We seek to obtain and maintain broad social acceptance during all stages of the mine lifecycle, building relationships with communities, governments, NGOs and other local, national and global stakeholders. We understand that social acceptance – the willingness for stakeholders to accept the ongoing activities of our business beyond the fulfilling of our legal obligations – is dynamic, and depends on a multitude of factors.
The following global standards detail Newmont’s minimum requirements to effectively identify, manage and monitor the wide range of social risks and opportunities:
- Community Investment and Development – guides our approach to working with host communities to invest in community development efforts and programs that can help address challenges, catalyze long-term socio-economic development and minimize dependency on the mine during operations and upon closure;
- Stakeholder Relationship Management – ensures those who are, or potentially are, impacted by our business activities are identified and effectively engaged;
- Social Baseline and Impact Assessment – provides us with critical information about social baseline conditions and potential impacts of our business activities needed to develop short- and long-term mitigation and development plans;
- Cultural Resource Management – details the process of identifying and protecting cultural resources and preventing unauthorized or undesired disturbance by our business activities;
- Indigenous Peoples – defines how we will work to obtain the consent of indigenous peoples for new projects – and changes to existing projects – on lands traditionally owned or customarily used by indigenous peoples; and
- Land Acquisition and Involuntary Resettlement – assesses and addresses the rights and needs of landowners and local communities prior to any land acquisition or involuntary resettlement.
Our external relations strategy provides the framework to obtain and strengthen broad social acceptance throughout the mine lifecycle. It also recognizes that social acceptance is granted not just by local communities, but also by national and global stakeholders. The strategy’s objectives include:
- Engagement – proactively engage stakeholders based on inclusion, transparency and integrity;
- Emerging issues – monitor, influence and internalize global trends to enhance business flexibility and leadership;
- Risk and impact management – integrate stakeholder considerations into managing risks to develop long-term, positive cumulative impacts;
- Mutual value creation – collaborate to catalyze socio-economic development so communities can thrive during operations and after mining activities cease; and
- Operational excellence – dedicate resources that deliver consistent performance through sharing knowledge, building capacity and managing change across the business.
All sites must have a comprehensive strategic stakeholder engagement plan and conduct and/or update baseline studies and impact assessments to inform our approach and identify opportunities for improving the communities’ long-term outlook.
Most of these assessments are conducted by external, independent experts and include extensive input and review from the community. Final reports are expected to be made public and available to local communities. Findings from the studies are addressed through our social management plans, which are regularly monitored and evaluated against objectives and requirements.
Our standards also require an open and transparent process where stakeholders’ complaints are addressed fairly and in a timely manner. Sites must maintain a complaints and grievances (C&G) register and ensure stakeholders know how to raise concerns. We use a three-tier system where tier 1 complaints are those that can be resolved between Newmont and complainants without the need for external mediation and/or legal proceedings. These tend to be related to matters that we directly control. If a complaint cannot be resolved in a timely manner or relies on local systems, it is escalated to tier 2, where an independent mechanism identified by the community – such as a local leader or committee – is used. Disputes that cannot be resolved by the parties involved, typically those that require legal intervention, are categorized as tier 3.
Sites must use existing baseline studies, assessments and government development plans, along with robust community engagement, to develop a community investment strategy that identifies opportunities and available resources. Each site must review and update its strategy a minimum of every five years.
Our operations make direct investments in community infrastructure and social programs, and in Ghana, Peru, Suriname and the U.S., we have established community foundations or funds that support community priorities during the mine life and after operations cease. The foundation boards include community members to ensure community ownership and participation in the foundation’s efforts. Each foundation or fund is unique and focused on needs identified by the community.
For all community donations, a transparent process is used to document and review each contribution to ensure compliance with the Partnering Against Corruption Initiative (PACI) and Foreign Corrupt Practices Act (FCPA).
We pursue partnerships with NGOs, development organizations and government agencies to ensure our investments effectively address local challenges and opportunities.
At our exploration sites and operations on or adjacent to land owned or claimed by indigenous peoples, we respect and acknowledge the past and present traditional owners of the land on which our operations reside.
Through employment and business development opportunities, training and education, cultural heritage support, and cross-cultural awareness training, we aim to improve our understanding of and create benefits for indigenous peoples who are the traditional owners of the land on which we conduct mining activities or who reside near our operations.
As a member of the International Council on Mining and Metals (ICMM), we commit to its position statement to work to obtain free, prior and informed consent (FPIC) of indigenous peoples. We are also active participants in RESOLVE’s FPIC Solutions Dialogue, which works to better understand successful approaches and best practices to translate FPIC into an effective site-based approach. Through the principles of FPIC, indigenous peoples are able to freely make decisions without coercion, intimidation or manipulation; given sufficient time to be involved in project decisions; and informed about a project and its potential impacts and benefits.
More information about the indigenous groups near our operations and sites is discussed in the map below:
RELATIONSHIPS WITH INDIGENOUS GROUPS
Gnaala Karla Booja
The Gnaala Karla Booja (GKB) are the Noongar Native Title Claimants of the land where we operate the Boddington mine in Western Australia. Since 2006, Newmont has worked with the GKB and their representative body, South West Aboriginal Land and Sea Council (SWALSC), on a range of initiatives aimed at enabling the GKB to share the benefits and development opportunities arising from Newmont’s presence in the region. These initiatives operate under the Community Partnership Agreement (CPA), a voluntary 20-year agreement implemented via a Relationship Committee comprising representatives of the GKB, SWALSC and Newmont. Activities covered by the CPA include education and training, employment, heritage, financial and business development, and community capacity building. Now in its 13th year, the CPA has been instrumental in Boddington’s efforts to develop a more diverse workforce and deliver positive social and economic development outcomes for the broader Noongar community.
