to Urge Shareholders to Vote for Social Resolution, Company Will
Produce Report on Impacts of Mining Operations on Local Communities
913 words
19 April 2007
11:00
PR Newswire (U.S.)
English
Copyright © 2007 PR Newswire Association LLC. All Rights Reserved.
DENVER, April 19 /PRNewswire/ -- In a first for a U.S. mining company,
Newmont Mining Corporation (NYSE: NEM), one of the world's leading gold
producers, will encourage shareholders to support a social resolution
sponsored by Christian Brothers Investment Services, Inc. (CBIS) and 10
other faith-based investors. The concerned shareholders are urging the
company to produce a report addressing community-based opposition to
its operations in the U.S. and around the world. The shareholder
resolution will be voted on at Newmont's annual meeting April 24, 2007.
Julie Tanner, corporate advocacy coordinator at CBIS, said: "This is a
real breakthrough in that it is the first time that a mining company
has agreed to urge shareholders to support a social resolution. This is
a bold step by Newmont, and, with the release of a substantive and
thorough report, will indicate that the company takes the issue
seriously. To be credible, the report will need to include the input of
independent experts and the communities affected by the mining
operations of Newmont. We look forward to working closely with company
officials."
The resolution reads: "Several Newmont projects in developing countries
have been undermined by community protests over the years. A pattern of
community resistance to the company's operations, especially in Peru,
Indonesia, and Ghana, raises concerns about issues such as the
company's mining waste disposal practices, the potential for water
pollution, development on sacred sites, and community resettlement ...
[Therefore] shareholders request that a committee of independent board
members be formed to conduct a global review and evaluation of the
company's policies and practices relating to existing and potential
opposition from local communities and to our company's operations and
the steps taken to reduce such opposition; and that the results of that
review be included in a report that is made available to shareholders
prior to the 2008 annual meeting."
In addition to CBIS, the shareholder resolution is supported by
Catholic Health East; Sisters of Saint Joseph of Chestnut Hill,
Philadelphia; Mercy Investment Program; CHRISTUS Health; General Board
of Pension and Health Benefits, United Methodist Church, Presbyterian
Church (USA), Missionary Oblates; Unitarian Universalist Service
Committee, Evangelical Lutheran Church in America; and Catholic
Healthcare West.
The leading proxy voting service, Institutional Shareholder Services
(ISS), has also recommended a vote in favor of the resolution.: "ISS
believes that it is important for global companies, particularly those
that operate in developing markets or regions with social, political,
or economic unrest, to have appropriate and effective policies for
interacting with the host governments and local communities that will
be impacted by their operations. Successful relationships between a
company and such stakeholders can improve the efficiency of operations,
expand the company's license to operate in challenging markets, improve
the public's perception of the company, and mitigate the risk of
controversy, protests and litigation."
The faith-based investors have stressed that the Newmont report will
need to be comprehensive and open to many viewpoints in order to be
regarded as credible. In addition, the report should include:
-- An evaluation of the company's existing systems to identify,
assess and
control for social and environmental risks;
-- A global review of the adequacy and effectiveness of existing
social
and environmental guidelines, policies, and practices relating to
community engagement and to existing and potential opposition
from
local communities and to our company's operations;
-- A review of those issues most often associated with community
opposition, including the environmental practices and concerns
about
potential environmental risks posed by the company's operations,
adequacy of timeframes set aside for community engagement from
project
identification to start up, job creation, revenue sharing, and
the
development of community investment programs;
-- An assessment of the actions of other mining and natural resource
extractive companies to minimize community opposition, such as
the
creation of social guidelines designed to gain the free prior
informed
consent of communities; and
-- A review of the findings, conclusions and recommendations on
specific
actions or decisions the Board should consider, including steps
to
strengthen Newmont's engagement policies and procedures and
actions to
mitigate future community opposition overall, reduce risk, and
improve
community well being, along with an implementation timeline.
CBIS will also be supporting the proposal put forward by New York City
Pension Funds asking for a review of company policy regarding waste
disposal at Newmont's mining operations in Indonesia.
For the full text of the CBIS resolution, go to
http://www.cbisonline.com/page.asp?id=575&type=both&sri_id=100 on the
Web.
ABOUT CBIS
Christian Brothers Investment Services, Inc., manages more than $4
billion, combining faith and finance in the responsible stewardship of
Catholic financial assets. CBIS' combination of premier institutional
asset managers, diversified product offerings, and careful risk-control
strategies constitutes a unique investment approach for Catholic
institutions and their fiduciaries. CBIS strives to integrate
faith-based values into the investment process through a disciplined
approach to socially responsible investing that includes principled
purchasing (stock screens), active ownership strategies (proxy voting,
dialogues, and shareholder resolutions) and community investment. Visit
CBIS on the Web at http://www.cbisonline.com .
SOURCE Christian Brothers Investment Services, New York
