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Beyond Borders

A barrick gold report on responsible mining • april 2010

Modern mining:
Protecting
the environment

Environmental
clean-up at Pueblo Viejo

Safeguarding biodiversity

New frontiers in
water management
a barrick gold report on responsible mining | B e yo n d B o r d e r s

beyond borders news


Barrick CEO talks Responsible Mining
with international stakeholders
Barrick President and CEO Aaron Regent.

Barrick’s President and CEO, Aaron Regent, made responsible has achieved and what it stands for. “We are equally proud that
mining the theme at the company’s fifth annual International the company has been able to maintain a set of values which
Night reception in Toronto in March. The gathering coincides support mining in a responsible manner. This is one of the
with the Prospectors and Developers Association of Canada top priorities we have within the company. As we operate in
(PDAC) conference, one of the world’s largest mining conferences.  different countries around the world, we think of ourselves as
In attendance at the Barrick event were representatives from more guests and we want to make sure that we are welcomed guests.
than 16 countries, First Nations, international institutions such as That means that we behave in a responsible way and that we
the World Gold Council, financial agencies and others. maximize the benefits derived from the resources for the
 Regent said that Barrick people are proud of what the company community as well as for our shareholders.”

Studies confirm economic benefits of Barrick mines


in Argentina, Tanzania
Mounting evidence debunks myth of “resource curse” related activities and community programs have been a major
in developing economies factor in overall economic productivity, supporting development
sectors such as tourism and agriculture.
Two separate studies have concluded that Barrick’s operations in The second report, entitled The Golden Building Block: Gold
Tanzania and Argentina are having a positive, long-term impact Mining and the Transformation of Developing Economies, was
by bolstering the economies of their host countries. conducted by the World Gold Council in partnership with the
The first study, based on data compiled by Chilean International Council on Mining and Metals (ICMM) and
consultancy Consultora Malthus, found that Barrick’s Veladero Oxford Policy Management.
mine has been a major catalyst for economic development in The study examined the macroeconomic benefits of gold
Argentina’s San Juan province. The study found that Veladero production in developing countries, taking into account the
accounts for 23 per cent of the province’s gross domestic product much-debated “resource curse” theory, through a case study of
and is responsible for 47.6 per cent of total provincial exports. Tanzania and the effects of gold mining on its economy over a
After four years in operation, following an initial investment 40-year period.
of $547 million over a two-year construction period, Veladero Barrick, AngloGold Ashanti and IAMGOLD, the largest
has contributed to a 38 per cent increase in employment in the gold producers in Tanzania, provided data for the study’s
region. The mine has 950 employees and approximately 1,200 life-cycle assessment. The definitive study concluded that the
contractors. The study also concluded that mining activity has most significant contribution that gold mining provides to
not adversely affected traditional agricultural sectors in the Tanzania’s economy is its effect on foreign direct investment
province, as some critics have claimed. On the contrary, mining- (FDI). In the early 1990s, prior to large-scale gold mining,
Tanzania ranked near the bottom among African countries as a
destination for foreign investment. Today, however, the country
is in the upper-middle rankings, with a surge of over $2 billion
in foreign direct investment after 1998, following the Tanzanian
government’s introduction of mining law reforms.
Contrary to claims that the gold mining industry in Tanzania
pays relatively low taxes, the study showed that Barrick and
AngloGold Ashanti are currently among the largest single
taxpayers in the country and employ more than the country’s
utility sectors combined.

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B e yo n d B o r d e r s | a barrick gold report on responsible mining

F e at u r e s t o r i es

Barrick helps quake-affected communities in Chile 4 Barrick ranked third


Support for Western Shoshone elders 6 out of 100 companies
Tanzanian President opens Barrick-funded school 6
for water reporting
Veladero wind turbine is one for the record books 7

Barrick establishes African Barrick Gold 8

Environmental clean-up in the Dominican Republic 9

Raising the bar on environmental performance 12

New frontiers in water management 16 Barrick tied for third out of 100 companies benchmarked in a
recent multi-industry study ranking water reporting practices of
Closed mine now home to cutting-edge science lab 22 publicly traded companies. The study, entitled “Murky Waters?
Corporate Reporting on Water Risk, A Benchmarking Study
Ethical business knows no borders 24 of 100 Companies,” was conducted by Ceres, a Boston-based
coalition of investors with $8 trillion under management.
Meeting our international commitments 26 Barrick tied for third place in corporate water risk reporting
with Pinnacle West Capital Corp., a utilities owner in Arizona,
(behind Diageo and Xstrata) and was singled out in the study
Lake Zone Health Initiative takes off in Tanzania 28
for providing the most comprehensive water accounting of all
100 companies assessed.
Mining makes health care a reality for U.S. 31
In addition, Barrick ranked second among the 13 mining
employees
companies surveyed. The report evaluated and ranked water
disclosure practices of companies in eight key sectors exposed
to water-related risks: beverage, chemicals, electric power, food,
homebuilding, mining, oil and gas, and semiconductors.
The Ceres report is the first of its kind and was backed by
data and analytical support from Bloomberg and UBS Limited.
The report, released in February 2010, evaluates the quality,
depth, and clarity of water risk disclosure in both voluntary and
mandatory corporate reporting through June 30, 2009. Ceres
considered five key categories of disclosure: water accounting,
risk assessment, direct operations, supply chain, and stakeholder
engagement.
In contrast to Barrick’s strong showing, the report found
that a number of companies in water-intensive industries aren’t
An environmental clean-up and innovative community programs providing enough information about the potential business risks
are improving quality of life for people around the Pueblo Viejo of falling water supplies.
project in the Dominican Republic. See story on page 9.

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a barrick gold report on responsible mining | B e yo n d B o r d e r s

beyond borders news

Rebuilding
Chile:
Barrick helps communities hit
hard by earthquake, tsunami Barrick CEO Aaron Regent (right) visits quake-affected communities in
the Maule region of Chile, where the company has pledged $5 million
for long-term reconstruction.

Two hundred and fifty volunteers from Barrick and two partner 600,000 students with no safe place to learn. Local officials,
organizations worked to build emergency homes in several Barrick and other reconstruction partners plan to repair and
Chilean communities following the country’s devastating improve not only the schools themselves, but also the quality of
Feb. 27 earthquake. Barrick is supporting the construction of education available to local students. Rivas says the company
200 houses in total, all part of a $5 million, long-term plan for will support the introduction of wireless internet technology
reconstruction in the coastal region of Maule, which was hit in schools, modeled on a similar Barrick program in Chile’s
hard by the earthquake and subsequent tsunami. Huasco valley, near the Pascua-Lama project.
Volunteers from Barrick, A Roof for Chile and the UN Global Preserving the region’s cultural heritage and its appeal as a
Compact participated in the build in the towns of Boyeruca, tourism destination is another goal for long-term reconstruction.
Llico and Vichuquén. Following the earthquake the company The town of Vichuquén, a designated heritage site noted for its
immediately donated 8,000 liters of water, mattresses, pillows colonial architecture, was struck by severe landslides following
and blankets to local residents, many of whom lost their homes the earthquake and many of the town’s adobe facades were
in the earthquake. destroyed. To assist in repairing and reconstructing Vichuquén’s
“Barrick has over 3,000 people who work in the country, heritage buildings, Barrick has engaged a group of experts from
either directly for us or as contractors. I’m glad to say that all of Peru who specialize in quake-resistant adobe construction. The
our employees were unharmed. But nobody in Chile has been team will train local residents in advanced adobe construction
unaffected by what happened,” said Barrick CEO Aaron Regent. technologies.
“It was a terrible event and our hearts and sympathies go out to Support for education and architectural heritage will also
everybody in the country.” benefit Llico and Boyeruca, two small fishing villages that were
Regent noted Barrick is helping with relief efforts, mobilizing struck by the earthquake and the subsequent tsunami.
emergency response teams and using its company planes to Earlier this year, Barrick mobilized its emergency responders
transport people and supplies. “Our efforts are focused on areas in the Dominican Republic to support victims of the earthquake
that have not received a great deal of other aid, but we want to be in Haiti. The company sent an emergency response team with
there to support them.” food, water and medical supplies to Port-au-Prince to assist with
Barrick and its partner organizations have developed a plan search and rescue efforts. Barrick also made a donation to two
for the short, medium and long-term reconstruction of the area aid organizations working in Haiti to support relief efforts.
in collaboration with local authorities.
“We decided to join this effort because it is part of a
comprehensive plan that not only helps the community in the
immediate term, but will allow them to get back to normal in the
long term. Barrick employees from all of our locations in Chile
have volunteered,” said Rodrigo Rivas, Barrick’s manager of
Corporate Affairs in Chile.
Following the provision of emergency supplies and housing,
Barrick’s efforts will shift to rebuilding and improving two
area schools. Many of the region’s schools were destroyed or
severely damaged in the earthquake, leaving an estimated

