Newmont’s Peñasquito Mine and Cedros Community in Mexico Agree to Water Pact
DENVER--(BUSINESS WIRE)-- Newmont (NYSE: NEM, TSX: NGT) (Newmont or the Company) announced today that the Peñasquito mine and the nearby San Juan de Cedros community (one of 25 neighboring communities) in Zacatecas, Mexico mutually agreed to an infrastructure solution securing sustainable water availability for the community’s domestic and agricultural uses. The 30-year water agreement represents a significant milestone and an important step in the ongoing negotiations between the parties. The agreement was developed and signed under the auspices of the ‘Dialogue Table’ sponsored by Mexico’s Federal Department of the Interior and representatives of the state government of Zacatecas.
“Our water agreement with the Cedros community represents a meaningful turning point towards a long-term partnership anchored in our common purpose to create value and improve lives,” said Tom Palmer, President and Chief Executive Officer. “Having reached agreement on this pivotal issue, we look forward to continuing our good-faith dialogue to resolve the remaining issues so we can move from confrontation to cooperation.”
The plan includes additional water wells and infrastructure that will supplement the 600,000 liter-per-day Reverse Osmosis drinking water plant and wells the Company built in 2018 and continues to operate. As part of the agreement, the municipality will participate in the operation of the new water facilities to be built by Peñasquito as the public water system and the distribution networks will ultimately be owned by the municipality.
Peñasquito has enhanced water availability for the mine’s 25 neighboring communities through a number of projects including water treatment plants, new wells, pipelines and water trucks, along with 90 other infrastructure and community development projects. The mine directly employs more than 6,500 people while supporting another 20,000 indirect jobs in the region. Since 2005, the Company has invested approximately US$5 billion in Peñasquito.
Newmont is the world’s leading gold company and a producer of copper, silver, zinc and lead. The Company’s world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in North America, South America, Australia and Africa. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social and governance practices. The Company is an industry leader in value creation, supported by robust safety standards, superior execution and technical proficiency. Newmont was founded in 1921 and has been publicly traded since 1925.
Cautionary Statement Regarding Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws. Such forward-looking statements may include, without limitation, statements regarding future value creation and the outcome of future dialogue and negotiations. Where a forward-looking statement expresses or implies an expectation or belief as to future events or results, such expectation is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially. For a discussion of risks and other factors that might impact forward-looking statements or the Company’s future performance, see the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 under the heading “Risk Factors”, filed with the U.S. Securities and Exchange Commission (the “SEC”) and available on the SEC website or www.newmontgoldcorp.com, as well as the Company’s other SEC filings, including the most recent Quarterly Report on Form 10-Q for the quarter ended September 30, 2019. The Company does not undertake any obligation to release publicly revisions to any “forward-looking statement,” including, without limitation, outlook, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued “forward-looking statement” constitutes a reaffirmation of that statement. Continued reliance on “forward-looking statements” is at investors' own risk.