At both meetings, Timothy H. Smith, then of the United Church of Christ Council for Christian Social Action, placed the name of Judge William Booth in nomination to the Board of Directors as "a person who would be sensitive to the interests of African workers." While the nomination was defeated, Newmont Chairman Plato Malozemoff adjourned the meeting without allowing presentation of the resolution by the Episcopal Churchmen for South Africa; only after a very strongly worded protest was lodged by Dr. Howard Schomer, representing shares worth approximately $2 million held by the United Church of Christ, did Mr. Malozemoff reconvene the meeting. Dr. Schomer moved the disclosure resolution, and read a six-page statement challenging Newmont to respond to the issues being raised.

Speaking in support of the resolution at the AMAX meeting were the Rev. Dillard Robinson on behalf of the Episcopal Church, Theo Ben Guiriab, SWAPO representative to the United States, and Julius Duru, a Nigerian student representing the proxy of the Colorado Conference of the United Church of Christ.

The resolutions received under three percent of the vote by Newmont and AMAX shareholders. Ian MacGregor, AMAX chairman, stated that a report covering most of the information requested would be issued in the future. As of April, 1973, that report had not been released.

Current Actions

In 1973 the Episcopal Churchmen for South Africa returned to Newmont and AMAX, filing a resolution urging them to withdraw from Namibia. The resolution and statement argued as follows:

WHEREAS, the United States Government has declared that its
policy is to discourage any further investments in
Namibia (South West Africa); and

WHEREAS, such investment serves to strengthen the illegal
control the South African Government maintains over
Namibia and increases South Africa's vested interest
in continuing its occupation of Namibia;

1

THEREFORE, BE IT RESOLVED that the stockholders request the
Board of Directors to adopt appropriate resolutions
to initiate the process of amending the Certificate
of Incorporation of the Corporation by adding the
following new sub-paragraph at the appropriate place:

"Notwithstanding the foregoing, the Corporation shall
not conduct or be part to any operations in Namibia
(South West Africa), either directly or through sub-
sidiaries or affiliates, and shall use its best ef-
forts to see to it that present operations in Namibia
(South West Africa) in which it has an interest are
wound up."

The South African Government refuses to yield control over Namibia (South West Africa) to the United Nations, the lawful authority. The United Nations in 1966 terminated a ` League of Nations mandate by which South Africa had governed Namibia. Since then resolutions of the General Assembly and the Security Council and an advisory opinion of the International Court of Justice have consistently sustained the United Nations' lawful right in Namibia. The United States Government has accepted the World Court decision and has stated a policy of discouraging further investments in Namibia. The Corporation is part owner of Tsumeb Corporation, one of the largest investors in Namibia, which pays taxes to and accepts the racially discriminatory laws of South Africa in Namibia. Such cooperation presents a danger to the Corporation by involving it in direct support of an illegal regime and the use of forced labor.

The United Church of Christ also filed a stockholder resolution with Newmont urging it to practice principles of fair employment in its operations abroad. The resolution further proposed that in any country where local laws or customs involve racial discrimination in employment, the Corporation will initiate affirmative action programs to achieve meaningful equality of job opportunity.

Newmont appealed to the Securities and Exchange Commission (SEC) to be permitted to omit the resolutions from the proxy statement. The SEC ruled that the resolution urging the company to withdraw from Namibia should be included on the proxy statement, but it upheld Newmont's objections to the fair employment resolution. Newmont had argued that the United Church resolution was pushing the company to contravene laws in South Africa and that it could not do this as a company incorporated in Delaware.

For more information about the 1973 proxy challenges to Newmont and AMAX write to:

The Church Project on U.S. Investments in Southern Africa 475 Riverside Drive, Room 845

APPENDIX A: THE TSUMEB CORPORATION BOARD OF DIRECTORS

I.K. MacGregor
D.O. Pearce

J.P. Ratledge

M.D. Banghart

R.C. Bonebrake

A.C. Beatty
P. Malozemoff
J. Payne Jr.
E.T. Rose
T.P. Stratten
D.J. Donahue

J.J. Lennon

John Towers

J.E. Thompson

J. L. Leroy

Chairman; also chairman of AMAX and member O'Okiep Board. Managing Director; also Newmont vice-president and managing -director of O'Okiep.

Manager

Former vice-president of Newmont; now consultant and Newmont
Board member; chairman of O'Okiep

Former executive vice-president and general counsel of Newmont;
member of O'Okiep Board.

