Barrick Gold Corporation. Economic Contributions Report Advancing Together

Transcription

1 Barrick Gold Corporation Economic Contributions Report 2016 Advancing Together

2 ii Barrick Gold Corporation 2016 Economic Contributions Report Sustainability Vision We partner with host governments and communities to transform their natural resources into sustainable benefits and mutual prosperity. We aim to be a welcome and trusted partner of host governments and communities, the most sought-after employer, and the natural choice for long-term investors.

3 2016 Economic Contributions Report Barrick Gold Corporation 1 About This Report This is Barrick s inaugural Economic Contributions Report. Through this and future reports, we aim to show our progress in generating economic value for our stakeholders. The report describes in detail how Barrick s policies and management systems support the social and economic development of the countries and communities where we operate, including our tax strategy, our efforts to prioritize local employment and local procurement, and our com- munity investments. We report on these metrics for the Company as a whole, and for each country where we operate. Report Parameters To ensure consistency and comparability between ourselves and other mining companies, Barrick uses the World Gold Council s Guidance Note on Expenditure Definitions and reports to the Global Reporting Initiative s (GRI) Sustainability Reporting Standards, in accordance with the Core option. Expenditure data is provided on an accrual basis. The data in this report covers the 2016 calendar year, which corresponds to Barrick s financial year, and all information in this report is current as of December 31, 2016, unless otherwise indicated. This report and accompanying data tables contain information on all of Barrick s wholly-owned operations and joint ventures where we are the operator, as well as on our country and corporate offices, projects, and closure sites. We report on 100 percent of the data from joint-venture operations where we are the operator. All currency amounts in this report are expressed in U.S. dollars, unless otherwise indicated. In This Report About This Report 1 Taxes and Government 6 Barrick Around 14 Extractive Sector 28 Fast Facts 2 Royalties the World Transparency Measures CSO Statement 3 Local Purchases 10 Act Report Our Approach to 4 Local Employment 12 Social and Economic Community 13 Development Investments

4 2 Barrick Gold Corporation 2016 Economic Contributions Report Fast Facts In 2016, Barrick contributed more than $5.2 billion in purchases, taxes, wages, and other expenditures in the countries in which we operate. In 2016, 85% of the goods and services Barrick purchased in 2016 (by dollar value) are from local, regional, or national suppliers. Barrick invested nearly $8 million in educational initiatives and partnerships in 2016, including providing nearly 1,500 scholarships. 51% of Barrick employees came from the local communities near our mines in In 2016, Barrick paid almost $1.4 billion in wages and related expenditures to employees. Less than 3% of Barrick employees are foreign nationals. Barrick contributed $1.1 billion in taxes and royalties to governments in Barrick created a Local Content Framework to help our sites develop effective local employment and procurement programs. Barrick purchased more than $220 million of goods and services from the local communities near our mines in 2016.

5 2016 Economic Contributions Report Barrick Gold Corporation 3 Chief Sustainability Officer s Message At Barrick, our strategy to be a sustainable, leading 21st century company is clear: we partner with host governments and communities to transform their natural resources into sustainable benefits and mutual prosperity. In doing so, we are intentionally challenging preconceived ideas about our industry that, by definition and by deed, it can only extract value. We have a fundamentally different view: our mining activities can and must add value everywhere we operate. And we are in the best position to do that when we understand our partners interests and align them with our own. In publishing this inaugural Economic Contributions Report, our aim is to better communicate the range of economic contributions we make in the countries and communities where we operate, and share our progress in generating significant value for all our partners. This value comes in many forms, such as the taxes and royalties that we pay, which totaled more than $1.1 billion in Governments use these funds to invest in important infrastructure like roads and to improve basic services like health and education. In many of the countries where we operate, the taxes and royalties we pay are significant sourc-es of government revenue. For example, the Pueblo Viejo mine in the Dominican Republic is now the country s largest tax payer, paying close to half of the national corporate tax. It also comes in the form of the good-paying jobs for our 11,000-plus employees; in 2016, the wages and benefits they received were almost $1.4 billion. With 97 percent of our employees coming from the countries and communities where we operate, we are creating meaningful contributions to local and national economies. Working in partnership, our Human Resources and Community Relations teams are continuing to create even more opportunities for local people to participate either directly in our operations or with our contractor partners. Important value is also derived from the goods and services we purchase from our more than 20,000 suppliers. In 2016, these in-country purchases totaled almost $2.7 billion, including $220 million from suppliers coming from local communities near our operations, leading to further positive economic outcomes in local and regional economies. In addition to these significant direct contributions, our digital transformation has helped open new opportunities in the communities where we operate. One example is the inaugural Barrick-Cisco networking academy that we launched in Elko, Nevada, in early This partnership will bring digital and information technology skills courses, free of charge to our employees, their families, and other local Nevadans. And Nevada is just the start. We will create similar digital skills development partnerships with Cisco in Argentina, Peru, and everywhere else we work. I invite you to read our 2016 Economic Contributions Report. If you have any feedback or suggestions for future reports, please contact me at responsiblemining@barrick.com. Peter Sinclair Chief Sustainability Officer