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Above: Sarah Fountain Smith, Canada’s ambassador to Chile, tours the quake-affected areas of Vichuquén with Igor Gonzales, Barrick’s
regional president for South America. Below: 250 volunteers from Barrick and two partner organizations prepare to build emergency homes
in quake-affected communities of Chile.

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Tanzanian President
opens another school funded
by Barrick
Tanzanian President Jakaya Kikwete was on hand to open a
new high school funded by Barrick in the Shinyanga Region,
which will expand access to education in this remote part of
the country.
The Masengwa Ward Secondary School is located near
the Buzwagi mine, and was constructed by Barrick in
Social services hub to support collaboration with local communities. It has nine classrooms,
science laboratories, a dormitory and sports grounds. Barrick
Western Shoshone elders contributed about $213,000 of the total $293,000 cost.
President Kikwete commended Barrick for its ongoing efforts
Barrick is helping to finance the construction of a seniors to support education in the area, including the construction
center to serve the Western Shoshone community of Ely of the Mwendakulima Secondary School and Ishinabulandi
in Nevada. The Ely Shoshone Elders’ Center is the latest Primary School.
development in a partnership between Barrick and Western The President also praised Buzwagi General Manager Julie
Shoshone communities since the establishment of an Shuttleworth for her management of the mine, and its work
historic Collaborative Agreement between the company and to build and maintain good relationships with surrounding
Shoshone tribes near its Cortez Hills project in Nevada. communities. Shuttleworth reiterated Buzwagi’s commitment
The center will enable the Ely tribe to provide a range of to supporting the development of its neighboring communities,
social services to a growing number of Shoshone elders in the noting education is a high priority.
community. Barrick is contributing $190,000 toward the total
estimated cost of $270,000 to construct the center. The center
will provide meals, educational opportunities, recreation and
improved health care to seniors. The project will also provide
employment to tribal members who will construct the facility
with oversight from the Ely Tribal Council.
“Not only will this be a place for the elders, it will also
provide much-needed jobs for our community,” said Tribal
Chairman Alvin Marques. “This is something that our elders
have needed for a long time. We really appreciate Barrick’s
help with this project and we are proud of the partnership we
have developed in working with the company.”
Construction will begin immediately. Marques estimates
that the Elders’ Center will open in mid-2010.

Since 2006, Barrick has contributed nearly $1.6 million


toward education, cultural preservation and community
initiatives benefiting Western Shoshone tribes in rural
Nevada. A Collaborative Agreement has led to increased
recruitment and training for Western Shoshone and has Tanzanian President Jakaya Kikwete (center) watches as students
created 150 scholarships for Shoshone students. demonstrate a science experiment at a new high school funded
by Barrick.

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B e yo n d B o r d e r s | a barrick gold report on responsible mining

beyond borders news

Veladero wind turbine is one


for the record books

Barrick’s Veladero wind turbine has been recognized by


Guinness World Records as the highest altitude wind generator
in the world. Located at 4,110 meters above sea level in the
Andes Mountains, the $8.5 million wind turbine supplies up
to 20 per cent of the total electricity needed to power Veladero
mine operations.
Guinness World Records representative Mike Janela
presented a certificate to Barrick at a joint ceremony held by
the company and the provincial government in San Juan,
Argentina. The 229-ton structure stands at just over 60 meters
high and is one of the largest wind turbines manufactured
today. The turbine was the first of its kind to be tested to endure
extreme cold, heavy snowfall and high winds, which top 222
kilometers per hour.
Barrick teamed with the British firm Seawind and German
manufacturer DeWind to design and build the turbine. The
generator design was modified to compensate for lower air
density and is an international pilot project to test equipment
at high altitude. It took nearly a month to assemble the massive
turbine and link it to the electrical network of the Veladero
mine, where it has been generating power since December 2007.
Congratulating the company, Janela stated, “What struck
me most after the ceremony was just how much pride the
government and Barrick took in this generator, and how much
interest and curiosity the local population held in the record.”
This marks the first world record for Argentina in the mining
sector. Barrick currently holds a Guinness World Record as
“the largest gold production company.”

Renewables: Barrick’s total investment in clean energy


projects is $88.5 million, including the $8.5 million
wind turbine at Veladero, a $10 million solar power
project in Nevada and a $70 million wind farm,
currently under construction in the Coquimbo region
of Chile near the company’s Pascua-Lama project.

Top: A wind turbine at the Veladero mine in Argentina has entered the record books as the world’s highest altitude wind generator.
Bottom: San Juan governor José Luis Gioja (center) speaks to reporters at an event to mark the Veladero wind turbine’s inclusion in the
Guinness Book of World Records. Seated to the governor’s left are Veladero Mine General Manager Dante Vargas and Guinness World
Records representative Mike Janela.

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beyond borders news


Barrick establishes African
Barrick Gold
New company will allow Tanzanian investors to participate
in the country’s gold mining industry The new Buzwagi mine in Tanzania.

In February, Barrick announced the creation of African Barrick Gold to investors through an initial public offering (IPO) in
Gold (ABG), a new public company structured to generate more London, retaining a 75 per cent ownership stake in the new
value from Barrick’s African operations, while allowing local company. With an offer price of £5.75 per share, the London IPO
investors to participate in the gold mining sector. closed in late March, selling about 404 million shares worth a
Initially listed on the London Stock Exchange, ABG holds total of $834 million. Upon closing of the offering, ABG had a
Barrick’s four gold mines in Tanzania, as well as its Tanzanian market capitalization of approximately $3.55 billion, making it
exploration portfolio. Barrick also plans to pursue a listing one of the 100 largest companies on the London Stock Exchange.
for the new company on the Dar es Salaam Stock Exchange to ABG will have an initial cash balance of approximately
facilitate local participation and ownership of the company. $280 million and no debt.
ABG’s operations in Tanzania include the Bulyanhulu,
Buzwagi, North Mara and Tulawaka gold mines. Collectively,
they produced 716,000 ounces of gold in 2009.
“As an Africa-focused public company, we believe that African
Barrick Gold will be better positioned to generate shareholder
value and pursue new opportunities, which Barrick will
continue to benefit from as a majority shareholder,” says Barrick
CEO Aaron Regent, who will also serve as chairman of the new
company. “ABG will be able to invest in and acquire smaller
assets typical of Africa, which could be quite meaningful to the
growth profile of this smaller entity. The new company will be
driven by a management team with both mining expertise and
experience in Africa.”
Barrick offered approximately 25 per cent of African Barrick

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Greener Mining: Environmental


clean-up in the
Dominican Republic
reflects modern
industry approach
At the Pueblo Viejo project in the
Dominican Republic, one of the most
ambitious environmental clean-up
efforts in recent mining history is
underway.

