social-and-economic-development

Barrick has an opportunity to contribute significantly to social and economic development in the communities and countries where we operate.  

Communities and host governments rightly expect to share in mining’s benefits. When we live up to their expectations, we are partners with host governments and communities in their own development, contributing to a more stable and prosperous society and a more secure license to operate.

Economic Contributions

Our Approach

We contribute in a number of ways to social and economic development, including through buying and hiring locally, investing in education, helping diversify livelihoods, and paying our fair share of taxes.

Barrick has put in place company-wide systems and standards to help us live up to the expectations our community partners have of us.

  • The Supply Chain group’s Local Procurement and Contracting Standard guides our community relations and supply chain teams to develop the capacity of local and regional suppliers and increase their access to supply opportunities.
  • To create more opportunities for local people to work at our mines, Barrick requires site Community Relations and Human Resources teams to develop Local Employment Plans which ensure attention is paid to local employment over the life of the mine.
  • Barrick has also put in place a local content framework to help our sites better support the use of local labor, goods and services. The framework acts as a guide by outlining the main steps in developing local employment and local procurement programs and referencing best international practice. As a result, our sites are better positioned to invest in community development programs that lead to sustained socio-economic development, helping contribute to a more secure license to operate.
  • The taxes and royalties derived from mining operations are important sources of government revenue that get invested in infrastructure, health, education and other important areas. Everywhere we operate, we pay significant taxes and royalties to all levels of government, and publicly report on these payments as part of our commitment to transparency and as a signatory to the Extractive Industries Transparency Initiative (EITI).

Local Content

Local content refers to the employees and goods and services that come from the local area that are employed and used by a mine site. Managed well, the use of local content increases opportunities for communities and provides multiple economic benefits that stimulate development. Local content can help Barrick by fostering a more stable workforce and supply base, ensure we meet permitting or regulatory requirements, and can help reduce our costs. We therefore purchase local goods and services and employ local people whenever possible.

$1.1 billion in local purchases in 2015

The Local Procurement and Contracting Standard requires community relations and supply chain teams to develop local and regional suppliers and increase their access to supply opportunities. By integrating local suppliers into broader procurement systems, not only do we have the opportunity to help diversify local economies, but we also have the potential to lower costs for the goods and services we use at our mines.

Barrick also requires sites to develop plans to guide local employment efforts over the life of the mine. At these sites, the human resources teams develop and lead the local employment plan, supported by community relations teams. In general, these plans integrate recruitment and retention of local employees into the broader human resources approach. This includes an assessment of the skills and capabilities available in the local community, the development of recruitment and retention programs targeted specifically at local communities, guidance on helping address skills shortages, and the creation of a culturally appropriate work environment.

Mine Senior Management

To support the efforts of our procurement and human resources teams, Barrick has put in place a local content framework. The framework acts as a guide by outlining the steps to develop local employment and local procurement programs and reflect best international practice.

Local Content over the Life of Mine
Successful construction and operations are driven by the site planning for local employment and procurement as early as possible in the study phase. In the pre-feasibility stage, the site has enough information to develop a general plan and forecast for local employment and procurement. For example, our Alturas project – even though it is in very early stages – has already developed a local employment plan. Capacity building and training are an important focus in the study phase in order to take advantage of the significant opportunities that come during construction. Continued development and retention is a major focus during operations so that local employees and suppliers can take best advantage of long-term opportunities.

National and Local Employment

At some sites, Barrick Human Resources teams have identified a significant potential savings in employee costs if management positions are filled by locals and nationals as opposed to expatriates. As a result, they have introduced a succession planning strategy that focuses on local employee job shadowing and training alongside expatriate managers.

Social Investment

Community development programs, when undertaken in collaboration with our contractors, communities, governments and civil society, lay the necessary foundation for strong and strategic partnerships — that is, partnerships that can both generate long-term, sustainable benefits for local communities and address social risks.

$37.8 million spent on Community Investments in 2015

965 scholarships provided in 2015

Community Investments

Barrick’s community development programs are designed to fulfil social obligations; mitigate social impacts and social risks; and support community priorities. Our community development activities are also planned with closure in mind.

