Local Employment and Business Opportunities

Home Economic and Social Performance Local Employment and Business Opportunities

Approach

Hiring locally and sourcing from local suppliers benefits host communities in many ways including reduced poverty, improved skills and the opportunity to achieve long-term growth and economic diversification. The right to an adequate standard of living is a salient human rights issue associated with our business activities, and increasingly, local employment and procurement are important tools to help mitigate risk and maximize opportunities by building community and government support, reducing costs, improving efficiencies and creating a more inclusive and diverse workplace.

Our commitment to provide local employment and economic development opportunities is stated in both our People Policy and Sustainability and Stakeholder Engagement Policy. Our Local Procurement and Employment Standard sets the minimum requirements to ensure our operations create direct and indirect jobs and business opportunities aligned with stakeholder expectations.

All sites must develop plans, based on data from baseline studies and input from relevant stakeholders, that promote local employability and skills development, diversity of the workforce, small business development and sustainable business opportunities, and, where applicable, set local employment and procurement targets. Annual reviews of these plans measure their effectiveness and identify opportunities for improvement.

We also engage with local stakeholders to agree on definitions and qualifications related to the three categories we use to designate businesses, contractors and employees – “local-local” (associated with the direct site-impacted area), “local” (local to the area or region) and “national” (associated with the host country). In Australia, we also include an "indigenous" subcategory to the local-local classification.

Ongoing engagement with local stakeholders regarding job and procurement opportunities and our recruiting and procurement procedures helps ensure alignment with expectations and commitments.

All suppliers – even specialized local micro-enterprises – must undergo screening, agree to our contract terms and meet our quality, delivery, service and competitive pricing requirements. In regions where gaps in local capacity exist, we work with governments and NGOs – as well as our current suppliers – to train and develop the skills or capacity needed to become employed by or a supplier to Newmont.

2016 Performance

Local employment and skills development

Aligning local and indigenous employment with our broader global inclusion and diversity strategy was a significant area of focus for us in 2016.

Efforts to meet our site-based local employment targets are summarized in the following table. Our sites in our North America region do not set local employment targets as the workforce is largely from the local area. However, our Nevada sites actively promote employment opportunities to Native American communities.

2016 Local employment performance
Region Site(s) 2016 Local employment performance
Africa

Ahafo

At the end of 2016, local community members represented 39.2 percent and 47.1 percent of the total workforce (inclusive of contractors) at Ahafo and Akyem, exceeding our targets of 24 percent and 35 percent, respectively. The longer-term employment commitment at our Akyem operation is 50 percent within 10 years of commencing operations.

Akyem

Australia

Boddington

In Australia, we seek to surpass the targets identified within our agreements with the Gnaala Karla Booja Native Title Claimants of Boddington and the Warlpiri people of Tanami.

At the end of 2016, aboriginal employment at Boddington and Tanami (inclusive of contractors) totaled 89 and 94 individuals, respectively. Boddington exceeded its target of 82 while Tanami increased aboriginal employment by five individuals compared to 2015 but missed its target of 99.

At KCGM, aboriginal employment reached our target of 3 percent.

Overall aboriginal employment across the region increased to 6 percent from 4.9 percent in 2015.

KCGM

Tanami

South America

Yanacocha

Residents from Cajamarca represented 63.2 percent of Yanacocha’s workforce in 2016, exceeding our target of 60 percent.

We initiated a formal target-setting process for local employment shortly after entering the commercial production phase in late 2016. At the end of the year, 217 employees – representing nearly 20 percent of the total workforce – were of Pamaka ancestry, of which 34 percent were women. More than 960 employees were Surinamese nationals. In addition, 95 Pamaka employees moved from unskilled to skilled positions during the year.

Merian

Local procurement and capacity building

Globally, we set a total local spend goal of $393 million in 2016, which we exceeded by around $108 million, largely due to a decision to re-evaluate and reassess an in-sourcing initiative in Australia. Our local procurement targets are, in large part, regionally based due to the number of shared contracts and multiple mine sites we operate in Australia, Ghana and North America. Our local procurement targets for Yanacocha and Merian are more site-based due to their remoteness and geographic distance from other regional operations.

