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Newmont Mining Corporation NEWMONT MINING CORPORATION COMMUNITY RELATIONSHIPS REVIEW APPENDICES TO THE GLOBAL SUMMARY REPORT March 2009 GARE A. SMITH DANIEL FELDMAN STUDY DIRECTORS APPENDICES Appendix 1 Narrative Reports A. Martha Mine, New Zealand B. Carlin Operations, United States C. Batu Hijau Mine, Indonesia D. Ahafo Mine, Ghana E. Minera Yanacocha, Peru Appendix 2 Self-Assessment by the CRR Study Directors Appendix 3 April 2007 Shareholder Resolution and Response from Newmont’s Board of Directors Appendix 4 Biographical Information for the ESR Committee, the Study Directors, the Study Teams, and the Advisory Panel Appendix 5 Documents on CRR Methodology A. Overview of the CRR Methodology B. Outline of Research Template used by the Study Teams Appendix 6 Newmont Mining Corporation Standards and Policies A. Social Responsibility Policy and Social Responsibility Guidelines B. Statement of Values C. Overview of IMS/CER Standards D. Chart depicting Social Responsibility Management Framework Appendix 7 Newmont Organizational Charts Appendix 8 Chart Providing Information on All Newmont Operating Sites Appendix 9 International Alert Report Extractive Companies and Conflict: An Overview Newmont Mining Corporation: Global Review of Community Relations Site-based Assessment of Newmont Waihi Gold (NWG) March 2009 Centre for Social Responsibility in Mining The University of Queensland, Australia [email protected] www.csrm.uq.edu.au Acknowledgements Thanks are due to the community members and other stakeholders who made time to speak with us for the purposes of this review. Thanks also to Newmont Waihi Gold for assisting with logistical arrangements and the provision of documentation to the CSRM review team. The support of Avanzar as Study Group Director is also appreciated. Disclaimer This document reflects a qualitative risk assessment of social factors in the general area adjacent to the mining operation being evaluated. This document reflects the views, opinions and experience of the individual assessors based on the information available at the time of the assessment. As such, the assessment does not necessarily reflect the views or positions of Newmont Mining Corporation. The quotes by stakeholders that are included in this report as illustrative of the community relationships were chosen at the sole discretion of the authors. CSRM Assessment Team Dr Deanna Kemp, Senior Researcher Mr Robin Evans, Senior Researcher Centre for Social Responsibility in Mining The CSRM is a member of the Sustainable Minerals Institute, The University of Queensland, Australia. Director: Professor David Brereton Consortium on Community Building and Responsible Resource Development - ConCord This project was conducted under the auspices of The University of Queensland’s Consortium on Community Building and Responsible Resource Development (ConCord). “It‘s hard to earn community trust. It’s certainly worth protecting, but it’s easily lost.” Local stakeholder, Waihi 2 Contents 1 Introduction ............................................................................................................. 3 1.1 Purpose of the assessment .............................................................................................................3 1.2 About CSRM ................................................................................................................................3 1.3 Brief overview of Newmont Waihi Gold (NWG)..........................................................................3 1.4 Methods and sample......................................................................................................................4 2 Background Context............................................................................................... 6 2.1 National ....................................................................................................................................... 6 2.2 Local............................................................................................................................................. 7 2.3 Summary.......................................................................................................................................8 3 The current community relations landscape........................................................ 9 3.1 Amenity issues............................................................................................................................. 9 3.2 Community engagement and development process ..................................................................... 9 3.3 Mine closure .............................................................................................................................. 10 3.4 Relationship with Māori groups .................................................................................................10 3.5 Exploration ............................................................................................................................... 11 3.6 Regional restructure .................................................................................................................. 11 4 Current strengths.................................................................................................. 12 4.1 People..........................................................................................................................................12 4.2 The Waihi Community Vision (WCV) process ......................................................................... 12 4.3 A suite of engagement methods...................................................................................................12 4.4 Culture, systems and resources ..................................................................................................13 4.5 The management of day-to-day amenity issues ......................................................................... 13 5 Gaps, issues and future risks .............................................................................. 14 5.1 “The mirage of closure” ..............................................................................................................14 5.2 “Until the mine closes, our traditional values are undermined.”.............................................. 14 5.3 “Whose door is open, when is it open, and what do they know about Waihi?”......................... 14 5.4 “Out of their comfort area of Waihi” ..........................................................................................15 5.5 “Their definition of community grievances is too narrow” ........................................................15 5.6 “Is this money to shut us up?”...................................................................................................15 6 Final Observations and Conclusion .................................................................... 16 Appendix 1: CSRM Statement of Independence ........................................................ 17 Appendix 2: Information to Potential Interviewees.................................................... 19 3 1 Introduction 1.1 Purpose of the assessment As part of Newmont Mining Corporation’s global review of community relations, two senior researchers from the Centre for Social Responsibility in Mining (CSRM) travelled to Waihi for five days from 17th – 21st September 2007 to undertake a site-based assessment of relations between local stakeholders and Newmont Waihi Gold (NWG). The purpose of the assessment was to review NWG’s stakeholder engagement mechanisms, systems and processes, and capture stakeholder perceptions about NWG’s community relations performance. CSRM was required to submit a two-part report including a completed pro-forma assessment template and a narrative component (this report) discussing key findings. Reflecting the objectives of the global review and the specific purpose of the site-based assessment, Sections 2 – 5 of this report address the following key questions: • What is the context within which NWG’s relationship with the local community has developed, and what are the implications for current relationships? • What are the main strengths in NWG’s approach to community relations? • What are the main gaps, issues and future risks for NWG’s relationship with the local community? 1.2 About CSRM CSRM is an independent research centre located within the Sustainable Minerals Institute at The University of Queensland (UQ), Australia. CSRM was established in 2001 with funding support from UQ and the Queensland Government. Its charter is to promote socially responsible practices in the minerals industry and facilitate progress towards sustainable development objectives. A statement of CSRM’s independence and impartiality in relation to this assessment is provided in Appendix 1. 1.3 Brief overview of Newmont Waihi Gold (NWG) Newmont acquired NWG in February 2002 as part of the Normandy Mining acquisition. NWG operations now comprise the Martha Mine open pit, Favona underground mine and exploration activities, both near mine and within the region. Waihi is located 150 kilometres southeast of Auckland in the Waikato District on the east coast of the north island of New Zealand (NZ), and hosts the NWG operations. The town of approximately 5,000 people is situated in a scenically attractive rural area at the base of the Coromandel Peninsula, a popular tourist destination. Waihi has a long association with gold mining, and the town is in extremely close proximity to the Martha Mine open pit (some houses are
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