6 4 Barrick Gold Corporation 2016 Economic Contributions Report Our Approach to Social and Economic Development 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 our community and government partners expectations. 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. 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. Our Tax Management Policy sets out global standards and provides guidance on tax risk management. Everywhere we operate, we pay our fair share of taxes and royalties to all levels of government. 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 By doing this, we add value and create prosperity for our employees, our government and community partners, and our shareholders.

7 2016 Economic Contributions Report Barrick Gold Corporation 5 Construction Early Operation Operations Exploration Closure Value Chain Spend Exploration Construction Early Operation OperationS Closure Jobs Goods and Services Payments to Governments At Barrick Few people employed as most work is automated or highly technical. Highest number of people employed as there is increased activity around the mine site. Fewer people required than during construction. Employment stabilizes once production begins. Stable number of employees to support successful, efficient production. Employment slowly declines as production winds down and the mine closes. Goods and services spend is lowest during exploration due to minimal activity. Few taxes paid due to lack of production. Some payments related to exploration licenses and value added taxes. Goods and services spend is highest to support the mine s construction. Goods and services spend fluctuates depending on the mine s needs as production begins. Goods and services spend stabilizes as the supply chain has been established and normal production continues. Goods and services spend decreases as mine activity slows and eventually closes. Our Alturas project has developed a local employment plan. To date, the program at Alturas has seen local hiring increase from 8% to 30%, and is expected to reach 38% in Few taxes paid due to lack of production. Indirect taxes generated through purchases of goods and services. At Pueblo Viejo, 11,000 indirect jobs are estimated to have been created as a result of the mine s construction phase. In 2014, 2.2% of the national GDP growth was attributable to the Pueblo Viejo mine. Payments related to royalties on production. Generally lower corporate income tax paid as mine is still paying back capital invested in construction. The Pueblo Viejo mine has steadily increased the proportion of employees who are Dominican nationals - from 90% in 2012 to 95% in Significant taxes paid through production for example, royalties, and corporate income taxes. In Nevada, Barrick has partnered with Cisco and Great Basin College to bring free digital education to employees and local- Nevadans. This is a critical step in our digital transformation to ensure we are building a sustainable, skilled workforce to support our business in the future. Few taxes paid as mine is no longer producing. As part of Pierina s closure 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.

8 6 Barrick Gold Corporation 2016 Economic Contributions Report Taxes and Government Royalties Barrick s sustainability vision is clear: We intend to partner with host governments and communities to transform their natural resources into sustainable benefits and mutual prosperity. Paying a fair and appropriate share of taxes is essential to putting this into practice. The taxes and royalties we pay can be a significant source of revenue, helping to build infrastructure and fund social programs, driving both their economic growth and social development. To put these principles into action, Barrick has in place a Company-wide tax management policy. The policy sets out global standards and provides guidance on tax risk management. The aim is to ensure that Barrick is a low-risk company by having a high expectation of comprehensive technical tax analysis and factual due diligence on ongoing tax matters in order to mitigate the risks associated with local tax rules, as well as political and reputational risks. Barrick aspires to be viewed as a compliant taxpayer by the tax authorities in each and every jurisdiction in which we operate. Moreover, Barrick believes in proactively building relationships with the local tax authorities on the basis of transparency and open communications. Barrick also seeks to organize its tax affairs in the most tax-effective and tax-efficient manner possible within the law and in relation to Barrick s business operations and commercial objectives. taxes and Government royalties Argentina $ 108,590,000 Canada $ 10,680,000 Chile $ 5,380,000 Dominican Republic $ 394,390,000 Peru $ 118,450,000 United States $ 373,520,000 Zambia $ 89,780,000 Barrick Total $ 1,100,790,000 Transparency Barrick believes that revenue transparency can be a powerful tool against corruption and in support of ethical business conduct. Barrick was the first Canadian mining company to be a signatory to the Extractive Industries Transparency Initiative (EITI). Since 2006, we have voluntarily reported detailed country-by-country information, including environmental and social data, and the taxes and royalties we have paid to governments around the world. In 2014, Barrick joined with our industry peers, NGOs, and the Canadian government to advocate for and develop comprehensive legislation in Canada on revenue transparency in the extractive industry. The resulting legislation the Extractives Sector Transparency Measures Act (ESTMA) has entered into force. In this, Barrick s inaugural Economic Contributions Report, we report on the value we bring to the communities and countries where we operate. The Company has also published its inaugural ESTMA report (reproduced in Appendix A) detailing the payments made in 2016 to governments related to the commercial development of mining.

