Newmont Completes Permitting for Nevada Power Plant
DENVER, January 5, 2006 - Newmont Mining Corporation (NYSE: NEM) announced that it has completed the permitting process for its proposed 200 megawatt, coal-fired power plant in Nevada.
Newmont had received all required permits but had been awaiting resolution of an appeal of the state-issued Clean Air Act permit. The U.S. Environmental Protection Agency's Environmental Appeal Board upheld the permit in a ruling issued on December 21, 2005. Newmont may now proceed with construction, subject to final approval by Newmont's Board of Directors.
The plant is planned to be located on Newmont's TS Ranch in Eureka County, Nevada. Construction of the plant is expected to cost approximately $450 million and will provide long-term, reliable electrical power to the majority of Newmont's Nevada operations, including the new Phoenix Project. Newmont will initially utilize approximately 75% of the plant's output and expects to sell the remainder to the local utility, Sierra Pacific Power Company.
The plant will incorporate the best available control technology for air quality protection and is designed to exceed the EPA's stringent New Source Performance Standards for plant emissions.
Newmont has selected Fluor Enterprises as the plant's engineering, procurement and construction contractor. The plant will be operated by DTE Energy Services, a subsidiary of DTE Energy and affiliate of Detroit Edison. Newmont is currently targeting project completion in the first half of 2008. When completed, the plant is expected to reduce Newmont's Nevada Operations' current cash operating costs by approximately $25 per ounce.
Commenting on the news, Newmont Senior Vice President, Operations, Tom Enos said, "We are pleased to be moving forward with this important project. We believe this plant will have significant positive impacts to Newmont's long-term cost structure and has the added benefit of helping the state of Nevada meet its growing energy demands."
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 forwardlooking statements include, without limitation, (i) estimates of future costs applicable to sales; (ii) estimates of future capital expenditures; and (iii) estimates regarding timing of future development and construction. 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