Newmont Mining Corporation

Newmont’s supply chain group is charged with creating operating and business efficiencies to allow our company to increase our returns and access more opportunities to fulfill one of our strategic corporate objectives. Our company spends about $4 billion a year with 15,000 suppliers globally for products and services, so we must get the maximum value out of our supply chain. These expenditures include bulk commodities, contract services, mining equipment, process equipment, and transportation and logistics.

Our operations depend on our ability to acquire the right goods and services, at the right price, at the right time and in the right manner. We achieve this by using a global, managed category, total-cost approach to supply chain management, while ensuring safety and environmental compliance. It isn't enough to just get necessary goods to the operations; we must conduct these transactions in an environmentally and socially responsible manner.

To drive responsible and efficient purchasing, Newmont’s supply chain group:

• Enforces all aspects of social accountability standards (SA 9000) in our contracts with each supplier to prohibit any use of child/convict/slave labor by any company with which Newmont does business.
• Advocates for buying locally. We have many programs currently in place to ensure that local vendors are given adequate consideration. These programs not only help develop local communities and cottage industries, but decrease environmental impacts by transporting goods a shorter distance.
• Requires and enforces all suppliers to abide by Partnering Against Corruption Initiative (PACI) terms in our contracts. Newmont was instrumental in the development of PACI, which combats global corruption and implements a level playing field for all corporations.
• Only does business with cyanide vendors that are signatories to the International Cyanide Code and are current on their audits. Newmont was the first company to be signatory, which "focuses exclusively on the safe management of cyanide and cyanidation mill tailings and leach solutions."
• Is making progress toward a global plan for energy and other consumables. Newmont is currently voluntarily implementing stringent greenhouse gas programs and guidelines, including auditable inventory profiles prior to mandatory legislation.
• Strictly enforces U.S. environmental standards globally and for vendors.
• Ensure that all vendors are held to the highest standard through Newmont's influence and written contract. Our vendors are contractually bound to continue to act in an environmentally sensitive and socially acceptable manner. This is done across our global supplier base.

Using this approach, Newmont is able to ensure our suppliers are held to the rigorous standards that we have implemented and to which we hold ourselves accountable. Our standards also require that all major and many minor vendors participate in human rights screening. We estimate that currently 75 to 80 percent of contracts comply with this standard.