On September 30, 2010 Newmont accepted the offer to terminate its equity participation right on all Regis tenements and in return for 9 million Regis shares upon conversion of the interest free convertible notes. This conversion resulted in a gain of approximately $5 and increased Newmont’s ownership in Regis from 13.46% to 15.31%.

The AGR Matthey Joint Venture (“AGR”), in which the Company held a 40% equity interest, was dissolved on March 30, 2010. The remaining interests were held by West Australian Mint (“WAM”) (40%) and Johnson Matthey Australia (“JMA”) (20%). The Company received consideration of $14 from the dissolution and recorded a gain of $6 during the first nine months of 2010.

During the first nine months of 2009, the Company recognized a charge of $6 for other-than-temporary declines in marketable equity securities.

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

The following tables present the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by length of time that the individual securities have been in a continuous unrealized loss position:


	Less than 12 Months				12 Months or Greater				Total
			Unrealized				Unrealized				Unrealized
At September 30, 2010	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Asset backed commercial paper	$	—	$	—	$	18	$	6	$	18	$	6
Auction rate securities		—		—		5		2		5		2
Marketable equity securities		6		1		—		—		6		1

	$	6	$	1	$	23	$	8	$	29	$	9


	Less than 12 Months				12 Months or Greater				Total
			Unrealized				Unrealized				Unrealized
At December 31, 2009	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Asset backed commercial paper	$	—	$	—	$	18	$	6	$	18	$	6
Auction rate securities		—		—		5		2		5		2

	$	—	$	—	$	23	$	8	$	23	$	8

The unrealized loss of $9 and $8 at September 30, 2010 and December 31, 2009, respectively, relate to the Company’s investments in asset backed commercial paper, auction rate securities and marketable equity securities as listed in the tables above. While the fair values of these investments are below their respective cost, the Company views these declines as temporary. The Company intends to hold its investment in auction rate securities and asset backed commercial paper until maturity or such time that the market recovers and therefore considers these losses temporary.

NOTE 19 INVENTORIES


	At September 30,		At December 31,
	2010		2009
In-process	$	82	$	80
Concentrate		41		10
Precious metals		9		9
Materials, supplies and other		394		394

	$	526	$	493

During the first nine months of 2010 and 2009, the Company recorded write-downs of $4 and $5, respectively, to reduce the carrying value of materials and supplies inventories to net realizable value at Nevada and Batu Hijau. Inventory write-downs are classified as components of Costs applicable to sales.

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 20 STOCKPILES AND ORE ON LEACH PADS


	At September 30,		At December 31,
	2010		2009
Current:
Stockpiles	$	334	$	206
Ore on leach pads		204		197

	$	538	$	403


Long-term:
Stockpiles	$	1,335	$	1,181
Ore on leach pads		387		321

	$	1,722	$	1,502

At September 30, 2010, stockpiles were primarily located at Batu Hijau ($857), Nevada ($324), Boddington ($196), Other Australia/New Zealand ($126) and Ahafo ($103), while ore on leach pads were primarily located at Yanacocha ($426) and Nevada ($157).

NOTE 21 OTHER ASSETS


	At September 30,		At December 31,
	2010		2009
Other current assets:
Refinery metal inventory and receivable (EGR)	$	911	$	671
Derivative instruments		149		92
Prepaid assets		84		70
Other		74		67

	$	1,218	$	900


Other long-term assets:
Goodwill	$	188	$	188
Income tax receivable		119		—
Derivative instruments		96		59
Intangible assets		92		29
Debt issuance costs		41		50
Restricted cash		24		70
Other receivables		16		16
Other		126		70

	$	702	$	482

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 22 DEBT


	At September 30, 2010				At December 31, 2009
	Current		Non-Current		Current		Non-Current
Sale-leaseback of refractory ore treatment plant	$	30	$	134	$	24	$	164
8 5/8% debentures, net of discount (due 2011)		213		—		—		218
2012 convertible senior notes, net of discount		—		481		—		463
2014 convertible senior notes, net of discount		—		484		—		468
2017 convertible senior notes, net of discount		—		430		—		417
5 1/8% senior notes, net of discount (due 2019)		—		896		—		896
5 7/8% senior notes, net of discount (due 2035)		—		598		—		597
6 1/4% senior notes, net of discount (due 2039)		—		1,087		—		1,087
PTNNT project financing facility		—		—		87		133
Yanacocha credit facility		14		38		14		48
Yanacocha senior notes		16		80		8		92
Ahafo project facility		10		60		10		65
Other project financings and capital leases		6		1		14		4

	$	289	$	4,289	$	157	$	4,652

On February 23, 2010, PTNNT repaid the $220 remaining balance under the PTNNT project financing facility. As a result, the Company is no longer required to maintain letters of credit to secure 56.25% of the PTNNT project financing facility and PTNNT’s assets are no longer pledged as collateral.

Scheduled minimum debt repayments are $16 for the remainder of 2010, $285 in 2011, $582 in 2012, $72 in 2013, $550 in 2014 and $3,073 thereafter.

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 23 OTHER LIABILITIES


	At September 30,		At December 31,
	2010		2009
Other current liabilities:
Refinery metal payable (EGR)	$	911	$	671
Accrued operating costs		203		131
Interest		99		72
Accrued capital expenditures		85		115
Royalties		53		58
Reclamation and remediation costs		47		54
Boddington contingent consideration		27		16
Taxes other than income and mining		93		73
Other		103		127

	$	1,621	$	1,317


Other long-term liabilities:
Boddington contingent consideration	$	56	$	69
Power supply agreements		43		—
Income and mining taxes		23		38
Other		47		67

	$	169	$	174

NOTE 24 NET CHANGE IN OPERATING ASSETS AND LIABILITIES

Net cash provided from operations attributable to the net change in operating assets and liabilities is composed of the following:


	Nine Months Ended September 30,
	2010			2009
Decrease (increase) in operating assets:
Trade and accounts receivable	$	(63	)	$	200
Inventories, stockpiles and ore on leach pads		(297	)		(249	)
EGR refinery assets		(200	)		(179	)
Other assets		(50	)		4
Increase (decrease) in operating liabilities:
Accounts payable and other accrued liabilities		(144	)		53
EGR refinery liabilities		200			179
Reclamation liabilities		(32	)		(35	)

	$	(586	)	$	(27	)

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 25 CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

Newmont USA, a 100% owned subsidiary of Newmont Mining Corporation, has fully and unconditionally guaranteed the 5 7/8%, 5 1/8% and 6 1/4% publicly traded notes and the 2012, 2014 and 2017 convertible senior notes. The following consolidating financial statements are provided for Newmont USA, as guarantor, and for Newmont Mining Corporation, as issuer, as an alternative to providing separate financial statements for the guarantor. The accounts of Newmont Mining Corporation are presented using the equity method of accounting for investments in subsidiaries.


	Three Months Ended September 30, 2010
													Newmont
	Newmont												Mining
	Mining			Newmont			Other						Corporation
Condensed Consolidating Statement of Income	Corporation			USA			Subsidiaries			Eliminations			Consolidated

Sales	$	—		$	1,860		$	737		$	—		$	2,597

Costs and expenses
Costs applicable to sales ⁽¹⁾		—			579			330			(6	)		903
Amortization		—			159			83			—			242
Reclamation and remediation		—			13			5			—			18
Exploration		—			41			26			—			67
Advanced projects, research and development		—			26			21			(1	)		46
General and administrative		—			37			1			7			45
Other expense, net		—			41			9			—			50

		—			896			475			—			1,371


Other income (expense)
Other income, net		—			1			4			—			5
Interest income — intercompany		35			2			—			(37	)		—
Interest expense — intercompany		(3	)		—			(34	)		37			—
Interest expense, net		(61	)		(3	)		(2	)		—			(66	)

		(29	)		—			(32	)		—			(61	)

Income (loss) before income tax and other items		(29	)		964			230			—			1,165
Income tax expense		(1	)		(301	)		(46	)		—			(348	)
Equity income (loss) of affiliates		567			1			79			(650	)		(3	)

Net income (loss)		537			664			263			(650	)		814
Net loss (income) attributable to noncontrolling interests		—			(346	)		25			44			(277	)

Net income (loss) attributable to Newmont stockholders	$	537		$	318		$	288		$	(606	)	$	537


⁽¹⁾		Exclusive of Amortization and Reclamation and remediation.