Chairman of Selection Trust Limited and member AMAX Board.
Chairman and president of Newmont; member of O'Okiep Board.
Vice-president of AMAX; alternate member of O'Okiep Board.
Former AMAX vice-president; alternate member of O'Okiep Board.
Chairman of Union Corporation.

President of AMAX and member of O'Okiep Board.

Member of O'Okiep Board

Vice-president of AMAX.

Executive vice-president of Newmont and member of O'Okiep Board.
Secretary of the corporation and secretary of O'Okiep.

2. NEWMONT

Newmont Mining Corporation, which manages Tsumeb, was incorporated in Delaware in 1921. A major producer of nonferrous metals, primarily copper, the company also mines zinc, lead, nickel, gold, silver, molybdenum, and uranium, as well as other minerals. Wholly-owned subsidiaries in North American and Australia are engaged in the development of petroleum fields. In 1968, 57 percent of the company's net income came from majority owned or managed companies. Newmont ranked number 465 on Fortune 500 list of largest industrials by sales.

Foreign operations account for an important, though decreasing, portion of Newmont's business.

Concern about the vulnerability of its foreign holdings has led Newmont to reduce its dependence on foreign raw materials. As part of this effort, the company recently purchased an interest in a Canadian operation that has one of the largest copper deposits in North America.

In 1970, Newmont's petroleum subsidiary in Algeria was nationalized, and Southern Peru Corporation, in which the company has an interest, has recently faced government restrictions. Mr. P. Malo zemoff, president and chairman of the board, has explained his company's attitude:

Because we have for years been aware of an increase in
this political risk factor, we have increasingly worked
towards increasing the proportion of Newmont's income
derived from North American sources. In the last ten
years, we have managed to increase this proportion from
about 46 percent to a current 70 percent of our income
derived from North America.

Newmont's investments in Africa all located in the southern region-have been an important source of income. Between 1951 and 1969, these properties' dividends provided an average of 38 percent of Newmont's gross income. During two of those years (1955 and 1956), they supplied more than 60 percent. In 1971 and 1970, after Newmont changed its accounting procedures, 32 percent and 39 percent of the company's net income came from the dividends paid by Tsumeb, O'Okiep, and Palabora. Neither Foote Mineral nor Highveld Steel and Vanadium paid dividends in those years.

Newmont owns interests in South Africa's two largest copper mining ventures. Palabora Mining Company, the biggest, is a lucrative operation controlled and managed by Rio Tinto Zinc of the United Kingdom. Newmont owns 28.6 percent, most of it through Palabora Holdings Limited. O'Okiep Copper Company, whose mines in southwestern South Africa are in the midst of land belonging to the Nama people, are managed by Newmont, which holds 57.5 percent of the stock.

The company manages and owns 50 percent of Maluti Holdings, a prospecting venture in Lesotho. (Recently, Newmont sold the other 50 percent to United States Steel.) If Maluti begins production, Newmont will also manage its operating subsidiary, Maluti Diamond Corporation.

Three Newmont officers serve on the 17-person board of directors of Foote Mineral Company, a U.S. corporation of which Newmont holds 648,337 shares of common stock, 32.8 percent of the total preferred and common shares. Foote's wholly-owned subsidiary, the Rhodesian Vanadium Corporetion, is one of two U.S. firms responsible for mining almost all of the chrome in Zimbabwe (Rhodesia). Foote and Union Carbide have lobbied for an end to U.S. restrictions on the import of chrome from the territory. The restrictions were declared by former President Lyndon Johnson as a result of international U.N. sanctions against the illegal white regime. In 1971, the two firms were largely responsible for ensuring passage of the "Byrd Amendment," allowing the U.S. government to import chrome and other strategic minerals in defiance of the U.N. ban.

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Highveld Steel and Vanadium Corporation is a subsidiary of Anglo American Corporation which, despite its name, is under neither British nor American control but is the largest and most powerful financial combine in Africa and is headed by South African millionaire Harry Oppenheimer. Newmont owns 11.9 percent of Highveld, and Foote has a long-term contract with the company to supply Foote's U.S. plants with vanadium-bearing slag.

Through Newmont South Africa Limited, a wholly-owned subsidiary, the company is exploring for other mineral deposits which it hopes will offer opportunities for additional lucrative investments in the area.