ENVIRONMENTAL INCIDENTS

One of the most important ways we monitor and assess our environmental performance is by tracking the number of environmental incidents that occur as a result of our activities. We classify each environmental incident that occurs on a 1 to 3 scale based on severity of impact.

To encourage our workforce to carefully consider the potential impact of any incident, rather than inflexible categories, our classification system has a degree of discretion and calls for common sense to be applied rather than be limited by an inflexible system. All incident classifications are reviewed by regional environmental leads and the Group Sustainability Executive to maintain consistency of classification. Our target is for zero Class One – High Significance Incidents each year.

Our incident classification guidelines are:

Class One – High Significance — We consider an incident to be Class One if it:

• Causes significant negative impacts on human health or the environment
• Extends onto public land and could potentially cause significant impact to nearby communities, livestock, or wildlife
• Results in a breach of our license conditions or laws and standards
• Results in a release of cyanide to any surface water that will leave site boundaries or any groundwater

Class Two – Medium Significance — We consider an incident to be Class Two if it:

• Could be reasonably anticipated to result in only local or short-term environmental or community impact requiring minor remediation
• Has the potential to breach license conditions (or convention conditions and law) or prescribed and regulatory thresholds but does not require immediate regulatory notification

Class Three – Low Significance — We consider an incident to be Class Three if it:

• Has minimal on-site impacts that do not adversely affect human health or the environment
• Does not require immediate reporting and will be dealt with by existing Standard Operating Procedures

Should an incident occur, we are determined to learn from it and reduce the chance of recurrence. We investigate incidents to gain a clear understanding of what happened and identify the root cause. When the root cause is identified, a corrective action plan (CAP) is compiled. The CAP sets out any additional checks or controls needed.
 

A street clean-up in Cotui, Dominican Republic, arranged by the local municipality in which Barrick not only lent a helping hand but donated gloves, masks and refuse bags.

Performance

We had zero Class 1 and 13 Class 2 environmental incidents during 2019. Most of our environmental incidents were minor spills within mine boundaries. During 2019, we reviewed and reclassified our 2018 environmental incidents against our new classification system. Understanding the type and frequency of environmental incidents, particularly minor incidents, helps us to identify problems with controls, practices, or training and thereby acts as an early warning system for us to intervene before a more significant incident occurs.
 

An employee checks the quality of a water source near the Veladero mine in Argentina. Environmental monitoring of water sources is performed daily.

WATER MANAGEMENT

Water is a vital and increasingly scarce global resource. UN SDG Goal 6 on clean water and sanitation asks countries and companies alike to improve the management, protection and restoration of the world’s freshwater ecosystems. Managing and using water responsibly is one of the most critical parts of our sustainability strategy.

Steady, reliable and secure access to water is crucial to the effective operation of our mines. It is also a fundamental human right. Reducing the volume of freshwater we use, and protecting water quality reduces our environmental footprint and helps us maintain community and stakeholder support.

Management Approach

Our aim is to deliver enough water for the effective operation of our mines, while at the same time protecting the quality and quantity of water available to host communities and other users in our watersheds. Our commitment to responsible water use is codified in our Environmental Policy, which compels us to minimize our use of water, control and manage our impacts on water quality, and engage with stakeholders including local communities to maintain sustainable management of water resources for the benefit of all local users.

We have operations on four continents and across a range of climates, which means the actions taken on the ground to meet this commitment vary from mine to mine. Each mine has its own site-specific water management plan, which considers: the different water sources available, the local climate conditions, the needs of local users and the needs of the mine. This information is supplemented by a range of international frameworks and tools such as the WWF Water Risk Filter to evaluate water risks.
 

The provision of potable water to a community surrounding the Pueblo Viejo Mine in the Dominican Republic.

We include each mine’s water risks in its operational risk register. These risks are then rolled up and incorporated into the corporate risk register. Our identified water related risks include:

• Managing excess water in regions with high rainfall
• Maintaining access to water in arid areas and regions prone to water scarcity
• Regulatory risks related to permitting limits as well as municipal and national regulations for water use

In regions identified as water scarce or vulnerable to water stress, our water management plans take particular care to account for the reduced supply of freshwater for local communities and ecosystems. We aim to use low quality water and to recycle and reuse as much water from our processes as possible. At our Jabal Sayid mine in Saudi Arabia for example, municipal wastewater is used in our processes and the only freshwater used is for drinking and sanitation.

