IFC Approves Funding for Newmont Ahafo, Ghana Project
DENVER, January 31, 2006 - Newmont Mining Corporation (NYSE: NEM) today announced the International Finance Corp. (IFC) Board of Directors approved a $125 million financing for its Ahafo, Ghana, project. The IFC intends to fund $75 million, with the remainder to be provided by a syndicate of commercial banks.
"We are pleased the IFC has approved funding, making them a significant stakeholder in our Ahafo project," commented Newmont Chairman and CEO Wayne Murdy. "This project exemplifies the IFC's commitment to reduce poverty and create sustainable development while adhering to high social and environmental standards --- all goals which are consistent with Newmont's operating principles and corporate values."
Located in the Brong-Ahafo Region of western Ghana in West Africa, the Ahafo project site is about 180 miles northwest of the capital city of Accra. Total capital expenditures are expected to be approximately $425 million, with average annual gold sales estimated to be 500,000 – 550,000 ounces starting in mid-2006.
The IFC maintains a robust and transparent evaluation process addressing the social and environmental aspects of the projects it considers, including a comprehensive public consultation and disclosure procedure. Newmont participated fully in this process, electing for over 120 days of public disclosure, which is more than twice the IFC 60 day requirement. The public disclosure documents outline Newmont's engagement process and commitment through the Environmental and Social Impact Assessment (ESIA), Resettlement Action Plan and Public Consultation Disclosure Plan, and Independent Monitoring of Resettlement Implementation. All Public Disclosure Documents are posted on the IFC's website, www.ifc.org, and www.newmont.com.
As part of the process, Newmont has also engaged with several international NGOs. "This type of disclosure provides on-going consultation opportunities, and we will continue to seek out those interested in our business activities and engage in a transparent manner," concluded Murdy. "We will continue to work with the IFC, local communities, the Ghanaian government and NGOs to ensure that this project operates consistently with best practices in social and environmental responsibility."
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the safe harbor created by such sections. Such forward looking statements include, without limitation, (i) estimates of future gold production and sales; (ii) estimates of future capital expenditures; and (iii) estimates regarding timing of future development, construction and production. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, political and operational risks in the countries in which we operate, and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s 2004 Annual Report on Form 10-K, which is on file with the Securities and Exchange Commission, as well as the Company’s other SEC filings. The Company does not undertake any obligation to release publicly revisions to any “forward-looking statement,” to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
SOURCE Newmont Mining Corporation