9 2016 Economic Contributions Report Barrick Gold Corporation 7 Relevant Mining Tax Regimes Country Corporate Tax Rate Government Royalty Other Taxes Argentina 35%. 3% of modified net smelter royalty. Canada 25% (15% federal + 10% Ontario manufacturing rate (otherwise 11.5%)). Chile 24% for 2016, 25% for 2017, and 27% for 2019 and subsequent years (distribution regime). Combined corporate and shareholder level tax remains at 35%. Dominican Republic Special Lease Agreement 25% (27% per general regime). Peru 29.5% for 2017 and subsequent years, changed from 28% for 2015/16. Gross revenue tax of 3.6% + 0.4% for mining. Ontario mining tax 8.5% (after application of minimum processing allowance). Mining Royalty ranges from 5% to 14% based on operating margin (operating results / gross sales); rate applied to operating income. 3.2% net smelter royalty (for gold and silver). As Lagunas Norte is subject to 2.51% NSR royalty, general mining royalty regime is not applicable. Net profit interest of 28.75% generally applied on cash flow which includes a deduction for income tax but interest expense is not deductible. Specific Tax on Mining, marginal rates ranging from 2% to 8.4% applicable on operating margin. United States Higher of 35% regular tax and 20% alternative minimum tax (federal only). Zambia 30% income tax rate. Mineral royalty rates are 4% for copper below $2.04/lb; 5% at copper prices between $2.04 and $2.72/lb; and 6% at a copper price of $2.72/lb and above, of gross metal value which is determined with reference to the monthly average London Metal Exchange cash price. Nevada net proceeds tax ranges from 2% to 5%. Barrick s Nevada operations are subject to the maximum 5% rate. Export tax of 10% on copper concentrates unless processed by Zambian smelters.

10 8 Barrick Gold Corporation 2016 Economic Contributions Report DOMINICAN REPUBLIC CASE STUDY / PUEBLO VIEJO The Pueblo Viejo mine in the Dominican Republic showcases the significant contributions mining can make to local and national economies. The mine is located approximately 100 kilometers northwest of the capital city of Santo Domingo, on a site that was previously operated by the Dominican government from While mining activity at the site dates back to the 1500s, mining has not traditionally been a critical part of the national economy of the Dominican Republic. In 2003, Placer Dome acquired the right to build and operate the Pueblo Viejo mine for a 25-year period and in 2006, Barrick acquired Placer Dome and is now the operator, holding a 60% interest, with Goldcorp owning the remaining 40% interest. Construction The initial investment required for the construction of the mine was $4 billion and represented the largest foreign investment in the country s history and the largest foreign direct investment ever made in the Caribbean. This investment, allocated for the 4-year construction phase ( ), represented around 5% of the country s GDP and, while under construction, the mine employed more than 10,000 people. Construction of the Pueblo Viejo mine created economic activity which led to direct improvements in the quality of life in communities near the mine site: between 2008 and 2014 the neighboring provinces of Sanchez Ramirez and Monseñor experienced the largest reduction in populations with very low incomes, the greatest increase in populations in mid- to high-incomes, and the fastest private income growth in the country. 1 Local Employment and Procurement Though while operating the mine requires a significantly smaller workforce than while under construction, the site has worked to make sure that as much of the workforce as possible is local. For example, Pueblo 1 Source: Analytica (2014)

