Artisanal and Illegal Mining

Barrick has a number of operations which are adjacent to thriving artisanal and small scale mining (ASM) communities. Barrick recognizes that ASM communities are a key stakeholder group and therefore require a more collaborative approach, focusing not only on how to coexist, but also how to benefit from each others skills and expertise. Barrick has initiated an internal ASM Working Group to develop a coordinated strategy to address issues the Company faces with regards to the ASM sector. The same Working Group is also developing a more coordinated and holistic response to dealing with “illegal miners” – or people who gain unauthorized access to our mining leases in order to remove gold bearing material.

Our response to this situation is primarily driven by safety concerns – both for our employees and the trespassers. The response to this issue is complex and multifaceted but there is a clear need to adopt community development strategies alongside, and in coordination with, improved security measures. The ultimate goal is to eliminate confrontation and work in harmony with local communities by supporting viable, sustainable livelihoods. Concerns about illegal miners have been ongoing at the Porgera Mine in Papua New Guinea, acquired as part of the Placer Dome transaction. Our attention focused on preventing entry to the active mine areas through more effective engagement with local leaders, education of young people about the safety risks involved and improved coordination between mine security staff and public authorities. We also completed the construction of a fence around the active areas of the operation in order to ensure the safety of all concerned. In 2006, improvements had been noted by a reduction in accidents and stabilization in the number of trespassers entering the mine site. In 2007, Barrick will explore a range of options to further minimize this problem, including economic alternatives that may be offered to the local population.