Value Sharing

Increasingly, governments and other stakeholders demand businesses play a greater role in driving sustainable development. The effort by governments to increase revenues from natural resource development is one of the major trends across our business, and local employment and procurement opportunities are among the greatest expectations of host communities.

To manage stakeholder expectations and business risks, we are committed to maintaining strong governance, adhering to all laws and regulations, transparently disclosing payments to governments, and engaging with stakeholders to increase accountability and develop trust.

Taxes and royalties

The taxes and royalties we pay to national and local governments are key elements in creating value for host countries.

Through our Code of Conduct, policies, standards and systems, we state our commitments and the minimum requirements for effectively managing the risks associated with government payments. This includes complying with all laws and regulations related to taxes and royalties in every jurisdiction in which we operate.

The frequency of tax and royalty payments varies by jurisdiction, and we are committed to fulfilling our payment obligations in a timely and accurate manner. While we are responsible to shareholders, employees and business partners to operate as efficiently as possible and remain competitive, we do not seek arrangements where the primary purpose is tax avoidance. We price transactions between Newmont group companies by applying the “arm’s-length principle,” which is the international transfer pricing standard that OECD member countries have agreed should be used for tax purposes by multinational enterprises.

All our tax filings are reviewed/audited by external parties to avoid errors or omissions. When tax laws are unclear, we seek external guidance to ensure that our positions are more likely than not to be upheld.

Our executive leadership team (ELT) is responsible for our government payments approach and performance, with our finance department responsible for the day-to-day implementation. On a quarterly basis, our Board of Directors’ Audit committee receives a detailed report and the full Board receives a summary report.

Economic impacts

We disclose our tax and broader socio-economic contributions in our Annual Report and in this report.

To better understand and measure our economic contributions at the national and regional level, we develop economic impact assessments and communicate the findings from these evaluations to our stakeholders. The assessments, which are reviewed by a third-party consultant, analyze Newmont’s internal reporting data, along with Purdue University’s Global Trade Analysis Project (GTAP) macro-economic data, and use a standard input/output model for country-specific data.

Our membership and active involvement in the following voluntary initiatives also support our efforts and improves our performance:

  • The International Council on Mining and Metals (ICMM) and its tax network group, which promotes predictable, stable and transparent tax frameworks and practices; we also support the organization’s position statement on Transparency of Mineral Revenues;
  • The World Economic Forum’s Partnering Against Corruption Initiative (PACI), which includes a pledge to zero tolerance for bribery in any form and a commitment to implement a company-wide anti-corruption program;
  • Publish What You Pay, an international coalition of NGOs that advocates for more transparency and accountability in the extractive industry; and
  • The Extractive Industries Transparency Initiative (EITI), a collaborative effort of governments, companies, investors and NGOs that reconciles company payments with government receipts from oil, gas and mining activities. We support the initiative’s implementation in countries where we operate and are members of Suriname’s EITI Multi-Stakeholder Group. Among the countries where we operate, Ghana and Peru are listed as making “Meaningful Progress” against the EITI standard; Suriname is a candidate country; and Australia is evaluating its ability to implement the EITI.

As a signatory to the World Economic Forum’s Compact for Responsive and Responsible Leadership, we are committed to pursuing long-term value creation for our stakeholders. Our approach is aligned with the ICMM’s position statement on Mining Partnerships for Development.

Local employment and business opportunities

Hiring and sourcing from host communities support numerous benefits including stronger community and government relationships, a more inclusive and diverse workplace and long-term growth and economic diversification. It also supports our efforts to contribute toward the UN Sustainable Development Goal to promote decent work and economic growth (SDG-8).

Our Local Procurement and Employment Standard sets the minimum requirements to mitigate risks and maximize opportunities through direct and indirect jobs and business opportunities.

Baseline studies and input from relevant stakeholders inform the development of site-specific plans that promote local employability and skills development, diversity of the workforce, small business development and sustainable business opportunities. Plans are reviewed annually to ensure alignment with stakeholder expectations and our global inclusion and diversity strategy, and to identify opportunities for improvement.

We also engage with local stakeholders to agree on definitions and qualifications related to the categories we use to designate businesses, contractors and employees.
All suppliers – even specialized local micro-enterprises – are subject to our Supplier Risk Management process and must meet our quality, delivery, service and competitive pricing requirements. In regions where gaps in local capacity exist, we work with governments and NGOs – as well as our current suppliers – to develop the skills or capacity needed to become employed by, or a supplier to, Newmont.