In regions with heavy rainfall such as the Eastern DRC or the Dominican Republic where our Kibali and Pueblo Viejo mines are respectively located, the sheer volume of water entering the mine site from rain and runoff means that we face different water management challenges. These mines must manage massive volumes of runoff by either diverting it or storing it as clean water to discharge back into the environment. Any rainwater that encounters process areas (for example runoff through the plant) must be treated before it is discharged back into the environment and meet the required discharge standards. At these sites it is difficult to achieve high water recycling rates given the high volumes of precipitation.

Harnessing the Power of Rain for Local Communities

In the Porgera valley in Papua New Guinea, there is no government or municipal water supply for local communities. Naturally high sediment loads mean that river water is not a significant source of drinking water for local communities. Instead, rainwater is the main community water source.

Since 2011, Porgera has worked to harness high rainfalls to provide a reliable supplementary water source for local communities. The project builds water tanks fed by water collected from the roofs of nearby houses at central, and easily accessible sites throughout the valley. The tanks are fitted with taps and local people are trained in how to maintain the tanks and manage hygiene at the collection and distribution points.

In 2019, 44 new tanks were installed in local villages and a further seven tanks installed at schools within the mining lease. Since 2011, a total of 151 water tanks have been installed in communities across the Special Mining Lease. The program will be continued in 2020.
 

In Papua New Guinea, water tanks erected by Barrick provide reliable water sources for Porgera’s communities.

Water Management Performance

The water data we track helps us to understand how efficiently we use water, and to identify if and how we can reduce the amount of water we withdraw. This helps us to stay within our permitted limits and delivers operational efficiencies by reducing pumping costs. We also track how much water we recycle and reuse as it helps us to understand all the water that goes into and out of our sites. Ultimately this enables us to identify ways we can withdraw less from external sources.

In 2019, our total water consumption was 144,302ML, approximately 0.0010ML per tonne of ore processed. Our main consumptive water use is evaporation, which accounts for 59% of total consumption and most of the remainder of the water we consume is entrained in our TSFs.

Our total water withdrawal in 2019 was 181,517ML or approximately 0.0012ML per tonne of ore processed. Most of the water we withdraw was from rivers and streams (40%) as well as precipitation and runoff (36%). We also drew down significant volumes of water stored on our TSFs in 2019. 92% of the water we withdrew was from high-quality¹ sources.

In 2019, we discharged 74,693ML, 90% of which was to surface water such as rivers and streams. The bulk of the water we discharge is at our sites with high rainfall such as Pueblo Viejo in the Dominican Republic, Kibali in the DRC, and the Porgera Joint Venture in Papua New Guinea.

During 2019 we exceeded our water recycling target of 70%, and our rate of water recycling and reuse for the year was 73%. In water stressed areas our water recycling and reuse rate was 78%. Our water recycling and reuse target for 2020 is 75%.

At a group level 59% of the water we discharge is high-quality water suitable for agricultural or potable use. Of the low-quality¹ water we discharge, the vast majority is from the Porgera Joint Venture where riverine tailings deposition is permitted by the PNG government.

1. Definitions of High quality and Low quality are based on ICMM Water reporting guidance definitions. These definitions are abridged here. High quality water typically has high socio-environmental value with multiple beneficial uses both internal and external to the catchment. Examples include; water supply (drinking, agriculture, food production and industry). Low quality water may typically have lower socio-environmental value as the poorer quality may restrict potential suitability for use by a wide range of other users. However, lower quality water may often be used by the mining and metals industry, where available and appropriate, to help meet the consumptive water demand and reduce use of high-quality water. Full definitions are available at https://www. icmm.com/website/publications/pdfs/water/water-reporting_en.pdf

Award-Winning Reclamation at Giant Nickel

In late 2018, we received the Jake McDonald Annual Reclamation Award from the British Columbia Technical and Research Committee on Reclamation for improvements we made to a reclaimed tailings facility at the Giant Nickel mine near Hope, British Columbia, Canada.

