Newmont Mining Corporation, whose
long-term business model and its ability to create value over the last century
has made it a global leader in gold mining, has pledged to continue operating
responsibly and sustainably as it seeks to create social and economic benefits
that will improve lives.
The company has continuously developed modules
aimed at protecting the health and safety of communities within its operating
enclave, minimised environmental impacts throughout its mine lifecycle,
respected human rights, and ensured that the wealth is generated fairly.
Mining to create social and economic
benefits for the company and host countries—especially in host communities - remains
a top priority on its operational agenda.
The Minerals Commission, Environmental
Protection Agency and other state regulatory authorities have confirmed that
Newmont, as a business, has been operating responsibly throughout the lifecycle
of its mine and created shared value for all stakeholders.
Newmont’s Beyond the Mine Sustainability Report
2017, published each year - which details the Newmont Africa region’s safety,
economic, social and environmental performance and keeps the public abreast on
the progress of its operations - indicated that in 2017 the company created
about US$536million of economic value.
In 2017, the mine generated US$536million
of economic value distributed throughout the Ghanaian economy through: US$89.7million
paid in employee wages and benefits; US$62.3million in taxes; US$35.1million in
government royalties; and US$4million in voluntary community investments.
At the end of 2017, local community
members represented 40.2 percent and 46.4 percent of the total workforce
(inclusive of contractors) at Ahafo and Akyem Mines respectively. This exceeded
the company’s target of 35 percent at both mining sites.
The two mines, according to the report,
purchased US$16.8million of goods and services from local businesses and
US$325.2million from other Ghanaian suppliers.
“At Akyem, we completed the reforestation
programme’s second phase, reclaiming a total of more than 300 degraded hectares
in the Kweikaru Forest Reserve; and we will initiate feasibility and
implementation of the mine’s biodiversity offset programme later in the year.
The reforestation programme covers an area that is three times the size of the
area impacted by the Akyem Mine.
“Our Akyem Mine, Newmont Golden Ridge
Limited, was for the second year running ranked Ghana’s No.1 Company among the
list of 100 most prestigious companies in Ghana. Our Ahafo Mine, Newmont Ghana
Gold Limited, ranked eleventh on the list,” the report noted.
It added that: “Aligning our business
goals with the long-term interests of our stakeholders and the broader society
is essential to our future success. We recognise our responsibility to
contribute toward long-term economic prosperity and social wellbeing through
job-creation, procuring local goods and services, community investments, as
well as paying taxes and royalties.
“We are open to your ideas and suggestions
about how we can improve our performance as we advance our purpose.”
Newmont
targets public thematic areas
Contrary to the horrible mining
operational activities that have caused serious damage to the environment and
settlements within minerals-rich enclaves, Newmont Gold Mines - as part of its
major objective of creating value and improving lives through sustainable and
responsible mining - has targetted three major thematic areas, all aimed at
improving lives.
The public targets seek to focus on ensuring
that the mines provide sustainable clean water for consumption; lands are left in a ‘stable condition’ that
minimises long-term environmental impact; complying with regulatory
requirements, legal commitments and Newmont’s standards across its operational
areas in the world; and closure and reclamation.
Supply of Water
Newmont Mines, as part of its strategy to
ensure sustainable water, focuses on minimising and mitigating its impact on
water, land, air-quality, climate and biodiversity. It has over the years
worked with stakeholders on systemic solutions to complex environmental
challenges.
Reliable and sustainable water sources are
vital to operations of the mines. Rising production, changing regulations,
growing populations and a changing climate are among the more significant
factors increasing the mine’s exposure to broader and more complex water
challenges.
The mines also recognise the impact its
business activities may have on local communities’ access to water. Its
immediate commitment includes understanding the availability and uses of water
within the watersheds where the mine operates, and developing management
methods that reduce or mitigate the impacts on water quality and quantity.
Its broad-based regional water strategy
guides the approach to continuously improve how Newmont manages water and
respects the shared use of water in the catchment and river basins in which it
operates.
Every site has a water charter and
life-of-mine water management plan, with an integrated watershed approach that
aims to secure a supply for operations while protecting and enhancing water for
other uses.
“Our operations reuse and recycle as much
water as possible. Through Water Accounting Frameworks (WAFs), which are
updated quarterly, sites estimate the volume and quality of input and output
water and measure water intensity and volume of water recycled/reused,” the
company’s official report noted.