When the former Rosario Dominicana


mine shut down its operations in
1999, proper closure and reclamation
was not undertaken. The result has
been a legacy of polluted soil and
water and contaminated infrastructure.
Barrick acquired the property in
2006 as part of the Placer Dome
acquisition. Today, what was once a
hazardous area has been transformed
into a safe and busy construction
site, as some 4,500 employees and
contractors converge to build the new
Pueblo Viejo. The clean-up is also
creating a healthier living environment
for nearby residential communities
that have also been affected.

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A Partnership Approach documented the effects of years of total estimated cost of $75 million for
unchecked acid rock drainage (ARD) their clean-up responsibilities. PVDC
Responsibility for the clean-up is shared at the site and in the surrounding area. will also finance the remaining amount,
between Pueblo Viejo Dominicana The findings included heavy metal allowing the government to repay the debt
Corporation (PVDC), a company jointly concentrations, acidity and sediment in with revenues generated by the mine.
owned by Barrick (60%) and Goldcorp local waterways. The primary sources of Acting as agents for the government,
(40%), and the Dominican government. A soil and water contamination were the the company is implementing an action
Special Lease Agreement (SLA), which set historic open mine pits, waste rock piles plan to install infrastructure for capturing
out the terms for both parties, was ratified and tailings storage areas. ARD water and to reinforce the Mejita
by the Dominican National Congress The Arroyo Margajita River winds dam. PVDC will also build a state-of-the-
and President Leonel Fernandez in through the hills near the site. Dubbed art water treatment plant at Pueblo Viejo,
November 2009. The Agreement stipulates the “coca-cola river” by locals because larger than would otherwise be required
that environmental remediation within of its dark hue, this waterway absorbed for mining operations. This will make
the mine site and its area of influence is the brunt of the acid rock drainage from it possible for the plant to capture and
the responsibility of the company; the the former mine. Remediation of the process water in both the company’s and
Dominican government is responsible waterways that surround the site and the the government’s areas of responsibility.
for historic impacts outside the project stabilization of historic tailings dams have Currently, company environmental
development area. been key concerns for the company and experts are conducting regular sampling
Earlier in 2009, President Fernandez the government. of surface and ground water to gauge
and Barrick’s President and CEO, Aaron acidity levels. The goal is to reduce acidity
Regent, met in Santo Domingo to discuss Financing the clean-up levels and allow streams to recover, giving
the estimated $3 billion project, which nearby communities access to better
represents the largest foreign investment While the company bears responsibility quality water.
in the country’s history. They expressed for remediation within the mine develop-
a shared desire to significantly improve ment area, sources of ARD from small pits Decontamination Process
local living conditions and conduct the and rock waste dumps exist outside these
clean up to international standards. boundaries and continue to affect water Today, construction of Pueblo Viejo is
It was agreed that Barrick’s experts systems. Although financial responsibility proceeding on schedule and is over
would manage the clean-up effort on the for these areas resides with the govern- 20 per cent completed. However, before
government’s behalf. ment, the company agreed to donate up to the building phase could commence,
Extensive expert studies of the area $37.5 million, or half of the government’s the land had to cleared and restored. In

Top left: Polluted water left by a previous mining operation is being rehabilitated as part of the clean-up. Right: Employees inspect native
tree seedlings used in environmental rehabilitation around the Pueblo Viejo project. Bottom left: The new mine will protect and enhance the
environment around the mine site.

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Above: Barrick teams conduct clean-up and rehabilitation works around the Pueblo Viejo site, where a former mining operation left
considerable environmental damage.

2008, the complex, laborious task began. be taken to special depots in the United now unrecognizable. Structural steelwork
A team was created comprising Barrick States and Canada.” To date, more than for new mine infrastructure is underway,
employees, hazardous materials experts 130,000 cubic meters of soil have been the grinding mill has been built, and a
and new employees hired locally and removed to rid the ground of contami- new mine camp for 2,500 employees is
specially trained for the operation. Their nants. Bioremediation, a process that uses operational. Construction is expected to
task was to dispose of hazardous materials microorganisms to return altered land to be completed in the last quarter of 2011,
and waste and reclaim the contaminated the natural environment, was successfully when mineral extraction will begin.
soil. Over a thousand samples were taken introduced at the site. To date, 70,000 For Bill Williams, Barrick’s vice
to define soil in the area into different cubic meters of hydrocarbon contami- president, Environment, restoring
categories and determine future treatment nated soils have been successfully treated. the disturbed environment at Pueblo
and landfill options. Buildings on the Local residents were hired and trained Viejo back to health is the first step
property contained different types of haz- to identify and transplant thousands toward industry-leading environmental
ardous waste that had to be categorized of plants from the impacted area. A management over the life of the mine.
and disposed of in a safe manner. reforestation program around mine Pueblo Viejo will operate to Barrick’s
“We have now torn down all the old property has also been underway, planting environmental standards, consistent
buildings and cleaned up all the waste about 20,000 native trees a month. with ISO 14000, the international
materials inside our project area,” environmental management standard.
explains Méjico Angeles-Lithgow, Construction now underway “Going forward, we aim to make
Pueblo Viejo’s director of government Pueblo Viejo a model of environmental
and regulatory affairs. “Contaminated With construction of the mine proceeding responsibility within the mining
waste which couldn’t be reclaimed will full steam ahead, the once toxic site is industry,” says Williams.

“When it moves into full production, we will realize what now is common knowledge
in the Dominican Republic — that the mining sector will be a key pillar of the
country’s growth and development. The eyes of the world are on the Dominican
Republic and how Barrick will apply high standards of environmental stewardship,
as is its tradition wherever it operates in the world.”
Octavio Lopez, Director General of Mining
Lopez also noted that the scale of the project has drawn a lot of attention within
his country, but said that opposition to Pueblo Viejo is baseless and misguided.

Local employment and training Octavio Lopez, Director General of Mining


for the Dominican Republic, attending
• About 4,500 employees and contractors are working at the site today
• More than 80 per cent of workforce is Dominican Barrick’s fifth annual International Night.
• Approximately 3,000 people have taken part in training programs The Toronto event, which is attended
by government leaders from a host
Social development of countries where Barrick operates,
Investments to date include education, nutrition, health and infrastructure coincides with the Prospectors and
programs, as well as initiatives to improve the productivity of local farmers Developers Association of Canada (PDAC)
and economic prospects for women. conference held in March.

April 2010 11
Environmental Progress Report
Raising the bar on environmental performance

Protecting the environment - the land, air, water and wildlife


- is critical to any mining company’s social license to operate.
It is a litmus test for whether an operation will be viewed
favorably or unfavorably by its host communities, governments
and stakeholders.

By its very nature, the extraction of mineral resources has


an impact on the environment. How well these impacts are
understood and managed throughout the mining life cycle
has a direct correlation to success in the mining business.
The cost of getting it wrong can be significant. If a company
does not manage its operations well, and an environmental
incident occurs as a result, it can leave a mine vulnerable to
shutdown.
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As Aaron Regent, Barrick’s President and CEO, recently reminded Barrick’s leadership,
“Environmental compliance with all permits, laws and regulations is non-negotiable.
We have earned the trust of communities and governments around the world by meet-
ing high environmental standards. To maintain that trust, we need to continue to
improve our performance. Our operations must stand up to the toughest scrutiny and
meet rising public expectations of our industry.”