11 2016 Economic Contributions Report Barrick Gold Corporation 9 Viejo has put in place an operator technical training program for potential employees. The program assesses an individual s skills and builds customized technical training which develops the right capabilities to operate equipment at the mine. Operators are able to continue accessing the training center throughout their career, thereby expanding their skill sets and progressing their training. As part of this program, Pueblo Viejo opened a new training center with equipment and simulators to help expedite the training process in the summer of Today, through this and other initiatives, nearly 95% of the 2,000 employees at Pueblo Viejo are Dominican, with more than 700 of these people from the local communities near the site. Pueblo Viejo strives to use goods and services from Dominican businesses in order to meet the mine s needs. While overall purchases have decreased since construction, the site has increased the percentage of spending on national suppliers from 36% in 2014 to 50% in And of the $250 million the site spent in the Dominican Republic in 2016, more than $19 million was spent on purchases from suppliers in the local communities near the site. Though a small portion of our total procurement, these local investments have made a significant impact in the community. Before Barrick arrived there were approximately 30 companies in the local chamber of commerce. Now there are over 350. Indirect benefits of the mine extend across the country. It has been estimated that for every position created at the mine, approximately six to eight indirect new jobs are created in surrounding businesses. In 2014, it was estimated that the mine generated more than $1.7 billion to the economy 57% directly, and 43% indirectly. Of this, 64% of the value remained in the Dominican Republic. During the same year, a 2.2% increase in the national GDP was attributed to the mine. 2 Taxes and Royalties Pueblo Viejo is one of the most significant sources of government revenue in the Dominican Republic. In June 2009, the Company signed a special lease agreement (SLA) with the Dominican government, establishing the tax and royalty structure under which the mine was to operate. In 2013, the government of the Dominican Republic expressed a desire to accelerate and increase the benefits that the Dominican Republic will derive from the Pueblo Viejo mine. The Company engaged in dialogue with representatives of the government in an effort to achieve a mutually-acceptable outcome. In the third quarter of 2013, the Company and the Dominican government finalized the second amendment to the SLA, which became effective on October 5, 2013, and has resulted in additional and accelerated tax revenues to the Dominican government. Since 2013, the Company has contributed more than $1.3 billion in taxes and royalties to the government of the Dominican Republic. Pueblo Viejo is now the country s largest tax payer, paying close to half of the national corporate tax income. Community investments Pueblo Viejo has initiated an innovative approach to supporting community development near the mine site. We have entered into a multi-party partnership with the municipal governments surrounding the mine (Fantino, Cotuí, and Maimón), the Dominican Federation of Municipalities, the Canadian Embassy, and a local NGO, to facilitate the development of Municipal Development Plans (MDPs). MDPs are created in a transparent and participatory process whereby communities set priorities for how to use mining revenue, as well as develop the capacity to manage and allocate that revenue in a transparent and democratic way. Since each community approved its respective MDP in local referendums, more than 600 municipal projects have been delivered across 48 municipalities and communities, benefiting an estimated 65,000 community members. 2 Source: Analytica (2014)

12 10 Barrick Gold Corporation 2016 Economic Contributions Report Local Purchases We believe that responsible economic development can and should improve the lives of stakeholders in the regions where we operate. When done responsibly, economic development is a contributor to a broad spectrum of positive impacts. Through local procurement, for example, the presence of our operations can directly help host communities and individuals enjoy the rights to work, to food and property, and to an adequate standard of living. We developed a Local Procurement Standard in The Standard was implemented in 2014 under the direction of the Community Relations group. In 2016, Barrick purchased more than $220M of goods and services from local businesses near our mine sites. To support these efforts, Barrick has also put in place a Local Content Framework. The development of the framework was a collaboration with all groups impacted by local content policies, including Supply Chain leads, Community Relations, Human Resource leads, mine General Managers, country Executive Directors, construction managers, and Project Directors. This framework outlines the steps needed to develop local employment and local procurement programs, referencing best international practice and embedding lessons learned from other Barrick sites. An important emphasis is on engaging with internal end users on the mine site, and making sure local content programs align with their needs and concerns. Purchases of Goods and Services 2016 $3,159,320,000 REGIONAL PURCHASES LOCAL PURCHASES INTERNATIONAL PURCHASES $ 456,020,000 $ 220,290,000 $ 470,770,000 Along with buying locally when possible, Barrick often works with regional government economic development committees, where they exist, to help our suppliers diversify so that the eventual closure of a mine will not impose undue hardships on local businesses. NATIONAL PURCHASES $2,012,240,000

13 2016 Economic Contributions Report Barrick Gold Corporation 11 Spotlight / Zambia As a way of promoting and marketing business enterprises in the area, the Lumwana mine facilitat-ed a local business fair in The fair brought together local small- and medium-sized enterprises, smallholder farmers, cooperative societies, micro-finance institutions, private agencies 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.