The Warlpiri people are the owners and traditional custodians of the land on which our Tanami mine in Australia’s Northern Territory is located. Newmont operates in the region through agreements with the Central Land Council (CLC), which represents the Warlpiri people in land dealings with Newmont and has statutory authority under the federal Aboriginal Land Rights Act. In 2016, we collaborated extensively with the CLC and Warlpiri representatives to develop a 10-year strategic plan that will support the long-term vision the Warlpiri people have for their land. The first of its kind, this long-range plan aims to collectively strengthen the Warlpiri people’s governance, education and employment opportunities. The plan also details how Newmont, the CLC and the Warlpiri people will work together to achieve the plan’s objectives.
The Ninga Mia Village, which houses around 100 aboriginal residents near our KCGM operation in Australia, was established in 1983 to provide more permanent accommodation for transient aboriginal people. KCGM – along with other private organizations, government entities and individuals – is a co-signer to the “Dignity, Respect and Fulfillment Agreement” memorandum of understanding with the Ninga Mia. The agreement sets out a vision to create better working relationships among indigenous and non-indigenous leaders, organizations and individuals.
Western Shoshone, Shoshone-Paiute and Confederated Tribes of the Goshute Reservation (“Goshute”)
The Western Shoshone, Shoshone-Paiute and Goshute are indigenous to the Great Basin region in which Newmont’s Nevada operations reside. Newmont engages with all three tribes on a formal and informal basis. A dialogue working group, which includes tribal leaders and Newmont representatives as well as a Native American facilitator, helps foster transparent dialogue and solutions on key issues including employment, business opportunities, education, community investment, and developments regarding our operations and projects. A Cultural Artifact Repatriation Taskforce, which includes representatives from Newmont and Native American communities, is developing a formal agreement for the repatriation of cultural artifacts located on Newmont-owned land adjacent to Newmont operations.
Spokane Tribe of Indians
The Midnite mine – one of our legacy sites – is a former uranium mine located within the Spokane Tribe of Indians reservation in the state of Washington. In 2015, we began a site remediation process, which includes engagement with the Spokane Tribe of Indians, that will continue throughout the implementation of the remedy over the next 10 years. To strengthen our relationship, we collaborated with the tribe to enable the hiring of a tribal member who serves as the lead liaison between the community and Newmont. We also supported a capacity-building program to increase the skills, planning and overall engagement practices of the liaison officer in partnership with the tribe.
Pamaka Maroon Tribe of the Marowijne River
The Merian mine is located on the traditional lands of the Pamaka, and we engage extensively with the people of the tribe. We are implementing an engagement and agreement-making approach with the Pamaka based on the principles of FPIC. In 2016, we signed a comprehensive Cooperation Agreement with the Pamaka, which states we recognize and respect each other’s rights and will work together on commitments – such as employment, procurement, community development and participatory monitoring – related to the operation of the Merian mine.
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Resettlement and land use
We mine where ore bodies are located and when we have the social license and all the required regulatory approvals to do so. At times, mine development results in unavoidable relocation and resettlement of households and/or livelihoods as well as impacts to those who depend on artisanal and small-scale mining (ASM).
Our approach to resettlement is aligned with the International Finance Corporation (IFC) Performance Standard 5, which states that the first objective is to avoid resettlement. If alternatives are not available, we work to ensure affected people and communities are able to make informed decisions; adverse impacts are minimized; and livelihoods and living conditions are restored or improved.
Prior to any resettlement activities, we work with local stakeholders to develop a resettlement action plan (RAP), which addresses the impacts of physical displacement, and/or a livelihood action plan (LAP), which addresses the economic impacts. Sites regularly monitor and evaluate RAPs and LAPs and annually conduct audits by qualified external experts to ensure activities are meeting the needs of affected persons.
We are one of five mining industry partners in the Mining, Resettlement and Livelihood Research and Practice Consortium. Together with the University of Queensland’s Centre for Social Responsibility in Mining, this first-of-its-kind industry-university working group aims to better understand how resettlement risks are managed, identify strategies to improve livelihood outcomes for those affected by resettlement, conduct research, and help inform policies that lead to more effective practices.
Artisanal and small-scale mining
Artisanal and small-scale mining (ASM) and its associated value chain provide subsistence for millions of people. It is also an activity that can pose significant safety and environmental risks. We are committed to managing and mitigating these risks while recognizing ASM’s importance for those who depend on it as a livelihood or who have historical, cultural and symbolic rights to land use and ownership.
Currently, ASM activities take place on or near five of our operations – Ahafo and Akyem in Ghana, Merian in Suriname, Yanacocha in Peru, and Cripple Creek and Victor (CC&V) in the U.S. – plus exploration projects in several jurisdictions.
Because the ASM context varies – ranging from a recreational activity in the U.S. to a critical inter-generational livelihood in Suriname – we commission studies from experts to understand environmental impacts, the ASM value chain, socio-economic connections between the local communities and ASM activities, traditional land ownership and control of ASM activities, and the role of ASM in local socio-economic development.