When we acquired Giant Nickel in 2001, it was in passive closure and required limited monitoring and maintenance. In 2015, we undertook a comprehensive evaluation of the TSFs to determine if they met our internal standards as well as modern geotechnical and environmental requirements. The results of the assessment led us to undertake major reclamation works to improve the geotechnical stability, water management and environmental outcomes of the facilities. This included:

• Construction of a diversion channel
• Buttressing the existing Upper TSF embankments
• Establishment of an underdrain system to drain the Upper TSF embankments
• Geochemical characterization of the tailings
• Shaping and revegetating all disturbance areas and planting approximately 4,000 trees in 2019

The project also provided training and employment opportunities for local Indigenous Community members and was completed in collaboration with local recreation groups who had been using the area. As part of the project, funding was provided to the Fraser Valley Dirt Rider’s Association to allow them to finish the grading, shaping and revegetation of a new camp site.
 

The award-winning reclaimed tailings facility at the Giant Nickel mine in Canada.

Making the North Mara TSF Operational Again

When we took operational control of the North Mara mine in September 2019, the TSF had been shut down by the Tanzanian government and the National Environment Management Council (NEMC). This was due to concerns that the water from the TSF was seeping into local ground water. We also found that the TSF was holding significantly more water than it was designed for.

Given our commitment to tailings management and dam safety, fixing this facility became a top priority at North Mara post-acquisition.

Since then our team has worked hard to address NEMC’s concerns regarding seepage, and to reduce the amount of water reporting to the TSF. This has included commissioning several studies such as detailed groundwater research to understand the extent and impact of seepage, structural analysis and a hydrocensus of local community boreholes. The hydrocensus included water level and quality sampling from 15 boreholes in the community around the mine during November 2019. The water quality results showed:

• No parameters exceeded the Tanzanian water quality standards, which means the water is clean and without mine impacts
• There are fluctuations in the ground water levels in the mine boreholes due to dewatering from the pits and recharge around the TSF. But water levels in the community boreholes are within 10 metres of ground surface

Ongoing monitoring will be undertaken, and we are completing a numerical model to determine potential impacts on water level to the communities.

We have also developed both short and long-term plans to reduce the amount of water stored on the TSF. Some of the water reduction strategies we have identified for the short term include:

• The use of more evaporators on the TSF to increase evaporation
• Increased use of TSF water in the process
• Increasing the water treatment capacity on site through the commissioning of additional water treatment plants

Over the long term, we are also investigating the potential for in-pit deposition of tailings. This will reduce the need to build a second TSF at North Mara, an option that would have potentially created a further water management liability to the environment and communities.

We have also developed a water management action plan. This includes daily monitoring, emergency action plans, reviewing the water balance to improve water use efficiencies and reducing the amount of water unnecessarily going to the TSF.

NEMC checked the advances made and lifted restrictions on the TSF in September 2019, and North Mara has resumed operations. We are continuing to work with the NEMC to assure them that the TSF will be managed to the highest standards.
 

The Tailings Storage Facility at North Mara. Tanzanian authorities lifted environmental restrictions, allowing the mine to operate again, thanks to the remedies Barrick implemented and are continuing to implement.

Tailings Management Performance

During 2019, we assessed the technical specifications of all our TSFs (operating, closed and inactive) against our Tailings and Heap Leach Management Standard. Based on the findings, we generated a prioritized list of actions to reduce the risks at our tailings facilities to the lowest possible level. These actions ranged from adding a buttress to a wall at the Giant Nickel closure site to conducting site investigations and installing vibrating wire piezometers at Loulo-Gounkoto, Pueblo Viejo and Nickel Plate.

As planned, during 2019 we undertook independent third-party reviews of the TSFs at our Goldstrike, Cortez, and Pueblo Viejo operations. In 2020, independent reviews will be conducted at our Pueblo Viejo, Turquoise Ridge, Phoenix, Carlin, Hemlo, Loulo-Gounkoto and Tongon mines, and at the Giant Nickel and Nickel Plate closure sites.