Performance management

In all regions – except North America – we set public targets for local and/or indigenous employment. In the Africa and South America regions, local employment targets reflect engagement with local stakeholders on definitions, qualifications and other agreed upon criteria, and often remain unchanged from year to year. Aboriginal employment targets in our Australia region are set annually. Although our North America region does not set local employment targets, our Nevada sites actively promote employment opportunities for Native American communities.
In Australia, Ghana and North America, our public local procurement targets are regionally based due to the number of shared contracts among sites, while the South America region’s targets differentiate between Yanacocha (in Peru) and Merian (in Suriname) due to their geographic distance from each other and the fact that the two operating sites have few shared contracts.

Our performance against our targets is discussed during a quarterly CEO-led call with executive, regional and functional leaders.



Economic contributions

In 2018, Newmont’s direct economic contributions totaled $6.5 billion, which includes $3.1 billion in operating costs, $1.4 billion in employee wages and benefits, $1.02 billion in capital spend, $508.3 million in payments to providers of capital and $519.1 million in taxes, royalties and other payments to governments.


($ million)

Country Operating costs2 Employee wages and benefits Capital spend3 Payments to providers of capital4 Payments to governments Total
Australia $894.00 $309.60 $181.90 $3.10 $207.40 $1,596.00
Ghana $430.90 $115.80 $303.70 $1.40 $135.90 $987.70
Peru $410.80 $106.20 $119.20 $1.20 $32.20 $669.60
Suriname $196.10 $54.00 $78.60 $0.00 $50.10 $378.80
United States5 $1,183.50 $774.30 $335.40 $502.60 $93.50 $2,889.30
Total $3,115.30 $1,359.90 $1,018.80 $508.30 $519.10 $6,521.40
1 Amounts are on a consolidated basis as described in our 2018 10-K.
2 Operating costs are comprised of costs applicable to sales of $4,093, exploration of $197, advanced projects, research and development of $153, and general and administrative expenses of $244 on an accrued basis and cash paid for reclamation in 2018 of $89. Operating costs omit employee wages and benefits of $1,360 (included in the employee wages and benefits column); $132 in payments to governments for employer, property, and sales taxes (included in the payments to governments column); $222 of indirect costs; and $53 of byproduct sales (which are recognized as credits to costs applicable to sales in our 2018 10-K).
3 Capital spend is presented on an accrued basis and includes non-cash adjustments of $13. Capital spend excludes $196 incurred during 2018 for the construction of the Tanami Power Plant, accounted for as a build-to-suit financing obligation in our 2018 10-K report.
4 Payments to providers of capital includes interest expense, net of capitalized interest, of $207 and dividends paid to common stockholders of $301.
5 U.S. economic value distributed includes Canada, primarily comprised of reclamation and tax distributions.


($ million)

Country Revenues
Australia $2,178.80
Ghana $1,081.10
Peru $679.10
Suriname $677.00
United States $2,690.50
Total $7,306.50
1 Economic value generated includes sales of $7,253, as well as byproduct sales of $53, which are recognized as credits to costs applicable to sales in our 2018 10-K.


($ million)

Country Government royalties Taxes1 Payments to governments
Australia $59.12 $148.30 $207.40
Ghana $37.42 $98.53 $135.90
Peru $0.00 $32.24 $32.20
Suriname $40.61 $9.48 $50.10
United States $0.00 $93.50 $93.50
Total $137.14 $382.04 $519.10
1 Taxes include employer taxes, current year’s accrued income and mining taxes, property taxes and sales/production taxes.



Country Rate
Australia 29%
Ghana 33%
Peru (73)%
Suriname 26%
United States (32)%
   Nevada 49%
   Colorado – CC&V 19%
   Colorado – corporate & other (36)%
Other foreign 420%
Consolidated 52%
1 The effective tax rate is driven by a number of factors and can fluctuate from year to year. For a more detailed discussion of tax expenses, refer to page 66 of Newmont’s 2018 Form 10K report.

As an active member of ICMM and its tax network group, we have committed to improving our government payment disclosures on a project-by-project basis. Because our current reporting follows jurisdictional requirements and is not necessarily site based, during the year we formed a cross-functional tax transparency working group, conducted a gap analysis, and collaborated with ICMM to ensure that project-related disclosures consider the requirements of each operating region.