Our global ASM strategy’s four objectives help us explore, develop and operate in places where small-scale miners work:
- Security – Ensure safe and secure access to Newmont’s assets, interests and concessions in proximity to ASM activities to minimize conflict between ASM and Newmont;
- Performance – Manage our environmental, social, security, health and safety risks and impacts caused by ASM activities to ensure compliance and protect our reputation;
- Livelihood development – Create greater stability by collaborating to empower and improve livelihood options associated with the local economy; and
- Influence, learn and align – Monitor, engage and influence ASM policy and practices and align with the needs of Newmont’s exploration, projects and operations.
Our cross-functional global ASM working group ensures alignment across regions and functions, facilitates knowledge sharing and identifies potential partnerships while regional and site-level working groups manage site-specific issues.
Exploration teams are often the first contact with communities, and these interactions are critical to shaping positive future relationships. Our S&ER Exploration Guidebook and associated management workbook include requirements to identify and characterize ASM in or near exploration areas of interest based on the legitimacy and legality of the activity, its scale, and the impacts to, and role of, local community members. The approach is designed to support early engagement and build positive relationships with small-scale miners.
ASM is not an issue that we can solve on our own. Partnerships with governments, international institutions, civil society and ASM think tanks are essential. We promote international best practices through webinar presentations from external experts, NGOs and/or other mining companies working on ASM issues. Newmont participates in several global forums – including the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development – to promote Newmont’s approach and encourage policy alignment.403-1
We set public targets to meet community commitments and resolve community complaints and grievances in a timely manner.
Through our IMS, we track social events and rate the actual and potential consequences on a severity scale of zero to five. All events are continuously tracked, and significant events (i.e., those with an actual consequence of level 3 or higher) are reviewed and discussed on a quarterly basis during a CEO-led call with executive, regional and functional leaders, and publicly disclosed in this report. Another metric we track and report on internally is permitting status. While many factors impact permit approvals, when we review our “red/yellow/green” permitting dashboard, we include an analysis of any social factors that may be positively or negatively impacting approvals.
2018 TIER 1 COMPLAINTS OR GRIEVANCES RECORDED ON SITE REGISTERS
|Site||Number||% Resolved within 30 days|
|Note: Globally, the average resolution time is 10 days. Regional average days to resolution are: North America, 2.3 days; Australia, 4.7; Africa, 6.7; and South America, 13.5.|
2018 TIER 1 COMPLAINTS BY CATEGORY
We performed well against our public target to complete 95 percent of community commitments by the due date; however, one commitment – the construction of a fence at our Boddington operation in Australia – was delayed due to a required environmental and cultural survey. The project was completed during the year.
All sites met the target to resolve 100 percent of tier 1 complaints within 30 days, with the exception of Merian in Suriname and Ahafo in Ghana. Merian made personnel adjustments to improve responsiveness, and continued efforts to engage with a complainant who was difficult to reach. The site also held sessions with local stakeholders to raise awareness about the C&G mechanism, how to submit complaints and the resolution process. At Ahafo, resolution timeframes were impacted by resettlement complaints related to land compensation that took time to thoroughly and fairly investigate.
We extended both of these targets through 2019 to demonstrate our continued commitment to addressing stakeholder concerns and issues before conflicts arise. In 2019, we will work on developing an outcome-based target for social acceptance and will determine whether to report against this target in addition to, or in place of, the current public targets related to community commitments and complaints and grievances.
We recorded a total of 537 new complaints, a 28 percent increase compared to 2017, due to improved reporting and stakeholder engagement efforts throughout the year. During the year, 531 complaints were resolved.
- Of the total number of new complaints, 526 (98 percent) were tier 1, four were tier 2 complaints, and seven were tier 3.
- The average resolution time for all tier 1 complaints was approximately 10 days.
- Matters regarding compensation, business partners and blast events accounted for the highest number of C&Gs across our operations.
At the end of 2018, all our operating sites had a social impact assessment (SIA) in place, with the exception of our Carlin operation, which had previously reported under the broader Nevada region.
We applied our expanded social baseline approach – which includes detailed social, economic, physical and cultural information – in the development of the draft environmental and social impact assessment (ESIA) for the Sabajo project located near our Merian operation in Suriname. The ESIA engagement process included communication to the Kawina Maroon Tribe – which the baseline studies identified as the traditional owners of the land where Sabajo sits – about the project, allowing them to make an informed decision about consent. More information about the Sabajo project’s ESIA is discussed in the Human Rights case study.
Other notable community engagement activities in 2018 include:
- Addressed community concerns: Both the Ahafo and Akyem operations experienced community and contractor protests during the year. To better understand the concerns from key stakeholders, including youth, traditional leaders, local contractors and farmers, we began updating our social acceptance approach to rebuild trust and collaboratively propose a path forward based on listening and understanding. The plan addresses specific concerns over the loss of crops and land use due to the development of Akyem, employment opportunities and livelihood development, and blasting impacts. The site has engaged an independent consultant to conduct a resettlement action plan (RAP) completion audit in 2019. The audit will analyze whether our commitments in the RAP have been met. If any outstanding items still need to be addressed, we will develop and implement the appropriate mitigation actions.
- Gathered community feedback: An independent assessment was conducted at both Ahafo and Akyem to evaluate the relationship between the Company and the community. More than 165 stakeholders were interviewed to gather information and data to accurately assess the relationship. The assessment’s recommendations will be reflected in an updated community relations approach the sites will implement in 2019. We also engaged with stakeholders on two key projects in the region: the Ahafo North expansion and the exploration permit for Akyem underground. Issues raised by stakeholders included local employment opportunities, and land acquisition and highway diversion plans. For the highway diversion, we formed a joint Newmont-stakeholder committee. We also engaged with stakeholders on resettlement concerns related to the Ahafo Tailings Storage Facility expansion.