Performance
According to the Beyond the Mine
Sustainability report 2017, Newmont’s operations in the Africa region met its
target to reduce fresh water use by 4 percent, compared to the 2016 base year.
In early 2017, one of two reports
sponsored by WACAM, a Ghanaian NGO, alleged that Newmont’s Ahafo Mine adversely
impacted the local water sources. To investigate these claims, Newmont
conducted community outreach to communicate that constructive feedback is
welcome and engaged independent scientists from Newfields Company, an
international consulting firm, and Dr. K.P Asante of the Kintampo Health
Research Centre to objectively evaluate the report.
The independent evaluations concluded that
the methodology used in the report was inconsistent, not scientifically valid
and could not be relied upon as the basis for the reports’ conclusions.
The experts recommended that Newmont
implement a participatory monitoring programme, and planning is underway to
create a programme similar to those we have implemented at our operations in
Peru and Suriname.
The Ahafo operation completed
commissioning (i.e. operational system testing) of a reverse osmosis (RO) water
treatment plant. Independent wet-season monitoring commenced to determine
baseline water quality and aquatic health upstream and downstream of the plant,
and to characterise the effects of discharging treated water from the plant.
A cross-functional team from Ahafo and
Akyem, together with regional and corporate representatives, held a workshop to
develop a roadmap for transitioning from water management into water
stewardship. The team reviewed long-term mine plans and strategies, identified
current constraints and desired future state, identified high-level risks,
developed actions for 2018 and beyond, and evaluated potential impacts of the
actions on future business plans.
Future
Focus
Newmont has pledged to continue its effort
to increase efficiencies and reduce fresh water use to meet the mine’s 2018 and
2019 targets.
As part of its areas of focus in 2018,
according to the Mines’ Beyond the Mine Sustainability Report 2017, Newmont
will work to progress from water management to water stewardship through a
phased approach that includes four key objectives – compliance and improved
efficiencies, integration of local water risks and impacts, actions aligned
with stakeholder expectations, and innovations that drive improved performance.
The report also stated that it will
develop an approach for evaluating the cost of water to support investment
decisions and improve site comparison of operational costs, while it will seek
to address gaps and ensure compliance with updated Water Management Standards.
“Our sites will implement action plans
that include improvements to the site’s water balance model, an analysis of
water quality trends, and reviews of design and management activities,” the
report said.
Closure and reclamation
Closure and reclamation of a mining
property is a multi-faceted process with risks that are equally complex.
Growing regulatory requirements and community expectations, as well as
increased unit expenses, are also driving the costs associated with closure
activities and liabilities higher.
“Through our global closure and
reclamation strategy, we work to effectively manage our closure risks early in
the mine lifecycle and successfully close and reclaim mines to gain stakeholder
trust and improve our access to land for future mine sites.
“All sites must develop and maintain a
closure and post-closure strategy that encompasses risk assessments,
stakeholder engagement plans, closure and reclamation plans, and concurrent
reclamation plans that are integrated into the annual mine planning process,”
the report said.
Performance
Newmont, at its Ahafo and Akyem Mines, completed
concurrent reclamation on 13.62 and 8.08 hectares respectively. This exceeded
the company’s concurrent reclamation objectives for the year.
“Maintenance of reclaimed areas will be
ongoing to ensure the company achieve the desired mine closure outcomes,” the
company said.
Newmont
Reclamation Programme
Concurrently, the company rolled out its
reclamation programme around 2009; ultimately, it is aimed at establishing a
post-closure land-use scenario.
The reclamation programme is aimed at
ensuring that lands are left in a ‘stable condition’ that minimises long-term
environmental impact and complies with regulatory requirements, legal
commitments and Newmont’s standards across its operational areas in the world.
The concurrent reclamation - reclaiming
inactive disturbed areas alongside active operations of the mine at large - comprises
three main activities: civil works - placement of soil on areas stabilised with
heavy equipment like bulldozers and hydraulic excavators and tipper-tucks;
planting vegetative cover (grass and tree-seedlings) to restore vegetation; and
maintenance of the established vegetation (erosion control measures, replacement
of dead seedlings) to achieve desired final land use of afforestation and
agriculture.
Prior to commencement of the mine in 2006,
a baseline study of existing vegetation within the enclave of the mine was
undertaken, and a database of the plants and crops was created from which
plant-selection for reclamation activities is done.
The planted trees comprise indigenous and
exotic species. They include Ofram, Akyee, Oprono (indigenous) and Mahogany,
Glyricidia, Cassia (exotic).