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)


	Three Months Ended September 30, 2009
													Newmont
	Newmont												Mining
	Mining			Newmont			Other						Corporation
Condensed Consolidating Statement of Income	Corporation			USA			Subsidiaries			Eliminations			Consolidated

Sales	$	—		$	1,636		$	413		$	—		$	2,049

Costs and expenses
Costs applicable to sales ⁽¹⁾		—			551			219			(5	)		765
Amortization		—			146			54			(1	)		199
Reclamation and remediation		—			7			3			—			10
Exploration		—			26			29			—			55
Advanced projects, research and development		—			11			17			(1	)		27
General and administrative		—			31			1			7			39
Other expense, net		—			33			32			—			65

		—			805			355			—			1,160


Other income (expense)
Other income, net		(2	)		(1	)		28			—			25
Interest income — intercompany		17			1			3			(21	)		—
Interest expense — intercompany		(2	)		—			(19	)		21			—
Interest expense, net		3			(12	)		(1	)		—			(10	)

		16			(12	)		11			—			15

Income before income tax and other items		16			819			69			—			904
Income tax benefit (expense)		11			(250	)		(14	)		—			(253	)
Equity income (loss) of affiliates		361			(3	)		48			(412	)		(6	)

Net income (loss)		388			566			103			(412	)		645
Net loss (income) attributable to noncontrolling interests		—			(257	)		(16	)		16			(257	)

Net income (loss) attributable to Newmont stockholders	$	388		$	309		$	87		$	(396	)	$	388


(1)		Exclusive of Amortization and Reclamation and remediation.

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)


	Nine Months Ended September 30, 2010
													Newmont
	Newmont												Mining
	Mining			Newmont			Other						Corporation
Condensed Consolidating Statement of Income	Corporation			USA			Subsidiaries			Eliminations			Consolidated

Sales	$	—		$	4,862		$	2,130		$	—		$	6,992

Costs and expenses
Costs applicable to sales ⁽¹⁾		—			1,655			998			(17	)		2,636
Amortization		—			445			253			(1	)		697
Reclamation and remediation		—			32			12			—			44
Exploration		—			97			66			—			163
Advanced projects, research and development		—			80			70			(1	)		149
General and administrative		—			112			2			19			133
Other expense, net		—			156			44			—			200

		—			2,577			1,445			—			4,022


Other income (expense)
Other income, net		—			15			82			—			97
Interest income — intercompany		106			6			2			(114	)		—
Interest expense — intercompany		(8	)		—			(106	)		114			—
Interest expense, net		(187	)		(19	)		(4	)		—			(210	)

		(89	)		2			(26	)		—			(113	)

Income (loss) before income tax and other items		(89	)		2,287			659			—			2,857
Income tax expense		149			(755	)		(150	)		—			(756	)
Equity income (loss) of affiliates		1,405			2			209			(1,623	)		(7	)

Net income (loss)		1,465			1,534			718			(1,623	)		2,094
Net loss (income) attributable to noncontrolling interests		—			(774	)		20			125			(629	)

Net income (loss) attributable to Newmont stockholders	$	1,465		$	760		$	738		$	(1,498	)	$	1,465


⁽¹⁾		Exclusive of Amortization and Reclamation and remediation.

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)


	Nine Months Ended September 30, 2009
													Newmont
	Newmont												Mining
	Mining			Newmont			Other						Corporation
Condensed Consolidating Statement of Income	Corporation			USA			Subsidiaries			Eliminations			Consolidated

Sales	$	—		$	3,991		$	1,196		$	—		$	5,187

Costs and expenses
Costs applicable to sales ⁽¹⁾		—			1,587			630			(17	)		2,200
Amortization		—			408			159			(1	)		566
Reclamation and remediation		—			24			10			—			34
Exploration		—			74			73			—			147
Advanced projects, research and development		—			46			57			(3	)		100
General and administrative		—			94			3			21			118
Other expense, net		8			117			125			—			250

		8			2,350			1,057			—			3,415

Other income (expense)
Other income, net		(12	)		(1	)		56			—			43
Interest income — intercompany		77			5			4			(86	)		—
Interest expense — intercompany		(7	)		—			(79	)		86			—
Interest expense, net		(24	)		(37	)		(4	)		—			(65	)

		34			(33	)		(23	)		—			(22	)

Income from continuing operations before income tax tax and other items		26			1,608			116			—			1,750
Income tax benefit (expense)		(2	)		(493	)		1			—			(494	)
Equity income (loss) of affiliates		729			—			102			(845	)		(14	)

Income (loss) from continuing operations		753			1,115			219			(845	)		1,242
Income (loss) from discontinued operations		(14	)		(14	)		—			14			(14	)

Net income (loss)		739			1,101			219			(831	)		1,228
Net loss (income) attributable to noncontrolling interests		—			(491	)		(44	)		46			(489	)

Net income (loss) attributable to Newmont stockholders	$	739		$	610		$	175		$	(785	)	$	739


(1)		Exclusive of Amortization and Reclamation and remediation.

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)


	Nine Months Ended September 30, 2010
													Newmont
	Newmont												Mining
	Mining			Newmont			Other						Corporation
Condensed Consolidating Statement of Cash Flows	Corporation			USA			Subsidiaries			Eliminations			Consolidated
Operating activities:
Net income (loss)	$	1,465		$	1,534		$	718		$	(1,623	)	$	2,094
Adjustments		(98	)		496			(1,194	)		1,623			827
Net change in operating assets and liabilities		(43	)		(415	)		(128	)		—			(586	)

Net cash provided from (used in) continuing operations		1,324			1,615			(604	)		—			2,335
Net cash used in discontinued operations		—			(13	)		—			—			(13	)

Net cash provided from (used in) operations		1,324			1,602			(604	)		—			2,322

Investing activities:
Additions to property, plant and mine development		—			(478	)		(494	)		—			(972	)
Investment in marketable debt and equity securities		—			—			(9	)		—			(9	)
Acquisitions, net		—			—			(2	)		—			(2	)
Proceeds from sale of other assets		—			8			45			—			53
Other		—			—			(72	)		—			(72	)

Net cash used in investing activities		—			(470	)		(532	)		—			(1,002	)

Financing activities:
Net repayments		—			(269	)		(5	)		—			(274	)
Net intercompany borrowings (repayments)		(1,216	)		(11	)		1,325			(98	)		—
Sale of subsidiary shares to noncontrolling interests		—			229			—			—			229
Acquisition of subsidiary shares from noncontrolling interests		—			—			(109	)		—			(109	)
Dividends paid to common stockholders		(172	)		—			—			—			(172	)
Dividends paid to noncontrolling interests		—			(458	)		—			98			(360	)
Proceeds from stock issuance, net		56			—			—			—			56
Change in restricted cash and other		—			47			(1	)		—			46

Net cash provided from (used in) financing activities		(1,332	)		(462	)		1,210			—			(584	)

Effect of exchange rate changes on cash		—			2			(2	)		—			—

Net change in cash and cash equivalents		(8	)		672			72			—			736
Cash and cash equivalents at beginning of period		8			3,067			140			—			3,215

Cash and cash equivalents at end of period	$	—		$	3,739		$	212		$	—		$	3,951

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)


	Nine Months Ended September 30, 2009
													Newmont
	Newmont												Mining
	Mining			Newmont			Other						Corporation
Condensed Consolidating Statement of Cash Flows	Corporation			USA			Subsidiaries			Eliminations			Consolidated
Operating activities:
Net income (loss)	$	739		$	1,101		$	219		$	(831	)	$	1,228
Adjustments		72			526			(684	)		831			745
Net change in operating assets and liabilities		(58	)		(11	)		42			—			(27	)

Net cash provided from (used in) continuing operations		753			1,616			(423	)		—			1,946
Net cash provided from discontinued operations		—			3			—			—			3

Net cash provided from (used in) operations		753			1,619			(423	)		—			1,949

Investing activities:
Additions to property, plant and mine development		—			(334	)		(980	)		—			(1,314	)
Acquisitions, net		(8	)		(11	)		(747	)		—			(766	)
Proceeds from sale of other assets		—			2			1			—			3
Other		—			(1	)		(10	)		—			(11	)

Net cash used in investing activities		(8	)		(344	)		(1,736	)		—			(2,088	)

Financing activities:
Net borrowings (repayments)		1,724			(32	)		6			—			1,698
Net intercompany borrowings (repayments)		(3,565	)		1,402			2,163			—			—
Dividends paid to common stockholders		(147	)		—			—			—			(147	)
Dividends paid to noncontrolling interests		—			(112	)		(3	)		—			(115	)
Proceeds from stock issuance		1,248			—			—			—			1,248
Change in restricted cash and other		(5	)		—			10			—			5

Net cash provided from (used in) financing activities of continuing operations		(745	)		1,258			2,176			—			2,689
Net cash used in financing activities of discontinued operations		—			(2	)		—			—			(2	)

Net cash provided from (used in) financing activities		(745	)		1,256			2,176			—			2,687

Effect of exchange rate changes on cash		—			—			39			—			39

Net change in cash and cash equivalents		—			2,531			56			—			2,587
Cash and cash equivalents at beginning of period		—			310			125			—			435

Cash and cash equivalents at end of period	$	—		$	2,841		$	181		$	—		$	3,022

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)