- Updated community agreements: Akyem updated three community agreements related to community relationships, employment and the Newmont Akyem Development Foundation (NAkDeF), which underwent a review process following the agreements’ expiration in 2017. The updated community development agreement includes changes to the tenure of office holders to maintain institutional memory and improve continuity of activities; the introduction of agriculture, enterprise development, water and sanitation, and safety and security as thematic areas; the removal of mandated percentage allocations in favor of prioritizing fewer, yet higher impact, projects; and increasing flexibility to finance grant requests, allowing greater emphasis on job creation programs that expand beyond individual villages. The updated agreement also strengthens the commitment to the Partnership Against Corruption Initiative (PACI) guidelines.
- Launched participatory monitoring: At Ahafo, we partnered with Ghana’s Environmental Protection Agency (EPA) to launch our independent water monitoring program. The regional EPA shared results with stakeholders at the Asutifi North District Assembly, demonstrating Newmont’s compliance with relevant regulatory standards and confirming that Newmont has not polluted surface and groundwater as alleged in a 2017 report by a Ghanaian NGO (WACAM). The District Chief Executive addressed the allegations made in the WACAM report based on the monitoring results.
- Engaged on impacts related to geotechnical issues: In May, our KCGM joint venture experienced a pit wall failure that resulted in operations in part of the surface mine being suspended while technical experts assessed the wall slip. Considering the incident’s impact on jobs and the mine plan, the operation implemented communications and engagement plans to ensure that regulators and local stakeholders were kept informed and received timely updates.
- Improved response to blasting complaints: As KCGM is located in close proximity to residential areas, blasting is one of the top concerns from local community members. We partnered with KPMG to implement a stakeholder trust model, developed by the Australian research organization CSIRO, to more effectively address impacts and issues with blasting.
- Conducted community survey: Our Boddington operation completed a community perception survey in late 2017. In 2018, feedback was delivered to the Boddington Community Reference Group and was used in preparation for the operation’s 2019 SIA via a participatory planning process that built on the conversation started through the survey.
In North America:
- Surveyed employees: Local employees comprise a large percentage of the total workforce in the region, so ensuring that they are empowered with information is key to local engagement efforts. Accordingly, we conducted a survey and implemented improvements to internal communications that began in 2018 and will continue throughout 2019.
- Engaged stakeholders to progress projects: Following extensive engagement with regulators and local stakeholders, including a public comment process, we received the Record of Decision for the Greater Phoenix project, which extends the life of our Phoenix mine in Nevada by more than 20 years. We also continued to solicit stakeholder feedback – including from local Native American tribes – on the Plan of Operation for Long Canyon Phase 2, an early stage expansion project.
- Held meetings and open houses: Our Cripple Creek & Victor (CC&V) operation in Colorado holds regular open house meetings and site tours to hear from community members and address concerns. During an open house in 2018, we discussed improvements made to a major road corridor, how we are restoring historic mine workings to protect the cultural heritage of the area, and how we monitor wildlife. At our Twin Creeks operation in Winnemucca, Nevada, we focused on engagement in the rural communities. We held quarterly meetings with community members and developed partnerships. During the year, we extended Gold Fever – a fourth-grade mineral education activity – to several rural elementary schools.
- Increased understanding with faith-based leaders: We held quarterly community stakeholder engagement meetings with faith-based organizations and nonprofit leaders in northern Nevada. These meetings, along with mine tours and other collaborative gatherings, have improved Newmont’s understanding of community priorities, encouraged partnership, and increased collaboration among faith-based and nonprofit groups.
In South America:
- Held workshops on the future of Yanacocha: Yanacocha held 55 workshops on the future of Yanacocha in 2018, engaging 1,640 stakeholders in a series of workshops that were first initiated in 2016. Female participation in the workshops has increased from 40 percent of participants in 2016 to 56 percent in 2018. Around 56 percent of participants expressed a preference for the Yanacocha operation to continue, while 18 percent would like operations to cease. The remaining 26 percent would like continuity with conditions on water quantity and quality, employment and commitments. When informed about an early stage expansion project to process sulfide ore, 53 percent of participants expressed support for the project and an extension of Yanacocha’s mine life, 27 percent supported the project with conditions, and the remaining 19 percent did not want the project to be developed and wanted operations to cease.
- Partnered on educational forums: Yanacocha continued to partner with the National University of Cajamarca, hosting forums that bring together students, government and community leaders, businesses and civil society to deepen understanding on topics of interest including water and economic development.
- Offered virtual reality mine tour: Yanacocha began using technology to enhance stakeholder understanding of the operation. Younger generations, in particular, participated in Yanacocha’s virtual reality experience at the 2018 Expomina national mining conference in which a drone video gives an in-depth look at and explanation of the operation.
- Commenced external advisory panel: We held the first external advisory panel meeting for Peru, an external body composed of local and national business, community, and thought leaders set up to address relevant social, political and economic issues, and to improve engagement with key stakeholders.
- Held meetings with traditional authorities: At our Merian mine in Suriname, we met with the Pamaka traditional authorities to discuss the upcoming review of the Cooperation Agreement – the socio-economic framework – and reporting expectations. Regular engagements continued with community groups, including on the C&G mechanism for the site and the Community Development Fund.
