Newmont Mining Corporation: global community relationships review. Organisational learnings from the Minahasa case study

Kemp, Deanna, Evans, Robin, Plavina, Julia and Sharp, Barbara (2008) Newmont Mining Corporation: global community relationships review. Organisational learnings from the Minahasa case study St Lucia, QLD, Australia: Centre for Social Responsibility in Mining (CSRM)

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Minahasa_Newmont_CRR_report.pdf Full text (open access) application/pdf 670.08KB 62
Author Kemp, Deanna
Evans, Robin
Plavina, Julia
Sharp, Barbara
Title of report Newmont Mining Corporation: global community relationships review. Organisational learnings from the Minahasa case study
Publication date 2008-05
Open Access Status File (Publisher version)
Publisher Centre for Social Responsibility in Mining (CSRM)
Place of publication St Lucia, QLD, Australia
Total pages 39
Language eng
Formatted abstract
1.1 Background to the Minahasa case study
In its final year of operation, a gold min e located in the North Sula wesi Province of Indonesia operated by Newmont Minahasa Raya (PTNMR) became deeply embroiled in controversy over allegations of polluting the local Buyat Bay. Some local community members alleged that the operation’s submarine tailings had damaged waterways and marine life and negatively impacted their health. A protracted conflict involving PTNMR, and Newmont as the parent company, various Indonesian politicians and government departments, global media, NGOs and local community groups ensued, with multiple lawsuits lodged, defended and verdicts appealed. In the process, Newmont employees were detained, and one later charged wit h environmental crimes. Despite a series of strong legal victories in favour of Newmont in the Indonesian courts, the company’s corporate reputation was called into question on an international scale.

1.2 Purpose of the assessment
In 2007, Newmont initiated a global Community Relat ionships Review (CRR) as a result of a shareholder resolution at its Annual General Meeting in Denver. The CRR project initially focussed on five operating sites around the world. The Minahasa case study was added at the request of the independent Advisory Panel, with agreement from the Environment and Social Responsibility (ESR) Committee of the Newmont Board. Assessments at the five other Newmont operations involved in the CRR were guided by a common scope of work and methodology. The Minahasa case study differs from these cases because (a) it is in the closure monitoring rather than operational phase of its mine life, (b) it was heading towards closure when Newmont’s environment and social responsibility policies and standards were put in place, and (c) there is the possibility of multiple ongoing appeals in relation to the Minahasa litigation. With these considerations in mind, a different approach was agreed between the Advisory Panel, Newmont, Study Directors of Foley Hoag LLP and the CSRM Assessment Team.

The Assessment Team was asked to prepare an internal report that reviewed lessons learned from a company perspective to help provide an initial (albeit solely organisational) view of Newmont’s Minahasa experience. The intent was to enable insights gained from the experience to be integrated into the CRR summary report being prepared by the Study Directors, along with insights gained through other case studies. Reflecting the agreed scope, this report addresses the following key questions:
• What was the background context to the Minahasa case study?
• How did individuals within Newmont experience the Minahasa crisis as it developed?
• What views are held within Newmont about why events unfolded as they did and whether/how things could have been handled differently by the company?
• What key organisational learnings stem from the Minahasa crisis that Newmont has taken or should still consider taking forward?
Q-Index Code AX
Q-Index Status Provisional Code
Institutional Status UQ

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Created: Thu, 29 May 2014, 20:21:41 EST by Deanna Kemp on behalf of Centre for Social Responsibility in Mining