Newmont Board Approves Joint Development of Boddington Project with Anglogold Ashanti
DENVER, Feb. 27—Newmont Mining Corporation (NYSE:NEM) announced that it will proceed with the development of the Boddington Project in Western Australia with AngloGold Ashanti Limited. Newmont recently entered into an agreement to acquire an additional 22.22% interest in Boddington from Newcrest Mining Limited. When that transaction closes, Newmont will own two-thirds of the project and AngloGold Ashanti will continue to own one-third. AngloGold Ashanti has also approved Boddington's development.
Commenting on the announcement, Newmont Chairman and Chief Executive Officer, Wayne W. Murdy said, "We are very pleased to be building this project in partnership with AngloGold Ashanti. With total gold reserves of over 11 million ounces and significant additional mineralized material not in reserves, Boddington represents one of the world's largest undeveloped gold projects. We believe the exploration opportunities at Boddington hold the potential to ultimately double reserves. For Newmont, Boddington will be a significant addition to our long-term growth profile."
Construction of the Boddington Project is expected to cost Newmont approximately $900 million to $1.0 billion, with initial production expected in late 2008. The project has a current estimated mine life of more than 15 years, with Newmont's share of annual production expected to be approximately 700,000 ounces for the first five years of production and average approximately 600,000 ounces over the life of the project. Costs applicable to sales, net of by-product credits, are expected to be approximately $210 per ounce.
Newmont's Senior Vice President of Operations, Tom Enos, also commented on the news, noting, Since acquiring our interest in this project through the acquisition of Normandy in 2002, our team has worked very hard with AngloGold Ashanti to advance and optimize Boddington. The result is a long-lived, world class project that we are now in a position to develop."
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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 production, timing of initial production, and
project life; (ii) statements regarding transaction closure and timing of transaction closure;(iii) estimates
of reserves and statements regarding exploration potential; (iv) estimates of capital expenditures; (v)
statements regarding future development and construction, and future capital costs;(vi) estimates of
reserves and statements regarding future exploration potential; and (vii) estimates of costs applicable to
sales . 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