- Expanded relationships in French Guiana: As Newmont has exploration interests in French Guiana, the French General Council for Economics, the French General Council for Environment and Sustainable Development and the Préfet of French Guiana, the maximum local authority, visited Merian for educational purposes and to discuss Newmont’s legal and economic framework in Suriname and other jurisdictions.
To meet stakeholders’ expectations and ensure our efforts align with the UN Sustainable Development Goals – specifically SDG-3 (good health and wellbeing), SDG-8 (decent work and economic growth) and SDG-17 (partnership for the goals) – we worked to better understand how our activities fulfill Newmont’s purpose to improve lives over time.
At a cross-regional workshop in Cajamarca, Peru, we discussed best practices and lessons learned on community development and project design. The workshop also explored outcome-based indicators to better measure and communicate Newmont’s positive impact. After developing proposed outcome-based objectives, we conducted a gap analysis and developed action plans. We will start to collect data against the outcome-based objectives in 2019, and we will begin to incrementally increase our reporting on outcomes.
2018 Estimated Community Investments by Country
Note: Community development expenditures reported by sites reflect direct expenditures on programs and partnerships that support local community development programs and partnerships. Expenditures omit outside grant funding received from partner agencies; overhead expenses such as community relations year-end reporting costs, salaries and administrative costs; monetary value of in-kind donations and volunteerism; and expenditures related to mitigation including exploration and land use payments. Some sites do not track volunteer hours. Volunteer hours omit Akyem, CC&V and Nevada operations.
Among the key community development investments and programs across our operations:
- Implemented social responsibility strategy: We progressed the national-level community social responsibility strategy in Ghana, which was developed in late 2017. The strategy leverages existing programs with leading organizations, focusing on development outcomes aligned to the SDGs. In 2018, we partnered with the United Way Ghana, Junior Achievement Ghana and the Ghana Library Authority to support objectives that improve Ghana’s healthcare system, strengthen the reading culture among young children and promote youth empowerment. We are also exploring social impact investing as a sustainable financing vehicle with the aim of promoting nonmining income and employment generation. Pilot projects will be evaluated in 2019.
- Supported strategic community investments through foundations: The strategy incorporates successes and lessons learned from the two foundations that support sustainable socio-economic development projects in the communities near the Ahafo and Akyem mines – the Newmont Ahafo Development Foundation (NADeF) and the Newmont Akyem Development Foundation (NAkDeF). The operations also support strategic community investments through a participatory process with community members and leaders. Highlights for 2018 include:
- Ahafo – Newmont contributed approximately $943,000 to NADeF in 2018, bringing our total contribution since 2007 to $26.1 million.
- The Quality Improvement in Basic Education (QUIBS) program, in place since the end of 2015, has led to a steady improvement in basic school certification examination (BECE) test scores for participating schools in the Tano North District. The percentage of student passing the exam has increased from 46.7 percent in 2016 to 73.3 percent in 2017 and 94.4 percent in 2018. School enrollment also increased from 429 students in 2016 to 472 students in 2018.
- Collaboration with the local government to improve access to healthcare continued with a commitment to co-finance the construction of the Asutifi North District Hospital. In addition, medical equipment and supplies were delivered through Newmont’s global partnership with Project C.U.R.E. to a hospital in Sunyani, the Yamfo College of Health and the Ntotroso Nursing College, and 10 landfill containers were donated to the Asutifi North District Assembly to support improved health outcomes associated with better solid waste management.
- To support local economic diversification and employment opportunities for the communities surrounding Ahafo, through our partnership with the German Cooperation Agency (GIZ) and the South District Assemblies, we are enhancing the Asutifi Processing and Service Center to increase youth interest in working in the production of non-traditional crops that support economic diversification. The center, which was commissioned in 2015, is the region’s agricultural processing center and helps maximize the value of products and farmers’ earnings.
- In the Ola resettlement community, Newmont worked with the Water and Sanitation Committee, which includes representatives from the community and technical staff, to improve access to water. Through the drilling of a 200-meter borehole, a 120-cubic-meter overhead reservoir, and the installation of headworks and a delivery line, around 2,000 residents benefited from the water system improvements. We also helped build the financial and operational management capacity of the Committee, which was able to provide free access to water for the local school and begin planning to expand the water system beyond the resettlement community.
- Akyem – Newmont contributed nearly $1.5 million to NAkDeF in 2018, and a total of approximately $9.3 million since 2013.
- NAkDeF’s Educational Quality Improvement Program (EQUIP), which has been in place since 2016, aims to improve academic performance through interactive teaching, vocational training, mock examinations and teacher motivation seminars as well as infrastructure investments. While the national basic education certification examination scores of EQUIP participants improved between 2016 and 2017 (pass percentages were 98.9 percent and 99.2 percent, respectively), the 2018 scores dropped to 87.6 percent. NAkDeF is engaging with the Ghana Education Service to understand the reasons for the drop, and how NAkDeF could improve the EQUIP program to improve educational outcomes.
- Following the signing of a partnership agreement with the GIZ in 2017 to co-finance a vocational training institute and establish a microcredit union, NAkDeF registered 770 entrepreneurs, including 49 (35 women and 14 men) from the resettlement community. Disbursements will begin in 2019. Construction on the vocational training center – which aims to improve the workplace skills and qualifications of 600 community members (of whom at least 35 percent are female) by 2020 – will begin in 2019. The center will offer two levels of training for various skills including electrical, construction, agribusiness, mining-related sciences and cosmetology.
