2007 Report Summary

The Report

The Global Sustainability Report describes how we understand and approach sustainability within Newmont, as well as the internal and external assurances we seek to validate our reporting. We provide detailed information on the 2007 programs and performance in the areas of community relations, environment, health and safety, and employee well-being.

The report is compiled in accordance with the Global Reporting Initiative (GRI) guidelines, including the Mining and Metals Sector Supplement (published in 2005). We encourage you to explore the report using the GRI Content Index.

Approach to Sustainable Development

Beginning with geologic exploration, our success is tied to our ability to develop, operate and close mines in a manner that provides long-term value. Long-term value has evolved into a broad set of concepts that are now referred to as "sustainable development" or "sustainability." Throughout this report, the terms are used interchangeably.

Sustainability can be summarized in four key principles: First, benefits of economic activity must be considered in relation to their respective social and environmental consequences; second, in using resources, we must consider the needs and expectations of future generations; third, government, business and other segments of civil society must act together to balance these needs; fourth, the corporate governance contributes to sustainable economic development by enhancing the performance of the company and increasing its access to land and capital.

By maintaining high standards for protecting human health and the environment, and working in cooperation with our host communities and governments, we endeavor to create sustainable, long-term economic and social opportunities.

Challenges

  • Protect and respect human rights, community engagement and consultation, contribute to communities' development aspirations, and mitigate the impacts of our mining activities. Our ability to engage, understand and manage the needs and interests of communities during the development and operating stages is the key challenge around communities.
  • Protect human health and the environment, and work in cooperation with host communities and governments to create sustainable, long-term economic and social opportunities. The ever increasing scarcity of water, our ability to manage cyanide safely, and deal with the physical and legislative changes that will come with climate change are the key environmental challenges that face the company.
  • Eliminate or reduce to a level as low as reasonably possible any risk that could result in personal injury, illness, property damage, process or loss to the environment by developing and implementing the most effective health, safety and loss prevention (HSLP) management system possible
  • Attract, develop and retain the company's most valuable asset, our employees.

Opportunities

  • Develop/enhance Newmont's approach to community engagement based on findings from Community Relations Review.
  • Leverage technology and best practices to mitigate environmental impacts globally. Proactively develop strategies to reduce or eliminate specific environmental risks, like mercury and cyanide.
  • Share best practices with industry peers and evaluate existing management systems in an effort to eliminate injuries, fatalities and potential fatal occurrences.
  • Attract and retain qualified employees through the improvement of our compensation and benefits package, development of talent, deployment of University Strategy and initiatives to employ Indigenous workers.

Community

2007 Targets 2007 Outcomes
Conduct human rights assessments in Ghana and Indonesia. In lieu of the undertaking additional human rights assessments, effort was focused on the development and execution of the Community Relationships Review. The human rights assessments have been will be conducted during 2009.
Review the effectiveness of the LEAD International pilot training programs to determine their future use. The pilot was completed in early 2007. The Regional Operating Areas have assumed responsibility for the ongoing execution training initiatives.
Conduct conflict assessments for all projects that reach stage three of the project development cycle. Conflict Assessments completed by the Fund for Peace have been completed for Ghana, Indonesia, New Zealand and for Nevada in the United States.
Continue having operating sites report their community relations progress against performance indicators. The company suspended this initiative, pending the outcomes of the Community Relationships Review.
Complete development of Newmont's Community Audit tool, pilot its use and determine how it will be used in the future. The pilot test was completed. We discovered the tool provides a useful framework for evaluating performance of the company's community relations and development activities at the site level.

