In what is believed to be a first for a U.S. mining company, Denver-based Newmont Mining is supporting a shareholder proposal asking the firm to report on its social and environmental issues.
The resolution, brought by 11 institutional shareholders, will be voted on at Newmont’s annual meeting Tuesday in Wilmington, Del.
“This is a bold step by Newmont,” said Julie Tanner, a spokeswoman for New York- based Christian Bros. Investment Services Inc., one of the Newmont shareholders.
“This is a real breakthrough in that this is the first time that a mining company has agreed to urge shareholders to support a social resolution,” Tanner said. “With the release of a substantive and thorough report, it will indicate that the company takes the issue seriously.”
Newmont, the world’s second-largest gold miner, has faced community opposition at several of its mining sites in the U.S., Peru, Indonesia and Ghana.
While the company says it adheres to a high standard of social and environmental responsibility, Newmont critics say mining operations have caused pollution, degradation of habitats and community resettlement.
The shareholder resolution asks Newmont to appoint a team of its independent, or non- employee, directors to prepare a report outlining opposition to its mining operations and steps to reduce the opposition.
Newmont said it will oppose another shareholder resolution, sponsored by the New York City Pension Funds, that asks Newmont’s management to prepare a report on alleged environmental and health problems at mining sites in Indonesia.
“We believe the Christian Bros. resolution is stronger and more comprehensive because it calls for independent directors to do the reporting, and it applies to all of our operations,” said Newmont spokesman Omar Jabara. “The New York City Pension Funds resolution, however, is very limited because it calls on management – not independent directors – to provide the reporting.”
Other shareholders sponsoring the Christian Bros. resolution include Catholic Health East, Sisters of St. Joseph, 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 and Catholic Healthcare West.
Staff writer Steve Raabe can be reached at 303-954-1948 or sraabe@denverpost.com.
