8-KOther EventsExhibits & Filings

NEWMONT Corp /DE/ 8-K Report, Corporate Update (Jun 5, 2014)

Filed June 5, 2014For Securities:NEMNEMCL

Summary

Newmont Corp /DE/ (NEM) filed an 8-K on June 5, 2014, to report a significant operational development at its Batu Hijau mine in Indonesia. The company's Indonesian subsidiary, PT Newmont Nusa Tenggara (PTNNT), has officially invoked the force majeure clause of its Contract of Work due to ongoing export restrictions imposed by the Indonesian government. This action halts copper concentrate production and export from the Batu Hijau mine. This event has direct implications for Newmont's financial outlook. The company explicitly cautions investors that its previously issued 2014-2016 copper outlook, which assumed the continuation of Batu Hijau operations and timely export approvals, may no longer be achievable if exports cannot resume by the end of June. Investors are advised not to rely on the prior copper outlook in light of this development.

Key Highlights

  • 1PT Newmont Nusa Tenggara (PTNNT), a subsidiary of Newmont, has declared force majeure on its Contract of Work due to Indonesian export restrictions.
  • 2Copper concentrate production and export at the Batu Hijau mine in Indonesia have been officially halted.
  • 3Newmont is actively engaged in discussions with the Indonesian government to resolve the export issues.
  • 4The company cautions investors that its previously issued 2014-2016 copper production outlook is at risk.
  • 5The Batu Hijau mine's inability to export by the end of June 2014 will impact Newmont's copper outlook.
  • 6Investors are advised not to rely on the previously stated copper outlook due to this event.

Frequently Asked Questions

The Batu Hijau mine's operations, specifically the export of copper concentrate, have been halted due to ongoing export restrictions imposed by the Indonesian government, leading PT Newmont Nusa Tenggara (PTNNT) to declare force majeure.

Force majeure is a contractual clause that frees both parties from liability or obligation when an extraordinary event or circumstance beyond their control, such as a government export ban, prevents one or both parties from fulfilling their obligations.

Newmont explicitly states that its 2014-2016 copper outlook assumed the continuation of Batu Hijau operations and timely export approvals. The current situation jeopardizes this outlook, and the company advises investors not to rely on it if exports cannot resume by the end of June 2014.

PTNNT is officially notifying the Government of Indonesia and employees about the force majeure declaration and is continuing discussions with the government to seek a resolution to the export issues.