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FULL POTENTIAL METHODOLOGY TO STRENGTHEN PEÑASQUITO MICHAEL HARVEY Director of Corporate Affairs at Newmont Goldcorp Mexico
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Q: What practices is Newmont Goldcorp implementing
operating model with clear accountability and the site owns
to improve the quality of life of the communities around
target setting and delivery. There is global consistency in the
Peñasquito?
program, benchmarking performance, sharing successes and
A: Education is an excellent example of our work in the
enabling rapid replication. We apply lessons learned, which
communities around the mine. For example, 37.5 percent
then informs our approach to advancing strategic digital and
of the student population in the area of direct influence of
technology initiatives.
the mine receives a grant from Peñasquito and 110 teachers receive training through the education strategy financed by
Q: What are the new technologies to increase gold recovery
Peñasquito with the support of the Ministry of Education. We
and how is Newmont Goldcorp implementing them?
built a Technical College (CONALEP) and there have been 409
A: In an era of declining gold reserves, Newmont Goldcorp is
CONALEP graduates, of which more than 70 percent work in
the only company with a stable production profile targeting
Minera Peñasquito or with our contractors. We also support
6-7 million ounces over a decades-long time horizon. We
16 scholarships each year at the Autonomous University of
have proprietary technologies that are driving our discovery
Zacatecas.
program. Examples include Deep Sensing Geochemistry (DSG), which has a depth of investigation of more than 500m.
Q: What lessons were learned after the blockade at
Another is our 3D Distributed Acquisition System (NEWDAS),
Peñasquito, especially regarding relations between the
a 3D data acquisition system with a depth of investigation of
three levels of government, the private sector and the local
roughly 1,000m.
community? A: The Peñasquito blockade was evidence of a huge
Q: How can the talent pool in the mining industry be kept
problem for the development of Mexico. There are almost
at an optimal level and how will automatization impact the
no consequences when you break the law, threaten your
industry’s workforce?
neighbors and harm third parties who want to work. I believe
A: We believe that diversity and inclusion are important to
we were able to demonstrate that blockading us illegally does
develop the workforce of the future. Just look at the inclusion
not give you economic benefits. It is too easy to pay people to
of women. It makes no sense for an industry to exclude half of
make them go away but that is a poor long-term strategy. The
its potential workforce. Mining often means living in camps in
Mexican government needs to be a lot more supportive in this
remote locations. Technological advances will provide more
regard. Local communities supported us but were frightened
optionality in this regard. The challenge will be meeting local
by the blockaders, who were able to threaten violence with
employment goals as this happens. We are going to have
no fear of consequences from the government.
to invest in the skills of local communities so they can have access to these jobs. It is absolutely key for the people on the
Q: What is your strategy for further developing this world-
ground to have ownership of decisions and to be accountable
class deposit to its maximum potential?
for them. At the same time, a strong head office allows lessons
A: We are on track for US$50 million or more in sustainable
to be learned from one operation to another and to develop
cash flow improvements at Peñasquito thanks to our Full
a highly specialized workforce. The secret is to work together
Potential methodology. The Full Potential program’s mandate
in an environment of continuous improvement.
is to identify opportunities for efficiency and innovation across our business and we are now applying this to Peñasquito. The goal is superior operational execution through sustainable
Newmont Goldcorp has operations in Australia, Canada,
productivity improvements and cost-efficiencies. The core
Ghana, Peru, Suriname, Mexico, Argentina, Dominican Republic
principles of Full Potential are that it is focused on value and
and the US. It is an industry leader in value creation and the
viability, and grounded in technical fundamentals. It is a proven
only gold producer listed in the S&P 500 Index
