Newmont Releases Independent Community Relationships Review
DENVER, March 9, 2009 – Newmont Mining Corporation (NYSE: NEM) today released the results of an independent, 18-month global review of the Company's ability to manage relationships with local communities. The Community Relationships Review (CRR) and supporting documents are publicly available at www.Newmont.com.
In April 2007, Newmont's board of directors and management recommended that shareholders vote in favor of a resolution sponsored by Christian Brothers Investment Services, Inc. and 10 other faith-based investors. The shareholder resolution called for an independent "global review and evaluation of the company's policies and practices relating to existing and potential opposition from local communities and to our company's operations and the steps taken to reduce such opposition." Newmont's shareholders overwhelmingly supported the resolution by a vote of nearly 92%.
"For Newmont, this transparent process provides a robust and independent analysis of how we manage our community relationships as a company," said Richard O'Brien, President and Chief Executive Officer. "This comprehensive approach offers a valuable and in-depth understanding of the complexities of these relationships, the contexts in which conflicts may occur and recommendations for improvement."
An independent study team was established to shape and implement the scope, methodology and direction of the CRR. In addition, an independent Advisory Panel of leading global sustainability experts and advocates was convened by the Board to provide frank advice and input to them throughout the CRR study process and development of the final report.
The Advisory Panel's final report stated that "the Review is an unprecedented undertaking within the mining sector." The report went on to add that the CRR "represents a very serious investment of time, energy and good faith" and that it "is a very good report with clear language and a tone that is frank and honest."
While the CRR acknowledged that the company had strong policies and standards in place, it identified the following areas for improvement:
- Enhancing consistency of engagement with local communities
- Building capacity to manage and resolve conflict and address grievances; and,
- Developing consistent global policies, standards and programs to better guide the Company's actions.
"While we have strong and responsible company policies in place, we clearly have work to do to ensure our implementation is reliable, consistent and accountable," said Mr. O'Brien. "Successful execution of the CRR's lessons will help Newmont become an industry leader, while ensuring we continue to create sustainable value and opportunity for our shareholders, employees and host communities. I am personally committed to following through on the CRR so that we and all of our stakeholders benefit from its insight and recommendations."
The CRR process involved:
- Interviews with more than 250 local community members, non-governmental organizations and other external stakeholders in five countries;
- Interviews with more than 100 company personnel at the site, regional and corporate levels;
- Examination of company policies, standards, procedures, and training programs;
- Detailed analyses of Newmont sites, including Ahafo (Ghana), Yanacocha (Peru), Martha (New Zealand), Carlin (Nevada), Batu Hijau and Minahasa (Indonesia); and,
- Country-level analyses of relationships and contexts.
Founded in 1921 and publicly traded since 1925, Newmont (www.Newmont.com) is one of the largest gold companies in the world. Headquartered in Denver, Colorado, the company has approximately 34,000 employees and contractors, with the majority working at Newmont's core operations in the United States, Australia, Peru, Indonesia and Ghana. Newmont is the only gold company listed in the S&P 500 index and in 2007 became the first gold company selected to be part of the Dow Jones Sustainability World Index. Newmont's industry leading performance is reflected through high standards in environmental management, health and safety for its employees and creating value and opportunity for host communities and shareholders.
SOURCE Newmont Mining Corporation