Newmont Mining Corporation

Newmont Ghana Gold Limited - Ahafo Mine Process Solution Overflow Event - January 2010 Status Update

Newmont Ghana has been providing updates regarding the status of the Ahafo Mine process solution overflow consistent with its commitment to transparency and public disclosure.  Newmont reiterates our regret and apology for the overflow and is committed to operating with high standards and accepts responsibility for any failure to meet those standards.

As indicated in our December 2009 update, the company continued to engage with the Ministerial Panel appointed to review the causes of the overflow and its impacts.   Since the time of the overflow, water sampling has continued to confirm that there is no threat from cyanide to human health or residual environmental impact.  NGGL remains engaged with the local hamlets to ensure their wellbeing and to provide fresh water.  In addition, Newmont Ghana implemented a number of corrective measures to ensure an accidental release of this nature does not happen again. 

Newmont Ghana rigorously reviewed and modified its control systems and monitoring procedures, with the participation of regulatory agencies.  As a result, the company implemented a number of measures to:

• Reduce the risk of overfilling the event pond during mill shutdowns;
• Improve the reliability of the instrumentation and level detection systems;
• Increase the event pond pumping capacity to redirect process solution more quickly during rain events;
• Improve containment within the processing plant site in the event other systems fail during a process water overflow;
• Improve and accelerate communication with stakeholders; and,
• Improve onsite protocols and procedures.

Newmont Ghana recently received a letter from the Minister of Environment, Science & Technology along with a copy of a report from the Ministerial Panel.  The company is in the process of reviewing the report and will be engaging with the Minister to discuss the Panel's recommendations.

In recognition of the overflow's impact, the company made initial compensation proposals to the Panel.  While the report of the Panel recognized that there was no regulatory framework by which to assess compensation or penalties relating such incidents, it recommended that substantial compensation be paid and Newmont Ghana has stated its intention to meet its compensation obligations, once the process is complete.

The report concludes that there were a number of factors including operational supervision failures, along with numerous systems and mechanical failures, that were the primary causes of the accidental release.  Similarly, those failures resulted in  regulatory agencies not being immediately notified, which may have inadvertently created an appearance of an alleged "cover-up."  Newmont Ghana reaffirms that there was no intention to behave in any manner other than being fully transparent and cooperative with the government and the communities.

Newmont reiterates our apology to the regulatory authorities for the delayed notification about the overflow, and we have acknowledged this was a mistake on our behalf.  The failure to communicate immediately was not deliberate.  Rather, it was due to the fact that our initial assessments mistakenly determined that the overflow was contained within the process plant area.  Nevertheless, we should have notified the regulatory authorities immediately, and we have committed to working with them to improve our reporting protocols and also to review our emergency response mechanisms to ensure improved performance.

The panel's report also provides a number of recommendations which are focused on strengthening risk awareness, incident classification and notification criteria, and enhancing capacity to recognize and respond to emergency situations. 

Newmont Ghana apologized for the fish mortality that resulted from the overflow and for any anxiety caused in the local community regarding the safety of their drinking water. 

The company is continuing to engage with regulators to review the causes of the overflow, its impacts and will implement any additional recommendations to ensure an accidental release of this nature does not occur again.

Newmont Ghana remains committed to improving its processes and to reassuring local communities of the company's ongoing commitment to their safety, while re-establishing confidence in our environmental controls and reporting mechanisms,

Newmont's first priority remains the safety of our neighbors, employees and the environment.

Media Contact: Adiki O. Ayitevie

Regional Manager, Communications

024 4330870

adiki.ayitevie@newmont.com

The Ghanaian Government and Newmont recently received letters from several of the ‘special rapporteurs in the Special Procedures Division of the UN Human Rights Commissioner’s (UNHRC). These questions concerned the Akyem project and its alleged impacts on the people and environment of that area. The questions were based on allegations made by unspecified parties.

