Welcome! This web conference will begin at 12 PM Eastern Standard Time.

1. Welcome! This web conference will begin at 12 PM Eastern Standard Time. If you have not already done so, please “sync” your telephone and computer as detailed in the “voice connection” tab in the bottom right-hand corner of your screen.

2. Preparing Responsible Managers for the Mining and Metals Industry Speakers Bruce HuttonDean Emeritus and Piccinati Professor of Marketing, Daniels College of Business, University of Denver R. Anthony HodgePresident, International Council on Mining and Metals (ICMM) Moderator Maureen ScullyAssistant Professor, UMASS Boston College of Management

3. Agenda • Introduction (5 minutes) • Presentation—R. Anthony Hodge (10 minutes) • Presentation—Bruce Hutton (10 minutes) • Moderated discussion (20 minutes) • Introduction to Aspen resources (10 minutes)

4. Sustainability, Mining and the MBA R. Anthony Hodge, Ph.D. , P. Eng. President, International Council on Mining and Metals Professor, Mining and Sustainability, Queen’s University, Kingston www.icmm.com 4

5. Change is the Dominant Characteristic of Our World Social Environmental Economic Cultural Political The operating environment is one of change; change management is a dominant issue for mining as well as students of business www.icmm.com 5

6. Solutions Process plus Substance www.icmm.com 6

7. There are many valid perspectives of Sustainable Development • Components • Environmental • Social (cultural, political, health) • Economic • Institutional • Results • Human Well-being • Ecosystem Well-being Capitals: Natural, Built, Human, Knowledge, Institutional www.icmm.com 7

8. ICMM’s Sustainable Development Framework For more information visit: www.icmm.com/sdframework www.icmm.com 8

9. Key Generic Topics for Coverage in Any Course • Historic Context: WW II to today • Theory and definitions: sustainability, development, sustainable development • The “non-renewable” characteristic of mining and its compatibility with sustainability ideas • The evolution from “impact” assessment and management to “contribution” assessment and management – capturing both positives and negatives as input to risk and decision analyses • Real-life cases www.icmm.com 9

10. Key Issues Facing the Mining Industry • What are fair systems of mineral taxation (for host countries, local communities and companies)? • What can mining do about its contribution to global warming? • How can mining build effective relationships with indigenous people and other interests that are touched by mining activities? • What is the right role for mining to play in poverty reduction in developing economies (north or south)? • How far does mining go in assuming government’s responsibility for services and infrastructure? • How can industry and society together best assess the social, economic, cultural and political contribution of mining over the long term? • What systems of reporting and assurance need to be in place to track company performance across the spectrum of sustainability issues? • How can mining best enhance health and safety practices across the world? • How can any mining company best introduce concepts of strategic change management? www.icmm.com 10

11. Preparing Responsible Managers for the Metals and Mining IndustryThe Newmont Executive Leadership Program Bruce Hutton, Ph.D.

12. Agenda Background On Newmont Mining Executive Leadership Program Sustainable Development Framework Mining—Do The Extreme Issues Faced Provide Learning Opportunities?

13. Original Framing of the Program “We need to build a new generation of executive leaders and develop a consistent leadership culture.” “Today we are good mine operators and our mine managers spend 90% of their time worrying about issues inside the fence line. In the future, in order to earn our “Social License To Operate” (SLTO), they must have additional skills and spend 75% of their time dealing with issues outside the fence line.” “Most all new gold deposits discovered in the future will be in developing countries, which are a far more difficult and risky environment to develop and operate mines. The future will be far more challenging than the past…” Wayne Murdy, CEO (2004)

14. A transformational learning experience focused on: Providing a consistent leadership development platform for existing and emerging Newmont leaders—common frameworks and language Integrating and aligning Newmont leaders with the business strategy Drive a culture shift in the company Newmont Executive Leadership Program Business & Financial Acumen Understanding our business end-to-end Leading People Aligning, engaging and developing our people Global Values/Ethics Earning our SLTO and building Reputational Capital Strategy & Execution Planning, executing and measuring our business

15. Key Design Concepts Comprehensive & Rigorous Program Fully customized to Newmont 8 days—Interval (4-6 months)—8 days Work required outside of class Held in Denver (2 side trips) “Wow” experience Cohort Style—Critical Element 16 participants/class Build relationships/networks Share experiences/best practices Learn from each other Cohorts carefully chosen Mix of current execs and emerging leaders Diverse groups—global, cross-functional, staff/line, etc. Focused on Relevance & “Stickiness” Mixture of Delivery Modes Experientials Integrating/Exercising the Learning Integrated Cases Action Learning Projects (ALP’s) Utilize ALP’s to advance key Newmont initiatives Present recommendations to Executive Leadership Team

16. Results To-Date Completed 5 Cohorts All C-level execs have attended Become prestigious internally and a “right of passage” Cohort recommendations have made large impact on direction ESR Management Process Established Very Close Partnership GO Classes to Ghana and Peru Faculty involved in other activities (coaching, facilitation)

17. Sustainable Development Economic S.D. Environ-mental Business Government Social NGO’s/Communities

18. Mining—SD Issues in the Extreme Extraction Industry Economic Highly Capital Intensive Marginal Projects Risk Environmental Permitting Extraction process (e.g. cyanide) Activist NGO’s Social Resettlement End of mine life Developing Countries Mining often first FDI Impoverished communities Little infrastructure High needs Weak social institutions Poor education & healthcare No local suppliers “How much is enough?” Weak Government Political Risk Corruption Regulatory Agencies

19. From Ethic to Strategy Vision Current Reality Sustainability Strategy Direction Context Execution Results • Risk Macro • Micro • Opportunity Internal • External • Access to Capital - Financial • - Human • - Natural • - Social • - Manufactured • Value - Profit - Shareholder Value - Reputation • Economic - Eco-efficiency • Social - Socio-economic • Environmental - Socio-environmental

20. Scorecard: Business Case for Sustainability Measures of Business Success Financial Performance Shareholder Value Revenue Operational Efficiency Access to Capital Financial Drivers Customer Attraction Brand Value and Reputation Human and Intellectual Capital Risk Profile Innovation License to operate

21. Traditional Financials: Cash Flow Price/Earnings Price-to-Book Earnings Growth Etc… Driving Value Traditional Intangibles: Quality of Mgmt Market Share R & D Commitments Patents Brand Name Partnerships Etc… SD / SRI Intangibles: Corp Governance Environmental Issues Community Relations Workplace Issues REPUTATION Employee Relations Human Rights Etc…

22. Student Projects How to effectively measure impact on Sustainable Livelihood? 5 Capitals—Social Capital most difficult Baseline and On-going How to help communities manage their own development? Development Foundation governance How to develop sustainable Small-Medium sized enterprises? Serve Newmont effectively in Phase I Diversify away from Newmont longer term

23. Aspen Center for Business Education (Aspen CBE) Information on Aspen CBE’s work: http://www.aspencbe.org Free, full-text teaching resources: http://www.caseplace.org International Council on Mining and Metals (ICMM) To subscribe to ICMM’s Good Practice Newsletter, visit http://www.icmm.com/mailing-list For more information, visit http://www.icmm.com or email ICMM at info@icmm.com Resources