with Project C.U.R.E. to deliver
donated medical supplies to developing countries
to continuously improve
our community commitments process
Community investments go beyond our obligations to mitigate or compensate for the environmental and social impacts caused by our activities. Investments – particularly ones that are well designed and align with both Newmont’s business strategy and the communities’ development priorities – help build long-term relationships based on trust, and can catalyze long-term socio-economic development and minimize dependency on the mine during operations and upon closure. On the other hand, unfulfilled commitments create distrust and are often the source of tension between the mine and the community.
Our commitment to engage with host communities to create shared value is stated in our Sustainability and Stakeholder Engagement Policy. Guiding our approach to equitably improve quality of life and align with our principles of transparency and shared value is our Community Investment and Development Standard.
This standard requires sites to use existing baseline studies, assessments and government development plans, along with robust community engagement, to identify investment opportunities that can be catalysts for self-determined development.
Each site collaborates with relevant stakeholders to develop a community investment strategy that identifies each opportunity, along with the resources needed to deliver on the commitment. Each site must review and update its strategy a minimum of every five years.
In addition to the direct investments our operations make toward community infrastructure and social programs, many of our operations – in Ghana, Indonesia, Peru and Nevada – have established community foundations or funds that aim to provide an effective, strategic framework to ensure community investments deliver on their full potential and continue after mining operations cease. Engagement with communities is crucial to understanding their specific needs. For example, both the Newmont Ahafo and Akyem foundations have a Board of Trustees that includes community members to ensure community ownership and participation in the foundation’s efforts. While each foundation or fund is unique, investments generally focus on capacity building, community health and education, infrastructure development and livelihood and skills building.
A community commitment is made when a Newmont representative voluntarily commits to deliver goods and/or services (cash or in-kind) to external stakeholders. For all commitments, a transparent process is used to document and review each contribution to ensure compliance with the Partnering Against Corruption Initiative (PACI), Foreign Corrupt Practices Act (FCPA) and U.K. Bribery Act requirements. All sites track registration and implementation of commitments.
Because our presence in the community can be long term and we cannot be the sole source of development, we seek multi-stakeholder partnerships with NGOs, development organizations and government agencies to lend expertise and to ensure programs effectively address local challenges. The International Council on Mining and Metals’ (ICMM) “Mining: Partnerships for Development Toolkit” is one tool we use to help identify those partners that are best for addressing the issues, policies and practices that may be helping or preventing development in our host communities.
Newmont invested a total of more than $28 million globally in 2015 to support a wide range of community investments.
The Newmont Ahafo Development Foundation (NADeF) supports development projects in the 10 communities near the Ahafo mine in Ghana. In 2015, Newmont contributed approximately $2.3 million to NADeF, bringing our total contribution since 2006 to $28 million. In collaboration with the host communities, in 2015 NADeF launched a five-year comprehensive education project aimed at transforming the quality and standard of education in the nearby communities.
The Newmont Akyem Development Foundation (NAkDeF), which has a similar structure to NADeF, supports development in the communities near the Akyem mine in Ghana. Newmont contributed nearly $2.8 million to NAkDeF in 2015. In 2015, NAkDeF awarded more than 900 scholarships to students in the mine’s 10 host communities. Local leaders selected scholarship recipients from primary, junior and senior high school applicants. In addition to school infrastructure improvement projects, NAkDeF awarded grants for health, cultural, and economic infrastructure projects.
At Newmont's operations in Australia, we invested about $940,000 in 2015 toward projects to support the long-term benefit of the communities. Contributions were largely directed toward supporting education, promoting tourism, and celebrating indigenous cultures. We continued our long-term support for the South Australian Museum, which includes the world-renowned Australian Aboriginal Cultures Gallery, and we were the principal sponsor of the 2015 Run for Reconciliation, which aims to bring together indigenous and non-indigenous people to promote reconciliation and raise awareness.