	At September 30, 2010
												Newmont
	Newmont											Mining
	Mining		Newmont			Other						Corporation
Condensed Consolidating Balance Sheet	Corporation		USA			Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	—	$	3,739		$	212		$	—		$	3,951
Trade receivables		—		457			32			—			489
Accounts receivable		2,267		785			349			(3,308	)		93
Investments		—		12			34			—			46
Inventories		—		313			213			—			526
Stockpiles and ore on leach pads		—		453			85			—			538
Deferred income tax assets		—		171			24			—			195
Other current assets		—		97			1,121			—			1,218

Current assets		2,267		6,027			2,070			(3,308	)		7,056
Property, plant and mine development, net		—		5,200			7,350			(18	)		12,532
Investments		—		27			1,251			—			1,278
Investments in subsidiaries		11,447		34			1,795			(13,276	)		—
Stockpiles and ore on leach pads		—		1,383			339			—			1,722
Deferred income tax assets		117		905			64			—			1,086
Other long-term assets		2,548		448			570			(2,864	)		702

Total assets	$	16,379	$	14,024		$	13,439		$	(19,466	)	$	24,376


Liabilities
Debt	$	—	$	279		$	10		$	—		$	289
Accounts payable		33		1,374			2,289			(3,300	)		396
Employee-related benefits		—		173			54			—			227
Income and mining taxes		—		254			11			—			265
Other current liabilities		85		310			3,196			(1,970	)		1,621

Current liabilities		118		2,390			5,560			(5,270	)		2,798
Debt		3,976		253			60			—			4,289
Reclamation and remediation liabilities		—		581			239			—			820
Deferred income tax liabilities		—		521			911			—			1,432
Employee-related benefits		4		284			61			—			349
Other long-term liabilities		355		55			2,641			(2,882	)		169

Total liabilities		4,453		4,084			9,472			(8,152	)		9,857

Equity
Preferred stock		—		—			61			(61	)		—
Common stock		778		—			—			—			778
Additional paid-in capital		7,938		2,715			3,885			(6,278	)		8,260
Accumulated other comprehensive income (loss)		768		(106	)		863			(757	)		768
Retained earnings (deficit)		2,442		4,561			(1,346	)		(3,215	)		2,442

Newmont stockholders’ equity		11,926		7,170			3,463			(10,311	)		12,248
Noncontrolling interests		—		2,770			504			(1,003	)		2,271

Total equity		11,926		9,940			3,967			(11,314	)		14,519

Total liabilities and equity	$	16,379	$	14,024		$	13,439		$	(19,466	)	$	24,376

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)


	At December 31, 2009
												Newmont
	Newmont											Mining
	Mining		Newmont			Other						Corporation
Condensed Consolidating Balance Sheet	Corporation		USA			Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	8	$	3,067		$	140		$	—		$	3,215
Trade receivables		—		417			21			—			438
Accounts receivable		2,338		673			363			(3,272	)		102
Investments		—		4			52			—			56
Inventories		—		307			186			—			493
Stockpiles and ore on leach pads		—		331			72			—			403
Deferred income tax assets		—		157			58			—			215
Other current assets		—		78			822			—			900

Current assets		2,346		5,034			1,714			(3,272	)		5,822
Property, plant and mine development, net		—		5,195			7,193			(18	)		12,370
Investments		—		26			1,160			—			1,186
Investments in subsidiaries		9,842		31			1,089			(10,962	)		—
Stockpiles and ore on leach pads		—		1,323			179			—			1,502
Deferred income tax assets		—		844			93			—			937
Other long-term assets		2,551		357			419			(2,845	)		482

Total assets	$	14,739	$	12,810		$	11,847		$	(17,097	)	$	22,299


Liabilities
Debt	$	—	$	147		$	10		$	—		$	157
Accounts payable		46		1,201			2,413			(3,264	)		396
Employee-related benefits		—		202			48			—			250
Income and mining taxes		—		192			8			—			200
Other current liabilities		58		281			2,949			(1,971	)		1,317

Current liabilities		104		2,023			5,428			(5,235	)		2,320
Debt		3,928		659			65			—			4,652
Reclamation and remediation liabilities		—		565			240			—			805
Deferred income tax liabilities		31		494			816			—			1,341
Employee-related benefits		4		324			53			—			381
Other long-term liabilities		338		62			2,637			(2,863	)		174
Liabilities of operations held for sale		—		13			—			—			13

Total liabilities		4,405		4,140			9,239			(8,098	)		9,686

Equity
Preferred stock		—		—			61			(61	)		—
Common stock		770		—			—			—			770
Additional paid-in capital		7,789		2,709			3,874			(6,214	)		8,158
Accumulated other comprehensive income (loss)		626		(125	)		738			(613	)		626
Retained earnings (deficit)		1,149		3,801			(2,080	)		(1,721	)		1,149

Newmont stockholders’ equity		10,334		6,385			2,593			(8,609	)		10,703
Noncontrolling interests		—		2,285			15			(390	)		1,910

Total equity		10,334		8,670			2,608			(8,999	)		12,613

Total liabilities and equity	$	14,739	$	12,810		$	11,847		$	(17,097	)	$	22,299

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 26 COMMITMENTS AND CONTINGENCIES

General

The Company follows ASC guidance in determining its accruals and disclosures with respect to loss contingencies. Accordingly, estimated losses from loss contingencies are accrued by a charge to income when information available prior to issuance of the financial statements indicates that it is probable (greater than a 75% probability) that a liability could be incurred and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred.

Operating Segments

The Company’s operating segments are identified in Note 3. Except as noted in this paragraph, all of the Company’s commitments and contingencies specifically described in this Note 26 relate to the Corporate and Other reportable segment. The Nevada Operations matters under Newmont USA Limited relate to the North America reportable segment. The PT Newmont Minahasa Raya matters relate to the Asia Pacific reportable segment. The Yanacocha matters relate to the South America reportable segment. The PTNNT matters relate to the Asia Pacific reportable segment.

Environmental Matters

The Company’s mining and exploration activities are subject to various laws and regulations governing the protection of the environment. These laws and regulations are continually changing and are generally becoming more restrictive. The Company conducts its operations so as to protect the public health and environment and believes its operations are in compliance with applicable laws and regulations in all material respects. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures.

Estimated future reclamation costs are based principally on legal and regulatory requirements. At September 30, 2010 and December 31, 2009, $719 and $698, respectively, were accrued for reclamation costs relating to currently producing mineral properties in accordance with asset retirement obligation guidance. The current portions of $31 and $36 at September 30, 2010 and December 31, 2009, respectively, are included in Other current liabilities.

In addition, the Company is involved in several matters concerning environmental obligations associated with former mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. The Company believes that the related environmental obligations associated with these sites are similar in nature with respect to the development of remediation plans, their risk profile and the compliance required to meet general environmental standards. Based upon the Company’s best estimate of its liability for these matters, $148 and $161 were accrued for such obligations at September 30, 2010 and December 31, 2009, respectively. These amounts are included in Other current liabilities and Reclamation and remediation liabilities. Depending upon the ultimate resolution of these matters, the Company believes that it is reasonably possible that the liability for these matters could be as much as 159% greater or 3% lower than the amount accrued at September 30, 2010. The amounts accrued for these matters are reviewed periodically based upon facts and circumstances available at the time. Changes in estimates are recorded in Reclamation and remediation in the period estimates are revised.

Details about certain of the more significant matters involved are discussed below.

Dawn Mining Company LLC (“Dawn”) — 51% Newmont Owned

Midnite Mine Site. Dawn previously leased an open pit uranium mine, currently inactive, on the Spokane Indian Reservation in the State of Washington. The mine site is subject to regulation by agencies of the U.S. Department of Interior (the Bureau of Indian Affairs and the Bureau of Land Management), as well as the United States Environmental Protection Agency (“EPA”).

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

In 1991, Dawn’s mining lease at the mine was terminated. As a result, Dawn was required to file a formal mine closure and reclamation plan. The Department of Interior commenced an analysis of Dawn’s proposed plan and alternate closure and reclamation plans for the mine. Work on this analysis has been suspended indefinitely. In mid-2000, the mine was included on the National Priorities List under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”). In March 2003, the EPA notified Dawn and Newmont that it had thus far expended $12 on the Remedial Investigation/Feasibility Study (“RI/FS”) under CERCLA. In October 2005, the EPA issued the RI/FS on this property in which it indicated a preferred remedy that it estimated to cost approximately $150. Newmont and Dawn filed comments on the RI/FS with the EPA in January 2006. On October 3, 2006, the EPA issued a final Record of Decision in which it formally selected the preferred remedy identified in the RI/FS.

On January 28, 2005, the EPA filed a lawsuit against Dawn and Newmont under CERCLA in the U.S. District Court for the Eastern District of Washington. The EPA has asserted that Dawn and Newmont are liable for reclamation or remediation work and costs at the mine. Dawn does not have sufficient funds to pay for the reclamation plan it proposed or for any alternate plan, or for any additional remediation work or costs at the mine.

