Home  >  Operations  >  Nevada Gold Mines  >  Economic Development

Economic Development

Nevada Gold Mines

Economic Development

At Nevada Gold Mines, how we create value and deliver economic benefits to Nevada is based on four key building blocks:

Taxes

Supporting counties, the state and the country by paying all applicable taxes.

Learn more

Hiring

Prioritizing local hiring.

Buying

Prioritizing local buying.

Community

Investing in community-led development initiatives.

Total Economic Contributions to Nevada in 2020

$2.34 billion

2020 Community Impact Report

$292 million

State Taxes

$1.1 billion

Personnel Costs

$944 million

Goods and Services Purchased in Nevada

Other Contributions in 2020

$18.3 million

$927,000

Community Engagement

$5.5 million

Education

$767,000

Health

$280,000

Environment

$9.9 million

Covid-19 Community Investments

$107,000

Cultural Heritage

$131,000

Economic Development

$693,000

Other

Taxes

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.

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 2020

$292 million
 

$147 million

Net Proceeds of Minerals

$100 million

Sales & Use Tax

$14 million

Modified Business Tax

$31 million

Property 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.

Indirect Economic Impact

Nevada Gold Mines employs more than 7,000 men and women at our operations across northern Nevada and in our office in Henderson. In 2020, NGM employees earned $1.1 billion in total compensation, including wages, incentives and benefits. Nevada’s mining industry has the highest average wage of any sector in the state, meaning our employees are able to contribute more to their local economies, and lean on state resources less. Our employees are highly skilled, technical professionals ranging from accountants to welders, IT specialists to metallurgists, drillers to data scientists — skills essential to a diversified economy.

In 2020, Nevada Gold Mines spent nearly $1 billion with our suppliers in state, supporting hundreds of businesses, thousands of employees and helping to grow and diversify Nevada’s economy.

Indirect Economic Impact
I-80 Fund Update

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 that have been affected by the economic impacts of Covid-19 in counties along the Nevada I-80 corridor — specifically in Elko, Lander, Humboldt, and Eureka.

I-80 Fund Update

The I-80 Fund initially focused on immediate relief and recovery efforts, and then it evolved into a small business development fund to stimulate and support economic growth in Northern Nevada into the future. 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 $100,000 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 providing low-interest loans to develop new and grow existing small businesses in the region, thereby driving economic growth in Northern 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.

Las Vegas Global Economic Alliance

The LVGEA 50 is a diverse group of public and private sector leaders who advance the Las Vegas Global Economic Alliance’s mission of driving economic development in Southern Nevada — a vital endeavor that benefits the state of Nevada as a whole for the long term.

Nevada Gold Mines is represented on the LVGEA 50 Board of Directors by Catherine Raw, Barrick’s Chief Operating Officer for North America, who joined the board in September 2020.

Learn more at lvgea50.org.

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, and they help ensure that mutually beneficial partnerships are formed that bring long-term sustainability to communities.

CDC Committees:

  • Elko/Spring Creek/Carlin/Eureka
  • Battle Mountain/Winnemucca
  • Wells/Wendover
  • Native American
  • Southern Nevada – to launch in 2021

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.

Local Chamber Check Program

Another initiative to support direct stimulus for local businesses in Northern Nevada is the Chamber Check program. Chamber Checks are vouchers issued by local Chambers of Commerce, redeemable at member businesses in the same way a gift certificate would be.

In an effort to help restart the local economy following the damaging impacts of the Covid-19 pandemic, Nevada Gold Mines issued each of our 7,000+ employees $150 in Chamber Checks from Elko, Winnemucca, or Battle Mountain in May 2020, providing $1.1 million of financial stimulus to over 200 local small businesses in Northern Nevada. Nevada Gold Mines also utilizes this program for holiday gifts and other incentive programs.

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.

Heritage Fund

The Nevada Gold Mines Heritage Fund is a non-profit, 501(c)3 employee giving program launched on December 1, 2020. The Heritage Fund builds culture and fosters employee buy-in through directed contributions to local non-profits with a company match. The Heritage Fund’s objective is to build healthy, sustainable communities across Northern Nevada by providing essential funding for programs and services prioritized by our employees, with a view to the future when the region transitions away from being a mining-based economy. This partnership with our employees is a foundational part of our commitment to building sustainable communities near our operations.

This Fund will also provide an opportunity for an industry-wide approach to community development and long-term regional sustainability by inviting employees and business partners to contribute to an Endowment Fund established for each community where Nevada Gold Mines operates. In December 2020, Nevada Gold Mines contributed $500,000 to kick-off the Endowment Fund, recognizing that this Fund will lend way to the future of our communities and help sustain programs and critical social services.

Heritage Fund

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.