14 12 Barrick Gold Corporation 2016 Economic Contributions Report Local Employment A diverse workforce encourages creativity and innovation. We draw our workforce from many countries around the world, including each country where we operate, with the result that our global workforce is extremely diverse in terms of national and ethnic backgrounds. We are also committed to the localization of our workforce. To this end, Barrick requires sites to develop plans to guide local employment efforts over the life of the mine, and in 2016 the majority of our workforce was from the local areas near our operations. 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. Framework to further support the efforts of our Supply Chain 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. By bringing together women and men from diverse backgrounds and giving each person the opportunity to contribute his or her skills, experience, and perspectives, we believe we are able to deliver the best solutions to our challenges. Local Employment 2016 LOCAL 51% FOREIGN NATIONAL 3% NATIONAL 29% In addition to the Local Procurement and Contracting Standard, we have also developed a Local Content REGIONAL 17% Spotlight / Chile 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.

15 2016 Economic Contributions Report Barrick Gold Corporation 13 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 s community development programs are designed to fulfill social obligations, mitigate social impacts and social risks, and support community priorities. Our community development activities are also planned with closure in mind. 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). Community Investments 2016 EDUCATION $7,580,000 ENVIRONMENT $ 860,000 HEALTH $ 900,000 OTHER ACTIVITIES $2,330,000 INFRASTRUCTURE $2,650,000 ARTS, CULTURE & SPORTS $1,120,000 COMMUNITY ENGAGEMENT $1,430,000 ECONOMIC DEVELOPMENT $5,030,000 $21,900,000 Spotlight / Zambia At the Lumwana mine, the site identified an increase in trespass incidents into the mine site in Community members had been caught fishing from the water storage facility and tailings sediment facility. Beyond the significant safety risks inherent in pedestrians trespassing in an active mine site, the issue was also a source of community tension: activities undertaken to prevent trespassing were seen as denying community members a source of livelihood. In response, the mine site has developed a program to promote community fish farming to address the need for fish while avoiding the need to trespass. After being trained in fish farming, Barrick supported the construction of 12 demonstration ponds stocked with 3,000 fingerlings. It is expected the pilot will be ready for use in late 2017, after the fish have grown. If successful, two dams will be constructed to further expand fish farming in the community. Thus, this project will transform the community s ability to access fish, and tremendously reduce the rate of trespassing onto the mine site.

16 14 Barrick Gold Corporation 2016 Economic Contributions Report Barrick in Argentina 2016 At-A-Glance Employees 1,375 Contractors 2,609 Operations Veladero 3 Projects Pascua-Lama Veladero Gold Production 544,000 oz In 2015, the Veladero mine accounted for 25% of San Juan Province s GDP. 1 out of 10 families in San Juan Province make their living from the Veladero mine (15,000 direct and indirect jobs). 3 In April 2017, Barrick announced that it had entered into a strategic cooperation agreement with Shandong Gold Group Co., Ltd., the leading underground mining company in China, based in Jinan, Shandong province. As a first step in the new partnership, on June 30, 2017, Shandong Gold Mining Co., Ltd, the listed company of Shandong Gold Group, acquired 50 percent of Barrick s Veladero mine in San Juan province, Argentina. IN THE COMMUNITY / Veladero 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 partner-ing 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.