On July 14, 2008, after a bench trial, the Court held Newmont liable under CERCLA as an “operator” of the Midnite Mine. The Court previously ruled on summary judgment that both the U.S. Government and Dawn were liable under CERCLA. On October 17, 2008 the Court issued its written decision in the bench trial. The Court found Dawn and Newmont jointly and severally liable under CERCLA for past and future response costs, and ruled that each of Dawn and Newmont are responsible to pay one-third of such costs. The Court also found the U.S. Government liable on Dawn’s and Newmont’s contribution claim, and ruled that the U.S. Government is responsible to pay one-third of all past and future response costs. In November 2008, all parties appealed the Court’s ruling. Also in November 2008, the EPA issued an Administrative Order pursuant to Section 106 of CERCLA ordering Dawn and Newmont to conduct water treatment, testing and other preliminary remedial actions. Newmont has initiated those preliminary remedial actions.

Newmont intends to continue to vigorously defend this matter and cannot reasonably predict the outcome of this lawsuit or the likelihood of any other action against Dawn or Newmont arising from this matter.

Dawn Mill Site. Dawn also owns a uranium mill site facility, located on private land near Ford, Washington, which is subject to state and federal regulation. In late 1999, Dawn sought and later received approval from the State of Washington for a revised closure plan that expedites the reclamation process at the site. The currently approved plan for the site is guaranteed by Newmont.

Newmont Canada Limited (“Newmont Canada”) — 100% Newmont Owned

On November 11, 2008, St. Andrew Goldfields Ltd. (“St. Andrew”) filed an Application in the Superior Court of Justice in Ontario, Canada, seeking a declaration to clarify St. Andrew’s royalty obligations regarding certain mineral rights and property formerly owned by Newmont Canada and now owned by St. Andrew.

Newmont Canada purchased the property, called the Holt-McDermott property (“Holt Property”), from Barrick Gold Corporation (“Barrick”) in October 2004. At that time, Newmont Canada entered into a royalty agreement with Barrick (the “Barrick Royalty”), allowing Barrick to retain a royalty on the Holt Property. In August 2006, Newmont Canada sold all of its interests in the Holt Property to Holloway Mining Company (“Holloway”) in exchange for common stock issued by Holloway. In September 2006, Newmont Canada entered into a purchase and sale agreement with St. Andrew (the “2006 Agreement”), under which St. Andrew acquired all the common stock of Holloway. In 2008, Barrick sold its Barrick Royalty to Royal Gold, Inc. (“Royal Gold”).

In the court proceedings, St. Andrew alleged that in the 2006 Agreement it only agreed to assume royalty obligations equal to 0.013% of net smelter returns from operations on the Holt Property. Such an interpretation of the 2006 Agreement would make Newmont responsible for any royalties exceeding that amount payable to Royal Gold pursuant to the Barrick Royalty, which is a royalty determined by multiplying 0.00013 by the quarterly average gold price. On July 23, 2009, the Superior Court issued a decision finding in favor of St. Andrews’ interpretation. On August 21, 2009, Newmont Canada appealed the decision. If the Court of Appeals upholds the lower court ruling, Newmont will be liable for the sliding scale royalty, which would equal a 13% royalty at a quarterly average gold price of $1,000, minus a 0.013% of net smelter returns. There is no cap on the royalty at issue and it increases or decreases with the gold price, based upon the multiplication of 0.00013 by the quarterly average gold price. Newmont Canada intends to continue to vigorously defend this matter but cannot reasonably predict the outcome.

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

Newmont USA Limited — 100% Newmont Owned

Grey Eagle Mine Site. By letter dated September 3, 2002, the EPA notified Newmont that the EPA had expended $3 in response costs to address environmental conditions associated with a historic tailings pile located at the Grey Eagle Mine site near Happy Camp, California, and requested that Newmont pay those costs. The EPA has identified four potentially responsible parties, including Newmont. Newmont does not believe it has any liability for environmental conditions at the Grey Eagle Mine site, and intends to vigorously defend any formal claims by the EPA. Newmont cannot reasonably predict the likelihood or outcome of any future action against it arising from this matter.

Ross-Adams Mine Site. By letter dated June 5, 2007, the U.S. Forest Service notified Newmont that it had expended approximately $0.3 in response costs to address environmental conditions at the Ross-Adams mine in Prince of Wales, Alaska, and requested Newmont USA Limited pay those costs and perform an Engineering Evaluation/Cost Analysis (“EE/CA”) to assess what future response activities might need to be completed at the site. Newmont intends to vigorously defend any formal claims by the EPA. Newmont has agreed to perform the EE/CA. Newmont cannot reasonably predict the likelihood or outcome of any future action against it arising from this matter.

PT Newmont Minahasa Raya (“PTNMR”) — 80% Newmont Owned

On March 22, 2007, an Indonesian non-governmental organization named Wahana Lingkungan Hidup Indonesia (“WALHI”) filed a civil suit against PTNMR, the Newmont subsidiary that operated the Minahasa mine in Indonesia, and Indonesia’s Ministry of Energy and Mineral Resources and Ministry for the Environment, alleging pollution from the disposal of mine tailings into Buyat Bay, and seeking a court order requiring PTNMR to fund a 25-year monitoring program in relation to Buyat Bay. In December 2007, the court ruled in PTNMR’s favor and found that WALHI’s allegations of pollution in Buyat Bay were without merit. In March 2008, WALHI appealed this decision to the Indonesian High Court. On January 27, 2010, the Indonesian High Court upheld the December 2007 ruling in favor of PTNMR. On May 17, 2010, WALHI filed an appeal of the January 27, 2010 Indonesian High Court ruling seeking review from the Indonesian Supreme Court. The appeal by WALHI is still being processed by the district court of South Jakarta before being reviewed by the Indonesian Supreme Court. Independent sampling and testing of Buyat Bay water and fish, as well as area residents, conducted by the World Health Organization and the Australian Commonwealth Scientific and Industrial Research Organization, confirm that PTNMR has not polluted the Buyat Bay environment, and, therefore, has not adversely affected the fish in Buyat Bay or the health of nearby residents. The Company remains steadfast that it has not caused pollution or health problems.

Other Legal Matters

Minera Yanacocha S.R.L. (“Yanacocha”) — 51.35% Newmont Owned

Choropampa. In June 2000, a transport contractor of Yanacocha spilled approximately 151 kilograms of elemental mercury near the town of Choropampa, Peru, which is located 53 miles (85 kilometers) southwest of the Yanacocha mine. Elemental mercury is not used in Yanacocha’s operations but is a by-product of gold mining and was sold to a Lima firm for use in medical instruments and industrial applications. A comprehensive health and environmental remediation program was undertaken by Yanacocha in response to the incident. In August 2000, Yanacocha paid under protest a fine of 1,740,000 Peruvian soles (approximately $0.5) to the Peruvian government. Yanacocha has entered into settlement agreements with a number of individuals impacted by the incident. As compensation for the disruption and inconvenience caused by the incident, Yanacocha entered into agreements with and provided a variety of public works in the three communities impacted by this incident. Yanacocha cannot predict the likelihood of additional expenditures related to this matter.

Additional lawsuits relating to the Choropampa incident were filed against Yanacocha in the local courts of Cajamarca, Peru, in May 2002 by over 900 Peruvian citizens. A significant number of the plaintiffs in these lawsuits entered into settlement agreements with Yanacocha prior to filing such claims. In April 2008, the Peruvian Supreme Court upheld the validity of these settlement agreements, which the Company expects to result in the dismissal of all claims brought by previously settled plaintiffs. Yanacocha has also entered into settlement agreements with approximately 350 additional plaintiffs. The claims asserted by approximately 200 plaintiffs remain. Neither the Company nor Yanacocha can reasonably estimate the ultimate loss relating to such claims.

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

PT Newmont Nusa Tenggara (“PTNNT”) — 31.5% Newmont Direct Ownership

Under the Batu Hijau Contract of Work, beginning in 2006 and continuing through 2010, a portion of PTNNT’s shares were required to be offered for sale, first, to the Indonesian government or, second, to Indonesian nationals, equal to the difference between the following percentages and the percentage of shares already owned by the Indonesian government or Indonesian nationals (if such number is positive): 23% by March 31, 2006; 30% by March 31, 2007; 37% by March 31, 2008; 44% by March 31, 2009; and 51% by March 31, 2010. As PT Pukuafu Indah (“PTPI”), an Indonesian national, has owned a 20% interest in PTNNT at all relevant times, in 2006, a 3% interest was required to be offered for sale and, in each of 2007 through 2010, an additional 7% interest was required to be offered (for an aggregate 31% interest). The price at which such interests were to be offered for sale to the Indonesian parties is the highest of the then-current replacement cost, the price at which shares would be accepted for listing on the Indonesian Stock Exchange, or the fair market value of such interest as a going concern, as agreed with the Indonesian government.