Positioning operations for leadership

Regent recognizes that external perceptions of Barrick’s environmental performance are


shaped at the operating level. Every location must follow the company’s environmental
management system, which sets out a series of clearly defined performance
requirements and standards. The company’s approach is aligned with ISO 14001,
the international standard (under the auspices of the International Organization for
Standardization) used by organizations and companies to protect the environment,
prevent pollution and continually improve their environmental performance. To achieve
ISO certification, companies must undergo a third-party auditing process. To date,
Barrick has achieved certification at all four South American operations and is currently
seeking certification at additional sites. While ISO standards set the bar high, in some
cases Barrick’s own systems and practices go beyond ISO requirements to address
industry-specific challenges, such as planning over the life cycle of a mine, from earliest
exploration to closure.

Over the past two years, Barrick’s Environment team has developed a series
of environmental performance standards in specific areas such as climate
change, water and energy conservation, responsible mine closure and the
protection of biodiversity. Bill Williams, Barrick’s vice president, Environment,
arrived at the company two years ago. Since that time, he has circled the globe
numerous times visiting the company’s 26 mines and various projects to assess
performance, identify risks and set goals. “While Barrick is known for being
environmentally responsible, these new standards reflect some of the latest
thinking and best practices in modern mining today,” says Williams. “They
Bill Williams, Barrick’s vice will allow us to get ahead of industry issues and pursue leadership in a number
president of Environment. of areas.”

Barrick’s water conservation standard is a case in point. Adopted in 2008, the standard
features auditable criteria and review procedures for water usage at operations. Since
implementing the standard, operations have been able to strengthen the focus on water
conservation, with some exploring the latest science and techniques for harvesting
rainwater, reducing water evaporation in tailings ponds and even using saltwater rather
than freshwater in the ore processing process. Transparency and public reporting of
water use has also been strengthened. Recently, Barrick ranked third out of 100 publicly-
traded companies for its water reporting practices in a study conducted by Ceres, a
Boston-based coalition of responsible investors (see story on page 3).

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e n v i r o n m e n t a l p r o g r e s s r e po r t

Meeting international obligations

“Barrick works from a foundation of compliance with domes-


tic permits, laws and regulations and then builds from there,”
Williams explains. “There are layers of company and interna-
tional obligations that require consistently high standards, regardless of how developed
the host country or its regulatory enforcement mechanisms may be.”

Williams has little regard for anti-mining groups that circulate unsupported claims
of environmental wrongdoing to advance their political agendas. He points to
international agencies and organizations, which set out strict global mining standards
and environmental guidelines to which companies like Barrick are expected to adhere.
This includes the International Council on Mining and Metals (ICMM), the United
Nations Global Compact, the Extractive Industries Transparency Initiative, the Global
Reporting Initiative and the International Cyanide Management Institute. Association
with these bodies requires companies to meet specific environmental standards
and guidelines. For example, as a member of the ICMM, Barrick must operate in
accordance with the ICMM Sustainable Development Framework and positions, which
stipulate such requirements as continuous improvement of environmental performance,
conservation of biodiversity and protection of UNESCO heritage sites.

While the commitment to environmental responsibility comes straight from the top,
the company’s mine management, supported by a 300-member Environment team,
have a direct responsibility to meet and report on these obligations at the working level.
Each site is required to maintain a current obligations register of all regulatory and site-
specific permit requirements, as well as company-wide international obligations. In an
ever-changing regulatory environment, new resources have been dedicated to track and
update regulatory requirements in every jurisdiction where the company operates.

The register promises to be particularly useful at the bi-national Pascua-Lama project,


one the world’s largest undeveloped gold-silver projects now under construction on the
border between Chile and Argentina. The governments of Chile and Argentina each set
out hundreds of specific regulatory conditions prior to approval of the project. These
conditions will be tracked carefully by company personnel, independent auditors and
government regulators over the anticipated 25-year life of the mine.

According to Williams, requirements and oversight in developing countries today are


every bit as stringent and complex as those in the developed world. In essence, the same
rules apply everywhere.

As Williams points out, “The bar has been raised. We are seeing an international
consensus emerge in which so-called voluntary initiatives to protect the environment
are now becoming a requirement of doing business.”

The International Cyanide Management Code illustrates this trend. Barrick was one

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of the original mining companies involved in developing the


Code back in 2000 in a voluntary effort to improve the safe
use of cyanide in gold mining. At the time, the strict safety
requirements to achieve Code certification of operations using
cyanide were deemed by some industry insiders to be too
stringent and rigorous.

“Today, the Cyanide Code is the new normal. If an operation


isn’t Code certified, stakeholders want to know why not,” says
Williams. Barrick has achieved certification at 19 of its mines
– more than any other gold producer – with a further four
on track for future certification. Other leading gold mining
companies are Code signatories and have made significant
progress. Williams notes that industry-led efforts are underway
to further promote the Code’s use across the gold mining sector.

Closer to home, Barrick has focused on strengthening its internal management


systems to meet increasingly ambitious performance targets. In 2009, Barrick achieved
a 10 per cent reduction in environmental incidents, and has established a further
10 per cent reduction target for 2010.

Each region is also required to pursue an energy reduction project, as well as an


alterative energy project. Added to this momentum, company policy now requires that
any contractor, vendor or supplier doing business with Barrick must comply with the
company’s high environmental standards and safeguards.

“It is how we mine, not just meeting our production and cost targets, that promises to
be Barrick’s competitive edge,” he explains. Echoing the sentiments of Barrick’s CEO,
Williams adds, “In this business, you can’t be passive or reactionary about protecting
the environment. Not if you want to be responsible, stay in business and be profitable.”

New Frontiers in Water Management


Managing water resources is one of the key environmental
issues facing the mining industry today. Barrick is working to
ensure this natural resource is used sustainably, efficiently and
properly measured at its operations.

How is water used in mining? As large mining operations


progress below surface level, ground water may seep into
open pits or underground shafts. Mines must pump this
Barrick uses satellite technology to monitor
groundwater out of active mining areas in order to operate. This
ground water levels in Nevada.
water is used in mineral processing, stored in tailings ponds
or in heap leach systems. While much of the water is re-injected back into the ground,
some evaporates or is used for reclamation purposes.

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What’s new? Barrick’s new water


conservation standard reflects the latest
industry thinking, science and engineering,
and water management techniques. “It allows
the company to better understand its water
use and be more systematic in managing water
resources. It can be applied in all settings, from
extreme arid locations like Barrick’s Reko
Diq exploration project in Pakistan to humid
climates that experience very low evaporation.
“The goal is to better understand water systems
and make sound decisions when managing
them,” says Melissa Barbanell, director of Above: Barrick is closely monitoring subterranean aquifers
Environmental Sustainability. in Nevada. below: A giant lined bowl acts as a rainwater
harvester in Tanzania, collecting enough water to meet the

In Nevada, U.S.A.,  Barrick is using satellite Buzwagi mine’s water requirements.

imagery to improve water monitoring by


measuring aquifers deep below ground surface
at its Goldstrike mine. This high-tech approach
to traditional groundwater monitoring is
allowing Barrick scientists to more accurately
map the potential effects of mining on local
water resources. Radar images show changes
to the earth’s surface over time and provide
a reading of how much water is contained in
aquifers – information that is shared with
government regulators and communities.
In addition, Barrick is providing regulators with access to real time information and
detailed maps via Google Earth technology. This interactive web-based tool covers a
600-square-mile water monitoring network.

In Tanzania, the Buzwagi mine constructed the country’s first industrial rainwater
harvester. The 75-hectare water harvest area is essentially a giant lined bowl that collects
rain water to supply the mine’s process plant with its water requirements. The water
harvest area accounts for five per cent of the
total project surface area and will eliminate
the need to tap into the area’s groundwater
resources. Other conservation measures
include reduced water in mine tailings and a
plastic covering of the water storage pond to
limit evaporation.

right: An Environment expert collects surface


water samples near the Porgera mine in Papua
New Guinea.

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In Australia, the Cowal mine is at the forefront of industry water conservation practices.
Amid a seven-year drought in New South Wales, the operation is reducing its reliance on
fresh water by sourcing saline groundwater for use in the operation’s processing plant.
Saltwater is not suitable for livestock, farming or household purposes.