To measure the economic benefits our operations generate for host countries and communities at the regional and national level, during the year we developed economic impact reports for our operations in Peru, Suriname and the U.S. Combined with the reports we created for Australia and Ghana in 2017, we can now report Newmont’s economic contribution at each operation and across the portfolio. Findings and feedback from the assessment process were used to enhance the economic model and methodology, which will be used to develop site- or regional-level reports on our 2018 economic impacts. We plan to make these reports publicly available on our website in mid-2019.

We continued to collaborate with government, civil society and industry stakeholders to improve revenue transparency. We engaged with the EITI regarding our support in both compliant and candidacy countries in which we operate. Through our membership in the Mining Council of Australia, we participated in the Australia EITI Secretariat’s review of the country’s ability to implement and comply with the current EITI Standard. The review, which is expected to be finalized in 2019, is evaluating the country’s existing disclosures and unique characteristics – such as its federated structure and large number of mining companies – and identifying gaps and barriers.

We also continued to engage as an active member of the Suriname EITI multi-stakeholder group (MSG). In 2018, the Government of Suriname continued to develop its initial EITI report, which evaluates payments to the government during 2016. In alignment with the materiality metrics defined by the MSG and Suriname’s EITI process, Newmont submitted data and information for the report. The Ministry of Finance completed a partial reconciliation and identified areas to address before submitting the report; however, the government missed the submission deadline, resulting in the EITI Board suspending Suriname. The suspension will be re-evaluated if the government submits its report by May 24, 2019.

A significant uncertainty in our business is government efforts to increase revenues from mining operations through new taxes, royalties, fees or other measures. These efforts, which sometimes contradict existing contractual agreements with Newmont, create an unpredictable environment that discourages future investments. In 2018, we engaged with government stakeholders in all the regions where we operate to demonstrate our significant contribution to the economies and our desire to continue to do business in the country. Developments in Ghana and Australia were a particular area of focus.

In Ghana, company leaders, including CEO Gary Goldberg, met with officials in the Ministry of Lands and Natural Resources to discuss impacts of any requirements to refine gold in the country.

We continued to partner with other industry players to highlight the economic value of our mining operations in response to ongoing government calls for an increased tax contribution from the gold sector. Through our economic impact reports and engagement, we will continue to demonstrate our significant contribution to the government and the national and local economies and how a royalty rate or tax increase would impact these contributions.

Local employment and skills development

Efforts to advance our global inclusion and diversity strategy and meet our site-based local employment targets are summarized in the following table. As part of our global inclusion and diversity strategy, we will begin tracking local and indigenous employees’ career progression to higher job grades beginning in 2019.

Region Site(s) 2018 Local employment performance and 2019 targets
Africa1 Ahafo


At the end of 2018, local community members represented 41.7 percent and 47.8 percent of the total workforce (inclusive of contractors) at Ahafo and Akyem, respectively, exceeding our target of 35 percent at both sites. The longer-term employment commitment at our Akyem operation is 50 percent within 10 years of commencing operations.

The targets for 2019 remain at 35 percent for both sites.

Australia2 Boddington



At the end of 2018, direct Aboriginal employment at Boddington, KCGM and Tanami totaled 108, 30, and 106 employees, respectively. Boddington and Tanami exceeded their targets while KCGM missed its target.*

Targets for 2019 were under review as of publication of this report.

South America Yanacocha3 Residents from Cajamarca represented 64.3 percent of Yanacocha’s workforce at the end of 2018, exceeding our target of 60 percent.

The target for 2019 remains at 60 percent.

Merian1 At the end of the year, 248 employees – representing nearly 20 percent of the total workforce – were of Pamaka ancestry. Our target for 2018, which will continue in 2019, was to ensure at least 200 employees were from the Pamaka community.
* Australia’s site targets for 2018 were updated during the year. (Restatement as of June 2019 to update the Local Employment target from “Met” to “Almost Met” which properly reflects actual performance for Australia.)
Key Terminology:
1 “Local” or “local-Local” refers to persons from within the catchment area around our Ahafo and Akyem mines and to Pamaka communities near our Merian mine; validation process usually established through the local employment agreement.
2 “Aboriginal” or “indigenous” refers to both Aboriginal and Torres Strait Islander peoples in Australia.
3 “Local” in Peru refers to the local Cajamarquino people per agreed upon definitions with the community.