In accordance with the Contract of Work, an offer to sell a 3% interest was made to the Indonesian government in 2006 and an offer for an additional 7% interest was made in each of 2007, 2008 and 2009, and the offer for the final 7% interest was made in March 2010. While the central government declined to participate in the 2006 and 2007 offers, local governments in the area in which the Batu Hijau mine is located expressed interest in acquiring shares, as did various Indonesian nationals. After disagreement with the government over whether the government’s first right to purchase had expired and receipt of Notices of Default from the government claiming breach and threatening termination of the Contract of Work, on March 3, 2008, the Indonesian government filed for international arbitration as provided under the Contract of Work, as did PTNNT. In the arbitration proceeding, PTNNT sought a declaration that the Indonesian government was not entitled to terminate the Contract of Work and additional declarations pertaining to the procedures for divesting the shares. For its part, the Indonesian government sought declarations that PTNNT was in default of its divestiture obligations, that the government may terminate the Contract of Work and recover damages for breach of the Contract of Work, and that PTNNT must cause shares subject to divestiture to be sold to certain local governments.

An international arbitration panel (the “Panel”) was appointed to resolve these claims and other claims that had arisen in relation to divestment and a hearing was held in Jakarta in December 2008. On March 31, 2009, the Panel issued its final award and decision on the matter. In its decision, the Panel determined that PTNNT’s foreign shareholders had not complied with the divestiture procedure required by the Contract of Work in 2006 and 2007, but the Panel ruled that the Indonesian government was not entitled to immediately terminate the Contract of Work and rejected the Indonesian government’s claim for damages. The Panel granted PTNNT 180 days from the date of notification of the final award to effect transfer of the 2006 3% interest and the 2007 7% interest in PTNNT to the local governments or their respective nominees. The Panel also applied a 180-day cure period to the 2008 7% interest, requiring that PTNNT effect the offer of the 2008 7% interest to the Indonesian government or its nominee within such 180-day period, and ensure the transfer of such shares if, after agreement on the transfer price, the Indonesian government invoked its right of first refusal under the Contract of Work. On July 14, 2009, the Company reached agreement with the Indonesian government on the price of the 2008 7% interest and the 2009 7% interest. PTNNT effected the reoffer of the 2008 7% interest and the 2009 7% interest to the Indonesian government at this newly agreed price. In November and December 2009, sale agreements were concluded pursuant to which the 2006, 2007 and 2008 shares were transferred to PT Multi Daerah Bersaing (“PTMDB”), the nominee of the local governments, and the 2009 shares were transferred to PTMDB in February 2010, resulting in PTMDB owning a 24% interest in PTNNT. Although the Indonesian government has acknowledged that PTNNT is no longer in breach of the Contract of Work, future disputes may arise as to the final divestiture of the 2010 shares. It is uncertain who will acquire the 2010 divestiture shares, and the nature of our relationship with the new owners of the 2010 shares and any future owners of the divested shares remain uncertain.

As part of the negotiation of the sale agreements with PTMDB, the parties executed an operating agreement (the “Operating Agreement”) under which each recognizes the rights of the Company and Sumitomo to apply their operating standards to the management of PTNNT’s operations, including standards for safety, environmental stewardship and community responsibility. The Operating Agreement became effective upon the completion of the sale of the 2009 shares in February 2010 and will continue for so long as the Company and Sumitomo own more shares of PTNNT than PTMDB. If the Operating Agreement terminates, then the Company may lose control over the applicable operating standards for Batu Hijau and will be at risk for operations conducted in a manner that either detracts from value or results in safety, environmental or social standards below those adhered to by the Company and Sumitomo.

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

In the event of any future disputes under the Contract of Work or Operating Agreement, there can be no assurance that the Company would prevail in any such dispute and any termination of such contracts could result in substantial diminution in the value of the Company’s interests in PTNNT.

Additionally, in February 2010, PTNNT was notified by the tax authorities of the Indonesian government, that PTNNT may be obligated to pay value added taxes on certain goods imported after the year 2000. PTNNT believes that pursuant to the terms of its Contract of Work, it is only required to pay value added taxes on these types of goods imported after February 28, 2010. The Company and PTNNT are working cooperatively with the applicable government authorities to resolve this matter.

PT Pukuafu Indah Litigation

In October 2009, PTPI filed a lawsuit in the Central Jakarta District Court against PTNNT and the Indonesian government seeking to cancel the March 2009 arbitration award pertaining to the manner in which divestiture of shares in PTNNT should proceed (refer to the discussion of PTNNT above for the arbitration results). On October 11, 2010, the District Court ruled in favor of PTNNT and the Indonesian government finding, among other things, that PTPI lacks standing to contest the validity of the arbitration award. PTPI has filed a notice of appeal of the court’s ruling.

Subsequent to its initial claim, PTPI filed three additional lawsuits, one of which was recently withdrawn, against Newmont Indonesia Limited (“NIL”) and Nusa Tenggara Mining Corporation (“NTMC”), a subsidiary of Sumitomo, in the South Jakarta District Court. Fundamentally, the cases all relate to PTPI’s contention that it owns, or has rights to own, the shares in PTNNT that NIL and NTMC have or will divest to fulfill the requirements of the PTNNT Contract of Work and the March 2009 arbitration award. PTPI also makes various other allegations, including alleged rights in or to NIL’s, NTMC’s or Sumitomo’s non-divestiture shares, and PTPI asserts claims for significant damages allegedly arising from NIL’s and NTMC’s unlawful acts in transferring the divestiture shares to a third party. In January 2010, PTPI also filed a lawsuit against PTNNT’s President Director, Mr. Martiono Hadianto, alleging wrongful acts associated with the arbitration, including failure to properly share information. Newmont, NIL, NTMC and PTNNT’s management believe that all of PTPI’s claims in these cases are without merit. Furthermore, in conjunction with Newmont’s provision of financing to PTPI in late 2009, PTPI signed a release agreement in which it and its shareholders committed to cease prosecution of the then-pending lawsuits and not to initiate new proceedings.

In August 2010, NIL and NVL USA Limited (“NVL”) commenced an arbitration against PTPI in the Singapore International Arbitration Centre, as provided in relevant agreements, seeking declarations that PTPI has violated the release agreement by failing to dismiss all such claims, that PTPI is in breach of the November 2009 loan facility and related agreements, and that NIL and NVL are entitled to damages arising from PTPI’s and its shareholders’ conduct.

On October 1, 2010, NIL and NVL requested, based upon the release agreement, that the arbitral tribunal issue an interim order requiring PTPI and its shareholders to discontinue the various Indonesian court proceedings and refrain from bringing additional lawsuits. On October 15, 2010, the tribunal issued an order granting NIL and NVL’s request. The order of the tribunal restrains PTPI and its agents from “proceeding with or continuing with or assisting or participating in the prosecution of the Indonesian [s]uits” and from commencing additional proceedings relating to the same subject matter as the Indonesian lawsuits. NIL and NVL are in the process of enforcing the interim award in Indonesian courts but it is not known the extent to which the Indonesian courts will enforce the order or whether PTPI and its shareholders will, in any event, abide by the order.

The Company intends to continue vigorously defending the PTPI lawsuits and pursuing its claims against PTPI in arbitration.

Other Commitments and Contingencies

Tax contingencies are provided for in accordance with ASC income tax guidance (see Note 10).

In a 1993 asset exchange, a wholly-owned subsidiary transferred a coal lease under which the subsidiary had collected advance royalty payments totaling $484. From 1994 to 2018, remaining advance payments under the lease to the transferee total $390. In the event of title failure as stated in the lease, this subsidiary has a primary obligation to refund previously collected payments and has a secondary obligation to refund any of the $390 collected by the transferee, if the transferee fails to meet its refund obligation. The subsidiary has title insurance on the leased coal deposits of $240 covering the secondary obligation. The Company and the subsidiary regard the circumstances entitling the lessee to a refund as remote.

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
(dollars in millions, except per share, per ounce and per pound amounts)

The Company has minimum royalty obligations on one of its producing mines in Nevada for the life of the mine. Amounts paid as a minimum royalty (where production royalties are less than the minimum obligation) in any year are recoverable in future years when the minimum royalty obligation is exceeded. Although the minimum royalty requirement may not be met in a particular year, the Company expects that over the mine life, gold production will be sufficient to meet the minimum royalty requirements. Minimum royalty payments payable are $40 in 2010, $28 in 2011 through 2014 and $278 thereafter.

As part of its ongoing business and operations, the Company and its affiliates are required to provide surety bonds, bank letters of credit and bank guarantees as financial support for various purposes, including environmental reclamation, exploration permitting, workers compensation programs and other general corporate purposes. At September 30, 2010 and December 31, 2009, there were $1,171 and $1,073, respectively, of outstanding letters of credit, surety bonds and bank guarantees. The surety bonds, letters of credit and bank guarantees reflect fair value as a condition of their underlying purpose and are subject to fees competitively determined in the market place. The obligations associated with these instruments are generally related to performance requirements that the Company addresses through its ongoing operations. As the specific requirements are met, the beneficiary of the associated instrument cancels and/or returns the instrument to the issuing entity. Certain of these instruments are associated with operating sites with long-lived assets and will remain outstanding until closure. Generally, bonding requirements associated with environmental regulation are becoming more restrictive. In addition, the surety markets for certain types of environmental bonding used by the Company have become increasingly constrained. The Company, however, believes it is in compliance with all applicable bonding obligations and will be able to satisfy future bonding requirements, through existing or alternative means, as they arise.