We are open and transparent about our tailings management and you can find a full list of our TSFs and their technical specifications in the tailings section of our website and as an appendix to this report. We continuously monitor our TSFs (closed and operating) and Heap Leach Facilities against an evolving regulatory framework and we are committed to compliance with the new or enhanced standards that maybe introduced.

Waste Data

In Nevada, USA, an independent review and update of the Phoenix mine closure plan will be completed in 2020.

Reducing Single-Use Plastics at Kibali

Plastic waste is a problem for many of our mines and in our local communities, where plastic bottles and packaging make up a significant proportion of the general waste stream. This is a particular problem in sub-Saharan Africa where there are no plastic recycling facilities and much of the continent’s plastic waste is sent to landfill. At the same time, limited access to potable water means that single use plastic water bottles are the main source of drinking water on site.

Our Kibali mine, for example, uses on average 1,600 half-litre water bottles each day. Not only must these bottles be disposed of, but the cost of supplying bottled drinking water to our workforce is approximately $45,000 each month.

To reduce the number of plastic bottles used at Kibali during 2020, we are planning to construct an onsite water treatment and purification plant, which would allow us to provide safe drinking water onsite. Once high-quality potable water is available across the site, all workers will be provided with long-life multi-use drink bottles, which they can fill up from a series of water fountains across the mine and the use of plastic water bottles will be banned.

Our initial analysis shows that this initiative could reduce the plastic waste generated at Kibali by as much as 80%, while the cost savings from the reduction in bottled water used will mean the water treatment plant is expected to have a payback period of just a few years.
 

In an endeavour to reduce the number of plastic bottles used at Kibali in the DRC during 2020, plans are being made to construct an onsite water treatment and purification plant, whic h would allow us to provide safe drinking water onsite.

CLIMATE CHANGE

Mining is energy-intensive and energy is a significant cost to our business. Continuing to improve the efficiency of our operations, reduce energy use and associated costs and lower our greenhouse gas (GHG) emissions are key drivers for business success.

We recognize that climate change, including shifts in temperature, precipitation and more frequent severe weather events, could affect the mining industry in a range of possible ways. Volatile climatic conditions can affect the stability and effectiveness of infrastructure and equipment; potentially impact environmental protection and site closure practices; lead to changes in the regulatory environment, including increased carbon tax regimes; and potentially impact the stability and cost of water and energy supplies. We therefore view climate change as a company, community and global concern.

Management Approach

In 2019, following the merger with Randgold and the formation of Nevada Gold Mines, we reviewed and updated the climate change strategy developed in 2017. Our climate change strategy has three pillars:

• Identify, understand and mitigate the risks associated with climate change
• Measure and reduce our impacts on climate change
• Improve our disclosure on climate change
   

At our closure sites, wildlife is abundant.

Climate change related factors are incorporated into our formal risk assessment process. For example, when assessing site weather-related risks, we also consider availability and access to water and the impact of increased precipitation, drought, or severe storms on operations as well as on communities near our operations. Through this process, we have identified several climate-related risks and opportunities for our business: physical impacts of climate change, such as an increase in extended duration extreme precipitation events; an increase in regulations that seek to address climate change; and increased global investment in innovation and low carbon technologies.

The Board’s Corporate Governance & Nominating Committee, which meets quarterly, is responsible for overseeing Barrick’s policies, programs, and performance relating to the environment, including climate change. At management level, the E&S Committee reviews performance and progress in addressing climate change across our sites. The Audit & Risk Committee assisted the Board in overseeing the company’s management of enterprise risks as well as the implementation of policies and standards for monitoring and mitigating such risks. Climate change is built into our formal risk management process, outputs of which were reviewed by the Audit & Risk Committee throughout 2019. In addition, the Audit & Risk Committee reviewed the company’s approach to climate change in the context of Barrick’s public disclosure.