“We see this as a win for


Cowal, local water users
and the environment,” says
Community Relations Manager
Richard Savage. “We’ve had
discussions with local land-
owners and water users and
they are supportive.”

The mine has committed to


reduce freshwater reliance by
Above: Landowners around the Cowal mine in Australia
a million liters per day. Using participate in a workshop on farm planning with an emphasis
saline water has the added on environmental sustainability. Below: The Lake Cowal
Foundation and local farmers conduct seed trials using
environmental benefit of
native grasses that are less taxing on the native environment.
reducing possible soil salinity.

Cowal has also volunteered


to participate in a pilot study
with the Minerals Council of
Australia, adopting a new
system to measure and
account for water use in
the mining industry. This
methodology represents the
first attempt by any industry
in Australia to more accurately and consistently report on water use by developing a
water footprint of individual mining operations. Water footprinting is a new generation of
indicator that can be used to report on water use, both direct and indirect. It is expected to
improve the mining industry’s reporting of sustainable water use and benefit regulators and
stakeholders. Cowal is a zero water-discharge site, designed to collect and recycle water
drawn from boreholes or rainfall.

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In Chile, Barrick is pioneering an innovative treatment to recover wastewater at its


Zaldivar mine. Developed in conjunction with the University of Chile, a key feature of
the system involves the use of earthworms and micro-organisms to recycle water used
in the mining camp, offices and other facilities.

Water Treatment Process

The Zaldivar mine in Chile is testing a new water treatment system developed in conjunction
with the University of Chile.

Here’s how it works:


Stage 1: Wastewater is diverted to a plant, sprayed and processed through a bio-
filter consisting of layers of rock, sawdust, woodchips and other materials.

Stage 2: Organic material is then absorbed and microorganisms and earth-


worms retain the coarsest material contained in the liquid. Liquid then filters
through to the rock layer where a colony of bacteria completes the destruction of
any remaining organic material.

Stage 3: Ultraviolet radiation is used to eliminate germs related to the bacteria.

result: Liquid that complies with water quality standards for irrigation pur-
poses. Earthworms also generate humus, a material which can be used as a
fertilizer for crops.

final testing of the system will be completed in April, after which Barrick will
seek necessary permits from authorities. The plant is currently processing four
liters per second, which means that 126 million liters can be recycled each year.
The company is evaluating the feasibility of a second plant that will allow for the
treatment of almost all wastewater at the operation.

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Environmental Snapshot

Climate Change

• Barrick’s climate change program is helping to set the standard within the gold
mining industry, offering a sound, pragmatic business approach to the company’s
greenhouse gas footprint. In 2009, Barrick conducted a company-wide assessment of
the business risks associated with climate change. Based on this assessment, Barrick
developed an action plan and formalized a Climate Change Standard. The company’s
mining operations improved energy efficiency in 2009 and adopted an aggressive
approach to increase energy conservation and non-carbon energy use, with targets in
all regions. Reflecting the company’s commitment to clean, renewable power, Barrick
has invested a total of $88.5 million in wind and solar energy projects internationally.

Safeguarding Biodiversity

• To preserve biodiversity and protect habitats around our operations,


Barrick recently adopted a new biodiversity standard. The standard
applies from the exploration stage to post-mine closure with the
ambitious goal of no net loss to biodiversity.

• The Porgera Joint Venture continues to support the groundbreaking


research of Conservation International researchers in the Kaijendi
Highlands near the mine site in Papua New Guinea. More than 50
species believed to be new to science have been discovered as part of
biodiversity conservation efforts in the area.

• Barrick is the first mining company to become a member of the International


Leadership Council of the Nature Conservancy, the world’s largest conservation
organization.

• The local guanaco population has increased five-fold since Barrick established a
protection program near the Veladero mine in Argentina. Guanacos roam freely in
the high Andean open plain as a result of the prohibition on poaching of this South
American member of the camel family. Thanks to the company’s award-winning
re-vegetation program, the area has become a rich habitat for guanacos and other
wildlife and vegetation.

• Plastic balls on top of netting have proved very effective in


keeping wildlife such as birds out of water processing ponds.
Although smaller scale installations were used by the water
treatment industry previously, Barrick engineers at the
Goldstrike mine in Nevada were the first to successfully trans-
late the concept on a larger scale in the early 1990s. Known as
bird balls, this surface configuration leaves only nine per cent
of the surface visible, with the added benefit of preventing water
evaporation.

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Conservation in Action

• In Australia, Barrick has been the principal funder of


the Lake Cowal Foundation, an independent, non-profit
environmental trust. The Foundation was created
nearly 10 years ago to support conservation around the
Cowal mine in New South Wales, working with more
than 100 partners, including environmental groups,
government agencies and landowners. To date, the
Foundation has completed environmental and educational projects
worth almost US$9 million. In 2009, Cowal was awarded the annual
Excellence Award from the New South Wales Minerals Council for this
innovative collaboration.

• I n the Dominican Republic, site of the Pueblo Viejo project, a major


clean-up of historic environmental impacts associated with a former
mining operation at the site is now underway. See page 9 to learn how
Barrick and the Dominican government are creating a healthier living
environment for neighboring communities.

Award-Winning Waste management in Australia


Turning used canola oil into biodiesel at the Plutonic mine and recycling hundreds of tons of
waste at Barrick operations in Western Australia has helped to earn Sodexo a Golden Gecko
award for environmental excellence.

Golden Geckos are awarded by Western Australia’s Department of Mines and Petroleum, and
recognize environmental excellence and leadership in the state’s large resources sector.

Sodexo, a supplier of facility and camp management services for Barrick, was selected for its Resource Recovery program at
12 mines in Western Australia, including three Barrick sites – Plutonic, Lawlers and Darlot. In total, more than 900 tons of
material has been recycled to date, saving in excess of 2,000 cubic meters of landfill space.

“Plutonic and our other Yilgarn mines are all committed to responsible environmental stewardship,” says Boyd Timler, general
manager for Plutonic and Granny Smith. “We think this is a great program, and we are proud to support its continued success.”

Upon winning the award, Sodexo recognized Barrick as one of the first clients to actively encourage the program on its mine
sites. The Plutonic mine became the first Sodexo-operated camp to use 100 per cent biodiesel fuel for its service vehicles. The
biodiesel comes, in part, from the canola cooking oil used in the cafeteria at Plutonic, closing the loop on a waste stream.

Every dollar generated through recycling waste material is donated to Perth’s Princess Margaret Hospital for Children and the
Royal Flying Doctors Service. The program has raised well over A$70,000 for these charities to date.

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Mine closure in focus:


Historic site puts Lead, South Dakota, on the world’s scientific map

More than 3,900 cubic meters of concrete were removed from the former Homestake mill site to create a park with interpretive walking
trails. Eight thousand feet below the surface, a new underground science lab will be the deepest of its kind in the world.

