Summary of NEWMONT MINING CORP /DE/

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL
CONDITION (dollars in millions, except per share, per ounce and per pound amounts).

The following discussion provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations of Newmont Mining Corporation and its subsidiaries (collectively, "Newmont," the "Company," "our" and "we"). References to "A$" refer to Australian currency, "C$" to Canadian currency, "IDR" to Indonesian currency, "NZ$" to New Zealand currency and "$" to United States currency.
This item should be read in conjunction with our interim unaudited Consolidated Financial Statements and the notes thereto included in this quarterly report. Additionally, the following discussion and analysis should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements included in

Part II of our Annual Report on Form 10-K and Form 10-K/A for the year ended December 31, 2008.
Selected Financial and Operating Results

                                          Three Months Ended June 30,            Six Months Ended June 30,
                                           2009                2008               2009               2008
Revenues                               $       1,602       $       1,503      $      3,138       $      3,428
Income from continuing operations      $         320       $         337      $        597       $        886
Net income                             $         306       $         339      $        583       $        896
Net income attributable to Newmont
stockholders                           $         162       $         271      $        351       $        636

Per common share, basic
Income from continuing operations
attributable to Newmont
stockholders                           $        0.35       $        0.60      $       0.75       $       1.38
Net income attributable to Newmont
stockholders                           $        0.33       $        0.60      $       0.73       $       1.40

Consolidated gold ounces sold
(thousands) (1)                                1,502               1,483             3,019              3,084
Consolidated copper pounds sold
(millions)                                       105                  51               201                157

Average price received, net (2)
Gold (per ounce)                       $         915       $         900      $        911       $        917
Copper (per pound)                     $        2.17       $        3.57      $       1.94       $       3.93

Costs applicable to sales (3)
Gold (per ounce)                       $         423       $         439      $        427       $        416
Copper (per pound)                     $        0.58       $        2.02      $       0.73       $       1.62

(1) Includes incremental start-up ounces of 1 for both the three and six months ended June 30, 2009 and 16 and 17 for the three and six months ended June 30, 2008, respectively. Incremental start-up includes the removal and production of de minimis saleable materials during development and is recorded as Other income, net of incremental mining and processing costs.

(2) After treatment and refining charges.

(3) Excludes Amortization and Accretion.

Consolidated Financial Results
Net income attributable to Newmont stockholders for the second quarter and first half of 2009 was $162, or $0.33 per share and $351, or 0.73 per share, respectively. Results for the second quarter of 2009 compared to 2008 were impacted by higher realized gold prices, lower realized copper prices and higher sales volume. Results for the first half of 2009 compared to 2008 were impacted by lower realized gold and copper prices, lower gold sales volume, higher copper sales volume, lower Canadian Oil Sands Trust income, higher income taxes in 2009 and a discrete tax benefit in 2008.

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Sales - gold, net for the second quarter of 2009 increased $53 compared to the second quarter of 2008, due to higher realized prices and increased sales volume. Sales - gold, net for the first half of 2009 decreased $65 compared to the first half of 2008, due to lower realized prices and decreased sales volume. For a complete discussion regarding variations in gold volumes, see Results of Consolidated Operations below. The following analysis summarizes the change in consolidated gold sales revenue:

                                          Three Months Ended June 30,            Six Months Ended June 30,
                                           2009                2008               2009               2008
Consolidated gold sales:
Gross                                  $       1,383       $       1,323      $      2,761       $      2,823
Less: Treatment and refining
charges                                          (10 )                (3 )             (13 )              (10 )

Net                                    $       1,373       $       1,320      $      2,748       $      2,813


Consolidated gold ounces sold
(thousands):
Gross                                          1,502               1,483             3,019              3,084
Less: Incremental start-up sales                  (1 )               (16 )              (1 )              (17 )

Net                                            1,501               1,467             3,018              3,067


Average realized price (per ounce):
Before treatment and refining
charges                                $         922       $         902      $        915       $        920
After treatment and refining
charges                                $         915       $         900      $        911       $        917

The change in consolidated gold sales is due to:

