2008 Report Summary

The Report

Newmont's 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 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) G3 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; and fourth, corporate governance is a critical component of our ability to achieve success in meeting our business and sustainable development objectives.

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

Challenges

  • Engaging, understanding and managing the needs and interests of local communities throughout the mine life cycle. To build constructive relationships with communities, we must address the challenges of understanding the drivers of conflict and managing them at the earliest possible point, developing programs that address the impacts and maximize the benefits that they will receive, and work with them to prepare for significant transitions in the project, especially the transition to closure.
  • The ever increasing scarcity of water, our ability to manage cyanide safely, and address the physical and legislative changes that will come with climate change continue to be the key environmental challenges that face the company.
  • Eliminating or reducing 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.
  • Attracting, developing and retaining the company's most valuable asset, our employees.

Opportunities

  • Working with local communities and other stakeholders to improve Newmont's approach to community engagement based on findings from Community Relations Review.
  • Leveraging technology and best practices to mitigate environmental impacts globally. Proactively develop strategies to reduce the risks associated with mercury and cyanide.
  • Continuing to share best practices with industry peers and evaluate existing management systems in an effort to eliminate injuries, fatalities and potential fatal occurrences.
  • Attracting and retaining qualified employees through the improvement of our compensation and benefits package, development of talent, deployment of the University Strategy and initiatives to employ Indigenous workers.

Community

2008 Targets 2008 Outcomes
Complete the Community Relationships Review, and develop an implementation and monitoring plan based on recommendations of the report. The Community Relationships Review was completed in January 2009. The Review, along with the Report of the Advisory Panel, and the Board of Director's Response to the Review, was released in March 2009. Action Planning to address the findings and recommendations began at that time.
Undertake at least three Community Relations performance audits; review and finalize protocol. Community Relations performance audits were put on hold in anticipation of a full review of Newmont standards, which will be used as the basis for a new audit protocol.
Pilot the new Social Framework articulating the risks from exploration through to closure. The finalization of the Social Development Framework was put on hold in anticipation of the finalization of the Community Relationships Review. The Framework will be used as an explanatory tool in communicating the lessons learned and improved management approach coming out of the findings from the Review.
Review current Human Rights initiatives, and develop a strategy and implementation plan for 2009. A draft strategy and implementation plan was prepared and will be reviewed in light of the findings fo the Community Relationships Review.
Finalize the community health standard which has been designed to manage the potential risks to host communities and facilitate more effective contributions to sustainable development. The draft Community Health Standard has been finalized, but will be reviewed in light of the update to the community relations standards being undertaken.

Environment

2008 Targets 2008 Outcomes
Incorporate water management guidance documents into Newmont's project development and planning process with key indicators. Specific water management guidance was linked into Newmont's Capital Effectiveness process in 2008.
Implement Water Management Plans at all sites that require them. The International Cyanide Management Code stresses the importance of the water balance and specifically requires that operating practices consider the ranges of anticipated precipitation and the potential impacts of the thawing of accumulated ice and snow within an impoundment and its upgradient watershed. How a facility addresses and formally manages these issues, as well as its monitoring programs where data is collected to verify the management system are reviewed as part of the Code verification audit. Additionally, the Code's provisions require preventive maintenance of equipment necessary to prevent unauthorized discharges. Batu Hijau, one of our operating sites that does not utilize cyanide, has a highly engineered mine water management system to minimize direct discharges to the terrestrial environment.
Develop a global biodiversity policy that articulates the importance of biodiversity conservation to Newmont, establishes the basis for systems and procedures and systems, and defines long term goals for the company as it relates to biodiversity conservation. A draft global biodiversity policy and standard was developed in 2008; however it has not been finalized. This is a goal for 2009.
Continue International Cyanide Management Code certification of remaining Newmont sites such that 100% of registered sites are certified by the end of 2008. Our Twin Creeks mine and Lone Tree mine were certified fully compliant under the Code in 2007. Certification of the Midas, Phoenix, Minera Yanacocha, KCGM and Ahafo mines as fully compliant was achieved in 2008. Our remaining operating sites had completed their compliance audits by the end of 2008. By May 2009 Carlin will be certified as fully compliant with the Code. The remaining operations: Waihi, Jundee and the Tanami will be certified with "substantial compliance" by May 2009. The ICMI deadline for the original signatory companies was extended from November 2008 to May 2009 to account for delays in finalization of the transporter auditing protocols.
Install Maximum Achievable Control Technology (MACT) to control mercury emissions at all sites operated by Newmont by 2010. Progress on this goal is well underway. In the fall of 2008 the US EPA committed to draft a federal rule MACT rule for mercury from gold mines by August of 2009. Because of this federal rule, the Nevada MACT regulations may be put on hold pending completion of the federal rule. This would be necessary to ensure that the state rule is not inconsistent with the federal rule. Installation of additional controls is still planned but timing is uncertain given the uncertainty regarding content and timing of the federal rule.

