8-KOther EventsExhibits & Filings

NEWMONT Corp /DE/ 8-K Report, Corporate Update (May 10, 2011)

Filed May 10, 2011For Securities:NEMNEMCL

Summary

Newmont Mining Corporation (NEM) has announced a definitive agreement to sell its final 7% divestiture stake in PT Newmont Nusa Tenggara (PTNNT), the operator of the Batu Hijau copper and gold mine in Indonesia, for $246.8 million. This sale is a requirement under the PTNNT Contract of Work with the Indonesian government. Upon closing, Newmont's direct and effective economic interest in PTNNT will be reduced to 44.56%. Despite the reduced ownership stake, Newmont expects to continue consolidating the Batu Hijau mine in its financial statements. This transaction is a significant step in fulfilling divestiture obligations and marks a partial exit from a key Indonesian asset, though operational and financial consolidation will persist. Investors should note that the company has provided forward-looking statements with associated risks, including commodity price volatility and political risks.

Key Highlights

  • 1Agreement signed on May 6, 2011, to sell the final 7% divestiture stake in PTNNT for $246.8 million.
  • 2Transaction fulfills divestiture obligations under the PTNNT Contract of Work with the Indonesian government.
  • 3Newmont's interest in PTNNT will be reduced to 49% after closing, with its economic interest becoming 44.56%.
  • 4The sale includes direct ownership of 27.56% and a 17% effective economic interest through financing arrangements.
  • 5Newmont expects to continue consolidating the Batu Hijau mine in its financial statements post-transaction.
  • 6Transaction closing is anticipated later in May 2011.
  • 7Filing includes a cautionary statement regarding forward-looking statements and associated risks.

Frequently Asked Questions

This transaction is significant as it allows Newmont to fulfill its divestiture obligations related to the PTNNT Contract of Work with the Indonesian government. While Newmont is reducing its direct ownership stake, it will continue to have a substantial economic interest and consolidate the Batu Hijau mine in its financial statements.

The Batu Hijau mine is a significant copper and gold mine in Indonesia operated by PT Newmont Nusa Tenggara (PTNNT). It represents a key asset for Newmont, and despite the partial divestiture, the company's continued consolidation indicates its ongoing importance to Newmont's operations and financial reporting.

The company has cautioned that forward-looking statements related to this transaction are subject to risks. These include commodity price volatility (gold and copper), currency fluctuations, operational and political risks in Indonesia, and changes in government regulation. Investors should refer to Newmont's 2010 Form 10-K for a more detailed discussion of these risks.

Newmont's economic interest will be 44.56% and its ownership interest will be 49% after the transaction. The filing states that Newmont expects to continue to consolidate Batu Hijau, implying continued operational influence, but direct control may be shared or impacted by the reduced ownership and contractual agreements.