Newmont Mining Corporation

Salt Lake City, Utah

As an operator at one of Newmont's mines lowered a 47-foot mast on a
production drill, the pivots attaching the mast to the rig tore loose and the 12-ton pole plummeted to the deck of the drill rig, causing roughly $30,000 in damage. Fortunately, the drill operator was safe, as were his co-workers. But the accident could have been fatal.

After a rigorous investigation, Newmont concluded that there were problems with the rig's design and assembly. We contacted the manufacturer to help us bring the rig to safe operational status and to address the broader global risk with this flawed design. Using our Global Safety Alert System, we asked all of our operations using this type of drill to inspect their equipment and adopt the recommended modifications.

Newmont's ability to quickly resolve risks is a result of our active participation in global working groups, such as the Mining Industry Roundtable and Earth Moving Equipment Safety Roundtable. Our involvement provides us with immediate access to peer companies and equipment manufacturers, helping us more effectively address these types of risks and hazards.

"Our response to this incident is but one example of our commitment to relentless leadership in operating safely and reducing the likelihood of accidents and fatalities," said Mike Byrne, vice president, Global HSLP and Security. "Our actions following the accident not only averted potential fatalities within Newmont, but also at other companies that use this type of drill rig."

"Relentless leadership" was the theme of the third Industry Mining Roundtable Safety Summit, held this fall in Salt Lake City, Utah. Co-founded by Newmont and Barrick six years ago, the Summit has expanded to nine companies and 170 individual participants, providing a forum where leading safety practices, innovations and lessons can be shared and learned.

General Rick Hillier, Canada's former chief of the defense staff for Canadian forces, kicked off the two-day event by sharing traits of successful leadership. "Employees look for strong leaders who clearly deliver on their promises and practice open and honest communication," he said.

Hillier encouraged Summit participants to reward and empower those employees who are safety leaders, and who are not afraid to challenge the status quo.

Newmont's own president and CEO, Richard O'Brien, emphasized how communications flow and accuracy are critical to preventing incidents. He explained how Newmont's potential fatal occurrence call procedure has helped the company better understand root causes, discuss necessary actions, identify ways to support the region or site that experienced the occurrence, and ensure the outcomes are shared across the company.

During his session, "Creating a Culture of Safety Quarter by Quarter," Don Lindsay, CEO of Teck, a Canadian mining company, reinforced the idea that companies must send the clear message that safe production is the goal.

"You must pursue and measure safety performance as closely as you measure production and cost results," Lindsay said.

At the Summit's conclusion, participants committed to improving communications; measuring lead indicators; increasing their focus on high-risk areas and change management; and recognizing those who demonstrate leadership at all levels. The group also committed to engaging in more detailed and specific safety planning, and to meeting again in 2012.

November 30, 2010