DENVER, April 7, 2011 /PRNewswire/ -- Newmont Mining Corporation (NYSE:NEM - News) will discuss today at its annual Investor Day conference the comprehensive plan for the development of its current global portfolio of assets that would increase annual gold production to approximately 7 million ounces by 2017. This production target represents a potential aggregate increase of approximately 35% in anticipated 2017 annual production from the Company's previously announced 2011 attributable gold production outlook of 5.1 to 5.3 million ounces. The Company also announced a new dividend policy that will link its quarterly dividend payment to Newmont's average realized price of gold sales.

Reuters) - Newmont Mining Corp (NEM.N), the world's second-largest gold producer, plans to link its quarterly dividend to the price of gold it realizes for the preceding quarter.

The annual payout will rise at a rate of 20 cents per share for each $100 per ounce increase in the average realized gold price. The current gold price of about $1,450 an ounce will mean Newmont's annual dividend would be $1.00.

"With our strong balance sheet and cash flow, we are positioned to fund profitable growth and to pay a new gold price-linked dividend," Chief Executive Richard O'Brien said in a regulatory filing before its investor day.

The first quarterly dividend under this policy is expected to be payable on June 29. The company paid a quarterly dividend of 15 cents per share on March 30.

Newmont continues to see 2011 attributable gold production of 5.1-5.3 million ounces.

Newmont shares closed at $56.45 on Wednesday on the New York Stock Exchange.

(Reporting by Krishna N Das in Bangalore; Editing by Maju Samuel)