17 2016 Economic Contributions Report Barrick Gold Corporation 15 Economic Contributions to Argentina Taxes and Government Royalties $ 216,800,000 $ 52,930,000 $ 108,590,000 Income Taxes 129,940,000 5,320,000 64,100,000 Other Taxes 26,770,000 20,510,000 20,450,000 Royalties Paid to Governments 34,740,000 27,100,000 22,150,000 Sales & Value Added Tax 25,350,000 1,890,000 Payments to Employees $ 91,440,000 $ 109,830,000 $ 93,390,000 Employee Benefits 9,510, ,000 5,900,000 Employment Taxes 20,430,000 9,620,000 Payroll Taxes 18,700,000 10,240,000 15,360,000 Wages or Salaries 63,230,000 78,400,000 62,510,000 Community Investments $ 5,460,000 $ 1,920,000 $ 1,420,000 Arts, Culture & SpoRTs 50, ,000 Community Engagement 60,000 50,000 Economic Development 1,260, ,000 Education 70,000 80, ,000 Environment 330,000 10,000 Health 80,000 40,000 20,000 Other Activities 4,980,000 10, ,000 Infrastructure 410, ,000 Other Payments $ 2,420,000 $ 1,070,000 $ 1,030,000 Purchases of goods and services $ 815,990,000 $ 490,300,000 $ 356,630,000 Jachal and Iglesia Purchases 6,080, ,390, ,420,000 San Juan Province Purchases 164,700,000 Argentine Purchases 676,590, ,880, ,850,000 Total In-Country Expenditures $ 1,132,100,000 $ 656,050,000 $ 561,060,000 International Purchases 94,730,000 63,810,000 47,630,000 Total Economic Contribution $ 1,226,830,000 $ 719,860,000 $ 608,690,000 Employment in Argentina 2016 Argentina Veladero (including San Juan) Total Employees 1,375 1, Jachal and Iglesia 15% % 212 7% 1 San Juan Province 69% % % 6 Nationals 14% % % 6 Foreign nationals 2% 21 1% 19 13% 2 Lama Senior Site Management 2016 Veladero Lama Total Senior Management Employees 11 1 Jachal and Iglesia 36% 4 San Juan Province 45% 5 Nationals Foreign nationals 18% 2 100% 1

18 16 Barrick Gold Corporation 2016 Economic Contributions Report Barrick in Canada 2016 At-A-Glance Employees 747 Contractors 200 Operations Offices Hemlo Gold Production Hemlo Toronto Head Office AuTec (Vancouver) 235,000 oz The mining industry accounted for 19% of the value of Canadian goods exports in Barrick has contributed almost $2 billion to the Canadian economy since IN THE COMMUNITY / Hemlo Barrick s Hemlo mine has developed a partnership with the local hospital to provide stress testing for mine rescue and other personnel. The site provided financing to train a physician on the administration of the program, which not only aided the site by saving costs (previously site personnel had to travel a long distance to the city of Thunder Bay), but it has also supported the local health care system since the stress testing is available to all residents in the nearby community.

19 2016 Economic Contributions Report Barrick Gold Corporation 17 Economic Contributions to CANADA Taxes and Government Royalties $ 2,950,000 $ 8,550,000 $ 10,680,000 Income Taxes (140,000) 6,220,000 6,500,000 Other Taxes 3,090,000 2,330,000 4,180,000 Royalties Paid to Governments Sales & Value Added Tax Payments to Employees $ 234,310,000 $ 223,960,000 $ 387,070,000 Employee Benefits 27,140,000 20,680,000 33,780,000 Employment Taxes 3,180,000 5,810,000 Payroll Taxes 57,940,000 55,990,000 52,320,000 Wages or Salaries 149,230, ,110, ,160,000 Community Investments $ 5,100,000 $ 3,220,000 $ 1,620,000 Arts, Culture & Sports 540,000 70,000 Community Engagement 250, ,000 Economic Development 600, ,000 Education 440,000 90, ,000 Environment 30,000 90,000 10,000 Health 1,780, ,000 90,000 Other Activities 2,850, , ,000 Infrastructure Other Payments $ 17,690,000 $ 11,490,000 $ 19,330,000 Purchases of goods and services $ 420,800,000 $ 319,180,000 $ 325,700,000 Local Purchases 4 38,850, ,450, ,970,000 ONTARIO Purchases 255,850,000 Canadian Purchases 34,350,000 33,210,000 31,000,000 Total In-Country Expenditures $ 680,850,000 $ 566,400,000 $ 744,400,000 International Purchases 433,300, ,440,000 61,930,000 Total Economic Contribution $ 1,114,150,000 $ 669,840,000 $ 806,330,000 Employment in Canada 2016 Canada Hemlo Toronto AuTec Total Employees Local Communities 4 64% % 476 Host Province 28% 208 4% 22 73% % 37 Foreign Nationals 8% % 1 27% 55 16% 7 Senior Site Management 2016 HEMLO Total Senior Management Employees 12 Local Communities 4 83% 10 Ontario 17% 2 4 White River, Manitouwadge, Marathon, Pic Mobert First Nation, and Biigtigong Nishnaabeg.