Eight thousand feet beneath the earth’s surface, a labyrinth of With expected economic contributions of $500 million to
hollowed out passages and chambers will soon be the site of $1 billion, the underground lab project has received strong
cutting-edge experiments designed to unlock the secrets of the support from the state legislature. “Tremendous public support
universe. And it’s all happening in a former gold mine. here has helped us win support throughout the country,”
The 133-year-old Homestake Mine in Lead, South Dakota, is explains Ron Wheeler, executive director of the South Dakota
getting a new lease on life as a hub for groundbreaking scientific Science and Technology Authority. “It’s changing the whole
research. Barrick acquired the property in 2001; at the time it economic climate of South Dakota.”
was North America’s largest and deepest underground mine. By opening up its doors to graduate programs, field trips,
During its long history, Homestake employed over 2,000 people and other educational programs, the Laboratory will act as an
and produced more than 40 million ounces of gold. outreach facility that encourages interest in mathematics and
In 2006, Barrick donated the depleted underground mine, science among youth. The Laboratory will also have a significant
as well as 186 surface acres, to the South Dakota Science and impact on two local universities, Black Hill State University
Technology Authority, which proposed to covert it into an and South Dakota University, which will establish physics
underground laboratory. A year later, the U.S. National Science departments to support the research and education that the
Foundation chose Homestake among four competing sites project will foster.
to be the location of a new Deep Underground Science and Patrick Garver, executive vice president and general counsel
Engineering Laboratory (DUSEL). Once constructed, the DUSEL at Barrick, worked in close collaboration with the state and
will be the deepest underground science facility in the world, the National Science Foundation for several years to make this
with labs at 8,000 feet below surface. research project a reality. The team developed a business plan for
Underground labs protect science experiments from cosmic the lab, which will conduct first-class research and experiments
radiation, allowing scientists to conduct sensitive experiments while meeting high environmental, safety and health standards.
on dark matter and other elusive substances that can change “At Barrick, we look for opportunities to ensure that the
the way we view the universe and its galaxies. The DUSEL, using communities remain sustainable after we’re gone,” Garver says.
a Large Underground Xenon (LUX) detector, will participate “We did that in a number of ways in Lead; the most visible
in similar experiments already being conducted at deep among those was the donation of the mine for the lab. There is
underground labs in Canada, Italy and Japan. also quite a bit of land and buildings, which will ultimately be

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used for education and lab support facilities.” of the area was made into an interpretive walking path with
Though Barrick never mined an ounce of gold at the displays of mining equipment and methods along with historical
Homestake operation, the company has invested about $100 mil- information on the Homestake Mine and the history of Lead.
lion on proper mine closure and reclamation procedures.
“We’re doing a lot of environmental monitoring to ensure
successful mine closure,” Garver explains. “The company is
doing reclamation at the site and running a water treatment
plant in Lead to ensure the protection of water quality.”
Reclamation at the site is now 95 per cent complete.
The company is currently working on its last reclamation
process, which includes removing a haul road crossing and
re-establishing a nearby creek to its natural condition.
“We could not have done this if it wasn’t for the generosity
of Barrick Gold Corporation,” said Mike Rounds, Governor
of South Dakota, during an interview with the Business Civic
Leadership Center. “What a marvelous example of a responsible
business that Barrick Gold Corporation offers to the rest of the
business community.”
The project has received generous funding to support its plans.
The National Science Foundation awarded $29 million to the
University of California, Berkeley, to create a preliminary design Hydroelectric plant generates returns for
of the Sanford Underground Laboratory. Further funding for the community
lab includes a $10 million federal HUD grant, $43 million from The Homestake Mining Company operated two hydroelectric
the South Dakota Legislature and a $70 million gift from Sioux plants about 6.5 kilometers west of the mine site to meet the
Falls philanthropist Mr. T. Denny Sanford, who is designating operation’s electricity demands. After closure, the company
$20 million of his gift for a Sanford Science Education Center at reached an agreement to sell the facility to the city of Lead for a
the Homestake surface campus. nominal fee. The city now operates the larger of the two plants,
which is generating revenue of about $250,000 per year.
Getting creative with closure
Clean water to support development
Homestake mill transformed into park During early operation of the mine, Homestake developed an
Since all the major processing facilities were built before extensive system to collect water from a number of the area’s
significant environmental regulations were put in place, the area natural springs. Since the western portion of South Dakota is
required an extensive environmental clean-up program. Over located in a semi-arid environment, high quality water is at a
22,000 cubic meters of soil and 3,900 cubic meters of concrete premium. Homestake donated its water gathering system to
were removed from the site. The surface was then re-contoured Lead’s local water utility, preserving this vital source of water for
to its natural state and re-seeded with natural grasses. A portion the local community.

above: Reclamation in progress on a slope near the former Homestake mine. Below: A reclaimed rock dump has been restored to the natural
contours of the area.

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Ethical business
knows no borders

In recent years, high-profile accounting They have had strong backing from safety, human rights and security practices
scandals involving U.S. companies like Barrick’s President and CEO, Aaron and environmental management.
Enron and WorldCom and cases of fraud Regent, the company’s Chairman and
and corruption have renewed public Founder Peter Munk, and Barrick’s All Barrick employees receive training on
interest in ethical business practices. In the senior leadership team. how to apply Code principles using real
annals of corporate history, those involved life scenarios ranging from unfair dealing
will be remembered for their crimes, not for Garver’s message to all employees and accounting issues, to potential conflict
their business savvy. combines company values with of interest, to workplace harassment,
personal responsibility. “It has to be the bribery and other Code violations. This
In stark contrast are companies that responsibility of each and every one of training is useful to all employees but
operate from a solid foundation of us, no matter what our position is, no critical for those in positions of trust, who
corporate governance and that require matter what part of the company we work act on behalf of the company, have an
employees to meet high ethical standards. in, to consistently demonstrate the best influence on financial reporting or deal
These companies have staying power. They of Barrick,” he stated. “And the best of with public officials. The training sessions
are better able to stay competitive within Barrick is an unwavering commitment to are designed to provide clear direction
the global marketplace, maintain public ethical behavior.” should a situation or ethical dilemma
trust and recruit the top talent. arise. Employees are strongly encouraged
Barrick’s Code of Business Conduct and to seek out guidance, ask questions and
Patrick Garver, Barrick’s executive vice- Ethics is an umbrella policy that commits speak out if they suspect wrongdoing.
president and general counsel, knows that the company to conduct its business Vigilance is particularly important
ethical conduct is good business. Garver around the world to the highest ethical in developing countries with weak
oversees company-wide compliance of standards and to obey all applicable governance institutions, where employees
Barrick’s Code of Business Conduct laws and regulations. Barrick has also are required to exercise heightened care.
and Ethics. Garver and the Office of the put in place a range of specific policies
General Counsel have championed ethical prohibiting corruption, fraud, bribery, Barrick makes a variety of options
leadership at every level of the company, discrimination, money-laundering and available to its employees for reporting
from the mine site to the boardroom. insider trading, as well as policies on suspected misconduct, including a

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Below left: Barrick Executive Vice President and General Counsel Patrick Garver is a
champion for ethical business practices. Below center: Senior management raise ethical
issues during mine visits throughout the year. Top right: Barrick CFO Jamie Sokalsky
leads an ethics seminar for management. Below right: senior Vice President of Corporate
Development Cassie Boggs participates in an ethics workshop with other Barrick leaders.

24-hour, multilingual compliance hotline. government officials. At the conference,


If you visit a Barrick mine site, chances senior officials with the U.S. Department Ethical Policies at Barrick
are you will see the compliance hotline of Justice and the U.S. Securities and
number on display in an open area. Exchange Commission, lawyers and • Code of Business Conduct
Employees using the hotline may identify industry executives discussed regulation, and Ethics
themselves or remain anonymous. enforcement and anti-corruption
• Anti-Fraud Policy
Complaints are then reported by a service compliance issues.
provider to the Office of the General • Anti-Bribery and
Counsel for appropriate action. “There are profound consequences for Anti-Corruption Policy
companies that fail to take action when
Barrick will include a report on the presented with possible evidence of cor- • Disclosure Policy
use of the company’s whistle-blowing rupt practices,” said Garver. “Even a single
Confidential Hotline in the annual incident of corruption can lead to irrepa- • Insider Trading Policy
Responsibility Report due out May 2010. rable reputational damage to a business.”
• Code of Ethics for Barrick
“Today, the expectation that companies During the conference, Garver discussed Suppliers
will conduct business in an ethical way Barrick’s compliance program. “It is
• Safety and Occupational
knows no boundaries,” said Garver. He critically important for companies like
Health Policy Statement
notes that enforcement authorities in the Barrick with a global footprint to have a
United States and around the world are strong anti-corruption strategy, combined • Corporate Social
prosecuting corporate bribery cases at an with an effective compliance program,” Responsibility Charter
increasing rate. he stated. “But a compliance program
is only as good as the rigor with which • Global Security Policy
Garver recently spoke at a Miami it is supported by a company’s senior
conference on the U.S. Foreign Corrupt leadership and employees, integrated into • Environmental Policy
Practices Act, legislation that prohibits the ethical culture of the company, and Statement
corporate bribery and corruption of consistently monitored and enforced.”

