Aligning our business goals with the long-term interests of our stakeholders and the broader society is essential to our future success. We recognize our responsibility to contribute toward long-term economic prosperity and social wellbeing through job creation, provisioning local goods and services, community investments, and paying taxes and royalties. We are also committed to a strong governance structure, including multi-stakeholder engagement and transparency around government payments, which increases accountability, develops trust, creates mutual value and reduces corruption.
These commitments are stated in our Sustainability and Stakeholder Engagement Policy and supported by our standards and systems. We also commit to transparency, accountability and anti-corruption through our membership and active involvement in a number of voluntary initiatives including:
- The International Council on Mining and Metals (ICMM) and the organization’s position statement on Transparency of Mineral Revenues;
- The World Economic Forum’s Partnering Against Corruption Initiative (PACI), which includes a pledge to zero tolerance for bribery in any form and a commitment to implement a company-wide anti-corruption program;
- Publish What You Pay, an international coalition of NGOs that advocates for more transparency and accountability in the extractive industry; and
- The Extractive Industries Transparency Initiative (EITI), a collaborative effort of governments, companies, investors and NGOs that reconciles 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 Suriname’s EITI Multi-Stakeholder Group. Among the countries where we operate, Ghana and Peru are listed as making “Meaningful Progress” against the EITI standard; Suriname is a candidate country; and Australia announced in 2016 its intention to implement the EITI.
As a signatory to the World Economic Forum’s Compact for Responsive and Responsible Leadership, we are committed to pursuing long-term value creation for our stakeholders. Our approach is aligned to the ICMM’s position statement on Mining Partnerships for Development.
To better understand and measure our local and national level economic contributions, we have begun to develop economic impact assessments and to communicate the findings from these studies to our stakeholders. The assessments, which are conducted by a third-party consultant, analyze Newmont’s internal reporting data along with Purdue University’s Global Trade Analysis Project (GTAP) macro-economic data, and use a standard input/output model for country-specific data.
In 2017, Newmont’s direct economic contributions totaled $6.02 billion, including $604.5 million in taxes, royalties and other payments to governments; $3.69 billion to suppliers; $1.35 billion in employee wages and benefits, and $13.9 million in voluntary contributions to communities.
|Country||Operating costs||Employee wages and benefits||Payments to providers of capital||Payments to governments||Community investments||Total|
Note: Data under the GRI G4-EC1 disclosures may differ from data reported in other Newmont publications due to differences in reporting guidelines and scope. For example, the data included in this report does not include wages and benefits for expatriate employees or payments of fines to governments, which we report in the Compliance section of this report. Wherever possible, figures are reported on an accruals basis, with some items reported on a cash basis if the accruals basis figures are not available at the time the data was compiled.
* “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).
Financial credits received from governments in 2017 totaled $73.2 million, all from Ghana. This includes $16.8 million for tax relief and credits, $16.7 million for royalty holidays, and $39.7 million in other financial benefits.
Throughout the year, a global cross-functional group continued the effort started in 2016 to integrate into our business the five SDGs that align with our business and are areas where we can have the most impact.
We also developed a more structured approach to measuring the economic benefits our operations generate for host countries and communities at the local and national level. This approach includes estimating the economic value generated by Newmont’s supply chain activities, indirect and induced economic impacts, and potential future projects. During the year, we completed assessments on our five sites in Australia and Ghana. Among the initial insights is that the job multiplier impact of a mining operation in developing countries is far greater than that in developed countries.
Across our operations, we collaborated and engaged with government, civil society and industry stakeholders on a number of matters including:
- We continued to encourage the governments where we operate to implement the EITI’s revenue transparency process. In 2017, Suriname was admitted as an EITI candidate country and published its beneficial ownership road map, which outlines the necessary steps the country will take to ensure all extractive companies with activities in the country disclose their beneficial owners. Although the U.S. had made progress in meeting almost all the requirements of the EITI, including disclosing revenue and production data online, the U.S. Department of Interior announced it was withdrawing as an EITI implementing country due to conflicts between one of the EITI requirements and U.S. privacy laws. The U.S. will continue to be an EITI supporting country.
- Newmont leaders, including President and Chief Executive Officer Gary Goldberg, engaged with Western Australian government officials to discuss the impacts of proposed royalty rate and payroll tax increases. We developed an economic impact assessment to demonstrate Newmont’s significant contributions to the Western Australian government and the national and local economies and how a royalty rate and/or tax increase would impact these contributions.
- In Ghana, where a new President took office, we met with officials of the new government and briefed them on key projects, such as the Ahafo tailings storage expansion, Ahafo Mill expansion, Subika Underground and Ahafo North project. During the year, the government extended the terms of our Investment Agreement – which details the fiscal arrangements that support profitable and responsible mining operations – for another five years.
- In the U.S., we held meetings and hosted site tours with senior advisers of the new administration and newly elected officials. Discussions included concerns over proposed financial assurance regulations; land use provisions in the federal sage grouse conservation plan; royalties and taxes; and abandoned mine land fees. The meetings and tours also provided the opportunity to showcase our safety, sustainability and conservation successes, including our Sagebrush Ecosystem Conservation Program in Nevada.
- In Peru, we re-established a formal relationship between our Yanacocha operation and the regional government after almost seven years. The parties agreed to form two joint working groups – one on technical/environmental issues and another on economic and social matters. The monthly meetings provided the opportunity to share information about water, closure plans, reclamation, expansion projects and the future of the Cajamarca region. Yanacocha and the regional government also worked closely together to support flood relief efforts.
- We engaged with Suriname’s Minister of Natural Resources on expansion opportunities for our Merian operation.
To improve how we measure outcomes and our impact on our priority SDGs, we will finalize new outcome indicators for three of our five priority SDGs, develop guidance for data collection, update our systems and incrementally increase our reporting on our contribution to the SDGs, beginning with our 2019 annual sustainability report.
Using findings and feedback from the five initial economic impact assessments completed in 2017, we will review our economic model and methodology as needed and complete assessments at all remaining sites.
Across our operations, we will continue to collaborate with government, civil society and industry stakeholders to improve revenue transparency. We will continue to engage with the EITI through our representation on the EITI committee, our membership in the International Council on Mining and Metals (ICMM), and our participation in the Suriname EITI Multi-Stakeholder Group. In the U.S., we will express to the U.S. Securities and Exchange Commission our commitment to transparency and the EITI.