The correlation between responsible business practices and profitability has become increasingly apparent as communities, governments and employees hold companies accountable for generating mutual value. Defining that value in relevant terms is equally important – and accomplished through long-term relationships with stakeholders.
A catalyst for economic growth
Throughout the mine lifecycle – especially during construction and operation – mining provides direct benefits to employees, host governments and communities through taxes and royalties; wages and benefits; procurement of goods and services; and investments in community programs and infrastructure. These investments also generate indirect benefits, such as local spending and hiring by contractors and suppliers.
In 2015 alone, Newmont generated more than $6 billion in economic value through direct spending. This amount included more than $1.3 billion in employee wages and benefits, and more than $28 million in community investments. Operating costs, capital and government payments made up the remainder.
We also focus on local hiring, sourcing products and services from nearby communities and investing in local capacity building. This includes establishing local employment and procurement targets and reporting on our performance.
Relationships based on trust
The expectations, cultures and circumstances of local stakeholders can vary dramatically in different regions. Having a comprehensive understanding of each community and our operations’ impact is essential to meaningful and responsible engagement with local stakeholders.
This includes managing an efficient and effective complaints and grievances (C&G) process to ensure stakeholder concerns are resolved in a timely manner, and accurately tracked and reported.
In 2015, Newmont also strengthened its approach to engagement through implementation of a new Indigenous Peoples Standard. The standard is designed to guide operations in better assessing and managing impacts, and reporting on our performance in a way that deepens our understanding of indigenous peoples.
To learn more about our efforts to create mutual value, please visit the Economic and Social Performance section of Beyond the Mine. For ongoing Newmont updates follow us on Facebook, LinkedIn and Twitter.