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Meeting Our International Commitments


and Obligations
In every country in which Barrick operates, there are stRingent standards for Project Financing
existing government institutions, regulatory regimes,
policing authorities and judicial processes. Beyond the Project financing is another area in which international per-
powers of sovereign states, global companies like Barrick are formance standards for responsible mining are becoming the
also accountable to a range of international standards and norm. Today, more than 60 financial institutions have signed
guidelines with respect to responsible business practices. on to the IFC Equator Principles. The Equator Principles pro-
vide a benchmark for financial institutions to manage social
Bodies such as the International Finance Corporation (IFC), and environmental issues in project financing. They apply
the World Bank, the United Nations and the International across all industry sectors for projects with total capital costs
Council on Mining and Metals (ICMM) set out standards, of $10 million or more.
criteria and guidelines for company performance. Many of
these obligations are complementary and contribute to greater Projects located in non-OECD countries and those not des-
corporate accountability. ignated as high-income by the World Bank Development
Indicators are assessed for environmental and social risk by
Consider the United Nations Global Compact, an initiative lenders based on IFC performance standards. Those in high-
launched by the UN in 1999 that requires companies to operate income countries generally meet or exceed these standards. In
based on a series of principles in the areas of anti-corruption, such cases, compliance with local or national laws, regulations
human rights, labor and the environment. As a signatory to the and permitting requirements are considered an acceptable
Global Compact, Barrick must report annually on its progress substitute.
in adhering to these principles.

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Ways Barrick is demonstrating leadership

• Barrick is ranked as a world leader in social and


environmental responsibility by the Dow Jones
Sustainability Index, one of the world’s foremost indices
of corporate responsibility.

• Barrick was the first Canadian mining company to


officially endorse the Extractive Industries Transparency
Initiative (EITI) in 2006. Barrick publicly reports on taxes,
royalties and fees paid to governments. (Visit www.
eitransparency.org to view the company’s self-assessment)

• As a member of the International Council on Mining and


Metals (ICMM), Barrick undergoes an annual independent
Barrick CFO Jamie Sokalsky.
assurance process to confirm the company has aligned
its sustainability policies to ICMM’s 10 Sustainable
Development Principles. In 2009, the company underwent
Lenders that have signed on
the most comprehensive and rigorous ICMM assurance
to the Equator Principles will process to date. The review was conducted by Bureau
consider project financing for Veritas and involved site visits, external stakeholder
a mining project by integrat- interviews and a review of company management
systems.
ing social and environmental
risk assessments and management as part of the overall risk • Barrick is a member of Transparency International, which
supports public and private sector initiatives to prevent
profile for transactions. Issues like community consultation,
corrupt business practices and enhance transparency and
grievance mechanisms and protection of biodiversity and hab- accountability.
itat are assessed as part of the due diligence process.
• Barrick produces an annual Responsibility Report that
uses the Global Reporting Initiative (GRI) Sustainability
“Today, any of our new mining projects that require capi- Reporting Guidelines (Level A+). The GRI framework
tal from global financial institutions must demonstrate was developed to enhance corporate transparency and
compliance with the Equator Principles,” says Jamie Sokalsky, encourage good sustainability performance.

Barrick’s Chief Financial Officer. “This includes commercial • Barrick’s global security policy is aligned with the
banks, which are carefully scrutinizing how we develop our Voluntary Principles on Security and Human Rights.
Considered to be the gold standard in security practices
projects and manage social and environmental impacts based
for extractive companies operating in developing
on these principles.” Sokalsky is clear about the financial
countries, the Voluntary Principles support the dual
impact of this new reality for extractive sector companies and objective of respect for human rights and the protection
other industries. “If a project isn’t found to be Equator Principle of company personnel and assets.
compliant, it will be denied financing by these institutions.”

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Collective Action in Tanzania:


The Lake Zone Health Initiative

They are called the Big Three. They are HIV/AIDS, malaria and Dr. Barbour is leading the effort and Stephen Kisakye, the
tuberculosis. Together, they kill thousands of people each year in company’s community health coordinator in Tanzania, is
Tanzania. making it happen on the ground. The initiative already has a
These life-threatening diseases pose a serious risk to number of prominent partners, including the Touch Foundation,
employees in the mining sector and communities near mining Populations Services International, and EngenderHealth among
operations, resulting in soaring health care costs and a high rate others.
of employee absenteeism. “We know that HIV poses a serious threat not only to our
Building on a long history of providing successful disease workforce but to the community at large,” Dr. Barbour said. To
prevention programs in Tanzania, in 2008 Barrick launched the counter this threat, the company has an extensive HIV/AIDS
Lake Zone Health Initiative in an effort to improve health ser- education and treatment program at all of its Tanzanian
vices to underserved populations in the Lake Zone region. Home operations. The program promotes voluntary testing and
to nine million residents, Tanzania’s Lake Zone wraps around involves teams of peer health educators who engage with
Lake Victoria and spans seven regions, including the Mara and employees and the wider community, raising awareness about
Kahama districts where the Bulyanhulu, Buzwagi and North HIV transmission and prevention.
Mara mines are located. While these mines are now operated
by African Barrick Gold, the new public company created by Confronting gender issues that drive HIV/AIDS
Barrick earlier this year, the commitment to continue this flag- A 2006 study conducted by the African Medical & Research
ship community health program remains as strong as ever. Foundation (AMREF) at the company’s North Mara mine in
The public-private sector health initiative is making it possible 2006 found that the prevalence of HIV among mine workers was
for companies, the government, health NGOs and donors like 10 per cent. In contrast, in the communities surrounding the
USAID to work collaboratively together to combat HIV, malaria mine, the rate for men was reported at 2.6 per cent. For women,
and TB. “Our hope is that all future health programs in this area however, it was almost three times higher at seven per cent.
will be filtered through the Lake Zone Health Initiative so that “Mining is a sector that traditionally attracts and employs
no program is overlapping or duplicating another,” says Dr. Rob large numbers of men,” explains Kisakye. “Women are also
Barbour, Barrick’s Chief Medical Officer. “We support existing drawn to these primarily male clustered populations in search
government efforts to enhance health services and enable all of employment and economic opportunities. In some cases,
stakeholders to contribute to common health care goals in a we have seen a rise in commercial sex work associated with the
cohesive way.” economic opportunities that mining creates.”

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Clockwise: The Lake Zone Health


Initiative will improve childhood
health by targeting preventable
diseases such as malaria, HIV and
tuberculosis. A doctor examines
an infant in a clinic supported
by Barrick. Barrick’s Community
Health Coordinator in Tanzania,
Stephen Kisakye (center), speaks
to villagers about common health
threats in the region.

