New regulations in the United States require U.S. companies in resource extraction industries to disclose payments made to governments relating to the development of minerals.
We think the increased focus on transparency is a welcome development, as it's been a topic on which we've focused for several years.
The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law in the United States in July of 2010. One of the features of the law is a set of requirements for companies in the extractive industries that do business in the United States or in foreign countries.
Such companies need to disclose to the SEC payments made to the U.S. and foreign governments related to the commercial development of minerals, oil and natural gas. The law also requires companies to include information about payments to governments made by subsidiaries, partners or affiliates, and to report this information annually. Newmont practices full disclosure of all such payments and participates in the Partnership Against Corruption Initiative (PACI). PACI is a global, multi-industry, multi-stakeholder anti-corruption initiative set up to raise business standards and to contribute to a competitive, transparent, accountable and ethical business society. PACI is further discussed as part of the Ethics module
in the Corporate Governance Section of this report.
Recent legislation was adopted under Dodd Frank Section 1502 in an attempt to stop the sale of minerals that may fuel conflict in the Congo and neighboring countries. Newmont is working within World Gold Council and Organization for Economic Cooperation and Development Guidelines to demonstrate conformance with Dodd-Frank and other initiatives and standards related to "conflict minerals."
The law also requires the Security and Exchange Commission (SEC) to determine whether a pattern of mine-safety violations exists for a company by collecting data on violations of health or safety standards, citations and orders issued to mine operators, number of flagrant violations, value of fines and the number of mining-related fatalities.
Newmont reports certain mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K on Exhibit 95
incorporated by reference in Newmont's 2012 10-K Report.
The Dodd-Frank Law amended the Securities Exchange Act of 1934 to require companies to disclose payments related to the acquisition of licenses for exploration or production in cases where payments include fees, production entitlements, bonuses and other material benefits.