- Infrastructure projects included NAkDeF’s investment in toilets at the New Abirem Lorry Station, which improves access to sanitary conditions. The Akyem operation also invested in new boreholes at the New Abirem Government Hospital and provided electric power to the Afosu Health Center to ensure a more reliable power source for the operation of medical equipment, including cold storage facilities.
- Advanced the Sustainability Development Goals: Efforts continued to progress long-term partnerships and strategic initiatives focused on outcomes and alignment to SDG-6 (water and sanitation) and SDG-17 (partnerships for the goals). The five-year partnership between our Boddington operation and the Peel Harvey Catchment Council (PHCC) to promote natural, conservation and cultural resource management advanced since beginning in 2017. In 2018, work progressed to support the integration of traditional ecological knowledge into catchment planning, build local landowner capacity to design and deliver sustainable agricultural practices, and establish a baseline of river health for the Hotham and Williams Rivers and tributaries. Community engagement, including aboriginal and employee involvement via training, planting days, and other field activities, is a key part of program implementation. The Boddington-PHCC partnership was featured in the Mineral Council of Australia’s Sustainability Goals in Action (2018), a report that illustrates how Australian mining companies are supporting the SDGs.
- Supported cultural programs: Our 2018 site recycling efforts at Boddington were used to finance a five-year premier sponsorship of the Bibbulmun Track Foundation’s “Eyes on the Ground” volunteer program, which includes documentation and promotion of the track’s aboriginal cultural aspects. The Bibbulmun Track is an iconic walking track in Western Australia that passes adjacent to the mine.
- Promoted tourism: Boddington extended a partnership with a tourism agency to include the Perth Mint in mine site tours. The “Mine to Mint” tour was launched to boost local tourism and promote an improved understanding of mining.
- Partnered on aboriginal education opportunities: Our Boddington and KCGM operations continued to partner with the Australian Indigenous Mentoring Experience (AIME), a mentoring program that helps indigenous high school students at nine schools in the South West and Kalgoorlie-Boulder communities graduate and continue their educational journey. The partnership has supported 264 students since it began at Boddington in 2014. In 2018, KPMG completed an impact-evaluation study that compared program data for 2017 against 2016 census data for a similar indigenous cohort. The study found that among program participants, 28 percent gained employment, 27 percent pursued vocational education, and 27 percent continued studies at a university, compared to the census data where only 14 percent gained employment, 22 percent pursued vocational education, and 6 percent continued at a university.
- Continued support of aboriginal training program: KCGM continued its three-year agreement to support the “Life Without Barriers” aboriginal driving program, which helps remove barriers to employment for Aboriginal and Torres Strait Islander people in Kalgoorlie-Boulder. Since its inception in 2013, the program has trained more than 90 Aboriginal and Torres Strait Islander people who have attained their driver’s license, strengthening their self-confidence, sense of empowerment and ability to gain employment. Two participants were hired by KCGM in job roles that required the driving skills taught through the program.
In North America:
- Focused on STEM education opportunities: Regionally, Newmont maintains a strong focus on supporting science, technology, engineering and math (STEM) and mining-related education. In Nevada, we conducted outreach activities – including mining career expositions, classroom presentations and workshops, mine site tours, and job shadowing opportunities. In 2018, we partnered with the University of Nevada-Reno to provide a professional development program, Newmont DIGS (Deepening Inquiry in Geological Science), for fourth- and fifth-grade educators in northern Nevada communities. At CC&V in Colorado, we funded the Messy Science Institute, a local after-school program that includes hands-on experimentation while exploring basic science concepts. The operation also funded repairs to the Aspen Mine Center, which serves as a “one-stop shop” nonprofit resource for the community.
- Donated to community programs through employee donations and corporate matching funds: The Newmont Legacy Fund – a charitable organization formed by our Nevada employees to contribute to the health and wellbeing of communities across northern Nevada – pledged a record $3 million to nonprofit organizations in Colorado and northern Nevada in 2019. Of this amount, employees pledged $1.5 million, which will be matched dollar-for-dollar by Newmont. In addition, the Newmont Endowment Fund – which will help sustain local communities in the long term – reached $2.5 million.
- Helped fund construction of community center: Newmont supported local culture and history through a $60,000 donation to the Lander County Historical Society in Battle Mountain, Nevada, to help with the construction of a new depot building at the Cookhouse Museum. This facility will be used to host community events and will provide additional meeting space for community leaders and business owners.
In South America:
- Yanacocha and its Asociación Los Andes de Cajamarca (ALAC) foundation, which supports sustainable development in the Cajamarca region, continued to focus on education, local economic development and water.
- Implemented gender policy: In line with SDG-5 (gender equality), ALAC began implementing a gender policy in 2018, which builds gender considerations and outcomes into its community development programs, tracking beneficiaries by gender for the first time. For example, in the savings and credit union program (UNICA), 25 percent of the jobs created have been by women, 10 percent of the unions are led by women, and women occupy 38 percent of the leadership roles.
- Inaugurated new museum: To strengthen local education and build awareness of natural resources that are essential to understanding mining, Yanacocha inaugurated a state-of-the-art Museum of Water and Earth. The opening of the museum is featured in the case study.
- Promoted local food and craft vendors: ALAC partnered with the local government to create the “Consume What Cajamarca Produces” festival, a monthly fair that promotes locally made food and crafts. Over 60 local businesses and organizations have participated, generating over $130,000 in sales.
