Economic Development

Taxes

Nevada Gold Mines pays all Nevada state taxes including Sales and Use and Modified Business Tax. In addition, mining is one of a handful of Nevada industries that pays an additional industry-specific tax, the Net Proceeds of Minerals Tax (NPT). As a result, mining is the second highest-taxed industry in the state as a percentage of revenue.*

The Net Proceeds of Minerals Tax was added to the State Constitution in 1989. It is a property tax on mineral value and is capped at 5% — the highest allowable property tax rate allowed by the Nevada Constitution. Revenue is divided between the state general fund and the counties in which the minerals are produced.

In a Special Session of the Nevada Legislature, which commenced on July 8, 2020, a bill was passed that temporarily requires the advance payment of the portion of the NPT that is distributed to the State General Fund. This bill is similar to legislation introduced in 2009 following the Global Financial Crisis, and had been part of discussions between Nevada Gold Mines and the Governor of Nevada in the first half of 2020 on measures to support the State through the Covid-19 pandemic.

The NPT is the economic lifeblood for many rural communities and makes up a significant portion of county revenue. To redirect the county portion of the NPT would result in the need for counties to directly draw from the state general fund instead.

Nevada Gold Mines generated federal tax charges for its owners, Barrick and Newmont, of $200 million in 2020. Barrick, the operator of Nevada Gold Mines, as a foreign investor also paid taxes of $104 million in repatriating profits.**
 

State Taxes Paid by Nevada Gold Mines in 2022

$302 million
 

$194 million

Net Proceeds of Minerals

$50 million

AB 495 Tax

$109 million

Sales & Use Tax

$36 million

Property Tax

$14 million

Modified Business Tax

 
* Based on 2019 data compiled by Applied Analysis, “Effective Tax Rates By Major Industry”, January 2020.

** NGM is a partnership and as such does not pay federal tax. NGM’s shareholders include their share of the income in their federal tax returns. The actual taxes paid by each partner will depend on other activities included in their tax filings, hence the $200 million may not reflect the cash tax paid by NGM’s shareholders. The taxes paid by Barrick on repatriating profits are the actual payments made in 2020 and reflect the repatriation of profits from several years.

I-80 Fund

Nevada Gold Mines launched a new rural economic development initiative, the I-80 Fund, with an initial investment of $5 million in July 2020. The program was established to provide support through relief and recovery loans to eligible small businesses affected by the economic impacts of Covid-19. Counties included are those located along the Nevada I-80 corridor — specifically in Elko, Lander, Humboldt, and Eureka.

I-80 Fund Update

Phase one of the program focused on disaster relief and recovery loans for small businesses impacted by COVID-19, with loans ranging from $5,000 to $10,000 with a 2% interest rate. To qualify for the program, businesses must have been in operation prior to January 1, 2020. Phase two of the program, which started on January 1, 2021, is currently providing low-interest loans to help develop new and grow existing small businesses in the region, thereby driving economic growth in Northern Nevada.

The I-80 Fund marked one year of providing support for Nevada small businesses in July with 30 loans approved totaling $3.4 million. This support of our business community created 52 new jobs and retained 116 jobs in rural Nevada.

The fund is managed by Rural Nevada Development Corporation (RNDC), a 501(c)(3) organization that has been providing lending and other services to the businesses of rural Nevada since 1992. For more information on the program and how to apply, please reach out to RNDC at www.rndcnv.org or contact 775-289-8519.

Community Development Committees (CDCs)

To ensure that community needs are being met, advisory groups consisting of and led by local stakeholders and community leaders have been formed to nominate community development projects for investment by Nevada Gold Mines. Launched in September 2020, these committees provide an opportunity for two-way engagement between local stakeholders and NGM, helping to ensure that mutually beneficial partnerships are formed in order to bring about long-term sustainability to communities.

CDC Committees:

• Elko/Spring Creek/Carlin/Eureka
• Battle Mountain/Winnemucca
• Wells/Wendover
• Native American
• Southern Nevada

Projects are identified and considered within NGM’s five sustainable development categories — Economic Development, Education, Environment, Health and Cultural Heritage — and should be sustainable over the long term.

For more information on how to nominate a project, please contact community@nevadagoldmines.com.

Buying Local

Nevada Gold Mines embraces a policy of buying local first, ensuring wherever possible we consider vendors within the immediate locations of our mine sites, local counties, and the greater state of Nevada. We will soon launch a Supplier Development Program, providing additional growth opportunities for businesses within our local and Native American communities.

Our supply chain plays a vital role in our environmental, social and governance (ESG) strategy. The materials we consume are sourced from reputable vendors and transported, stored and distributed to high safety standards. 

Governance of our procurement process is managed through strict procedures, and the onboarding of every vendor includes validation of a commitment to complying with our Code of Conduct and Code of Ethics.

Indigenous Peoples

NGM is committed to working with the indigenous peoples who live near our mines and projects. Our aim is to invest in the development of projects that meet agreed specific criteria in a manner that respects and strengthens their communities and brings positive long-term contributions to their quality of life.

NGM recognizes the unique considerations of indigenous peoples, including:

• The irreplaceable histories, languages, cultures, knowledge, traditions and values of indigenous people and their contribution to the cultural and social diversity of the communities where we have a presence.
• The cultural importance of connections with the natural environment, including land, water, wildlife and plants.
• The distinct nature and importance of indigenous institutions in realizing the aspirations of indigenous peoples for their own development.

Consistent with the laws regarding the rights of indigenous peoples in the communities where we operate, some of the practices that we undertake as appropriate to engage with indigenous peoples include:

• Conducting due diligence to identify areas where our activities may impact lands and rights, or consultation to seek mutually acceptable solutions to avoid, minimize or mitigate adverse impacts prior to beginning any activities that would cause those impacts.
• Ongoing engagement with indigenous communities near our operations to understand the economic, social and development aspirations of those communities and to endeavor to contribute to their self-sustainable capacity to attain those aspirations.
• Encouraging opportunities for training and local business development that enhance indigenous peoples' participation in our activities as interns, employees and suppliers.

Learn more about Cultural Heritage

All of the above is achieved through the Collaborative Agreement (CA) which affords Nevada Gold Mines the opportunity to engage with partner Tribes/Bands. The CA is a document written in collaboration with the Tribes/Bands to ensure this relationship remains of priority to both parties.