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NEWMONT MINING CORP. BREAKS GROUND ON 5.0 MILLION-OUNCE GOLD PROJECT IN UZBEKISTAN

 DENVER, Nov. 16 /PRNewswire/ -- The Zarafshan-Newmont Joint Venture, following final agreement today with international lenders on $105 million in project financing, has broken ground on a project that will produce a minimum of 5.0 million ounces of gold over 16 years, it was announced by Ronald C. Cambre, vice chairman and chief executive officer of Newmont Mining Corp., a 50 percent partner in the venture.
 A credit facility of $105 million was finalized with a consortium of international lenders, arranged by the European Bank for Reconstruction and Development and Barclays Bank PLC. The Zarafshan-Newmont Joint Venture project is the first financing by the EBRD in Uzbekistan. EBRD's portion amounts to $52.5 million. The remaining $52.5 million came from commercial lenders in the United States, England, Switzerland, Germany, France, and Austria.
 "The terms of this project and the swift manner in which it came together indicated the good faith of the Uzbek government and its commitment to encourage profit-seeking foreign investment," said Cambre. "The project's strong support by the EBRD and the international banking community also validates Uzbekistan's emergence as a country dedicated to economic progress."
 Production by the Zarafshan-Newmont Joint Venture is scheduled to begin in early 1995. Current stockpiles of gold ore will provide an average annual production of some 310,000 ounces over approximately 16 years, with production in the earlier period being above 450,000 ounces a year. The gold will be sold in international markets.
 Uzbekistan was the second largest producer of gold in the former Soviet Union, after Russia, and, currently, is the eighth largest producer of gold in the world. Newmont Mining, the largest operator of gold heap leaching facilities in the world, is supplying the technology to leach the stockpiled material. Capital costs of the project, including working capital and financing, are estimated at $150 million.
 The Newmont-Uzbek joint venture was finalized after only 27 months of discussions and planning, which started during a time when Uzbekistan was still part of the former Soviet Union. Newmont's joint venture partners from the Republic are the State Committee of Geology and Mineral Resources of the Republic of Uzbekistan and the Navoi Mining and Metallurgical Combinat. Each such partner has a 25 percent interest in the venture.
 Newmont Mining Corp. is a worldwide gold company which owns 90.1 percent of Newmont Gold Co., the largest producer from North American operations, and 100 percent of Newmont Exploration Ltd., which seeks new gold discoveries worldwide. Newmont Mining in August initiated gold production at a joint venture it manages in Peru and has two gold projects under development in Indonesia. It also is exploring for gold in South America and Southeast Asia.
 -0- 11/16/93
 /CONTACT: James F. Hill, 303-837-5977/


CO: Newmont Mining Corp. ST: Colorado IN: MNG SU: JVN

LM-LS -- LA045 -- 5195 11/16/93 18:09 EST
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Publication:PR Newswire
Date:Nov 16, 1993
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