Newmont Mining, Breaking Records Despite Pandemics

Breaking records despite pandemics

Special Feature

Newmont Mining

Breaking records despite pandemics 2

Issue 067 · Business Enquirer Magazine

Business Enquirer Magazine · Issue 067

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PROJECT DIRECTED BY

WRITTEN BY

Jamie Waite

Jay Benmehidi

Special Feature

T

homas R. Palmer, or “Tommy” as he’s better known back home in Australian mining circles, is the President and CEO of Denver-based gold giant, Newmont Corp, a member of World Gold Council Inc. and Governor of the Mining & Metals Board at The World Economic Forum USA. Much as one might expect of a man who is the fourth generation of his family to enter the industry, Mr. Palmer is a mining man through-andthrough who has carved out an uncompromising reputation for excellence over the space of his 25-year career, during which he has achieved success at some of the biggest names in global mining.

After moving to Newmont in 2016, Palmer excelled in his role as the company’s Senior VP in Indonesia before being promoted to Senior VP of the company’s entire Asia-Pacific operation – an area of business responsible for nearly 40% of Newmont’s total revenue at the time.

By 2016, when Palmer had been appointed as Newmont’s Global Executive VP and Chief Operating Officer, 85% of the company’s workforce reported to him, cementing his standing as an indispensable lieutenant at Newmont and a protégé who would one day lead the company.

And so it proved – just three years later in 2019, Palmer was appointed CEO and President of the world’s leading gold miner following the retirement of his predecessor, Gary Goldberg.

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Issue 067 · Business Enquirer Magazine

Since taking the reins, Palmer has overseen a period of strong growth at Newmont in-spite of the challenges posed by COVID-19, culminating in a record-breaking 2020 which saw Newmont generate nearly US$11.5 billion in revenue and retain its standing as the top-ranked gold miner for the sixth year running. Business is up more than 50% since Palmer took control, with a number of new projects and expansions having been commissioned, bringing Newmont’s already substantial global mine portfolio up to 14. In addition, project optimisation work under Mr. Palmer’s leadership has also set Newmont’s project pipeline in good stead, to the extent that it is amongst the best in the gold sector by measure of capital discipline and a focus on returns.

Undoubtedly, however, the most important aspect of his work is the safety of his team, says Palmer: “As the world’s leading gold company, Newmont remains focused on keeping our people safe, while growing our profit margins through operating, technical and financial discipline. There is nothing more important in our industry than understanding and managing the risks that can kill people.

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Special Feature

Newmont Mining Newmont’s gold production has spiked in recent years, following the integration of Goldcorp’s former projects into the company’s operations, which in turn has further consolidated the company’s market leader status.

”As the world’s leading gold company, Newmont remains focused on keeping our people safe, while growing our profit margins through operating, technical and financial discipline”

I always have a chronic unease about us ensuring that we have, across our business globally — and we’re running 24 hours a day, seven days a week — an understanding of everybody who works at our operating site, whether it’s a visitor or contractor who’s there for a short period of time, or employees who are there for many years, that they understand the fatality risks associated with their post and the critical controls that must always be in place to prevent someone from being hurt. And that they have the confidence that if something is not right, they will stop and seek help. That would be the one area for me that I’m quite happy to maintain chronic unease about, because if you think at any time that you’ve got that risk completely under control, that’s when I think an organization has an issue.”

A veteran miner with extensive experience leading teams and delivering on production targets, and an executive with form for implementing safety culture and diversity improvement programs, Mr. Palmer is deserving of reputation as one of mining industry’s most dynamic talents.

Prior to joining Newmont Corp, Palmer spent 20-years cutting his mining teeth in Rio Tinto’s bauxite and aluminium, coal, copper, iron ore, and technology businesses, where he gained extensive experience building and leading high-performing global teams to enhance safety, profitability, sustainability, and diversity and inclusion in a number of leadership roles. This included serving as General Manager - Technology for the Bauxite and Alumina business, General Manager - Operations at Hail Creek coal mine, and General Manager - Asset Management at Palabora Mining Company in South Africa.

It is telling that Newmont, named the mining industry leader by the Dow Jones Sustainability World Index in 2015, 2016, 2017 and 2018, is the only gold producer listed in the S&P 500 Index, although it should be added that gold is not the only string to Newmont’s bow. In addition to being the number one global gold producer, Newmont is also a leading producer of copper, silver, zinc and lead, thanks to its worldclass portfolio of assets, prospects and talent, all of which are anchored in favourable mining jurisdictions in North America, South America, Australia and Africa.

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Issue 067 · Business Enquirer Magazine

He earned a Master of Engineering Science degree and a Bachelor of Engineering degree from Monash University in Melbourne, Australia.

As a world leader in technological innovation, boasting a portfolio of 14 projects spanning four continents, Newmont Corp has emerged to become the world’s largest gold producer following its 2019 merger with Goldcorp.

“Newmont has the largest gold reserve base in the industry underpinned by our world-class ore bodies in top tier jurisdictions. In 2019, we added almost 50 million ounces of gold reserves through the acquisition of Goldcorp, formation of the Nevada Gold Mines joint venture and the continuation of our leading exploration program,” said Tom Palmer, President and Chief Executive Officer.

“Our reserve and resource base will support stable production of more than 6 million ounces per annum for decades to come.”

With an unrivalled production capacity and financial muscle befitting of a true mining global heavyweight, Newmont Corp has the strength and capability to all-but single-handedly direct the future of the gold sector.

Thus far, Newmont has invested US$150m into the project, which it hopes will deliver considerable financial benefits as a result of improved efficiencies through the removal of human error from haulage and transportation – an outcome which will achieve an internal ROI of 35%, and is expected to increase the mine’s lifespan by two years.

Presently, the company is investing significant resources into Industry 4.0 technologies as it strives to take the lead in the industry’s race to digitalise. In Australia, a region which has already established itself as a hotbed of mining technology, Newmont is incorporating autonomous technologies into its operations at the Boddington mine, a move which will see the project become the world’s fist autonomous gold mine when operations go live later this year.

This project, alongside the former Goldcorp Borden project – the world’s first all-electric gold mine - in Ontario, Canada, represent the future for Newmont. Such investments demonstrate a commitment to financial stability and operational efficiency that has helped deliver significant returns for the world’s leading miner, as it invests in the foundations upon which a more agile, technology-centric Newmont of the 21st century will be built.

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