Prior to the complaint coming from the UN, no person or organization had posed the allegations to Newmont or to the government directly, nor, to our knowledge, was any resident of the Akyem project area involved in the complaints.

Newmont has responded directly to the UNHRC and it is our understanding that the Government has also responded. Out of respect and courtesy, we have chosen not to make our responses to the allegations public at this stage. Rather, we await the Commission’s response.

In the meantime, however, Akyem community members have chosen to protest what seems to them to be a challenge to a project they overwhelmingly support and an attack on them by an outside group with absolutely no consultation or discussion. They have issued their own communiqué (see attached), signed by 177 community leaders including the following:

• Kokotu Paramountcy representative and Stool Land Owners (chiefs) from Abirem, Afosu, Adausana, and Ntronang.
• Birem North Chapter of GCCI (Ghana National Chamber of Commerce & Industry)
• Birem North Umbrella Youth Association,
• Akyem Youth Association,
• District Assembly members;
• Concerned Farmers and others.

A recent petition mentioned in the Ghanaian media was allegedly signed by 370 ‘concerned farmers’. Unlike the above communiqué (and unlike the petitions appearing at www.newmontghana.com ), the new petition has never been shown publicly and includes no physical signatures by actual residents of Akyem.

Recent reports in some sections of the Ghanaian media alleged that Newmont was paying traditional leaders in return for support. This is false.

Newmont Ghana is committed to transparency and open and honest communication. This is evidenced by our commitment to a number of international conventions including the Extractive Industries Transparency Initiative (EITI) and the Partnering Against Corruption Initiative (PACI) with respect to payments to local leaders and officials.

Newmont’s presence brings about considerable focus on the role and responsibility of traditional leaders in the communities around our project areas. The numerous visits to the operating and project areas by Newmont officials, government officers, NGOs and many other interested parties cause community members to devote substantial time to meetings, discussions, and other interactions. Traditional leaders, in particular, are often required to attend meetings and manage issues that come up due to Newmont Ghana’s presence. We recognize the impacts of these activities and have elected to work with the traditional councils to defray some of the extraordinary expenses related to our presence.

Since 2006 (Ahafo Mine) and early April 2008 (Akyem Project), Newmont Ghana has developed Memoranda of Understanding with the traditional councils to provide funds in recognition of these extraordinary demands. In line with Newmont Ghana’s commitment to transparency and open and honest communication, the funds are paid to the traditional councils and we requested that these agreements remain public. The Akyem traditional leaders have graciously given explicit permission to that effect. Details of the agreements have been available on our web site since early 2008 (see www.newmontghana.com). The 2009 Akyem agreements are posted here.

Chris Anderson
Director, Corporate & External Affairs Africa
Newmont Mining Corporation, 31 August 2009

Newmont Ghana Gold Limited - Ahafo Mine Process Solution Overflow Event - Status Update December 2009

On Thursday, October 8th, an overflow of process solution containing low concentrations of sodium cyanide occurred within the processing plant site at Newmont Ghana’s Ahafo Mine. Newmont Ghana regrets and apologizes for the overflow and is committed to operating with high standards and accepts responsibility for any failure in meeting those standards.

The overflow occurred due to a pond-level instrument malfunction. The control room operator observed that the operations pond was overflowing into the event pond which was filled to capacity for planned maintenance activities. Once the situation was discovered, the source of the process solution overflow was stopped, but not before process solution overflowed from the event pond. The process solution within the plant site area was immediately contained and treated to neutralize the cyanide and laboratory analyses showed that all residual cyanide was destroyed.

On Saturday October 10, it was discovered that some process solution had entered the environment exiting the plant site area via a diversion channel leading to a series of seasonally swampy areas where a localized fish mortality was discovered. Employees, local communities, regulatory agencies and other key stakeholders were notified and updated about the overflow beginning Saturday October 10 when this condition was discovered Water quality samples collected after October 11 indicated residual process solution levels were below laboratory detection limits. Results of Ahafo’s internal testing were also made available to the regulatory agencies during their initial site visit.