20 18 Barrick Gold Corporation 2016 Economic Contributions Report Barrick in Chile 2016 At-A-Glance Employees 251 Contractors 1,352 Projects Alturas Cerro Casale (75%) 5 Pascua-Lama The mining sector accounts for more than 10% of Chile s GDP. Barrick s economic contributions to Chile dropped significantly following the suspension of the Pascua-Lama project. 5 In June 2017, Barrick complete the sale of 25 percent of the Cerro Casale project in Chile to Goldcorp Inc. ( Goldcorp ). Barrick and Goldcorp have also completed the formation of a new 50/50 joint venture to manage the project. IN THE COMMUNITY / Cerro Casale 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 Presidency of Chile created Prodemu to promote and develop the skills of Chilean women. To date, the part-nership has sup-ported 40 women from the town of Copiapo and the community of Tierra Amarilla. Approximately twothirds 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.

21 2016 Economic Contributions Report Barrick Gold Corporation 19 Economic Contributions to CHILE Taxes and Government Royalties $ 91,800,000 $ 21,900,000 $ 5,380,000 Income Taxes 51,640,000 19,680,000 Other Taxes 3,890, ,000 5,380,000 Royalties Paid to Governments Sales & Value Added Tax 36,270,000 1,340,000 Payments to Employees $ 166,470,000 $ 49,080,000 $ 40,060,000 Employee Benefits 56,180,000 10,370,000 3,650,000 Employment Taxes 150,000 Payroll Taxes 19,050,000 5,880,000 5,120,000 Wages or Salaries 91,240,000 32,830,000 31,140,000 Community Investments $ 4,100,000 $ 3,500,000 $ 130,000 Arts, Culture & SpoRTs Community Engagement 20,000 70,000 Economic Development 1,080,000 20,000 Education 2,500, ,000 30,000 Environment 160, ,000 Health 500, ,000 Other Activities 940,000 1,190,000 10,000 Infrastructure Other Payments $ 3,360,000 $ 170,000 $ Purchases of goods and services $ 628,310,000 $ 119,970,000 $ 77,430,000 Local Purchases 6 2,280, ,190,000 23,610,000 Regional Purchases 7 27,140,000 Chilean Purchases 337,120,000 96,360,000 48,010,000 Total In-Country Expenditures $ 894,040,000 $ 194,620,000 $ 123,000,000 International Purchases 64,290,000 28,600,000 1,230,000 Total Economic Contributions $ 958,330,000 $ 223,220,000 $ 124,230,000 Employment in CHILE 2016 Chile Pascua Santiago Alturas Cerro Casale ToTAl Employees Local Communities 6 14% 34 13% 12 28% 20 67% 2 Host Region 7 14% 35 8% 8 38% 27 Nationals 63% % 72 82% 67 27% 19 33% 1 Foreign Nationals 9% 23 3% 3 18% 15 7% 5 Senior Site Management 2016 Pascua Alturas Cerro Casale Total Senior Management Employees Local Communities 6 38% 3 67% 2 Host Region 7 Nationals 88% 7 50% 4 33% 1 Foreign Nationals 13% 1 13% 1 6 For Pascua, the communities of Alto del Carmen, Vallenar, La Higuera (La Higuera / El Trapiche / Punta Colorada) and the rest of Huasco Province. For Cerro Casale, the communities of Tierra Amarilla, Copiapo and Caldera. For Alturas, the communities of Vallecillo Rio Seco, Huanta, Chapilca, Varillar, Rivadavia, Vicuña, and Paihauno. 7 For Pascua and Cerro Casale, the region of Atacama. For Alturas, the region of Coquimbo.

22 20 Barrick Gold Corporation 2016 Economic Contributions Report Barrick in the Dominican Republic 2016 At-A-Glance Employees 2,083 Contractors 2,108 Operations Pueblo Viejo (60%) Pueblo Viejo Gold 700,000 oz (60%) Production Barrick increased its purchases from Dominican suppliers to 50% in 2016, up from 36% in Pueblo Viejo is one of the DR s largest exporters and the number one tax contributor, paying close to half of the national corporate tax. IN THE COMMUNITY / Pueblo Viejo 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.