Identified Pathways to Achieve Emissions Reduction Target

To drive action on the ground, our mines have a site-specific energy plan in place tailored to its need and location. Some of the ways we support climate action include:

• Use of technology: We are introducing batteries at our Kibali mine to help with grid stabilization and meet spinning reserve needs. We estimate this will reduce Kibali’s annual diesel consumption by more than 4.5ML and save approximately $5 million in fuel costs each year. We also use motion sensors in the underground mines at our Loulo-Gounkoto and Kibali mines. These sensors shut off the lighting and ventilation systems in unoccupied parts of the mine, which saves energy and reduces costs. Additionally, we use waste heat recovery systems to achieve high efficiencies from the natural gas fired generators in Nevada and at Pueblo Viejo’s off-site Quisqueya power plant.
• Use of renewable energy sources: We are introducing solar power to the microgrid at our Loulo- Gounkoto mine in Mali to reduce dependency on diesel and heavy fuel oil generators. We estimate this will help reduce our diesel consumption by 10ML a year, delivering both valuable cost savings and avoiding 42kT in CO2-e emissions per year. The first phase of this project came online at the end of Q1 2020. We have also built three hydropower stations to provide power to our Kibali mine in the DRC. These stations provide the mine with a cleaner, steady, and secure supply of electricity, which was previously met by diesel generators. Approximately 70% of Kibali’s electricity needs are now met by hydropower. We estimate that the addition of batteries for grid stabilization at Kibali will mean that 80% of the mine’s electricity needs will be met by hydropower. In Nevada, we are currently reviewing the potential for a 200MW solar facility with battery storage.
• Use of cleaner energy sources: During 2019, we converted the Quisqueya power plant, which provides energy to our Pueblo Viejo mine, from heavy fuel oil to cleaner burning natural gas. Quisqueya is one of our largest sources of emissions, and we estimate that changing the station to natural gas will reduce emissions by 260kT CO2-e per year. At our Tongon mine in Côte d’Ivoire, we built a transmission line linking the mine to the national grid to enable us to stabilize and increase the amount of power we draw from the Ivorian national grid. This helps to reduce our reliance on onsite diesel generators, which reduces costs and emissions as the Ivorian national grid has a large hydropower component. In Nevada, we plan to start work on converting our TS Coal Power Plant to a dual fuel process, which will allow it to generate power from natural gas. Our calculations show that this could reduce the facility’s carbon emissions by as much as 50%. At Veladero in Argentina we are advancing with a power transmission project to connect the mine to clean grid power and realize an emissions reduction of nearly 100kT CO2-e per year.
   

The Quisqueya power plant at Pueblo Viejo, Dominican Republic, has been converted from burning heavy fuel oil to natural gas, which is much cleaner.

BIODIVERSITY

Our aim is to play a positive role in the management of the biodiversity in the areas in which we operate.

Biodiversity underpins many of the ecosystem services our mines and their surrounding communities depend on. This includes the provision of fresh water and raw materials such as food and fuel, climate regulation, soil formation and the recreational services that keep people, and the natural environment, alive and healthy.

However, if improperly managed, mining, refining and exploration activities have the potential to negatively affect biodiversity and ecosystem services. Impacts could include reductions in water quality or quantity, loss of protected species and habitat fragmentation. Such risks could affect our social license to operate as well as our reputation.

Management Approach

We work to proactively manage our impact on biodiversity and strive to protect the ecosystems in which we operate. Wherever possible we aim to achieve a net neutral biodiversity impact, particularly for ecologically sensitive environments. Our approach is informed by international best practice, such as the guidelines set by the International Union for the Conservation of Nature (IUCN) and ICMM including their Mining and Protected Areas position statement.

Our commitments to biodiversity management are set out in our Biodiversity Policy, which compels us to:

• Contribute to national and regional biodiversity planning
• Not explore, mine, drill or otherwise operate in declared natural World Heritage Sites
• Apply the mitigation hierarchy to manage and offset our biodiversity impacts
• Establish a biodiversity baseline for all greenfield projects and to always consider ecological impacts and opportunities for ecological enhancement for any new project or expansion
   

Mitigation Heirarchy Applied to Biodiversity

Protecting Geckos in the Dominican Republic

In 2018, while monitoring caves in an area to be mined for limestone within the mine boundary at our Pueblo Viejo mine (PVDC) in the Dominican Republic, a small species of diurnal gecko closely resembling Sphaerodactylus samanensis, a species that lives in karstic caves and listed as Critically Endangered by the Dominican Red List and by the International Union for the Conservation of Nature (IUCN), was observed.