Activities in our regions to fulfill our local employment and inclusion goals and commitments include:

In Africa:

  • Following the protests by youth groups in 2017 at our Ahafo operation, the regional minister set up a seven-member independent committee to review complaints related to employment and other allegations. To address the committee’s recommendations, in 2018 an examination council was established to increase transparency in the recruitment process by overseeing the recruitment of local-locals into trainee roles. We also held quarterly stakeholder events with around 1,000 people. Topics discussed included local employment statistics, our online employment application process, and graduate learnership and local-local learnership training opportunities.
  • The apprenticeship programs at Ahafo and Akyem offer a three-year skilled mechanical and electrical specialist training program to members of the communities near the mine. Graduates of the program are offered employment in a variety of roles including process operators, specialized trades and maintenance. At Ahafo, 130 people have graduated from the program since it began in 2005, 67 of whom are currently employed by Newmont and 10 by one of our business partners. At Akyem, 61 people have completed the program since 2011 with 42 people currently employed by Newmont and 10 by a business partner.
  • The region also offers a learnership program, which is a condensed one-year training program that provides opportunities for local community members to gain experience in mine processing and operations. In 2018, the program was extended to Ahafo.

In Australia:

  • Our Boddington operation rolled out an aboriginal employee mentoring program that develops the skills necessary for supervisors to support aboriginal employees in the workplace and assist with retention. During the year, 10 non-aboriginal employees participated in the program.
  • Newmont’s Reconciliation Action Plan (RAP) – which includes commitments to building respectful relationships while providing employment, training, and other opportunities to Aboriginal and Torres Strait Islander peoples – was endorsed by the NGO Reconciliation Australia. The plan is highlighted in the featured case study.
  • At Tanami, a team, which included representatives from various departments, BRG members and business partners, visited Darwin and Alice Springs as part of a recruitment effort to promote the operation and Newmont’s support for inclusion and diversity and to generate interest in employment opportunities.
  • We partnered with the CareerTrackers Indigenous Internship Program, supporting three university students with paid internships. In addition to creating lasting employment opportunities, CareerTrackers provides interns and their sponsoring organizations with year-round support to prepare students for success at university, and in their chosen professions and their communities.

In North America:

  • Newmont continued its support of the Maintenance Training Cooperative (MTC) program at Great Basin College (GBC) in Elko, Nevada. In addition to a scholarship, students receive a paid internship at one of Newmont’s mines while completing a certificate or degree program in electrical systems, diesel, instrumentation, millwright and/or welding technologies at GBC. Around 30 scholarships are awarded each year, with around 60 percent of the recipients receiving a full-time job offer from Newmont. We also work with local schools and Native American tribes to educate and prepare students interested in applying for the scholarship.
  • We worked with the University of Nevada-Reno (UNR) – one of Newmont’s six strategic partner universities in the U.S. – to develop a mining-specific curriculum as part of its NevadaTeach program.
  • In the town of Battle Mountain, Nevada, we held a mining education and career fair, which provided an opportunity for targeted outreach and transparent engagement with members of the Battle Mountain Band of the Western Shoshone.

In South America:

  • In Peru, our Yanacocha operation implemented a local content program for the construction phase of the Quecher Main project in which around 78 percent of the available contracting opportunities were given to local community members. This program was highlighted during an ICMM roundtable on economic opportunities that was hosted by Yanacocha.
  • At our Merian operation in Suriname, where our local employment approach includes a focus on skills development, 31 Pamaka employees were promoted to a higher job grade and 10 employees moved from unskilled to skilled positions during the year.
Local procurement and capacity building


($ million)

Region Total spend Local procurement spend* Local spend as % of total spend National spend National spend as % of total spend
Africa $675.3 $21.6 3% $501.9 74%
Australia# $1,185.5 $357.7 30% $664.1 56%
North America $1,679.3 $439.1 26% $1,071.2 64%
South America** $845.0 $284.6 34% $447.0 53%
Total $4,385.1 $1,103.0 25% $2,684.2 61%
The table above is comprised of operating costs (as described in the Economic Value Distributed table in the Value Sharing section of this report), capital spend, and sales tax (included in payments to governments) on an accrued basis, also presented in the Economic Value Distributed table, adjusted to be presented on a cash basis and excluding the corporate office and KCGM.

