Risk Mitigation In Global Mining Development

Since 1993, Newmont Mining has been growing through the development 'q of three major foreign mining operations with a fourth under construction. The first project, Yanacocha in Peru, began operating in October 1993. This occurred at a time when political and business risk in that country was considered high. In 1995, Newmont began operating the Muruntau joint venture in Uzbekistan. It is the first mining project of its kind in the Confederation of Independent States (CIS). In early 1996, Newmont started operating the Minahasa Mine in Indonesia. In early 1997, Newmont began construction of a $1.9-billion project in Indonesia. The company is also completing a feasibility study with its partner for the development of a gold operation in Mexico. All of these projects have been considered "risky" by most standards. Newmont has been successful in all of them through risk mitigation programs. These programs include using strong and successful in-country partners, concentrating on developing a strong national workforce with minimal expatriate employees, using World Bank, European Bank for Reconstruction and Development (EBRD) and International Finance Corp. (IFC) financing and building and maintaining strong ties with host governments.