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Social & Economic Development


2016 Economic Contributions Report

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.


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

Barrick has established company-wide systems and standards to help us live up to the expectations that our community and government partners have of us.

  • Barrick has a Local Procurement and Contracting Standard, which requires our Community Relations and Supply Chain teams to develop the capacity of local and regional suppliers and help them improve their access to mine contracts and supplier opportunities.
  • Barrick requires site Community Relations and Human Resources teams to develop Local Employment Plans, which help create more opportunities for local people to work at our mines.
  • Our Local Content Framework also helps sites use more local labor and buy more local goods and services. The framework is a guide, outlining the steps to develop local employment and local procurement programs and referencing best international practice. It helps sites be better partners in community and socio-economic development, which ultimately helps build a more secure license to operate.
  • The significant taxes and royalties derived from mining operations are important sources of government revenue, used for infrastructure projects, health care, education and other important public services. Everywhere we operate, we pay our fair share of taxes and royalties to all levels of government. We publicly report on these payments as part of our commitment to transparency, as a signatory to the Extractive Industries Transparency Initiative (EITI) and as required by Canada’s Extractives Sector Transparency Measures Act.

Local Content

Local content refers to both the employees and the goods and services that come from the local area and that are employed and used by a mine site. Managed well, the use of local content increases opportunities for communities to share in the benefits of mining, while contributing to indirect economic benefits that can further stimulate development. Local content can help us have a more stable workforce and supply base, help us meet permitting or regulatory requirements, and reduce our costs. Because of this, we purchase local goods and services and employ local people whenever possible.

In 2016, Barrick purchased more than $220M of goods and services from local businesses near our mine sites.

The Local Procurement and Contracting Standard requires Community Relations and Supply Chain teams to develop the capacity of local and regional suppliers and increase their access to mine contracts and supplier opportunities. When we integrate local suppliers into our procurement systems, we are helping diversify local economies, and we also have the potential to drive down the costs of goods and services used at our mines.

As a way of promoting and marketing business enterprises in the area, the Lumwana mine facilitated a local business fair in 2016. The fair brought together local small and medium-sized enterprises, smallholder farmers, cooperative societies, micro-finance institutions, and private and government agencies to showcase business opportunities in the area. A total of 175 micro and small-scale entrepreneurs participated in the fair, which was officiated by the Commissioner of Kalumbila District.

Barrick also requires sites to develop plans to guide local employment efforts over the life of the mine. Our Human Resources teams develop and lead these local employment plans, supported by the Community Relations group. 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.

In addition to the Local Procurement and Contracting Standard, we have also developed a Local Content Framework to further support the efforts of our procurement and human resources teams. The Framework details the steps that sites can take to develop effective local employment and local procurement programs, which reflects international best practice.

Local Content over the Life of a Mine
Successful construction and operations are driven by 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 – despite being 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 employment and supplier opportunities that come during construction. To date, the program at Alturas has seen local hiring increase from 8% to 30%, and is expected to reach 38% in 2017.

Community Investments

Community development programs undertaken in collaboration with – and reflecting the interests of – host communities, governments, civil society, suppliers and others can help mitigate social risk, improve our ability to sustain a license to operate, and generate long-term, sustainable value.

Barrick invested nearly $8 million in education in 2016, including providing nearly 1,500 scholarships

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. The company spent almost $22 million on community investments in 2016.

We take a partnership approach to our community investments, which relies on knowing what matters to our partners – including communities, governments, NGOs and others – and reflecting those interests in our programs, partnerships, and initiatives. This means clearly defining roles, responsibilities and resources, and spelling these out in Memoranda of Understandings (MoUs). Below are several examples of recent partnerships:

  • Veladero has developed a number of economic development programs, in partnership with local agricultural organizations, to help diversify the local economy and support agriculture. Most recently, the company is partnering with Aramark (a food services contractor), local municipalities, the San Juan Provincial Government, and the Mining Ministry on a program to develop potato and onion growing in the communities of Jachal and Iglesia. Barrick is supporting local producers in accessing training and seeds, while Aramark has committed to purchase the produce the farmers grow.
  • In the Dominican Republic, Barrick is partnering with INFOTEP, a government agency, to develop vocational and technical courses designed to strengthen the skills of local communities. In 2016, this initiative saw more than 800 people from 14 local communities graduate from 36 different types of training programs.
  • In Chile, near the Cerro Casale project, Barrick is partnering with the Prodemu Foundation to implement a program to address skills gaps and improve employment among women in the local communities. The President of Chile created Prodemu to promote and develop the skills of Chilean women. To date, the partnership has supported 40 women from the town of Copiapo and the community of Tierra Amarilla. To date, approximately two-thirds of the women who participated in the program have reported improved livelihoods and a better quality of life as a result of a better job or more success as an entrepreneur.
  • As the Pierina mine closes, the site continues to work closely with local suppliers to further enhance their skills. As part of this program, 84% of leaders from 19 local companies have been trained in production, finance, and sales. Moreover, all 19 local companies that the mine works with have been trained in marketing, commercial communications, tenders, and commercial tools.
  • In 2016, Barrick worked with the Western Shoshone Cultural Advisory Group and Tribal Councils to develop a plan for a Western Shoshone Cultural Center in Elko on the property of the Elko Band of the Te-Moak Tribe. Agreement on this plan was reached with all eight Western Shoshone partner communities and a Board of Trustees is now being formed. When this center is complete, Barrick will be able to repatriate cultural artifacts from its private land to this facility – a priority for our Western Shoshone partners.
  • The Lumwana mine in Zambia entered into a partnership with Musika, an NGO, to fund a project under the Nsabo Yetu Women Empowerment program. Under the partnership, Musika will provide 51% of the funding required to develop a packaging and grading center for Mangala beans; Barrick will provide the remaining 49%. Mangala beans are an important crop grown by women in the area and this center, will expand their ability to generate income and reduce the women’s economic vulnerability.

Taxes and Royalties

The tax and royalty payments Barrick makes to national and sub-national governments are a significant source of revenue. We see these payments 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.

We publicly report on these payments as part of our commitment to transparency and as a signatory to the Extractive Industries Transparency Initiative (EITI) and as required by Canada’s Extractives Sector Transparency Measures Act.

With operations and projects in multiple countries, we are subject to various tax regimes. The taxes we pay each year can be affected by a number of factors, including debt repayment, changes in tax rates, mining allowances, foreign currency exchange rates, and changes in the tax laws.

Taxes and Royalties (2016)

Barrick Total $ 1,100,813,205.29
Argentina $ 108,590,648.72
Canada $ 10,681,741.55
Chile $ 5,375,373.32
Dominican Republic $ 394,394,210.90
Peru $ 118,458,841.87
United States $ 373,539,174.42
Zambia $ 89,773,214.51

Indirect Economic Impacts

Indirect economic impacts are the result of the interactions we have with stakeholders and are an important part of our overall economic contribution. While difficult to precisely quantify, these include the impacts of our employees, contractors and the employees of supplier industries spending their payments, 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. In other countries, this employment multiplier can be as high as 3 (e.g., in Argentina, according to recent research by KPMG).