Newmont is from time to time involved in various legal proceedings related to its business. Except in the above-described proceedings, management does not believe that adverse decisions in any pending or threatened proceeding or that amounts that may be required to be paid by reason thereof will have a material adverse effect on the Company’s financial condition or results of operations.

NOTE 27 SUPPLEMENTARY DATA

Ratio of Earnings to Fixed Charges

The ratio of earnings to fixed charges for the nine months ended September 30, 2010 was 13.3. The ratio of earnings to fixed charges represents income before income tax expense, equity loss of affiliates and noncontrolling interests in subsidiaries, divided by interest expense. Interest expense includes amortization of capitalized interest and the portion of rent expense representative of interest. Interest expense does not include interest on income tax liabilities. The computation of the ratio of earnings to fixed charges can be found in Exhibit 12.1.

NOTE 28 SUBSEQUENT EVENTS

On October 27, 2010, Yanacocha repaid the $96 outstanding balance on its senior notes that had an original maturity date of July 2016. The senior notes were uncollateralized.


ITEM 2.		MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION (dollars in millions, except per share, per ounce and per pound amounts)

The following discussion provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations of Newmont Mining Corporation and its subsidiaries (collectively, “Newmont,” the “Company,” “our” and “we”). We use certain non-GAAP financial performance measures in our MD&A. For a detailed description of each of the non-GAAP financial measures used in this MD&A, please see the discussion under “Non-GAAP Financial Performance Measures” beginning on page 59. References to “A$” refer to Australian currency, “C$” to Canadian currency, “IDR” to Indonesian currency, “NZ$” to New Zealand currency and “$” to United States currency.

This item should be read in conjunction with our interim unaudited Condensed Consolidated Financial Statements and the notes thereto included in this quarterly report. Additionally, the following discussion and analysis should be read in conjunction with Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations and the consolidated financial statements included in Part II of our Annual Report on Form 10-K for the year ended December 31, 2009.

Overview

Newmont is one of the world’s largest gold producers and is the only gold company included in the S&P 500 Index and Fortune 500, and was the first gold company included in the Dow Jones Sustainability Index-World. We are also engaged in the exploration for and acquisition of gold and gold/copper properties. We have significant assets or operations in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand and Mexico. Our vision is to be the most valued and respected mining company through industry leading performance.

Newmont remains focused on progressing the development of our next generation of mining projects, including Conga in Peru, Akyem in Ghana and Hope Bay in Canada, as well as a series of satellite deposits in Nevada. Roughly 40% of our 2010 capital expenditures will be invested in these projects and the development of our pipeline, funded primarily from Net cash from continuing operations, as we continue to deliver solid leverage to the gold price. 2010 highlights are included in the table below and discussed further in Results of Consolidated Operations.

Selected Financial and Operating Results


	Three Months Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009
Sales	$	2,597	$	2,049	$	6,992	$	5,187
Income from continuing operations	$	814	$	645	$	2,094	$	1,242
Net income	$	814	$	645	$	2,094	$	1,228
Net income attributable to Newmont stockholders	$	537	$	388	$	1,465	$	739

Per common share, basic :
Income from continuing operations attributable to Newmont stockholders	$	1.09	$	0.79	$	2.98	$	1.54
Net income attributable to Newmont stockholders	$	1.09	$	0.79	$	2.98	$	1.52

Adjusted net income ⁽¹⁾	$	534	$	387	$	1,319	$	796
Adjusted net income per share ⁽¹⁾	$	1.08	$	0.79	$	2.68	$	1.64

Consolidated gold ounces (thousands)
Produced		1,689		1,702		4,862		4,720
Sold ⁽²⁾		1,667		1,715		4,794		4,734

Consolidated copper pounds (millions)
Produced		156		142		463		337
Sold		158		141		434		342

Average price received, net:
Gold (per ounce)	$	1,221	$	964	$	1,176	$	930
Copper (per pound)	$	3.67	$	2.80	$	3.17	$	2.30

Costs applicable to sales:
Gold (per ounce)	$	477	$	404	$	483	$	419
Copper (per pound)	$	0.73	$	0.50	$	0.76	$	0.63


⁽¹⁾		See “Non-GAAP Financial Measures” on page 59.

⁽²⁾		2010 results include 16 thousand incremental start-up ounces. 2009 results include nil and 1 thousand incremental start-up ounces for the three and nine months ended, respectively.

Consolidated Financial Results

Net income attributable to Newmont stockholders for the third quarter of 2010 was $537 ($1.09 per share) compared to $388 ($0.79 per share) for the third quarter of 2009. Results for the third quarter of 2010 compared to the third quarter of 2009 were impacted by higher realized gold and copper prices combined with higher copper sales volume, partially offset by increased costs applicable to sales, amortization and income taxes. Net income attributable to Newmont stockholders for the first nine months of 2010 was $1,465 ($2.98 per share) compared to $739 ($1.52 per share) for the first nine months of 2009. Results for the first nine months of 2010 compared to the first nine months of 2009 were impacted by higher realized gold and copper prices, higher sales volumes, a $127 tax benefit related to the conversion of non-U.S. entities for income tax purposes in the first quarter of 2010, a $42 gain from the sale of non-core assets in 2010 and $67 of Boddington acquisition expenses in 2009, partially offset by increased costs applicable to sales, amortization and income taxes.

Sales — gold, net for the third quarter of 2010 increased 22% compared to the third quarter of 2009 due to higher realized prices, slightly offset by decreased sales volume and an increase in treatment and refining charges. Sales - gold, net for the first nine months of 2010 increased 28% compared to the first nine months of 2009 due to higher realized prices and increased sales volume, slightly offset by an increase in treatment and refining charges. The following analysis summarizes the change in consolidated gold sales revenue:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
Consolidated gold sales:
Gross before provisional pricing	$	2,028		$	1,655		$	5,632		$	4,415
Provisional pricing mark-to-market gain		5			5			27			6

Gross after provisional pricing		2,033			1,660			5,659			4,421
Less: Treatment and refining charges		(17	)		(7	)		(40	)		(20	)

Net	$	2,016		$	1,653		$	5,619		$	4,401


Consolidated gold ounces sold (thousands):
Gross		1,667			1,715			4,794			4,734
Less: Incremental start-up sales		(16	)		—			(16	)		(1	)

Net		1,651			1,715			4,778			4,733


Average realized gold price (per ounce):
Gross before provisional pricing	$	1,229		$	965		$	1,179		$	933
Provisional pricing mark-to-market gain		3			3			6			1

Gross after provisional pricing		1,232			968			1,185			934

Less: Treatment and refining charges		(11	)		(4	)		(9	)		(4	)

Net	$	1,221		$	964		$	1,176		$	930

The change in consolidated gold sales is due to:


	Three Months Ended			Nine Months Ended
	September 30,			September 30,
	2010 vs. 2009			2010 vs. 2009
Change in consolidated ounces sold	$	(62	)	$	42
Change in average realized gold price		435			1,196
Change in treatment and refining charges		(10	)		(20	)

	$	363		$	1,218

Sales — copper, net for the third quarter of 2010 increased 47% compared to the third quarter of 2009 due to higher realized prices and increased sales volume. Sales - copper, net for the first nine months of 2010 increased 75% compared to the first nine months of 2009 due to higher realized prices and increased sales volume. The following analysis summarizes the change in consolidated copper sales revenue:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
Consolidated copper sales:
Gross before provisional pricing	$	539		$	386		$	1,433		$	763
Provisional pricing mark-to-market gain		78			48			30			112

Gross after provisional pricing		617			434			1,463			875
Less: Treatment and refining charges		(36	)		(38	)		(90	)		(89	)

Net	$	581		$	396		$	1,373		$	786


Consolidated copper pounds sold (millions)		158			141			434			342

Average realized copper price (per pound):
Gross before provisional pricing	$	3.41		$	2.73		$	3.31		$	2.23
Provisional pricing mark-to-market gain		0.49			0.34			0.07			0.33

Gross after provisional pricing		3.90			3.07			3.38			2.56
Less: Treatment and refining charges		(0.23	)		(0.27	)		(0.21	)		(0.26	)

Net	$	3.67		$	2.80		$	3.17		$	2.30

The change in consolidated copper sales is due to:


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2010 vs. 2009		2010 vs. 2009
Change in consolidated pounds sold	$	51	$	234
Change in average realized copper price		132		354
Change in treatment and refining charges		2		(1	)