                                                        Three Months Ended June 30,        Six Months Ended June 30,
                                                               2009 vs. 2008                     2009 vs. 2008
Increase (decrease) in consolidated ounces sold         $                         30      $                       (45 )
Increase (decrease) in average realized gold price                                30                              (17 )
Increase in treatment and refining charges                                        (7 )                             (3 )

                                                        $                         53      $                       (65 )

Sales - copper, net for the second quarter of 2009 increased $46, or 25%, compared to the second quarter of 2008, due to increased sales volume partially offset by lower realized prices. Sales - copper, net for the first half of 2009 decreased $225, or 37%, compared to the first half of 2008, due to lower realized prices, partially offset by increased sales volume. For a complete discussion regarding variations in copper volumes, see Results of Consolidated Operations below. The following analysis summarizes the change in consolidated copper sales revenue:

                                          Three Months Ended June 30,            Six Months Ended June 30,
                                           2009                2008               2009               2008
Consolidated copper sales:
Gross before provisional pricing       $         223       $         194      $        377       $        576
Provisional pricing mark-to-market
gain                                              35                   8                64                 90

Gross after provisional pricing                  258                 202               441                666
Less: Treatment and refining
charges                                          (29 )               (19 )             (51 )              (51 )

Net                                    $         229       $         183      $        390       $        615


Consolidated copper pounds sold
(millions)                                       105                  51               201                157

Average realized price (per pound):
Gross before provisional pricing       $        2.12       $        3.78      $       1.88       $       3.67
Provisional pricing mark-to-market
gain                                            0.33                0.16              0.32               0.58

Gross after provisional pricing                 2.45                3.94              2.20               4.25
Less: Treatment and refining
charges                                        (0.28 )             (0.37 )           (0.26 )            (0.32 )

Net                                    $        2.17       $        3.57      $       1.94       $       3.93

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The change in consolidated copper sales is due to:

                                                         Three Months Ended June 30,       Six Months Ended June 30,
                                                                2009 vs. 2008                    2009 vs. 2008
Increase in consolidated pounds sold                    $                         213      $                      187
Decrease in average realized copper price                                        (157 )                          (412 )
Increase in treatment and refining charges                                        (10 )                             -

                                                        $                          46      $                     (225 )

The following is a summary of net gold and copper sales:

                          Three Months Ended June 30,           Six Months Ended June 30,
                           2009                2008              2009               2008
 Gold
 North America:
 Nevada                $         372       $         495     $        840       $        986
 La Herradura                     29                  21               52                 45

                                 401                 516              892              1,031


 South America:
 Yanacocha                       489                 388              916                887


 Asia Pacific:
 Jundee                          102                 101              190                188
 Tanami                           81                  85              159                174
 Kalgoorlie                       66                  55              132                120
 Waihi                            14                  31               51                 60
 Batu Hijau                       98                  36              157                148

                                 361                 308              689                690


 Africa:
 Ahafo                           122                 107              251                204


 Corporate and other               -                   1                -                  1

                       $       1,373       $       1,320     $      2,748       $      2,813


 Copper
 Asia Pacific:
 Batu Hijau            $         229       $         183     $        390       $        615

Costs applicable to sales decreased in the second quarter and first half of 2009 compared to the second quarter and first half of 2008, as detailed in the table below. The decrease in Costs applicable to sales in the second quarter of 2009 compared to the second quarter of 2008 is primarily due to lower waste tons mined, lower diesel prices and favorable U.S. dollar exchange rates, partially offset by higher sales volumes and lower by-product credits. The decrease in Costs applicable to sales in the first half of 2009 compared to the first half of 2008 is primarily due to lower waste tons mined, lower diesel prices, lower gold sales volume and favorable U.S. dollar exchange rates, partially offset by higher copper sales volume and lower by-product credits. For a complete discussion regarding variations in operations, see Results of Consolidated Operationsbelow.
Amortization expense decreased for the second quarter of 2009 compared to the second quarter of 2008 and increased for the first half of 2009 compared to the first half of 2008, as detailed in the table below. We expect 2009 Amortization expense to be approximately $740 to $780.