* For reporting on local procurement spend, our “significant locations of operation” are different than those defined in the report scope, and instead reflect the regional structure and management of our supply chain organization. Local procurement spend excludes the corporate office.

# The KCGM joint venture operation is not included in our Australia region’s local procurement spend due to data collection system and classification differences.

** Suriname national spend is included in 2018 figures for the South America region.

Globally, we set an annual total local spend goal of $821 million, which we exceeded by $282 million. Our North America and Australia regions both exceeded their targets largely as a result of continuing to refine the definitions and classification of local suppliers.

Our annual local procurement spend can be impacted by an increase or decrease in activities, such as exploration and project development, as well as mine life and metal prices. For 2019, our local procurement target for all sites is $1 billion and reflects work in each region to understand and identify opportunities within the context of the 2019 regional business plans.

Region 2019 Local procurement target
Africa1 $22 million
Australia2 $273 million
North America3 $385 million
South America4 $320 million
Key terminology:
1 “Local” or “local-local” refers to a micro-, small- or medium-size enterprise properly licensed and registered in Ghana. Local-local suppliers must have an office established in the mining lease area and be validated by community representatives and Newmont. Local suppliers must have an office in the region where the mine is located, but validation is not required.
2 At Boddington, local suppliers are located in the Peel, South West and Wheatbelt districts and local-local suppliers are within a 50-kilometer radius. At Tanami, local suppliers are located in Alice Springs and Darwin districts, and local-local suppliers are from the Yuendumu and Lajamanu communities. The KCGM joint venture operation is not included in our Australia region’s local procurement target due to data collection system and classification differences.
3 Local suppliers have a tax base in the state of Nevada (for Nevada operations) or an office or facility in the state of Colorado (for CC&V). Local-local suppliers in Nevada have a tax base in the cities of Elko, Carlin, Battle Mountain, Wells or Winnemucca. CC&V does not have a local-local designation.
4 At Yanacocha, local suppliers must meet certain criteria and be registered in the city of Cajamarca, and local-local suppliers must be located in Yanacocha’s geographical area of influence. At Merian, local suppliers are located in the country, and local-local suppliers are based in close proximity to the mine (predominantly Pamaka).

During the year, we worked with local suppliers to ensure impacts were fully understood and feedback was incorporated into the implementation of our Supplier Risk Management program – which we launched in 2018 – and provided support, as needed, to identify risks and develop action plans.

Among the notable local supplier programs and activities in our regions:

In Africa:

  • At our Ahafo operation, we contracted with NAAMOCO Enterprise Limited – a local business based in the mining lease area. Along with providing scrap metal recycling services to the mine, NAAMOCO exemplifies how suppliers apply responsible business practices, including a strong safety culture, to their business.
  • The region is assessing local procurement opportunities for potential growth projects, such as the Ahafo Mill Expansion and Ahafo North projects.

In Australia:

  • As part of the region’s Reconciliation Action Plan, we developed an Aboriginal and Torres Strait Islander procurement strategy. Details about the plan and strategy are discussed in the featured case study.

In North America:

  • Included in our North America Indigenous Peoples Strategic Framework that was developed in 2018 is a specific strategy for the Great Basin area. One of the strategy’s activities is to collaborate with tribal organizations to understand socio-economic interests and identify procurement opportunities.
  • At our CC&V operation in Colorado, we contracted with a local company –Savage Services – to truck concentrate from the operation to the rail yard for shipment to Nevada for processing.

In South America:

  • Yanacocha’s local content program for the Quecher Main project included a commitment to local sourcing. More than 80 percent of the equipment providers were local and more than 70 percent of the services were provided by local businesses.
  • At the Merian operation in Suriname, we focused on building capacity with prospective local suppliers, conducting awareness sessions on how to do business with Newmont. We also conducted electrical and welding vocational training and promoted local procurement and local entrepreneurship with the support of the local Chamber of Commerce and private sector organizations.

To contribute toward the UN Sustainable Development Goal to promote decent work and economic growth (SDG-8), we developed an outcome-based objective to measure non-Newmont and non-artisanal and small-scale mining (ASM) jobs created. In 2019, we will complete a baseline against the objective and begin data collection, with our reporting on the objective to begin with our 2020 performance.

View our featured Case Study