There are many conceptual approaches that could be used to provide a research “framework” for this initiative, a framework that would help Newmont and others to understand the many ways in which companies and communities interact over the life of a mining project regarding very diverse issues and concerns, and the methods available to companies to help shape their own behaviors and engage effectively with local stakeholders. 

Given the concerns expressed in the shareholder resolution, the Newmont Board of Directors has chosen an approach developed by experts in the fields of development and peace-building.  This approach began through an examination of the ways in which large development projects (for example, dams and agricultural initiatives) affect and interact with local communities.  Over the past few years, this approach has also begun to include an examination of extractive industry projects such as mining.

Mining projects can bring tremendous opportunities for communities to achieve their own development goals, but these opportunities are accompanied by tremendous change.  Such change poses significant challenges.  When a large development project such as a mine is brought into a community, there is the risk of a) the project causing impacts (such as competition over limited job opportunities) that could lead to exacerbating local tensions and violence, and/or b) existing local tensions giving rise to impacts (for example, the militarization of local youth) that have direct negative effects on company’s ability to operate and produce the development benefits that communities are seeking. 

Aspects of the local and national context that may affect the ability of a company and community to engage effectively and constructively include:

• Socio-economic foundations (for example, the infrastructure of health and education, and the local economy);
• Security;
• Political framework (for example, the rule of law and the capacity of the justice system to resolve disputes), and;
• Reconciliation and justice (for example, the existence of bridge-building mechanisms between antagonistic groups). ³

If a project proponent and local community do not understand these dynamics and have in place skills and processes to manage them, both the company and community face significant risks.

 As part of this initiative, Newmont has asked International Alert, a recognized expert organization in the area of conflict-sensitive business practice, to provide a short summary that explains these challenges and potential management approaches. Please click here to view this paper.