Ongoing water quality sampling and analysis conducted by both the government agencies and Newmont Ghana following the incident have indicated no presence of cyanide. Water samples were sent to independent laboratories in Ghana and the United States to verify other tests showing that surface water drainages and groundwater remained safe. Sampling results continue to confirm that there is no threat from cyanide to human health and no residual environmental impact.

We deeply regret this incident and the anxiety it caused the local community. We are working with the regulatory agencies and interested parties to ensure restitution for any impacts. In addition, we continue working closely under the supervision of appropriate government agencies to modify our systems and implement corrective actions to ensure an accidental release of this nature does not happen again.

Newmont is conducting its own evaluation and has put interim measures in place to prevent any further releases. Newmont also has commissioned a third party review by qualified International Cyanide Management Code auditors to assess these measures and provide recommendations for long-term improvements.

Newmont Ghana has committed to publicly announcing our corrective actions for preventing any future releases of this nature. Similarly, the company is engaging with a regulatory panel established and managed by the Government to review causes of the overflow, its impacts and the corrective measures being implemented.

Newmont Ghana remains committed to demonstrating that the safety of our neighbors and employees and protection of the environment is our priority. Superior environmental performance of our operations is extremely important to Newmont Ghana and it will continue to be our focus going forward.

For further information or questions regarding the overflow event, please contact Adiki Ayitevie

Published in www.ghanaweb.com, General News - 13 October, 2009

Accra, Oct. 13, GNA - The Environmental Protection Agency (EPA) on Tuesday confirmed that the minor overflow of processing solution that occurred at Newmont's Ahafo Mines was contained within the mines and did not get into waters consumed by the residents of the area.

Mr Isaac Osei, Brong-Ahafo Regional Manager of the EPA, told the Ghana News Agency that the overflow occurred in the "processing event pond", which is within the process plant area of the mines and far away from the environmental control dams (ECD).

He explained that gold ore was leached in the process plant and residual low grade process solution was stored in the process and event pond, which contained sodium cyanide. The residual water is recovered from the tailing storage facility and recycled to the process plant for re-use. Mr Osei said: "There is a computerised level indicator which signals the staff members what the level of the water in the pond has reached at any point in time - it was at this point that the indicator gave them the wrong signal so they did not realise the overflow in time.

"This is where I thought they were negligent because beside the computers they should have had some staff members to monitor the level of the water in the pond to prevent such occurrences."

Mr. Osei said the chemical that spilled off was not raw cyanide but a processing solution which contained cyanide. He also added that the chemical did not reach the ECD and it did not affect residents in the area in anyway.

The ECD is a dam created by Newmont to control the quantity and quality of run-off from the mine site before it enters waters that the residents of the area consume.

"When the water is trapped in the ECD, measures are then taken to remedy the situation," he said.

Mr. Osei said it was on its way to the ECD that the contaminated water entered into a "small tributary" of the Subri River but did not reach the ECD, "much more reaching the Subri River itself."

He assured the public that as far as that spillage was concerned, there was no cause for alarm, but asked Newmont to man their processing pond properly and also to report such spillages to the EPA in good time. Meanwhile, Newmont has since then provided alternative sources of potable water for the people in the area, while further investigations are ongoing to ensure complete public safety.

Source: GNA

Published in GNA, Regional News, Modern Ghana - 26 September, 2009

Newmont Akyem Project, has won the hearts and minds of the chiefs and people at its proposed mining site at New Abirem, in the Eastern Region to pursue its operations in the area.

The community has therefore urged Alhaji Collins Dauda, Minister of Lands, Forestry and Natural Resources who was on a visit to the area, in the Birim North District, to assist the company to get the necessary permit to commence business.

The minister was in the area to ascertain the proposed operations of the company in the Adjenua Bepo Forest Reserve, following the concerns raised by some advocacy groups about the dangers such activities could pose to the ecology.