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The following is a summary of Costs applicable to sales and Amortization:

                                     Costs Applicable to Sales                                        Amortization
                          Three Months Ended             Six Months Ended            Three Months Ended             Six Months Ended
                               June 30,                      June 30,                     June 30,                      June 30,
                         2009            2008           2009          2008          2009            2008           2009          2008
Gold
North America:
Nevada                 $     228       $     238      $     491      $   453      $      53       $      60      $    114       $   110
Hope Bay                       -               -              -            -              3               -             6             -
La Herradura                  12              11             22           18              3               2             5             4

                             240             249            513          471             59              62           125           114

South America:
Yanacocha                    173             161            325          329             44              44            85            88


Asia Pacific:
Jundee                        36              44             70           82             12              10            21            17
Tanami                        53              57            101          107             11               9            22            17
Kalgoorlie                    43              54             91          108              3               3             6             7
Waihi                          9              15             24           29              4               9            13            15
Batu Hijau                    24              19             51           56              6               3            13            11

                             165             189            337          382             36              34            75            67

Africa:
Ahafo                         57              46            114           95             16              18            34            31

                             635             645          1,289        1,277            155             158           319           300


Copper
Asia Pacific:
Batu Hijau                    61             104            146          254             16              20            37            51


Other
Asia Pacific                   -               -              -            -              -               1             1             2
Corporate and Other            -               -              -            -              5               4            10             9

                               -               -              -            -              5               5            11            11

                       $     696       $     749      $   1,435      $ 1,531      $     176       $     183      $    367       $   362

Exploration expense decreased for the second quarter and first half of 2009 compared to the second quarter and first half of 2008 due to a reduced drilling program related to a more selective and strategic exploration program. We expect 2009 Exploration expense to be approximately $165 to $175.
Advanced projects, research and development expense for the second quarter and first half of 2009 and 2008 is summarized as follows:

                                           Three Months Ended June 30,               Six Months Ended June 30,
                                           2009                   2008              2009                   2008
Hope Bay                               $         11           $          9      $         16           $         13
Boddington                                       10                      1                13                      2
Technical and project services                    7                      6                12                     10
Nevada underground                                3                      -                 8                      -
Corporate                                         3                      4                 7                      7
Tanami/Callie Deeps                               1                      1                 3                      1
Akyem                                             2                      1                 3                      3
Fort a la Corne JV                                -                      6                 1                     13
Other                                             5                     11                10                     20

                                       $         42           $         39      $         73           $         69

We expect 2009 Advanced projects, research and development expenses to be approximately $140 to $160.
General and administrative expenses increased by $3 and $13, respectively, for the second quarter and first half of 2009 compared to the second quarter and first half of 2008, due to higher compensation, benefits and consulting fees. We expect 2009 General and administrative expenses to be approximately $150 to $160.

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Other expense, net for the first quarter of 2009 and 2008 is summarized as follows:

                                           Three Months Ended June 30,              Six Months Ended June 30,
                                           2009                  2008               2009                 2008
Boddington acquisition costs           $          59         $           -      $         67         $          -
Regional administration                           14                    12                26                   21
Community development                             11                    18                21                   32
Workforce reduction                                1                     -                15                    -
Peruvian royalty                                   5                     4                11                   11
Western Australia power plant                      6                     8                 9                   13
Batu Hijau divestiture                             1                     2                 6                    5
World Gold Council dues                            3                     2                 6                    5
Accretion, non-operating                           3                     3                 6                    5
Pension settlement loss                            -                     -                 -                   11
Reclamation estimate revisions                     -                    59                 -                   61
Other                                             13                    10                25                   16

                                       $         116         $         118      $        192         $        180

In connection with the acquisition of the remaining interest in Boddington, we incurred costs of $67, including Australian stamp duties, for the six months ended June 30, 2009. Community development and regional administration expenses relate to our social responsibility, external and government relations, and regional office costs which are not a direct cost of mine production. Workforce reduction expense includes costs related to global workforce reduction that impacted approximately 3% of our world wide workforce.
Other income, net for the first quarter of 2009 and 2008 is summarized as follows:

