CREATING VALUE

At Newmont, everything we do is focused on creating value — for shareholders, employees, governments, partners and the communities where we operate. Newmont does more than extract resources. We invest in people and communities, generate income, create economic opportunity, build necessary infrastructure, and enhance health and educational access, all of which, if managed appropriately, can be a foundation for sustainable development. As the world’s number one gold producer, we recognize that with industry leadership comes certain responsibilities.

Newmont is proud of the investments it makes around the world, and we are committed to excellence in safety and environmental practices. However, Newmont also recognizes that its activities create change and that change, no matter how well managed, can be difficult. In 2004, Newmont faced social and environmental allegations at Yanacocha in Peru and Minahasa in Indonesia. In Indonesia, as the Minahasa mine was preparing for closure, Newmont was accused of environmental mismanagement. In response to these accusations, Newmont welcomed the World Health Organisation and the Australian Commonwealth Scientific and Industrial Research Organisation to independently assess these allegations. Both of these independent organizations concluded that Minahasa did not cause harm to the environment or human health. In Peru, a group of local citizens temporarily blocked the road between the city of Cajamarca and the Yanacocha mine site. Upon reflection, it was clear that we failed to appreciate the level of social stress generated by Yanacocha’s rapid development and the profound concern expressed by some of the citizens living near Yanacocha’s Cerro Quilish deposit. To address these concerns, Yanacocha relinquished its exploration permit at Cerro Quilish as an expression of goodwill. Yanacocha, in consultation with its various stakeholders, continues to establish dialogue mechanisms so that concerns can be fully addressed in a transparent and participative manner.

These challenges serve to remind us that Newmont must continue to apply best practices in every aspect of its operations and continuously audit, measure and assess its performance. We are not perfect, but we demand leadership in safety, stewardship of the environment and social responsibility. This is why Newmont has taken a leading role in the International Council on Mining and Metals, which is dedicated to the principles of sustainable development. Newmont also participated in the founding of the World Economic Forum’s Partnering Against Corruption Initiative announced earlier this year, which is a private-sector effort established to fight bribery and corruption, and increase sound and transparent government regulation. In addition, in 2004, Newmont joined the U.N. Global Compact.