Going Beyond the Mine
Our operations depend on our ability to acquire a broad spectrum of goods and services - at reasonable prices, at the right time, and in the proper manner. We expect that the behaviors of our suppliers are guided by the same fundamental principles of sustainability as the other aspects of our business.
How We Engage
The primary objective of Newmont's supply chain is to enable operations and other functional groups to meet their objectives by ensuring supply continuity and efficient operations. They do this by using a global approach to supply chain management while ensuring safety, environmental stewardship and social responsibility.
Suppliers are expected to act in an environmentally sensitive and socially acceptable manner. Newmont works with others in the supply chain to align programs in a fashion that allows for continued and uninterrupted business transactions. These initiatives include:
Wal-Mart Jewelry Value Supply Network - This groundbreaking partnership with Wal-Mart and other supply chain partners has achieved the first 100 percent traceable gold and diamond jewelry products, from the mine to retail counter. To create the Love, Earth line of jewelry, Wal-Mart selected partners in the mining and jewelry manufacturing industries that already demonstrated environmental and social leadership. Very few gold mining companies have demonstrated the capacity to meet Wal-Mart's 24 criteria for the Love, Earth program. Newmont's involvement in Love, Earth illustrates the commitment to maintaining and improving our performance relative to the environmental and social aspects of the operations.
In addition, the Dodd-Frank Act passed by the U.S. Congress in 2010 has prompted the development of regulations by the Securities and Exchange Commission (SEC) that will change future due diligence and auditing along the entire supply chain for gold. We have been working with trade associations and the SEC on developing a system that recognizes the role of mining and the unique attributes of gold while satisfying the requirements of the 2010 legislation and associated regulations. We believe our involvement in the Love, Earth program has provided valuable insights and will help position us favorably with respect to the new supply chain requirements.
Partnering Against Corruption Initiative (PACI) - Newmont was instrumental in the development of PACI, which combats global corruption and implements a level playing field for all corporations. Not only did Newmont sign the Initiative, we also require and enforce suppliers to abide by PACI terms in our contracts.
Cyanide Code - Newmont was the first company to sign the International Cyanide Code (Code), which "focuses exclusively on the safe management of cyanide and cyanidation mill tailings and leach solutions." We also will only do cyanide business with vendors who are also signatories of the Code and current on their audits.
Purchasing from Local Suppliers - Newmont is an advocate of buying locally. We have many programs currently in place to ensure that local vendors are given adequate consideration. These programs not only help support the development of local communities and small and medium enterprises, they also decrease environmental impacts by transporting goods a shorter distance. Newmont vendors are contractually bound to continue to act in an environmentally sensitive and socially acceptable manner. This is done across our global supplier base of more than 35,000 suppliers.
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Supply Chain
