Risk Mitigation In Global Mining Development Newmont Mining Corporation

Since 1993, Newmont has been actively growing through the development of three major foreign mining operations with a fourth under construction. The first project, Yanacocha in Peru began operating in October 1993 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, the first of its kind in the CIS. In early 1996, Newmont started operating the Minahasa mine in Indonesia. Now, in early 1997, Newmont is undertaking the construction of a $1.9 billion project in Indonesia and is completing a feasibility study with our partner for the development of a gold operation in Mexico. All of these projects have been considered "risky" by most standards, and Newmont has been very successful in all of them through risk mitigation programs including utilizing strong and successful in-country partners, concentrating on developing a strong national workforce with minimal expatriate employees, utilizing World Bank, EBRD and IFC financing and building and maintaining strong ties with host governments. This paper describes in more detail, some of the risk mitigation programs that Newmont has used to successfully grow the company through development of major foreign mining operations.