Engineering
process
Before construction works are carried out
on a particular tract of land, the vegetation is cleared and growth media
(topsoil & subsoil) salvaged and stockpiled for reclamation activities.
Sources say a total of 1.0 metre of soil
is placed on land being reclaimed, comprising 0.70m of subsoil and 0.30m of
topsoil to facilitate growth of established vegetation. This ratio is believed
to be mimicking the natural soil profile that contributes to the success of
natural forest and agriculture practice.
The topography of reclaimed areas has been
created in gentle slope hills. Mr. Anthony Loh, Environment Manager-Newmont
Ahafo Mine, in an interview explained: “The design of waste rock dumps is done
in accordance with mining & environmental regulations and permits granted
to the mine or its operations. Within 20 to 25 kilometres away from the waste
rock disposal facilities are hills which make the existing maximum waste dump
heights blend in very well with the natural topography of the area”.
My understanding is that the period for
reclaiming a particular piece of disturbed land varies, depending on the size,
terrain/facility and closure concept for a specific area. An area is only
deemed to have been reclaimed successfully when it passes the criteria
(including land use success stage) specified in the Reclamation Security
Agreement with the Environmental Protection Authority (EPA).
Besides personnel of Newmont who are
entrusted with the responsibility of ensuring success of the reclamation
programme, consultants and researchers also provide additional support.
So far, Newmont Ahafo Reclamation has
meticulously covered about 143 hectares out of reclaimable land disturbance of
1,143 hectares.
Newmont spends an average of US$57,000 on
every hectare of reclaimed land. Meanwhile, the company as at the close of
December 2017 posted with the EPA a total reclamation bond of US$101,688,393 –
covering both surface and underground operations.
The reclaimed land after all the processes
will be relinquished to the government of Ghana, subject to certification for
all the success criteria stipulated in the reclamation security agreement with
the EPA.
Resettlement
and land use
Mining explorations and operations occur
where ore bodies are located and when the mine receives its social license and
all the required regulatory approvals are granted to do so.
At times, mine development results in
unavoidable relocation and resettlement of households and/or livelihoods,
including impacts to those who depend on artisanal and small-scale mining
(ASM).
The right to an adequate standard of
living is one of Newmont Mines salient human rights issues, and it has pledged
to be committed to managing and mitigating the risks associated with business
activities.
According to the 2017 sustainability
report, Newmont’s resettlement approach - which is a major component of it - has
always been aligned with the International Finance Corporation (IFC)
Performance Standard, which states that the first objective is to avoid
resettlement.
“If alternatives are not available, we
work to ensure affected people and communities are able to make informed
decisions; adverse impacts are minimised; and livelihoods and living conditions
are restored or improved.
“Our global ASM strategy helps guide
regions and sites on how to characterise and manage related risks through
implementation plans that reflect local ASM activities and their proximity to
Newmont’s operations.
“We engage with governments to identify
land in our licences to set aside for responsible, legal ASM; and we
collaborate with international experts and organisations, as well as national
and local governments and universities, to help legitimise ASM and improve
safety and environmental protections,” the report stated.
According to the report, in 2017 at its
operational site at Akyem, the livelihood restoration activities for previously
resettled households continued - most notably in the Yayaaso community, where a
20-acre palm oil plantation and a planned processing plant will provide support
for farmers.
To improve food security and provide a
potential source for the site’s catering company, “We trained 125 farmers in
the resettlement village on establishing crop farms and maximising yields.
“We held a regional ASM workshop with
corporate, regional and site leaders as well as international ASM experts and
government and industry representatives. The workshop focused on improving our
understanding of ASM conditions around our operations with the goal of updating
our implementation plans in 2018.”
Key insights from the workshop include the
need to raise awareness with government and communities about our ASM strategy
and the environmental and social impacts of illegal mining.
These findings, along with stakeholder
feedback, are being incorporated into regional and site action plans that
include: Mercury management – Developing technologies and partnerships that
keep mercury out of small-scale mining, use mercury safely in small-scale
mining and/or create processing partnerships to reduce overall impacts;
Engaging experts – Building relationships
with thought-leaders and ASM experts to employ emerging practices in our mining
areas, and forming partnerships to improve engagement with ASM miners; and
Livelihood mechanisms – Exploring
approaches to both support ASM livelihoods and identify where alternative
livelihood approaches can successfully replace income streams.