A resolution presented by the chiefs and people to Alhaji Dauda said there were nine forest reserves besides the Adjenua Bepo forest reserve with the approximate range of between two to 20 kilometres among them.

"The nine... reserves are bigger in size and richer in trees and must be able to cater for the needs of the people and atone for the losses one might anticipate," the resolution said.

It said in 1975, the Forest Services Division selected the Adjenua Bepo Forest Reserve as Taungya and a survey conducted by Conservation International recently also rated it as secondary forest and not virgin as others may claim.

"Since the forest in question is degraded and has lost its value, we are appealing to you to grant Newmont the access to mine in a portion they have applied for".

The resolution argued that once it had been established that there is gold deposit in the forest, even if Newmont is denied the opportunity to mine, illegal miners (Galamsey) will find all possible means to operate with disastrous consequences.

"What we are saying is that we know and believe that Newmont has the capacity and commitment to deal with all the environmental and societal impacts that are associated with mining better than these illegal operators, hence our call on you to support the company to operate."

The resolution said the mining operations would open the area to development.

It observed that though Newmont had not started operations, it had forged partnership with the District Assembly leading to the provision of potable water to some communities, renovation and construction of new school buildings, modern toilet facility among other things.

The resolution appealed to the minister to ignore the propaganda being peddled around and grant the company the Mining Lease for the smooth take off of the project.

Alhaji Dauda said he was in the town to study the situation on the ground to make it possible for him to take the correct decision on the matter.

Obrempong Affum Afronten IV, Acting President of the Akyem Kotoku Traditional Area, Nana Akua Asantewa III, Paramount Queen, Kotoku Traditional Area, Osabarima Owusu Gyamadu, Member of the Council of State, Nana Amoh Kyeretwie, Abiremhene and Nana Kwadwo Amoh II, Ntronanghene, were among the chiefs who signed the resolution.Newmont Akyem Project, has won the hearts and minds of the chiefs and people at its proposed mining site at New Abirem, in the Eastern Region to pursue its operations in the area.

The community has therefore urged Alhaji Collins Dauda, Minister of Lands, Forestry and Natural Resources who was on a visit to the area, in the Birim North District, to assist the company to get the necessary permit to commence business.

The minister was in the area to ascertain the proposed operations of the company in the Adjenua Bepo Forest Reserve, following the concerns raised by some advocacy groups about the dangers such activities could pose to the ecology.

A resolution presented by the chiefs and people to Alhaji Dauda said there were nine forest reserves besides the Adjenua Bepo forest reserve with the approximate range of between two to 20 kilometres among them.

"The nine... reserves are bigger in size and richer in trees and must be able to cater for the needs of the people and atone for the losses one might anticipate," the resolution said.

It said in 1975, the Forest Services Division selected the Adjenua Bepo Forest Reserve as Taungya and a survey conducted by Conservation International recently also rated it as secondary forest and not virgin as others may claim.

"Since the forest in question is degraded and has lost its value, we are appealing to you to grant Newmont the access to mine in a portion they have applied for".

The resolution argued that once it had been established that there is gold deposit in the forest, even if Newmont is denied the opportunity to mine, illegal miners (Galamsey) will find all possible means to operate with disastrous consequences.

"What we are saying is that we know and believe that Newmont has the capacity and commitment to deal with all the environmental and societal impacts that are associated with mining better than these illegal operators, hence our call on you to support the company to operate."

The resolution said the mining operations would open the area to development.

It observed that though Newmont had not started operations, it had forged partnership with the District Assembly leading to the provision of potable water to some communities, renovation and construction of new school buildings, modern toilet facility among other things.

The resolution appealed to the minister to ignore the propaganda being peddled around and grant the company the Mining Lease for the smooth take off of the project.

Alhaji Dauda said he was in the town to study the situation on the ground to make it possible for him to take the correct decision on the matter.