                                          Three Months Ended June 30,             Six Months Ended June 30,
                                          2009                 2008              2009                 2008
Canadian Oil Sands Trust income        $         5         $          31      $         9         $          55
Interest income                                  6                     7                9                    17
Gain on sale of investments, net                 -                    10                -                    10
Income from development projects,
net                                              -                     9                -                     9
Foreign currency exchange losses,
net                                              1                    (7 )             (2 )                 (13 )
(Loss) gain on ineffective portion
of derivative instruments, net                  (3 )                  (1 )             (4 )                   2
Impairment of marketable securities              -                   (34 )             (6 )                 (56 )
Other                                            -                     4               12                    10

                                       $         9         $          19      $        18         $          34

Canadian Oil Sands Trust income decreased $27 and $46 in the second quarter and first half of 2009, respectively, compared to the second quarter and first half of 2008 due to reduced distributions related to a significant decrease in oil prices. During the first half of 2009, we recognized impairments of marketable securities of $2 for Shore Gold, Inc. and $4 for other marketable securities. During the second quarter of 2008, we recognized impairments of marketable securities of $23 for Shore Gold Inc. and $11 for other marketable securities, resulting in total impairments of $32 for Shore Gold Inc., $13 for Gabriel Resources Ltd. and $11 for other marketable securities for the first half of 2008.
Interest expense, net decreased by $12 for the second quarter of 2009 compared to the second quarter of 2008 and decreased $8 for the first half of 2009 compared to the first half of 2008 mainly due to higher capitalized interest, partially offset by additional interest on the convertible senior notes. We expect 2009 Interest expense, net to be approximately $100 to $110. Income tax expense during the second quarter of 2009 was $136 compared to a benefit of $42 during the second quarter of 2008, and $241 for the first half of 2009 compared to $187 for the first half of 2008. The effective tax rate for the second quarter of 2009 was 30% compared to a 14% benefit for the second quarter of 2008, and 29% for the first half of 2009 compared to 17% for the first half of 2008. The 44% increase from the 2008 second quarter and 12% increase from the first half of 2008 tax rates primarily relates to the reduction in income taxes in 2008 realized from the conversion of one of the Company's non-US subsidiaries to a partnership for U.S. income tax purposes which gave rise to a significant capital loss allowing the Company to recover income taxes paid in prior years, offset by an increase in liabilities for uncertain tax positions. The effective tax rates in the second quarter of 2009 and 2008 are different from the United States statutory rate of 35% primarily due to U.S. percentage depletion. For a complete discussion of the factors that influence our effective tax rate, see Management's Discussion and Analysis of Results of Operations and Financial Condition in Newmont's Annual Report on Form 10-K for the year ended December 31, 2008, filed February 19, 2009. We expect the 2009 full year tax rate to be approximately 27% to 31%, assuming a gold price of $925 per ounce.

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Net income attributable to Noncontrolling interests increased $76 in the second quarter of 2009 compared to the second quarter of 2008 as a result of increased earnings at Yanacocha and Batu Hijau, and decreased $28 in the first half of 2009 compared to the first half of 2008, as a result of lower earnings at Batu Hijau.
(Loss) income from discontinued operations was a follows:

                                          Three Months Ended June 30,             Six Months Ended June 30,
                                           2009                 2008              2009                 2008
Sales - gold, net                      $          16         $        19      $          32         $        37


Income from operations                 $           1         $         7      $           1         $        12
Loss on impairment                               (44 )                 -                (44 )                 -
(Loss) gain on sale of royalty
portfolio                                          -                  (2 )                -                   5
(Loss) gain on sale of Pajingo
assets                                             -                  (1 )                -                   1

Pre-tax (loss) income                            (43 )                 4                (43 )                18
Income tax benefit (expense)                      29                  (2 )               29                  (8 )

(Loss) income from discontinued
operations                             $         (14 )       $         2      $         (14 )       $        10

Discontinued operations include our royalty portfolio and Pajingo operations, both sold in December 2007, as well as the Kori Kollo operation in Bolivia, which was reclassified to discontinued operations during the second quarter of 2009.
Results of Consolidated Operations