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Gold industry delivers $38 billion to local economies in 2020

Gold industry delivers $38 billion to local economies in 2020

Barrick’s lead role underscores how we share the benefits of mining

November 30, 2021
All amounts expressed in US dollars

The World Gold Council reported today that its member gold mining companies generated $38 billion of economic value last year for the communities and countries where they operate. This contribution to the GDPs of 38 countries through payments to governments, employees and suppliers reflects the important role that the global gold industry plays in social and economic development.

At Barrick, sharing the benefits of mining is nothing new to us, and it’s one of the key ways in which we measure our success as a business.

We partner with our host communities and countries to transform their natural resources into tangible benefits and mutual prosperity. To achieve this, we hire and buy locally wherever possible, and we pay the right amount of tax, in the right place, at the right time.

Our recruitment strategy is to employ talented individuals from the communities closest to our mines and provide them with world-class training and genuine opportunities to progress. We see our supply chain as an enormous opportunity to prioritize local buying and facilitate the growth of thriving and self-sustaining businesses that can continue long after the mine gates have closed.

We adhere to stringent filters when selecting orebodies to be developed into mines – these ensure that, as responsible miners, we are successful, profitable and beneficial to our countries of operation

The lead role that Barrick plays on a global basis comes into clear view when seen alongside the industry-wide figures for 2020 reported today by the World Gold Council:

  • 97% of our 40,000 employees and contractors were nationals of our host countries, as compared to 95% reported cumulatively by the World Gold Council member companies.
  • We paid $1.8 billion in taxes, royalties and dividends to host governments, which rolls up into the $7.6 billion in tax payments by the World Gold Council members.
    • Barrick is the largest taxpayer in the Dominican Republic, contributing 5% of the country’s total tax revenue.
  • We spent $4.5 billion on good and services from local and national suppliers. The total spend with in-country vendors was $26 billion last year by the World Gold Council member companies.
    • Local and national suppliers made up ¾ of our total procurement spend in 2020.
  • Our total economic contributions were $12.1 billion, while $37.9 billion in contributions was the total reported by the World Gold Council member companies.

All of this activity happened amidst the Covid-19 pandemic, when our prompt and effective response largely protected our business and people from the impact of the virus and provided a further opportunity for us to demonstrate our commitment to partnerships. Barrick spent more than $30 million on Covid-19-related community support measures in 2020 and prepaid more than $300 million in taxes and royalties to ease the pandemic’s economic pressure on some host countries.

The wide-ranging support to help stakeholders impacted by the pandemic included the provision of medical equipment to local hospitals, loans to small community businesses, such as the I-80 Fund in Nevada, setting up food banks and delivering food packages to isolated communities. These measures not only kept on-site Covid-19 cases to a minimum but also helped us to continue to build robust and meaningful partnerships with our employees, local communities and host country governments.

Further reading

Groundbreaking ceremony for the repair of the La Javilla-La Hondonada rural road in Zambrana, Dominican Republic. The repair of the road was a collaborative project between Barrick Pueblo Viejo and the Zambrana Municipal District.
Groundbreaking ceremony for the repair of the La Javilla-La Hondonada rural road in Zambrana, Dominican Republic. The repair of the road was a collaborative project between Barrick Pueblo Viejo and the Zambrana Municipal District.

 

A community development committee meeting held at North Mara in Tanzania. This is the first committee of its kind at North Mara and was established shortly after Barrick assumed operational control of the mine.
A community development committee meeting held at North Mara in Tanzania. This is the first committee of its kind at North Mara and was established shortly after Barrick assumed operational control of the mine.

 

Vegetable farmers from Argentina’s Jachal community with seedlings from Barrick. The seedlings were donated as part of Barrick’s 'fresh vegetables' supply program launched in 2018.
Vegetable farmers from Argentina’s Jachal community with seedlings from Barrick. The seedlings were donated as part of Barrick’s 'fresh vegetables' supply program launched in 2018.