In response to this discovery, PVDC commissioned extensive fieldwork and studies to confirm the identification of the species and to map its distribution in a large area around the mine along karstic formations. The gecko’s range had previously been thought to be confined to a very limited locality outside of the mine, in the Los Haitises National Park.

To minimize impacts to the gecko population and while fieldwork and additional scientific studies were underway, PVDC deferred the mining of a portion of the limestone quarries to act as a refuge for the geckos for a period of three years. At the same time, geckos within the immediate disturbance footprint were relocated to a nearby karst habitat. Trials to recreate karst habitat were also conducted to understand if the species could colonise new habitats, which was successful.

In addition to the field campaigns, genetic and morphological studies were conducted and this enabled us to conclude that the geckos found on site, initially thought to be a sub species of the S. Samanensis, was in fact the same species - Sphaerodactylus samanensis.

The fieldwork showed that the size of the population and the extent of its habitat were greater than previously understood and would no longer trigger the designation of critically endangered under IUCN criteria. The information collected in the fieldwork has been shared with the IUCN to be used for both the review of the conservation category of the gecko and also, for future scientific research on this endemic species.
 

The extensive fieldwork conducted around the vicinity of Pueblo Viejo, Dominican Republic, determined that the distribution range of Sphaerodactylus samanensis is much larger than previously documented.

Implementing Biodiversity Action Plans (BAPs)

To help us fulfil these commitments, each of our operational mines will develop and implement a Biodiversity Action Plan (BAP) by the end of 2021. During 2019, we developed BAPs at the Lumwana, Pueblo Viejo, Cortez and Carlin mines (including Goldstrike) as priority sites.

BAPs detail the flora, fauna and habitats on and around the site and set out the strategy we will follow to restore the site ecosystem to as close as possible to its original state. They identify areas around the mine that could benefit from conservation support and existing conservation areas that require additional support and resources to achieve a net neutral impact. They also specify the resources required to put the plan into action and identify key institutional and local community partnerships that will aid the implementation and review of the plan.

As part of our approach to biodiversity, we emphasize concurrent rehabilitation and work to keep the overall footprint of our mines to a minimum. We work to restore and rehabilitate areas of the mine as we go, by returning topsoil and planting native and endemic trees.

This reduces the overall disturbed land footprint of our mines. It also helps us to restore habitats faster and reduces our closure costs over time.

Performance

At the end of 2019, the total amount of land disturbed but not yet rehabilitated at our mine sites was more than 56,000 hectares. A big focus during the year was to increase our rates of concurrent rehabilitation. During 2019, all sites developed detailed and quantifiable concurrent rehabilitation plans. Throughout the year we rehabilitated 761 hectares of land, with native plants grown in onsite nurseries.

This activity included 23 hectares at the Pueblo Viejo mine in the Dominican Republic, where we use coconut fiber matting to help revegetate the soil. The mats are 100% organic and hand made by a co-operative of local women. In 2019, we bought more than 10km of coconut matting from the cooperative.

Vicunas, Chile. Barrick funds conservation initiatives in many of the countries it operates in.

Early Engagement Helps Long-Term Planning at Golden Sunlight

Our Golden Sunlight mine in Montana went into progressive care and maintenance during November 2019. We are currently reviewing a proposal to reprocess the tailings at Golden Sunlight, which would add at least 10 years of additional operational life to the mine. However, that has not stopped the communities near Golden Sunlight from preparing for closure. In fact, they have been preparing for it almost as long as we have. In 2000 the local communities established the Closure Transition Advisory Committee (CTAC) so that they would be well prepared for the closure of the mine. Golden Sunlight has been an active member of CTAC with members of mine management attending meetings. With closure looming throughout 2019, our teams worked closely with CTAC and the local community to update the closure plan and identified options to help support the community through the transition. These include a progressive decrease in social investment in the area over a set period of time, the creation of a conservation easement over some non-mining land owned by Golden Sunlight to help the community develop ecotourism, or the sale, transfer or lease of the industrial park to the community.

Golden Sunlight in Montana, USA, has been placed in care and maintenance and Barrick is looking to reprocess its tailings, which could extend its life by another 10 years. However reclamation on site has not stopped and we are ramping up the reclamation of the mine.