At our Ahafo operation, Mercury testing will be conducted as a component of 2009 emissions characterization for all key emissions sources.
Certify all sites to the ISO 14001 standard by the end of 2009. Our goal published in last year's report was for each region to achieve ISO 14001 registration by the end of 2009. Our Minera Yanacocha and Waihi operations had been previously registered in 2007. The North American, South American, Africa and Asian-Pacific regions either have already been audited or are scheduled for auditing during 2009. Our Asian-Pacific Region which includes Australia, Indonesia, and New Zealand is pursuing regional registration. It is anticipated that the audits will be completed by the end of the year but registration of all regions may not be complete until 2010.
Implement a Newmont Greenhouse Gas Management Program through regional specific execution plans by end 2008. Regional GHG Execution plans have been developed for Nevada and Australian operations.

Health & Safety

2008 Targets Progress in 2008
All regional risk managers will renew training in how to conduct effective team-based risk assessments; additionally, they will complete unfinished risks assessments. Achieved through enhanced Operational Risk Management focus of forming teams to conduct process evaluations of all surface and UG mines, on how effective and consistent their approach is to risk and hazard assessments. Relevant findings were reviewed with Regional Ops and will be addressed through their Business Planning process.
Develop standards for global medical surveillance programs. Enhance occupational health data collection system to include biological monitoring data. Six global medical surveillance standards have been completed and approved. A gap analysis is currently underway as the first step toward including biological monitoring data in our data management system.
Participation in industry-related programs to be determined based on university interest. Achieved through key focus with Universities to Sponsoring Mine teams to; Partnering/mentoring with students; Donation (equipment included) to help out the school mine; Face to face meetings. College of Public Health at University of Arizona will participate in research program funded by Newmont.
Implement Ellipse in Ghana and North America. Achieved in Ghana Operations; North America will continue with implementation once IT has evaluated global upgrade potentials in 2009.
Attend 2008 conference where Newmont's CEO will lead a discussion on the prevention of fatalities and potential fatal occurrences. Achieved. Newmont's CEO successfully led workshops on fatality prevention.
Continue lead reporting to improve success in meeting our HSLP vision, mission and strategies. Achieved. During 2008, Lead performance metrics were reviewed and agreed upon by our Executive and Senior Leadership Teams.
Hold two Global Safety Timeouts focusing on key topics identified by the Global HSLP Team. Achieved. Two Global Safety Timeouts were held with over 85% of global employee and contractors attending.

People

2008 Targets 2008 Outcomes
Conduct two sessions of the Executive Leadership Development Program; continue executive coaching sessions. Conducted one cohort of the Executive Leadership Development Program.
Integrate the Newmont Leadership Pipeline model into all key talent acquisition, management and development activities; create awareness and understanding of the model among employees.

Manage, monitor and retain global talent pools.		 The Leadership Pipeline model was rolled out via employee meetings as well as Expat meetings at all operations globally. Implemented Leadership Pipeline model globally with 80% Managers trained globally.
Further implement University Talent Strategy.
  • A University Strategy team was formed mid-2008.
  • The team implemented significant improvements to the candidate experience in the fall of 2008. All candidates that were interviewed on campus received a response from Newmont. Candidates were put through a smooth process, with a single point of contact at Newmont.
  • There was a consistent look and feel to all of Newmont's efforts on campus in the fall of 2008. This was largely due to increased coordination and synergy between Denver and Nevada personnel.
  • Actively engaged Newmont alumni from the University of Arizona and Colorado School of Mines in our efforts on campus. Additionally, alumni teams at University of Nevada-Reno and Montana Tech are being launched in 2009.
Build on and enhance the success of LEAD! No longer in existence.
Continue implementation of training management and administration in Ghana, Nevada and Peru. Enablement of Technical Training in Ghana and Peru and a Self-registration system for professional development learning activities in Nevada and Ghana.
Align the Total Rewards Strategy to enhance market competitiveness and value proposition to attract and retain talent. Overall, Newmont is setting its base pay policy above the median paid by its peers (i.e., direct competitors). We have also strengthened the link between performance and individual rewards by putting equal weight on company and individual performance. And, to recognize our high performers and motivate all eligible employees, we are raising the maximum payout limit to 200% of target.
Reorganize corporate HR structure to more effectively and efficiently deliver HR services globally. In 2008 we created the HR Solutions Center and the University Strategy team. We are monitoring the success of these initiatives and others in order to fine-tune according to the needs of the business.
Consolidate Denver offices to facilitate the "One Team" work environment.
  • Engaged employees through highly effective change management and involvement starting in Q1.
  • Contracted and partnered closely with CM resource to develop comprehensive change plan for the office move; provided oversight and guidance for the work.
  • Key unplanned contribution was the planning, design, and implementation of flexible work arrangements which was coupled with the office move to drive a cultural shift.


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