Careers at Newmont Mining
Newmont Mining’s mission is to transform mineral resources into shared value for its stakeholders and lead the industry in shareholder returns, safety, social responsibility, and environmental stewardship.
Newmont Mining is a producer of gold, copper, and other metals. The firm operates four reportable business segments based on geography:
- North America – Includes Carlin, Phoenix, and Twin Creeks in the state of Nevada and Cripple Creek and Victor in the state of Colorado.
- South America – Includes Yanacocha in Peru.
- Asia-Pacific – Includes Boddington, Tanami, and Kalgoorlie in Australia and Batu Hijau in Indonesia.
- Africa – Includes Ahafo and Akyem in Ghana.
Colonel William Boyce Thompson was a trader with success in several industries, including steel, minerals (lead, zinc, copper), and oil/gas. In 1916 he founded Newmont Corporation as a holding company for his various business interests. The name is a portmanteau that reflects the fact that he made his fortune in New York and grew up in Montana.
Newmont’s strategy involved establishing development companies, then selling off much of their stock for a quick profit. The rest of their stock was placed in a portfolio and utilized to finance additional mining projects. In 1929 the company obtained its first gold mine. In 1930, when Boyce died, it changed its strategy and began keeping its acquired properties.
By 1939, Newmont maintained 12 gold mines in North America, and gold represented 19% of its total investments. By 1940, it was a hybrid of an operating firm and a holding company. That year it began trading publicly on the New York Stock Exchange. In the 1960s it began production on the world’s first open pit gold mine. By 1990 it was the largest gold producer in the country.
Business model of Newmont Mining
Newmont has a niche market business model, with a specialized customer segment. The company targets its offerings at manufacturers in various industries that use metals in their products.
Newmont offers one primary value proposition: brand/status.
The company has established a strong brand due to its success. It is one of the largest gold producers in the world, with gold reserves of 73.7 million ounces and an aggregate land position of approximately 20,000 square miles. It maintains operations and advanced development projects in seven countries on five continents. Lastly, it has won many honors, including the following:
- Ranking as the only gold company included in the Fortune 500 and S&P 500 Index
- Recognition as the mining industry leader by the Dow Jones Sustainability World Index in 2015 and 2016
- Receipt of the 2012 Hardrock Mineral Community Outreach and Economic Security Award
Newmont’s main channel is its direct sales team. The company promotes its offering through its website and social media pages.
Newmont’s customer relationship is primarily of a self-service nature. Customers utilize its products while having limited interaction with employees. The company’s website features a “Resources” section that includes fact sheets, brochures, reports, case studies, presentations, photos, and videos.
It also provides access to an e-mail newsletter that provides updates on financial news, performance reports, and upcoming events.
Newmont’s business model entails producing and distributing metals to its customers.
Newmont’s key partners are the suppliers that provide it with the equipment, materials, and services it needs to carry out its operations. They primarily provide the following:
- Bulk Commodities – Ammonium Nitrate & Explosives, Cyanide, Grinding Media, and Fuel & Lubricants
- Heavy Mining and Mobile Equipment – Drills, Surface Support Equipment, Shovels & Excavators, Trucks, Mobile Equipment, and OTR Tires
Newmont’s main resources are its physical resources – its land and mines from which it draws its metals. The company also depends on its 28,000 employees, particularly contractors.
Newmont has a cost-driven structure, aiming to minimize expenses through significant automation. Its biggest cost driver is likely cost of goods sold, a variable expense. Other major drivers are in the areas of sales/marketing and administration, both fixed costs.
Newmont has one revenue stream: revenues generated from sales of its products to customers.
info: Gary J. Goldberg earned a Bachelor of Science degree in Mining Engineering from the University of Wisconsin–Platteville and an MBA at the University of Utah. He previously served as Executive Vice President and Chief Operating Officer of Newmont.
info: Nancy K. Buese earned a Bachelor‘s degree in Accounting and Business Administration at University of Kansas. He previously served as Executive Vice President and CFO of MPLX and MarkWest and worked as a partner at Ernst & Young.
info: Scott P. Lawson earned a Bachelor of Science degree in Civil Engineering at the University of Utah and an MBA at the University of Phoenix. He previously served as EVP, Technical Services of Newmont and as SVP, Engineering Services at Peabody Energy.
info: Tom Palmer earned a Bachelor of Engineering degree and a Master of Engineering Science degree at Monash University in Melbourne, Australia. He previously served as Senior Vice President, Asia Pacific and as Senior Vice President, Indonesia at Newmont.
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