Among the notable local supplier programs and events during 2016:

  • Our Ahafo operation was honored by the Association of Ghana Industries and the Ghana Chamber of Mines for its leadership role and commitment to local content development in the country.
  • We formally met with a Ghanaian delegation of local business owners and regulatory leaders to discuss ways we could further collaborate and expand future opportunities for local business owners in Ghana.
  • In Ghana, we also executed a regional agreement with WAFOR, a local-local grinding media supplier based in Accra, to supply at least 50 percent of the grinding media requirements at Ahafo and Akyem.
  • In Australia, our Boddington operation introduced a supply chain program for aboriginal contractor hiring, and we contracted with a 100 percent indigenous-owned earthmoving contractor for backfill work at our Woodcutters legacy site in the Northern Territory.
  • At our North America operations, we executed new regional agreements with Tesoro for diesel fuel sourced from its Salt Lake City refinery and with Cyanco, a cyanide supplier with manufacturing locations in Winnemucca, Nevada and Houston, Texas.
  • Our Yanacocha operation partnered with the South Senati Trade School in Cajamarca to support students studying mechanical maintenance and machinery. Students can also get hands-on career training and experience through internships with Yanacocha. The decade-long partnership has helped nearly 400 Cajamarquino students, and more than half of them currently work for companies in the mining and construction industries.
  • At our Merian operation, we completed a study to assess the local content potential and evaluate the requirements needed to build a successful local content program. The mine’s leadership team also hosted an event with more than 300 local vendors and suppliers, and we supported the establishment of a much-needed service station along the remote road between Paramaribo and the Merian site.
2016 Workforce composition
Expat Local National
Employees 77 2,716 8,011
Contractors* 109 4,045 2,934
* Note: Contractors figures only include those sites that track by local and national categories and, when combined, equal an amount less than our total number of contractors.
2016 Average salary compared to minimum wage by country
2016 Spending on local suppliers by country (in millions)

Future Focus

Our local employment and procurement targets for 2017, which are determined in the course of the business planning cycle, are as follows:

2017 Local employment target
Region Site Target
Africa

Ahafo

24 percent local-local workforce (including contractors). Targets were set in consultation with the community.

Akyem

35 percent local-local workforce (including contractors). Targets were set in consultation with the community.

Australia

Boddington

82 indigenous individuals (including contractors).

KCGM

3 percent of total workforce (including contractors).

Tanami

99 indigenous individuals (including contractors).

South America

Yanacocha

60 percent local employees.

Merian

Finalize target-setting process and establish targets for 2018.

We continue to seek opportunities to advance our local employment and procurement programs. With Merian and Long Canyon entering commercial production in late 2016, much of our focus in 2017 will be on ensuring our newest operations are compliant with all policies, standards and operating procedures. Specific areas of focus include:

  • Formalizing our approach to local procurement at Merian where we plan to follow a similar approach to the one we took in Ghana by establishing a linkages program, developing staff skills through supply chain development courses, and engaging with local artisanal miners on employment and/or business opportunities. Given the remoteness of the mine’s location, we also will work to set realistic time frames for local procurement targets.
  • Working with the Ghana Chamber of Mines to develop a long-term national policy and supplier development program to help promote sourcing from local businesses within the mining industry and beyond.
  • Initiating work to integrate the relevant United Nations Sustainable Development Goals (SDGs) into our business. For the “decent work and economic growth” goal (SDG-8) – one of our five priority SDGs and where we have in place many existing systems and projects, such as our learnership program in Ghana and indigenous training programs in Australia – we will work to set meaningful targets that align with and have the greatest impact on the goal. Recognizing the need for public-private partnerships in achieving the goals, we will also seek opportunities for collaboration both within our industry and across sectors.
  • Re-evaluating our approach to local employment and targets to ensure alignment with our overall global inclusion and diversity strategy.