Obrempong Affum Afronten IV, Acting President of the Akyem Kotoku Traditional Area, Nana Akua Asantewa III, Paramount Queen, Kotoku Traditional Area, Osabarima Owusu Gyamadu, Member of the Council of State, Nana Amoh Kyeretwie, Abiremhene and Nana Kwadwo Amoh II, Ntronanghene, were among the chiefs who signed the resolution.

Article published in the Insight - 4 May, 2009 - page 9

Newmont Ghana Gold limited (NGGL) has awarded contracts worth more than $10.5 million dollars to local vendors and suppliers who have remarkable bearing on employment opportunities in the operational area of its Ahafo project.

Mr. Dan Michaelson, General Manager in charge of environment and social responsibility for NGGL said this in a speech read for him at the Ahafo Business Week at Kenyasi on Tuesday.

NGGL, together with the Ahafo Business Association and the International Finance Corporation organized the two- day event which was on the theme “Developing businesses in Ahafo through partnership.”

More than 40 companies are participating in the Programme designed for local entrepreneurs to enhance their understanding of business practices as well as to showcase Ahafo as a place to do business in Ghana.

Mr. Michaelson dismissed the perception that mining communities do not benefit from the presence of mining companies and are underdeveloped.

“Very much aware of this perception, NGGL showed early determination to change the script by developing the capacity of the local economy not only to support the mine but to remain buoyant and diversified even after the life of the mine,” he said.

The General Manager said it was against this background that the company, in collaboration with the International Finance Corporation, established the Ahafo Linkages Programme in 2007 out of which the Ahafo Business Association was born.

Mr. Michaelson explained that the Programme aimed at generating employment and increasing revenue for local medium and small scale enterprises through the provision of business development training, mentoring and diversification.

He said NGGL would continue to support the development of the local economy to significantly improve the lives of the people.

Article published in the Daily Graphic - 2 May, 2009

Newmont Ghana Gold limited (NGGL), which is operating the Ahafo Mine in the Brong Ahafo Region, is to launch an integrated community malarial control Programme as part of the company’s efforts to eradicate the menace in its host communities.

Under the first phase of the Programme, the Gyedu Health Center Laboratory will be equipped with diagnostic equipment to be manned by trained laboratory technicians.

In addition, the company will distribute free treated nets to households at two of its settlement sites at Ntotroso and Ola senior high school.

The community development superintendent of NGGL, Mr. Joseph Danso, announced this at a durbar to commemorate the district celebration of this year’s World Malaria Day at Ntotroso, which was on the theme , “Counting Malaria Out”. It was jointly organized by the Asutifi district health directorate and NGGL.

To show its commitment, Newmont distributed 500 long-lasting insecticide treated bed nets (INTs) to pregnant women and children under five years and treated old bed nets for the community at the function.

Mr. Danso has also announced plans by the company to organize a malarial quiz competition for selected second –cycle institutions within its operational area , and expressed the hope that the competition would be keener than it was last year, saying “At Newmont, our fight against malaria does not start and end on world malaria day.”

The superintendent observed that malaria had plagued humanity for a long time and it continued to impact about 40 per cent of the world’s population, affecting more than 500 million people per year and killing over one million.

“This is a disease that kills 3,000 children per day” he noted, saying that complications from malaria, including severe anemia account for at least a million more deaths, while malaria takes as much as 40 per cent of public health expenditure in malarial endemic areas, with Ghana being no exception.”

He emphasized that in Ghana, malaria accounted for about 40 percent of all out-patient department (OPD) cases and accounted for about 25 per cent of all under five mortality cases.

The Brong Ahafo Regional Director of health services, Dr. Aaron Offei, disclosed that the current poor personal and environmental sanitation in towns and villages, made it difficult to address diseases of public health importance such as malarial and guinea worm.

He described the disease burden of malaria in the region as enormous, pointing out that in the year 2007, 49 per cent of all patients seen in hospitals and health centers were malarial cases, but said the figure reduced to 44 per cent in 2008.

Dr. Offei noted that it was clear the malaria disease contributed to low productivity and absenteeism in schools in the region and that the regional health directorate had intensified activities to control the disease, including public education and advocacy for improved access to potable water.