- Supported skills development programs: Yanacocha extended its support of programs at the Rafael Loayza and La Merced technical education schools in Cajamarca that train adults in technical and entrepreneurship skills, strengthening their employability. Since 2016, 223 women have been certified in dressmaking, baking, cooking, cosmetology and computation. In 2018, 60 men were certified in mechanical structures, electronics or electricity.
- In Suriname, the Community Development Fund (CDF) supports sustainable development in the nine villages near our Merian mine. The CDF is managed by a board that includes representatives from Newmont, the government of Suriname and the Pamaka community, and its operational plan focuses on potable water systems, solar energy and water transport infrastructure. The CDF hired a fund manager, who is a Surinamese national with deep experience working with rural communities.
- Completed first major community project: In 2018, Newmont contributed around $450,000 to the CDF, which equals $1 per ounce produced. The CDF completed its first major project – potable water – on the largest Pamaka island, Langa Tabiki, employing several local community members in the process. The project will formally be handed over to the community in early 2019 after testing is completed. The CDF will maintain the water system for six months in 2019 while a permanent maintenance solution is developed. Project WET trained Ministry of Education trainers, who will train local teachers, on the importance of household water management, hygiene and other factors essential for sustainability. The water education programs aim to support the sustainable use of the water and the newly constructed water infrastructure project.
- Improved local infrastructure: Merian contributed to upgrading local infrastructure, which improves access to markets, banking, and social services. Based on engagement and the 2016 assessment to identify development priorities, Merian invested nearly $500,000 to improve or build three bridges and eight docks, as well as maintain roads. The site also supported waste management as a pilot on Langa Tabiki – a significant challenge in the area.
- Conducted training with local community: As part of ongoing efforts to catalyze local economic development, Merian organized a hydroponics information day for local community members with a training course to commence in 2019, began a vocational training course in electricity, and promoted local procurement and entrepreneurship with the Chamber of Commerce.
SUMMARY OF RELATIONSHIPS WITH INDIGENOUS COMMUNITIES
|Number of Newmont operations situated on or adjacent to any land over which an indigenous group claims use rights or ownership||8|
|Number of sites that have formal agreements with indigenous communities*||4|
* We have formal agreements with indigenous communities in certain jurisdictions. In areas where common or standardized frameworks do not currently exist, we work with indigenous communities and other key stakeholders to determine the best approach, which may translate into reaching a formal agreement.
We continued to better understand how to translate free, prior and informed consent (FPIC) of indigenous peoples into effective site-based approaches in areas where we are exploring or operating on indigenous peoples’ lands or traditional territories.
Our improved approach to FPIC – based on learnings from the Merian FPIC Expert Advisory Panel report, our experience, and input from the multisector FPIC Solutions Dialogue – was applied for the first time to the Sabajo project’s draft environmental and social impact assessment (ESIA). New to the ESIA process is a historical narrative study to determine rightful traditional owners at Sabajo and eliminate the risk of new traditional land ownership claims after project commencement. Extensive ESIA consultation included communication to the Kawina Maroon Tribe – which the baseline studies identified as the traditional owners of the land where Sabajo sits – about the project, allowing them to make an informed decision about consent. More information about the Sabajo project’s ESIA is discussed in the Human Rights case study.
As Newmont’s project pipeline expands, our focus will be on leveraging the Sabajo project’s learnings to further integrate FPIC into early exploration and project development.
To ensure we share lessons learned and best practices on the application of our Indigenous Peoples Standard across our sites, we formed a cross-functional internal indigenous peoples working group. During 2018, the group participated in regular calls, discussed challenges and practices, and continued to share lessons learned. The group began development of additional guidance to incorporate new insights for how “consent” is applied on the ground.
To improve global understanding and practical implementation of FPIC, we presented the Granites-Kurra 10-year plan to the Minerals Council of Australia and Chamber of Minerals and Energy forum on Meaningful Engagement with Aboriginal groups and to the RESOLVE FPIC Solutions Dialogue. The plan – a collaboration between our Tanami operation in Australia and the Central Land Council to support the long-term success of the Warlpiri people – includes an integrated approach to collectively strengthen the Warlpiri people’s governance, education and employment opportunities. The success of the plan has helped Newmont obtain consent from the Kiwirrkurra people in Western Australia to access their land for exploration.
Other notable activities during the year in our regions include:
- Launched Reconciliation Action Plan in Australia: Our Reconciliation Action Plan (RAP), developed in partnership with the NGO Reconciliation Australia, includes commitments to building respectful relationships while providing employment, training, and other opportunities to Aboriginal and Torres Strait Islander peoples. Future activities are described in the online report.
- Participated in cultural event: In line with the Granites-Kurra 10-year plan, the Australia regional leadership team participated in a cultural immersion experience near Tanami where they stayed overnight with traditional owners, sharing stories and culture. Newmont also continued its support for the Tracks Dance-Milpirri Festival in 2018. Milpirri is the Warlpiri word for the clouds that bring thunder, lightning and rain at the start of the wet season, creating new life that sustains community.
- Continued mentoring program: At our Boddington operation, 10 non-indigenous employees attended a five-day accredited indigenous mentoring training program, focusing on how to mentor indigenous workers for retention, how to use communication skills to build relationships, and how to work with diverse peoples. These employees are now mentors for indigenous employees throughout the site. Boddington signed an agreement with the South Metropolitan and South Regional technical and further education institutions to support the establishment, work placement, and administration of four pre-apprenticeships annually; scholarship recipients complete qualifications aligned to Boddington apprenticeship streams.