	$	185	$	587

The following is a summary of consolidated gold and copper sales, net:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009
*Gold*
North America:
Nevada	$	568	$	481	$	1,540	$	1,321
La Herradura		52		23		149		75

		620		504		1,689		1,396

South America:
Yanacocha		436		535		1,321		1,451

Asia Pacific:
Boddington		181		—		582		—
Batu Hijau		260		201		595		358
Jundee		109		103		320		293
Kalgoorlie		125		91		343		223
Tanami		87		61		220		220
Waihi		30		27		90		78

		792		483		2,150		1,172

Africa:
Ahafo		168		131		459		382


		2,016		1,653		5,619		4,401

*Copper*
Asia Pacific:
Batu Hijau		543		396		1,256		786
Boddington		38		—		117		—

		581		396		1,373		786

	$	2,597	$	2,049	$	6,992	$	5,187

Costs applicable to sales increased in the third quarter of 2010 compared to the third quarter of 2009 and increased in the first nine months of 2010 compared to the first nine months of 2009, as detailed in the table below. The increase in Costs applicable to sales for gold is due to the addition of Boddington production as of November 2009, higher production at Batu Hijau and La Herradura and higher waste mining costs. The increase in Costs applicable to sales for copper is due to the addition of Boddington production and higher production and waste mining costs at Batu Hijau. For a complete discussion regarding variations in operations, see Results of Consolidated Operations below.

Amortization increased in the third quarter of 2010 compared to the third quarter of 2009 and increased in the first nine months of 2010 compared to the first nine months of 2009, as detailed in the table below. The increase in Amortization is due to the commencement of commercial production at Boddington in November 2009, higher production at Batu Hijau and La Herradura and higher capitalized mine development in Nevada. We now expect 2010 Amortization to be approximately $925 to $950 (previous guidance was $970 to $1,000).

The following is a summary of Costs applicable to sales and Amortization:


	Costs Applicable								Costs Applicable
	to Sales				Amortization				to Sales				Amortization
	Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,				September 30,
	2010		2009		2010		2009		2010		2009		2010		2009
*Gold*
North America:
Nevada	$	267	$	273	$	68	$	69	$	776	$	764	$	194	$	183
La Herradura		20		8		5		2		52		30		13		7

		287		281		73		71		828		794		207		190
South America:
Yanacocha		149		163		42		43		442		488		119		128
Asia Pacific:
Boddington		91		—		25		—		284		—		81		—
Batu Hijau		47		37		12		10		123		88		34		23
Jundee		34		33		7		12		104		103		25		33
Kalgoorlie		55		60		5		5		158		151		12		11
Tanami		49		45		11		10		139		146		32		32
Waihi		19		14		3		5		53		38		13		18

		295		189		63		42		861		526		197		117
Africa:
Ahafo		57		61		22		17		176		175		58		51

		788		694		200		173		2,307		1,983		581		486

*Copper*
Asia Pacific:
Batu Hijau		96		71		26		18		261		217		72		55
Boddington		19		—		5		—		68		—		18		—

		115		71		31		18		329		217		90		55

*Other*
Hope Bay		—		—		4		3		—		—		10		9
Asia Pacific		—		—		1		1		—		—		2		2
Corporate and other		—		—		6		4		—		—		14		14

		—		—		11		8		—		—		26		25

	$	903	$	765	$	242	$	199	$	2,636	$	2,200	$	697	$	566

Exploration expense increased $12 in the third quarter of 2010 compared to the third quarter of 2009 due to additional near mine expenditures in all regions, with the largest increase at Leeville/Turf in Nevada. Exploration expense increased $16 in the first nine months of 2010 compared to the first nine months of 2009 due to additional near mine expenditures in all regions. We continue to expect Exploration expense to be approximately $220 to $245 in 2010.

Advanced projects, research and development expense increased $19 in the third quarter of 2010 compared to the third quarter of 2009 and $49 in the first nine months of 2010 compared to the first nine months of 2009 due to additional expenditures for Hope Bay in Canada, Yanacocha sulfides, Chaquicocha underground and Grande Basin in South America, Subika underground at Ahafo and technical and project services, partially offset by a reduction of expenditures for Boddington as it achieved commercial production in November 2009.

The following is a summary of Advanced projects, research and development:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009
Major projects:
Hope Bay	$	13	$	2	$	48	$	18
Subika underground		4		—		6		1
Conga		2		1		5		2
Akyem		—		2		4		5
Boddington		—		11		—		24
Other projects:
Technical and project services		12		6		35		18
Corporate		4		3		25		10
South America growth		7		1		11		5
Nevada growth		2		1		8		13
Other		2		—		7		4

	$	46	$	27	$	149	$	100

We continue to expect Advanced projects, research and development expenses to be approximately $230 to $250 in 2010.

General and administrative expenses increased by $6 in the third quarter of 2010 compared to the third quarter of 2009 due to higher compensation, benefit and consulting costs. General and administrative expenses increased by $15 in the first nine months of 2010 compared to the first nine months of 2009 due to higher compensation and benefit costs. We expect 2010 General and administrative expenses to be approximately $180 to $190.

Other expense, net decreased by $15 in the third quarter of 2010 compared to the third quarter of 2009 due to lower costs at the Western Australia power plant. Other expense, net decreased by $50 in the first nine months of 2010 compared to the first nine months of 2009 due to Boddington acquisition costs and higher Western Australia power plant costs in 2009, partially offset by higher community development costs at Batu Hijau in 2010.

Other income, net decreased by $20 in the third quarter of 2010 compared to the third quarter of 2009 due to a weaker US$ and foreign currency translation losses (primarily Australia), partially offset by an increase in Canadian Oil Sands Trust income and income from Amoma incremental start-up production at Ahafo. Other income, net increased by $54 in the first nine months of 2010 compared to the first nine months of 2009 due to the sale of non-core assets and an increase in Canadian Oil Sands Trust income, partially offset by foreign currency translation losses.

Interest expense, net increased by $56 in the third quarter of 2010 compared to the third quarter of 2009 and increased by $145 in the first nine months of 2010 compared to the first nine months of 2009 due to interest related to the 2019 and 2039 senior notes issued during September 2009 and lower capitalized interest. Capitalized interest decreased by $39 in the third quarter of 2010 compared to the third quarter of 2009 and decreased by $74 in the first nine months of 2010 compared to the first nine months of 2009 due to achieving commercial production at Boddington in November 2009. We expect 2010 Interest expense, net to be approximately $270 to $290.

Income tax expense during the third quarter of 2010 was $348 resulting in an effective tax rate of 29.9%. Income tax expense during the third quarter of 2009 was $253 for an effective tax rate of 28.0%. The increase in the effective tax rate from 2009 to 2010 resulted from the change in the jurisdictional blend of our taxable income and the effect it has on the overall rate impact from percentage depletion and non-recurring discrete items in the prior quarter. Income tax expense during the first nine months of 2010 was $756 resulting in an effective tax rate of 26.5%. Income tax expense during the first nine months of 2009 was $494 for an effective tax rate of 28.2%. The decrease in the effective tax rate from 2009 to 2010 resulted from a tax benefit of $127 being recorded in the first quarter of 2010 from the conversion of non-US tax-paying entities to entities currently subject to U.S. income tax resulting in an increase in net deferred tax assets, partially offset by the change in the jurisdictional blend of the our taxable income and the effect it has on the overall rate impact from percentage depletion. The effective tax rates in the third quarter of 2010 and 2009 are different from the United States statutory rate of 35% primarily due to the above mentioned tax benefit in 2010, U.S. percentage depletion and the effect of different income tax rates in countries where earnings are indefinitely reinvested. For a complete discussion of the factors that influence our effective tax rate, see Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations in Newmont’s Annual Report on Form 10-K for the year ended December 31, 2009 filed February 25, 2010. We expect the 2010 full year tax rate to be approximately 26% to 28%, assuming an average gold price of $1,100 per ounce.

Net income attributable to noncontrolling interests increased to $277 in the third quarter of 2010 compared to $257 in the third quarter of 2009 as a result of increased earnings at Batu Hijau, partially offset by lower earnings at Yanacocha. Net income attributable to noncontrolling interests increased to $629 in the first nine months of 2010 compared to $489 in the first nine months of 2009 as a result of increased earnings at Batu Hijau, partially offset by lower earnings at Yanacocha.

The Income (loss) from discontinued operations of $(14) in 2009 related to the sale of the Kori Kollo operation in Bolivia in July 2009.

