Value Sharing

Approach

Our ability to explore for, develop and operate mines near communities around the world depends on our ability to do so in a manner that creates social and economic benefits in the surrounding communities. The jobs we generate, goods and services we procure, investments we make in community programs and infrastructure, and taxes and royalties we pay to national and local governments can help catalyze socio-economic development, support essential government services and programs, and raise the standard of living in host communities. We are committed to strong governance, multi-stakeholder engagement, and transparency around payments to local and national governments in order to increase accountability, develop trust, create mutual value and reduce corruption.

This commitment is stated in our Sustainability and Stakeholder Engagement Policy and supported by our standards and systems. We also have long supported the International Council on Mining and Metals’ (ICMM) Principles for Sustainable Development, and have begun to integrate the United Nations’ Sustainable Development Goals (SDGs) into our business.

As a founding member of the World Economic Forum’s Partnering Against Corruption Initiative (PACI), we commit to its principles for countering corruption, which are anchored by a CEO pledge to zero tolerance for bribery in any form and a commitment to implement a company-wide anti-corruption program. We are committed to the principles and objectives of Publish What You Pay – an international coalition of NGOs that advocates for more transparency and accountability in the extractive industry and greater input from citizens on how revenues are spent.

We work to improve transparency and accountability in the extractive industry through our active involvement in the Extractive Industries Transparency Initiative (EITI), a global anti-corruption watchdog group that brings together governments, companies, investors and NGOs. The EITI process involves reconciling company payments with government receipts from oil, gas and mining activities. We support the initiative’s implementation in countries where we operate and are members of the U.S. EITI Multi-Stakeholder Group. Among the countries where we operate, Ghana and Peru are listed as making “Meaningful Progress” against the EITI standard; the U.S. is a candidate country; and Australia and Suriname announced in 2016 their intention to implement the EITI.

To better understand and measure our indirect and induced impacts – such as how workers and suppliers spend their wages and how governments spend our payments on public services – in a more holistic manner, we have commissioned independent socio-economic impact assessments, such as the one at our Ahafo mine in Ghana.

2016 Performance

In 2016, Newmont’s direct economic contributions totaled $5.81 billion, including $394 million in taxes, royalties and other payments to governments; $3.48 billion to suppliers; $1.3 billion in employee wages and benefits, and $16 million in voluntary contributions to communities.

Among the notable activities we undertook during the year to create mutual value and improve governance around government payments, were the following:

2016 Economic value distributed (in millions)
Country Operating costs Employee wages and benefits Payments to providers of capital Payments to governments Community investments Total
Australia $1,080 $348 $1 $272 $2 $1,703
Ghana $206 $75 $0 $78 $4 $363
Peru $559 $104 $300 $101 $5 $1,069
United States  $1,631 $768 $326 $(57) $5 $2,673
Total $3,476 $1,295 $627 $394 $16 $5,808
2016 Economic value generated (in millions)
Country Revenues
Australia $2,851.3
Ghana $1,027.1
Peru $801.1
United States $3,056.3
Total $7,735.8
2016 Economic value retained* (in millions)
Country Total
Australia $1,148
Ghana $664
Peru $(268)
United States $383
Total $1,927
* "Value retained” is calculated by subtracting our economic “value distributed” – operating costs, employee wages and benefits, payments to providers of capital, payments to governments and community investments – from our economic “value generated” (i.e., revenues).
2016 Taxes and royalties (in millions)
Country Government royalties Taxes Total
Australia $111 $161 $272
Ghana $36 $42 $78
Peru $4 $97 $101
United States $0 $(57) $(57)
Total $151 $243 $394
Note: The negative payment of U.S. taxes reflects the receipt of refunds for overpayment of taxes in previous years that were realized in 2016.
Financial credits from governments received in 2016 totaled $103 million. This includes $65 million for diesel fuel rebates in Australia, $39 million from Ghana for VAT rebates and a 2.5 percent lower effective tax rate as per our investment agreement.

Future Focus

We will initiate work to integrate the relevant United Nations Sustainable Development Goals (SDGs) into our business. This work includes identifying existing systems and ongoing projects and programs related to each of our five priority SDGs; setting SDG-related targets; improving our reporting on outcomes; forming global partnerships to meet goals and targets; and increasing our transparency on how we perform against our commitments.

Outside of our work on the SDGs, areas of focus include:

  • Developing a more structured approach to estimating the direct economic value our mining operations and projects provide to the local and national economies. This approach also includes estimating the economic value generated by Newmont’s supply chain activities, indirect and induced economic impacts, and potential future projects.
  • Continuing to build strong and constructive relationships with the governments in those countries where we operate, particularly in Ghana, Peru and the United States where new Presidents were elected in 2016.
  • Across our operations, we will continue to collaborate with government, civil society and industry stakeholders on reforms needed to improve transparency and ensure revenues generated by mining reach the areas most impacted by it. We will continue our support for Suriname’s efforts to apply for candidate country status under the rules of the Extractive Industries Transparency Initiative (EITI) and will continue efforts to implement EITI in the United States as members of the U.S. EITI Multi-Stakeholder Group.