We take a partnership approach to our community investments. This means knowing what matters to our partners — including communities, governments, NGOs and others — and reflecting those interests in whatever we do. It also means clearly defining roles, responsibilities and resources, and spelling these out in Memoranda of Understanding (MoUs).  Below are several examples of recent partnerships:

  • In San Juan Province in Argentina, near the Veladero mine and Pascua-Lama project, Barrick has partnered with Silver Wheaton, a silver streaming company, and local water users to develop drip irrigation projects to help increase agricultural yields.
  • Near the Pueblo Viejo operation in the Dominican Republic, Barrick has partnered with the NGOs One Laptop per Child and Zamora Terán Foundation to provide a modern education and improve educational outcomes in six schools near the mine and the power plant. Barrick has provided more than 700 laptops pre-loaded with educational applications to students and teachers at the schools. We have also hosted workshops with teachers and principals to provide training on how to incorporate the applications and technology into their classrooms. The site social responsibility teams have also worked with the parents to help them actively participate in their children’s education, monitor the use of the laptops and help their children with their homework. Students’ cognitive skills in logical thinking, problem solving, creativity and other skills are being tested throughout the program to help measure the progress being made through the initiative.
  • Following the 2015 floods near our Pascua-Lama project in Chile, we implemented a Social Investment Fund. The Fund is a collaborative effort between business and community, with the aim of supporting the social and economic recovery of the affected areas near the Pascua-Lama project.
  • The Lumwana Development Trust Fund at our mine in Zambia supports infrastructure projects identified by a committee consisting of local traditional leaders, government and mine management. The cost of identified projects is shared, with the mine, contributing 75 percent, and the balance covered by local communities.
  • In Peru, Barrick is working with the Ancash Regional government to strengthen the capacity of the regional health authority in a project financed by Japan and administered by the Inter-American Development Bank. By supporting local government officials and health institutions, the aim of the program is to achieve better health and food security in children under five and pregnant mothers in the district.
  • Barrick joined with the Friends of the British Council in the U.S. to offer its "Active Citizens" program to Western Shoshone communities in Nevada. The program teaches participants leadership and project management skills, empowering them to build trust and understanding and lead sustainable development efforts in their communities.

Taxes & Royalties

The tax and royalty payments Barrick makes to national and sub-national governments are a significant source of revenue. At Barrick, we see these payments not as costs but as important investments in the countries where we operate. This revenue can help governments build infrastructure and fund social programs, driving both their economic growth and social development, as well as contributing to our license to operate.

We publicly report on these payments as part of our commitment to transparency and as a signatory to the Extractive Industries Transparency Initiative (EITI).

As we have operations and projects in nine countries, we are accordingly subject to various tax regimes. The taxes we pay can be affected by a number of factors on an annual basis, including debt repayment, changes in tax rates, mining allowances, foreign currency exchange rates and changes in the tax laws.

Taxes & Royalties

Indirect Impacts

Indirect economic impacts are the result of the interactions we have with stakeholders and are an important part of our economic contribution. While difficult to precisely quantify, they include the impacts of our employees, our contractors and the employees of our supplier industries spending their wages and salaries. They also reflect economic impacts associated with improvements in community health and livelihoods (e.g. access to clean water, medical support and education facilities). A 2012 study by the World Gold Council in Peru found that a multiplier of 1.9 to 3.8 could be factored into mining’s contribution to a country’s gross domestic product. The same study identified a 1.9 employment multiplier. This means that every job we create at one of our Peruvian mines, for example, contributes to an additional 1.9 jobs in Peru.

Date Download Description
May 6, 2015 files/design/bodybg/our-approach.jpg
2014 Responsibility Report
Gold  $ 1,256.20 -0.88 -0.07% Volume: February 27, 2017
ABX NYSE  $ 19.54 +0.00 +0% Volume: 13,338,300 February 24, 2017
ABX TSX  $ 25.59 +0.00 +0% Volume: 2,833,600 February 24, 2017
Gold  $ 1,256.20 -0.88 -0.07% Volume: February 27, 2017

Our vision is the generation of wealth through responsible mining — wealth for our owners, our people, and the countries and communities with which we partner.

World Gold Council Member

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