At Batu Hijau in Indonesia, Newmont donated about $6.5 million toward community development, including $400,000 to our two foundations – the Olat Parigi Foundation (YOP), which is managed by community-elected members, and the West Sumbawa Economic Development Foundation (YPESB). In November, we sponsored the Mantar Fly for Charity paragliding competition, which was held in Mantar Village, a local village at high elevation. The competition, which attracted a number of top pilots from around the world, raised money for charity and was seen as an opportunity to promote tourism and attract paragliders to the area.
In Nevada, the Newmont Legacy Fund encompasses three key components: an employee-giving campaign that is matched dollar-for-dollar by Newmont; a community investment program; and a community endowment fund that will assist in meeting future community needs. In 2015, Nevada employees pledged more than $1 million to the Newmont Legacy Fund, and Newmont plans to contribute around $1.25 million to nonprofits throughout northern Nevada in 2016.
Yanacocha established the Asociación Los Andes de Cajamarca (ALAC) foundation in 2004 to forge public and private partnerships that support sustainable development in the Cajamarca region. In 2015, the Peruvian Ministry of Education recognized ALAC for the second year in a row for improving education in the region. ALAC conducted an external review of a five-year education project – Integral School Networks – in which ALAC, the Cajamarca Regional Education Department, IPAE (a national training institution for entrepreneurship), and the nonprofit Empresarios por la Educación partnered to support nearly 5,000 students from first grade through sixth grade. The findings from the review, which were published at the end of the year, found the project contributed to an 87 percent increase in the pass rate and a 12 percent reduction in the dropout rate compared to the control group.
In 2015, Surgold and the Pamaka community advanced negotiations on the establishment of a community development fund. The fund is designed to support the sustainable development goals of the Pamakans.
On a global level, we continued our decade-long partnership with Project C.U.R.E. – an international humanitarian relief organization – to deliver donated medical equipment and supplies to healthcare facilities near our operations.
In 2015, Newmont and Project C.U.R.E. signed a new three-year partnership agreement, which calls for Newmont to contribute $200,000 annually for the next three years toward Project C.U.R.E.’s global healthcare efforts – such as its Helping Babies Breathe neonatal resuscitation program – and for Newmont’s commitment to deliver donated medical supplies worth $8 million to health facilities in developing countries including Ghana, Indonesia, Peru and Suriname.
|Total in-kind support||Total|
|Community capacity building||$3,429.2||$426.6||$3,855.8|
We engaged community development specialists from Chemonics International and the CSR Training Institute to review and provide input on guidance tools that we launched in 2015 to help sites and regions adhere to our Community Investment and Development Standard.
In addition, we completed a baseline assessment of commitment authorization procedures and parameters used to track commitments across all sites. The assessment will serve as the basis for the development of an auditable community commitments process.
We will continue to focus on how to further advance our community development efforts, including training; developing a more strategic, long-term approach at the site level; and sharing best practices and lessons learned across the Company.
To continuously improve our community commitments process, we established the following external targets to measure and report against:
|Years||Target definition||Target for sites||Target for Newmont|
|2016||Implementation of a community commitments process||Implementation of an auditable process for capturing community commitments; commitments are registered||100 percent of sites have completed the implementation|
|2017||Commitments completed on or before due dates as captured in register||90 percent completion of community commitments* on or before due date||100 percent of sites achieve the annual site targets|
|2018||Commitments completed on or before due dates as captured in register||95 percent completion of community commitments on or before due date||100 percent of sites achieve the annual site targets|
|* Only commitments made after Q1 2017.|
In Suriname, negotiations with the Pamaka community on an agreement that addresses eight key areas of focus – participatory monitoring, preferential employment, preferential procurement, feedback, complaints and grievances mechanism, small-scale mining, safety, communication, and the creation of a community development fund – are expected to conclude in 2016.
Recognizing the need for a more holistic understanding of how Newmont supports educational and health development across all our sites, in 2016 we plan to conduct a baseline assessment of our community and health programs. This assessment will help inform case studies and efforts to improve our performance.