Results of Consolidated Operations


	Gold Ounces or
	Copper Pounds Produced				Costs Applicable to Sales⁽¹⁾				Amortization
	2010		2009		2010		2009		2010		2009
Three Months Ended September 30,
Gold	(in thousands)				($ per ounce)				($ per ounce)
North America		495		510	$	565	$	532	$	144	$	136
South America⁽²⁾		355		543		420		294		118		78
Asia Pacific⁽²⁾		683		504		451		380		96		82
Africa		156		145		422		446		160		130

Total/Weighted-Average		1,689		1,702	$	477	$	404	$	121	$	101

Equity⁽³⁾⁽⁴⁾		1,408		1,326


Copper	(in millions)				($ per pound)				($ per pound)
Asia Pacific⁽²⁾		156		142	$	0.73	$	0.50	$	0.20	$	0.12
Equity		83		64


	Gold Ounces or
	Copper Pounds Produced				Costs Applicable to Sales⁽¹⁾				Amortization
	2010		2009		2010		2009		2010		2009
Nine Months Ended September 30,
Gold	(in thousands)				($ per ounce)				($ per ounce)
North America		1,431		1,500	$	579	$	524	$	145	$	126
South America⁽²⁾		1,131		1,559		392		313		106		82
Asia Pacific⁽²⁾		1,892		1,252		469		422		107		93
Africa		408		409		456		424		151		125

Total/Weighted-Average		4,862		4,720	$	483	$	419	$	122	$	103

Equity⁽³⁾⁽⁴⁾		4,038		3,781


Copper	(in millions)				($ per pound)				($ per pound)
Asia Pacific⁽²⁾		463		337	$	0.76	$	0.63	$	0.21	$	0.16
Equity		253		152


⁽¹⁾		Excludes Amortization and Reclamation and remediation.

⁽²⁾		Consolidated gold ounces or copper pounds produced includes noncontrolling interests’ share at Yanacocha and Batu Hijau.

⁽³⁾		Includes our equity share of Yanacocha and Batu Hijau gold ounces produced and, for the three and nine months ended in 2010, respectively, 5 thousand ounces from non-consolidated equity interests.

⁽⁴⁾		2009 results include 2 thousand and 32 thousand ounces from discontinued operations for the three and nine months ended, respectively.

Third quarter 2010 compared to 2009

Consolidated gold production decreased slightly as lower production in South America and North America was largely offset by higher production in Asia Pacific (primarily the start-up of Boddington) and Africa. Consolidated copper production increased 10% due to the start-up of Boddington in the second half of 2009.

Costs applicable to sales per consolidated gold ounce sold increased 18% due to higher waste mining and royalty costs, a stronger Australian dollar, the addition of higher cost production at Boddington and lower production in South America, partially offset by higher production in Africa. Costs applicable to sales per consolidated copper pound sold increased 46% due to higher waste mining costs at Batu Hijau and the addition of higher cost production from Boddington.

Amortization per consolidated gold ounce sold increased 20% due to the start-up of Boddington in the second half of 2009, lower production in South America and equipment additions in Africa.

First nine months 2010 compared to 2009

Consolidated gold production increased 3% due to higher production in Asia Pacific (primarily the start-up of Boddington), partially offset by lower production in South America and North America. Consolidated copper production increased 37% due to higher production at Batu Hijau combined with the start-up of Boddington in the second half of 2009.

Costs applicable to sales per consolidated gold ounce sold increased 15% due to higher waste mining and royalty costs, a stronger Australian dollar, the addition of higher cost production at Boddington and lower production in South America. Costs applicable to sales per consolidated copper pound sold increased 21% due to higher waste mining costs at Batu Hijau and the addition of higher cost production from Boddington.

Amortization per consolidated gold ounce sold increased 18% due to the start-up of Boddington in the second half of 2009, lower production in South America and North America and equipment additions in Africa.

Our 2010 guidance for consolidated gold production has narrowed to approximately 6.3 to 6.5 million ounces (from previous guidance of 6.3 to 6.8 million ounces) at a higher range of Costs applicable to sales per ounce of approximately $485 to $500 (from previous guidance of $460 to $480 per ounce). Our 2010 guidance for consolidated copper production has decreased to approximately 565 to 605 million pounds (from previous guidance of 610 to 670 million pounds) at unchanged guidance for Costs applicable to sales per pound of approximately $0.85 to $0.95.

North America Operations


	Gold Ounces Produced				Costs Applicable to Sales⁽¹⁾				Amortization
	2010		2009		2010		2009		2010		2009
Three Months Ended September 30,	(in thousands)				($ per ounce)				($ per ounce)
Nevada		453		486	$	575	$	541	$	146	$	137
La Herradura (44% owned)		42		24		464		352		115		98

Total/Weighted-Average		495		510	$	565	$	532	$	144	$	136


	Gold Ounces Produced				Costs Applicable to Sales⁽¹⁾				Amortization
	2010		2009		2010		2009		2010		2009
Nine Months Ended September 30,	(in thousands)				($ per ounce)				($ per ounce)
Nevada		1,306		1,421	$	595	$	532	$	149	$	127
La Herradura (44% owned)		125		79		415		381		106		93

Total/Weighted-Average		1,431		1,500	$	579	$	524	$	145	$	126


⁽¹⁾		Excludes Amortization and Reclamation and remediation.

Third quarter 2010 compared to 2009

Nevada, USA. Gold production decreased 7% due to lower leach tons placed at Twin Creeks and Carlin, lower Gold Quarry ore feed to Mill 5 due to the slope failure which occurred in late 2009 and the completion of underground mining at Deep Post in 2009, partially offset by increased underground mining at Leeville. Costs applicable to sales per ounce increased 6% due to lower production, partially offset by higher silver and copper by-product credits. Amortization per ounce increased 7% due to lower production.

La Herradura, Mexico. Gold production increased 75% due to the commencement of production from the Soledad and Dipolos pits in January 2010. Costs applicable to sales per ounce increased 32% due to higher mining costs associated with waste removal from the two new pits. Amortization per ounce increased 17% due to the use of additional mining equipment and new leach pads.

First nine months 2010 compared to 2009

Nevada, USA. Gold production decreased 8% due to lower leach tons placed at Twin Creeks and Carlin, lower Gold Quarry ore feed to Mill 5 due to the slope failure which occurred in late 2009 and the completion of underground mining at Deep Post in 2009, partially offset by increased underground mining at Leeville. Mill throughput was also impacted by harder ore at Phoenix. Costs applicable to sales per ounce increased 12% due to lower production. Amortization per ounce increased 17% due to lower production and higher capitalized mine development.

La Herradura, Mexico. Gold production increased 58% due to the commencement of production from the Soledad and Dipolos pits in January 2010. Costs applicable to sales per ounce increased 9% due to higher mining costs associated with waste removal from the two new pits, partially offset by higher production. Amortization per ounce increased 14% due to the use of additional mining equipment and new leach pads.

We now expect gold production in North America of approximately 1.8 to 1.9 million ounces (previous guidance was 1.7 to 1.9 million ounces) at Costs applicable to sales per ounce of approximately $575 to $595 in 2010 (previous guidance was $575 to $615 per ounce).

South America Operations


	Gold Ounces Produced				Costs Applicable to Sales⁽¹⁾				Amortization
	2010		2009		2010		2009		2010		2009
Three Months Ended September 30,	(in thousands)				($ per ounce)				($ per ounce)
Yanacocha ⁽²⁾		355		543	$	420	$	294	$	118	$	78
Equity⁽³⁾		187		280


	Gold Ounces Produced				Costs Applicable to Sales⁽¹⁾				Amortization
	2010		2009		2010		2009		2010		2009
Nine Months Ended September 30,	(in thousands)				($ per ounce)				($ per ounce)
Yanacocha ⁽²⁾		1,131		1,559	$	392	$	313	$	106	$	82
Equity⁽³⁾		585		801


⁽¹⁾		Excludes Amortization and Reclamation and remediation.

⁽²⁾		Consolidated gold production includes noncontrolling interests’ share.

⁽³⁾		Gold production attributable to Newmont after noncontrolling interests (51.35% of Yanacocha gold ounces produced and 5 thousand ounces from our 46.94% non-consolidated equity interest in La Zanja).

Third quarter 2010 compared to 2009

Yanacocha, Peru. Gold production decreased 35% due to mine sequencing resulting in lower leach tons placed, transitional ore stockpiling at La Quinua and lower mill grade and recovery. Costs applicable to sales per ounce increased 43% due to lower production, higher waste mining and higher diesel and royalty costs, partially offset by higher silver by-product credits. Amortization per ounce increased 51% due to lower production.

First nine months 2010 compared to 2009

Yanacocha, Peru. Gold production decreased 27% due to mine sequencing resulting in lower leach tons placed, transitional ore stockpiling and lower mill grade and recovery. Costs applicable to sales per ounce increased 25% due to lower production and higher waste mining and diesel costs, partially offset by higher silver by-product credits. Amortization per ounce increased 29% due to lower production.

We now expect consolidated gold production in South America of approximately 1.48 to 1.5 million ounces (previous guidance was 1.5 to 1.6 million ounces) at Costs applicable to sales per ounce of approximately $400 to $420 in 2010 (previous guidance was $360 to $400 per ounce).

Asia Pacific Operations

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