- 2014 Performance
- Future Focus
Ethical and Responsible Supply Chain
Newmont’s global network of more than 15,000 suppliers is critical to our operations. Along with providing the equipment, products, services and contracted workforce that support our operations, our suppliers work in partnership with us to maximize value for our shareholders; minimize social and environmental impacts; mitigate reputational risk by upholding high standards; and deliver economic benefits to our host communities.
Our commitment to working with our suppliers in an ethical manner that promotes a responsible, sustainable supply chain is stated in our global policies and supported by our standards. We are committed to fair competition and continuously improving costs and efficiencies while leading in safety, operational, technical, social and environmental practices.
Our supplier contracts include terms to ensure that goods and services are supplied in a socially and environmentally responsible manner. These terms extend to their sub-contractors whenever practical.
Through industry associations such as the World Gold Council (WGC) and the International Council on Mining and Metals (ICMM), we aim to better understand the potential impacts of our products, their uses and value streams.
The majority of our total revenues – 90 percent in 2014 – are derived from gold production, with the remaining from copper.
Our gold produced in the form of doré is transported to refineries to be refined into London Good Delivery bars that meet the London Bullion Market Association (LBMA) specifications of 99.95 percent gold. The majority of our gold is sold to the Swiss gold refinery Valcambi. Newmont owns 60.6 percent of Valcambi, and gold from Newmont’s mines supplies around 40 percent of the gold refined at Valcambi. Newmont’s remaining doré is refined by Johnson Matthey in Salt Lake City and the Perth Mint in Australia.
All three refineries comply with the LBMA Responsible Gold Guidance to ensure the entire chain of custody is responsible and that it does not source gold from areas and operations that contribute to the financing of conflict or degradation of the environment. For more information about the refineries’ commitment to a responsible supply chain, please visit the Valcambi, Johnson Matthey and Perth Mint websites.
Our copper, in the form of concentrate and cathode, is sold to smelters and manufacturers for further treatment. All our copper concentrate and cathode sales contracts include requirements to comply with all permits, approvals and other laws, agree to anti-bribery measures, and – when appropriate – acknowledge our Conflict-Free Gold Standard. Most of our copper concentrate is sold directly to smelters with which we have long-term relationships. However, at times when we produce more concentrate than anticipated, sales will occasionally be made to independent trading companies. In these instances, we may not know in advance where the product is being delivered, but we conduct a vetting process to understand to the greatest extent possible where the trader will be delivering our product.
More information on how our products are used is included in our 2014 10-K report.