Kisakye acknowledges that it has been challenging to change cultural taboos and discuss the importance of safe sex.
the perception that there is a low risk associated with these EngenderHealth created the CHAMPION program, which
sexual behaviors, noting that negative attitudes among men stands for “channeling men’s positive involvement in the national
toward condom use are a persistent problem in many areas of HIV/AIDS response”. This national program engages Tanzanian
the country. A 2007/2008 Tanzanian HIV/AIDS and Malaria men as health “champions” in preventing and reducing HIV/AIDS
Indicator survey found that eight per cent of men aged 15 to 49 and encourages the use of condoms. This pioneering program is
paid for sex in the previous 12 months and 60 per cent of these contributing to a national dialogue about health, gender roles and
men reported that they used a condom. Among youth aged equality for women within the country.
20 to 24, the percentage of men who paid for sex increased to As part of the EngenderHealth partnership, the Bulyanhulu
13 per cent, while condom use was slightly lower at 58 per cent. mine is also revamping its condom distribution program to reach
So while more young men may be paying for sex, the message even more people in the community. Given the recent success at
about condom use has not been gaining traction with this this operation, scale-up efforts are now underway to expand the
segment of the population. program to include the North Mara mine in the near future.
To address underlying gender issues that drive HIV/AIDS
transmission, the Bulyanhulu mine has partnered with TB becoming bigger threat
EngenderHealth, a leading international health organization that Tuberculosis is also gaining ground as a killer in sub-Saharan
specializes in reproductive health and gender equality. The five- Africa. Recent studies show a resurgence in the prevalence of the
year pilot program is confronting the vulnerabilities of women disease and the emergence of multi-drug resistant strains.
by making men a big part of the solution. Barrick and USAID At the Bulyanhulu mine, each employee is screened for TB
(through EngenderHealth) jointly provide funding for the through sputum smears and chest X-rays. To help employees
$700,000 program, which is being implemented in collaboration recognize the signs of TB, the company has an extensive education
with local health practitioners and the district government. and awareness program inside the mine and in the community.
The Bulyanhulu mine is located in the Kahama district, Recognizing that the combination of HIV and TB can be deadly,
Shinyanga region, where the overall HIV prevalence rate is a employees who are HIV-positive are provided with isoniazid
statistically-high 7.6 per cent. Armed with health campaign preventative therapy, which reduces the risk of TB in patients with
materials, a team of 60 newly trained peer health educators HIV/AIDS. Barrick also partners with medical students from
have been spreading the message in the workplace and to the the Tanzania Medical Students Association to reach out to the
community’s 50,000-member population, helping to break down underserved and isolated communities that surround the mine.

April 2010 29
A group of men discuss strategies for fighting the spread of HIV/AIDS at
Barrick’s office in Dar es Salaam as part of the EngenderHealth program
in Tanzania.

To be most effective, company programs are conducted in


collaboration with the Ministry of Health, and its existing medical
program. While the company funds the awareness and education
campaign, TB medications are distributed through the district health
facilities, thus efforts complement rather than duplicate each other.

Stopping the spread of malaria


The final of the big three diseases, malaria, has always been a priority
for Barrick in Tanzania. The company has conducted a variety of educa-
tion, testing and spraying programs.
Currently, an indoor residual spraying (IRS) program is underway
that uses chemicals to kill mosquitos inside homes and buildings. The
pilot process is allowing Dr. Barbour and his team to observe where and
when the insects show up and which chemicals are most effective in
killing them. “First we will see what works the best and then we will roll
the best program out to the greater population,” Dr. Barbour says.
Dr. Barbour admits that the high rates of HIV/AIDS, malaria and TB
in communities surrounding the company’s mines make dealing with
these diseases extremely challenging. Compounding the problem is a
lack of basic primary health care at medical clinics and limited home-
based care services for patients after they leave the clinics.
“The Lake Zone Health Initiative is huge for us and for the develop-
ment of this region,” said Dr. Barbour. “To be successful in addressing
these issues, we have to work together with many partners but with one
strategic plan in mind.”

Baseline health studies next step


In the months ahead, Dr. Barbour and Kisakye will be conducting
health impact assessments of the communities surrounding the
company’s mines in Tanzania, starting with the newest operation,
Buzwagi. This vital information is expected to take the company’s
health programs to the next level. These assessments will allow the
company’s health experts to develop a baseline of the existing health
status of local populations and accurately measure the impact of health
programs over the life of its mining operations.
For new, large-scale operations, that can sometimes mean 20 years
or more.
While Dr. Barbour recognizes the enormity of the challenges ahead,
he doesn’t believe in rushing things to create artificial results. “We
are proceeding at a slow, steady pace, improving and adapting where
needed. That’s the way to get it right and have a lasting, widespread
impact on these communities, well into the future.”

The Lake Zone Health Initiative was established by Barrick


to help combat HIV/AIDS, malaria and tuberculosis
and improve access to health services for underserved
populations. This collaborative effort involves the
Tanzanian government, aid agencies and other partners.

30 April 2010
B e yo n d B o r d e r s | a barrick gold report on responsible mining

Health Care for Nevada Employees


The recent U.S. Congress approval of sweeping health care reform is expected to extend
health coverage to an additional 32 million Americans. How these reforms will play out
for residents of rural communities remains to be seen.

Small town living has often meant disparities in access to health facilities and services.
It is not uncommon in remote, sparsely populated communities for the nearest hospital
to be located hundreds of miles away. The issue of access to care is considered a key
determinant of overall quality of life.

Elko is a small, bustling city in the heart of Newmont’s Twin Creeks mine and
of northeast rural Nevada. Surrounded Barrick’s Turquoise Ridge mine. Doctors
by vast, sprawling ranchlands, the at both clinics refer patients to specialists
town’s history is steeped in a tradition of within Barrick’s large preferred health
mining that dates back to the late 1800s provider network in Nevada, Utah and
and continues today. Many members of Idaho. The clinics also offer wellness
Elko’s close-knit community of 20,000 programs that are specifically designed
either work in the mining industry or to address mining lifestyle issues such as
benefit indirectly from it, as suppliers, shift work and irregular work hours.
business owners or service providers. While mining employees and their
Barrick and Newmont Mining are the dependents benefit from the convenience
largest employers in Elko, with five of a local clinic for their exclusive use,
major mining operations located within the companies are able to better manage
commuting distance. basic health care costs for employees,
In the late 1990s, Barrick joined which often rise 10 per cent or more
Newmont to fund the construction of annually. The wider community also
a health clinic for employees and their benefits from reduced demand on
dependents. While providing a new strained medical facilities in the Elko
option to mine employees, the clinic also and Winnemucca areas.
helped Barrick and Newmont to control
rising primary care costs. At that time, New Medical Clinic
the two companies together employed Barrick and Newmont are building a
about 3,500 people in the Elko area, with new medical clinic in Elko that is open- 5,400. The facility handled 30,000 visits
a combined total of 6,000 dependent ing this spring. The 15,000-square-foot in 2008 and about 32,000 visits in 2009.
spouses and children. To meet local building is adjacent to the Northeastern “At a time when many companies
needs, the Golden Health Family Nevada Regional Hospital and will are reducing or eliminating employee
Medical Center opened in 2000, offering feature an expanded pharmacy and benefits, I think it’s great that Barrick
basic medical care including X-rays, capacity for additional staff. and Newmont are working together to
immunizations, a pharmacy and other “The need for a larger clinic in Elko enhance this service to our employees
routine services for a flat fee of had been evident for some time,” and their families,” Lang added.
$10 per visit. said Barrick North America Regional Employees will continue paying just
That same year, a smaller employee President Greg Lang. Barrick’s acquisi- $10 per visit. The clinic is operated by a
clinic was also funded by Newmont tion of Placer Dome in 2006 and growth contractor, Take Care Health Employer
in Winnemucca, located about 140 at the company’s Cortez operations have Solutions, which is owned by Walgreens,
miles west of Elko. Today, this second pushed the total number of families one of the world’s largest drugstore
clinic provides services to employees served by the Elko clinic to more than chains.

April 2010 31
Protecting wildlife: In Argentina, the local guanaco population near Barrick’s Veladero mine has increased five-fold since the company
introduced measures to protect them and improve their habitat.

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