The Asutifi District Director of health services, Mr. John Frederick Dadzie, said in 2006, malaria contributed 36 per cent of all cases while in 2007 it was 37 per cent and in 2008, 36.5 per cent.

Mr. Dadzie, however, noted that the ranking of malaria among the top ten causes of mortality was reducing gradually, and disclosed that in 2006, the disease placed third and moved down to forth and fifth positions in 2007 and 2008 respectively.

Article published in the Daily Graphic - 20 April, 2009 - page 9

Newmont Ghana Gold Limited (NGGL) operating the Ahafo Mine Site in the Brong Ahafo Region, has established a gender mainstreaming Programme that seeks to encourage women to assume greater responsibility within the mine and amongst the host communities of the company.

Through the Programme, female staff at the mine site have, out of their own initiative, established a revolving fund to support themselves in business.

A minimum of GH¢100 has so far been disbursed to 10 women.

The community development superintendent of Newmont Ahafo Mine, Mr. Joseph Danso disclosed this at a durbar to mark the Tano North District celebration of this year’s International Women’s Day at Yamfo.

"NGGL will through the Programme continue to empower and encourage women in our local communities to be a cardinal part of decision making at all levels so that we can collectively carry out the much needed socio-economic development of our communities", Mr. Danso stated.

He said under the Programme, NGGL had been partnering with the International Finance Corporation (IFC) and the regional office of the National Commission on Women and Development (NCWD).

A deputy director at the Ministry of Women and Children Affairs, Mrs. Juliana Amponsah catalogued a number of legislations that had been promulgated to protect women and children.

Newmont was recently nominated, along with 24 other companies, by the Wassa Association of Communities Affected by Mining (WACAM) for the Swiss-based Public Eye Global Award, which attempts to shame global corporations for alleged unethical behavior. In its nomination, WACAM alleged our company acted irresponsibly by our intention to mine in a forest reserve in Ghana and "displacing thousands of farmers."

More than 150 Ghanaian community leaders have since issued their own statement opposing WACAM's award.

"Newmont was not informed of the nomination nor given the opportunity to respond," said Dr. Chris Anderson, Newmont Ghana's director of Corporate and External Affairs. "While we value opposing views from groups and individuals who have demonstrated seriousness in understanding of our mining projects, their impacts and mitigation measures, it is clear the nomination was filled with numerous inaccuracies about the Akyem project."

The Akyem project would mine about 12 percent of the southeast fringe area of the Ajenjua Bepo Production Forest Reserve; with all other mining activities undertaken outside the forest. The Ghanaian government classified the condition of the Ajenjua Bepo Forest fringes as mostly degraded due to long-term logging and timber harvesting. Additionally, the reserve is not one of the Globally Significant Biodiversity Areas in Ghana. Having now been put under a conversion circle, the forest can be mined for the mineral deposit in its degraded section.

Newmont's Akyem project has been studied extensively by international and national environmental experts, members of the communities living in the area, and by agencies and departments of Ghana's government. During the past five years, it has been the subject of a thorough environmental impact study, public consultation processes, an independent review process and overall regulatory review.

Every issue raised in the nomination has been discussed with local communities and the results presented in an environmental impact study that was recently reviewed by the Ghana Environmental Protection Agency (EPA). Our analyses have also been subjected to international and national environmental expert review, as well as that of government agencies. As a result, the EPA recently granted Newmont an environmental permit to operate at Akyem.

Project leaders have engaged with numerous community representatives, nongovernmental organizations, government agencies and international organizations on many occasions. These processes have demonstrated Newmont's respect for the Akyem community and its opinions - which are both supportive and contrary to our views.

In fact, at three public hearings held over the last few years by the Ghana EPA, the Akyem communities demonstrated overwhelming support for the Project and this was widely reported in the media. Our company has become a leader in Ghana, bringing innovation and high standards to its environmental practices, safety measures and commitment to social responsibility.