Environment

2007 Targets 2007 Outcomes
Field-test Key Performance Indicators for water management that have been developed to ensure they reflect actual practice in the field. Water management guidance for 6 key areas were available in 2007 including: Environmental Baseline Data, Geochemistry, Hydrogeology, Sediment Control, Surface Water and Water Balance.
Complete biodiversity risk assessments at 75% of operating sites. Biodiversity risk mapping was conducted at two operations and one exploration site. Through the mapping exercise we found that operations generally have an excellent understanding of the local and regional biodiversity and actively manage associated risks. Biodiversity risk mapping is now focused on exploration targets.
Develop a global biodiversity policy. The global biodiversity policy was not completed as climate change became a priority issue for 2007.
Continue International Cyanide Management Code certification of remaining Newmont sites; ensure certification of 75% of sites by end of 2007. Twin Creeks and Lone Tree operations (18% of sites) were certified in 2007. Ahafo achieved certification on March 20, 2008. Our commitment remains to have all of our operations certified to the Code.
Continue working with suppliers and transport companies to ensure they are certified to the International Cyanide Management Code. Achieved. All Newmont cyanide suppliers and transporters are certified to the Code.
Put a global policy in place to manage by-product elemental mercury. Achieved. See the Mercury Management Policy.
Implement a mercury stewardship program for the elemental mercury Newmont sells. Achieved. Entered into agreement with Bethlehem Apparatus to sell mercury only to qualified end users. See discussion on Mercury Management.
Register all sites with ISO 14001 by the end of 2009. Waihi and Yanacocha were ISO14001 registered at the end of 2007.

Health & Safety

2007 Targets Progress in 2007
Working through the Risk Management Department, continue improving upon risk and opportunity skills for our work force. Partially achieved. Provided complete training to Ghana.
Evaluate our HIV/AIDS program against GBC Best Practice AIDS Standard; develop targets and indicators for Newmont. Continue involvement with HIV/AIDS education and prevention programs. Drafted a medical surveillance program for HIV/AIDS and Tuberculosis.
Implement a common occupational health data collection system. Ensure occupational health risks are identified on site or regional risk registers. Implemented a data collection system to gather exposure data. Identified health risks on site risk registers; however, consistency still needs to be addressed. Our plan calls for each region to implement the Health Risk Assessment criteria by 2010.
Will assess involvement in industry-related programs conducted by the University of Nevada at Reno if programs re-commence. The University of Nevada at Reno removed the program from its curriculum. However, we presented to faculty and students at the University of Arizona about effective HSLP management.
Begin implementing Ellipse in Australia and Indonesia. Achieved.
Continue participation with the Industry Round Table, now chaired by Phelps Dodge. Will focus on industrial hygiene, safe contractor management, risk management, original equipment manufacturer safety, new concepts in personal protective equipment, fit for duty and wellness programs, and exploration safety.Achieved; collaborated to discuss HSLP lessons learned on new project construction.
Will continue lag reporting in 2007 while enhancing the key proactive elements around lead metric management and reporting. Achieved.
Conduct enhanced "Global Safety Timeout" initiative with our global work force to continue in-depth focus on safety. Achieved. Held two Global Safety Timeout sessions with more than 26,000 participating.

People

2007 Targets 2007 Outcomes
Continue Executive Leadership Development Program. Achieved; 14 executives and emerging executives participated.
Institutionalize Global Talent Management and development programs. Conducted organizational reviews at the Senior Leadership Team and management levels.

Offered executive, management, leadership, and technical and trade training to our work force.
Develop University Strategy Achieved; strategy will increase recruitment of qualified mine engineers and other needed personnel from reputed universities.
Continue LEAD! program. Achieved; to date, more than 1,600 employees have participated.
Implement performance management in the PDC for Nevada and Ghana.

Implement training management and administration in the PDC for Ghana.		 Implemented the PDC successfully in Nevada and Ghana.

Completed training management and administration for Ghana Mine Maintenance department.
Align compensation and benefits to our business strategy to realign work force. Gathered data from the global employee survey, market data for benchmarking and cost data based on various compensation package options. Used this data to follow the Senior Leadership Team’s process of gathering, analyzing, debating, deciding and executing to develop the new Total Rewards Strategy proposal and rollout.
Reviewed current HR service model, and identified opportunities to enhance efficiencies and customer service. Analyzed data that was gathered and identified areas for efficiency. Started HR structure design.
Conduct Stage 1 and Stage 2 analysis of Denver facilities consolidation. Make financial and cultural best fit decision to combine Denver- based facilities.


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