August 18, 1999

Battle Mountain Gold Removed from Domini Social Index

On August 9, 1999 Kinder, Lydenberg, Domini & Co. (KLD) removed Battle Mountain Gold (BMG) from the Domini 400 Social Index because of controversies related to its proposed Crown Jewel mine in Washington State and a number of other environmental controversies in which the company has been involved.

BMG's proposal has proven controversial with environmental and Native American groups near the site. They are concerned, among other things, that in a region of scarce water resources the mine will divert and use much needed water and adversely affect the hydrology of the region, both during the operation and after closure of the mine site. Citizens also question the company's ability, after closure of the mine, to address environmental pollution of its water-filled pit and to prevent acid drainage at the site, a frequent problem at abandoned mines. Moreover, members of the Confederated Tribes of the Colville Indian Reservation, which have hunting and fishing rights on the land surrounding the Crown Jewel site, allege that the operation of the mine will adversely affect their fishing rights in nearby streams.

Environmentalists have raised fundamental questions about the sustainability of open-pit, cyanide leach mining as the dominant form of mining by the gold industry. Concerns include the ability of mining companies to prevent contamination and prevent acid draining from the huge amounts of waste generated by this process.

"If BMG wants to be a good corporate citizen, it would cancel it's plans to develop the Crown Jewel mine" states David Kliegman, director of the Okanogan Highlands Alliance. " People want to be able to invest in responsible companies. BMG fails the test of social responsibility. They fail to consider the public harm of their mine proposal and only think about corporate interest. OHA applauds this move by KLD."

The company has refused to provide KLD with a detailed response to inquiries and concerns about the Crown Jewel project.

KLD does not immediately or automatically remove companies from the Domini Index when controversies arise. In appraising them, KLD looks for evidence of a company's ability to address the issues in a timely fashion, to work cooperatively with local groups to resolve disputes, and to communicate openly on the issues involved. At the same time, KLD looks for a record of problems with regulators, for a pattern of controversy with local and environmental groups, and for an unwillingness to communicate openly with concerned parties.

KLD recognizes the complicated water management issues involved in the plans, the past regulatory problems and continuing water quality problems at the company's closed San Luis mine, and the substantial challenges of open- pit, cyanide leaching. KLD takes seriously the concerns voiced by environmentalists and Native American groups in the region.

Given the company's frequently reiterated assertions that it will proceed with the planned site, the long and escalating pattern of controversy surrounding the company's activities, and the company's unwillingness to communicate in detail with KLD on specific issues, at this time KLD believes it is appropriate to remove the Battle Mountain Gold Co. from the DSI.

Okanogan Highlands Alliance

PO Box 163 Tonasket, WA 98855

phone/fax 509/485-3361

email: oha@purewater.org website: http://www.televar.com/~kliegoha

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