- Increased employment opportunities: The KCGM operation participated in the Goldfields Aboriginal Economic Development Round Table to discuss a collaborative approach to aboriginal economic development. KCGM is also working closely with the Aboriginal Workforce Development Centre to increase employment opportunities for local aboriginal people.
- Finalized our North America Indigenous Peoples Strategic Framework: The framework outlines our approach to engagement and collaboration with Native American tribes in the U.S. and First Nations communities in Canada. Under this framework, specific strategies have been developed for the Great Basin area, as well as the Long Canyon operation. Strategies were created with input and support from representatives of the tribes in closest proximity to Newmont’s Nevada operations. Strategies detail efforts to promote employment, procurement, and community investment, and manage cultural heritage, as well as how Newmont and each tribe will engage. Implementation of specific activities that are agreed upon will begin in 2019.
- Conducted engagement with the First Nations in Canada: As part of ongoing exploration activities surrounding the Plateau Project in the Yukon, we met with Na Cho Nyak Dun and Selkirk First Nations leadership and hosted tours and an open house to share information about the exploration project. In addition, following our investment in the Galore Creek project, where the majority of site workers are Tahltan, we engaged with the Tahltan Nation leadership to ensure a meaningful transition from the previous project owners to Newmont and our partner Teck Resources.
- Applied improved approach to FPIC: In Suriname, the Kawina tribal group claims the Merian operation and Sabajo project are located on their traditionally owned lands. Taking into account lessons learned from Merian and other sites, we started to build the foundation to develop an agreement with the Kawina aligned with the principles of FPIC.
Resettlement and land use
Resettlement planning activities took place around our Ahafo operation in Ghana for two projects – the tailings storage facility (TSF) expansion and the Subika East waste dump expansion.
The TSF expansion project was determined to require resettlement due to potential impacts on households and/or livelihoods near the project. An independent firm surveyed crops, properties and land interests, while Newmont engaged community leaders, members of the multi-stakeholder Resettlement Negotiation Committee (RNC) and government officials to address any conflicting interests. The survey estimated that 89 households were eligible for resettlement. A Full Built Asset Survey and the RNC resettlement eligibility process will confirm the survey’s findings. A crop assessment and development of a compensation plan are underway, with a socio-economic assessment of project-affected persons to begin in 2019. These studies will inform the physical resettlement and livelihood restoration plans. For those not eligible for resettlement but impacted by expansion activities, we will continue to engage with them on livelihood improvement programs.
In early 2018, 37 project-affected persons petitioned Newmont for resettlement housing instead of cash compensation for economic displacement associated with the Subika East waste dump expansion. Engagement efforts resulted in 14 individuals accepting cash compensation. The remaining 23 people did not meet the criteria established by the RNC; however, the Ministry of Lands and Natural Resources authorized the physical resettlement. Relevant studies began following this decision and are expected to be completed in 2019.MM8
Artisanal and small-scale mining livelihoods
We continued to execute our global ASM strategy and to implement our strategic objectives in those locations where ASM activities take place on or near our operations.
In Ghana, we refined our strategy to incorporate insights from a 2017 baseline study at Ahafo, Ahafo North and Akyem that improved our understanding of ASM. The strategy also includes outcomes from a multi-stakeholder workshop in 2017 and the government’s formal ASM program, which was established at the end of 2017. Strategy updates include increased collaboration with the government, and regulatory reporting to document ASM environmental impacts and to avoid potential future legal liabilities. The team also recognized that alternative livelihood strategies must be implemented alongside security surveillance. In 2018, we developed a documentary video on ASM in Ghana, which will be used in stakeholder engagements and educational outreach.
At our Merian mine in Suriname, our approach recognizes the cultural and livelihood importance of ASM to the Pamaka community while protecting Newmont’s assets. This approach allows miners to continue to operate in non-core areas near or on Newmont’s right of exploitation (RoE)but outside the industrial zone. Activities in 2018 to support this strategy included the following:
- We collaborated with the traditional authorities to form a small-scale miners representative group. A meeting was held with the Pamaka ASM representatives, who provided the information used to develop a database of registered small-scale miners.
- We completed an environmental and social impact assessment (ESIA) in support of the Sabajo project, which is located near Merian. ASM was recognized as a legitimate livelihood of the local community, and the assessment recommended that livelihood mitigation would be required to align with the principles of free, prior and informed consent of indigenous peoples if the project advances.
In 2019, we will undertake an assessment of alternative livelihood opportunities to reduce the reliance on ASM-based incomes where possible. We will also work with the ASM community to mitigate negative environmental impacts through the development of training in safety, environmental performance and mercury-free processing methods.
At our Yanacocha operation in Peru, ASM has largely been absent. However, in 2017, we identified small groups carrying out ASM activities within and near the Yanacocha and Conga concessions, including in an ecologically sensitive area called Lagunas de Alto. After assessing the activity, we determined that the activity is likely contained and not linked to broader activities. Yanacocha formed a country-level cross-functional working group in 2018 to build alliances and formalize relationships with new stakeholders, support local miners in minimizing the negative impacts, and potentially gain access to areas historically not open to formal mining activities.
In the U.S., we became aware of ASM activities on and near Cripple Creek & Victor (CC&V) in Colorado in 2018. Individuals were illegally accessing mine workings on Newmont property through a non-Newmont site. To date, we have taken a legal approach to managing both situations.