23 2016 Economic Contributions Report Barrick Gold Corporation 21 Economic Contributions to the Dominican Republic Taxes and Government Royalties $ 309,720,000 $ 213,050,000 $ 394,390,000 Income Taxes 261,480, ,260, ,410,000 Other Taxes Royalties Paid to Governments 48,240,000 37,790,000 48,580,000 Sales & Value Added Tax 3,400,000 Payments to Employees $ 129,620,000 $ 117,390,000 $ 96,630,000 Employee Benefits 39,600,000 31,300,000 26,410,000 Employment Taxes 5,930,000 Payroll Taxes 16,040,000 8,920,000 17,610,000 Wages or Salaries 73,980,000 77,170,000 46,680,000 Community Investments $ 4,590,000 $ 1,540,000 $ 1,230,000 Arts, Culture & Sports 10,000 10,000 Community Engagement 50,000 80,000 Economic Development 1,020, ,000 Education 360, , ,000 Environment 180,000 Health 30,000 90,000 80,000 Other Activities 4,200,000 20,000 10,000 Infrastructure 710,000 Other Payments $ $ 10,000 $ Purchases of goods and services $ 248,500,000 $ 257,640,000 $ 250,530,000 Local Purchases 8 16,040,000 19,400,000 19,690,000 Dominican Purchases 232,460, ,240, ,840,000 Total In-Country Expenditures $ 692,430,000 $ 589,630,000 $ 742,780,000 International Purchases 449,940, ,450, ,070,000 Total Economic Contributions $ 1,142,370,000 $ 861,080,000 $ 992,850,000 Employment in the Dominican Republic 2016 Pueblo Viejo Total Employees 2,083 Local Communities 8 37% 764 Nationals 58% 1,214 Foreign Nationals 5% 105 Senior Site Management 2016 Pueblo Viejo Total Senior Management Employees 16 Local Communities 8 19% 3 Nationals 44% 7 Foreign Nationals 38% 6 8 Local communities are defined as communities located within 25km from the center of any Pueblo Viejo components with significant risks or impacts from, or relevance to, the operation. The site has prioritized 39 communities: 25 around the mine and 14 around the power facilities.

24 22 Barrick Gold Corporation 2016 Economic Contributions Report Barrick in Peru 2016 At-A-Glance Employees 1,295 Contractors 2,147 Operations Lagunas Norte (the Pierina mine is in closure) Lagunas Norte Gold 435,000 oz Production Since 2014, 99% of Barrick employees in Peru have been Peruvian. Since 2014, in Peru, Barrick has purchased an average of 96% of its goods and services from Peruvian businesses. IN THE COMMUNITY / Pierina In Peru, 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.

25 2016 Economic Contributions Report Barrick Gold Corporation 23 Economic Contributions to Peru Taxes and Government Royalties $ 202,440,000 $ 125,210,000 $ 118,460,000 Income Taxes 179,550, ,020, ,760,000 Other Taxes 130,000 60,000 40,000 Royalties Paid to Governments 19,760,000 17,030,000 14,190,000 Sales & Value Added Tax 3,010,000 1,100,000 1,480,000 Payments to Employees $ 94,040,000 $ 74,980,000 $ 79,600,000 Employee Benefits 8,990,000 31,070,000 35,920,000 Employment Taxes 50,000 60,000 Payroll Taxes 13,050,000 3,150,000 3,270,000 Wages or Salaries 42,000,000 40,720,000 40,360,000 Community Investments $ 13,500,000 $ 10,950,000 $ 6,660,000 Arts, Culture & Sports Community Engagement 770, ,000 Economic Development 1,500,000 3,110,000 Education 600,000 1,610, ,000 Environment 50,000 Health 240, ,000 30,000 Other Activities 12,660,000 4,840,000 1,030,000 Infrastructure 1,760,000 1,630,000 Other Payments $ 1,690,000 $ 500,000 $ Purchases of goods and services $ 345,120,000 $ 286,790,000 $ 296,840,000 Local Purchases 11 9,390,000 12,010,000 14,120,000 Peruvian Purchases 335,730, ,780, ,720,000 Total In-Country Expenditure $ 656,770,000 $ 498,430,000 $ 501,560,000 International Purchases 9,730,000 20,980,000 8,960,000 Total Economic Contributions $ 666,500,000 $ 519,410,000 $ 510,520,000 Employment in Peru 2016 Peru Lagunas Norte Pierina Lima Total Employees 1, Local Communities 11 11% % 108 7% 29 Host Region 12 27% % % 116 PERUVIANS 62% % % % 81 Foreign Nationals 0.39% % % 1 2% 2 Senior Site Management 2016 Lagunas Norte Pierina Total Senior Management Employees Local Communities 11 Host Region 12 8% 1 PERUVIANS 83% 10 90% 9 Foreign Nationals 8% 1 10% 1 11 For Pierina, includes 11 population centers and rural communities (Huanja, Mataquita; Atupa, Antahurán, San Miguel de Tinyash, Mareniyoc and Chaquecyaco, San Isidro de Pacollón, Ramón Castilla, Miguel Grau de Shecta and Andres Avelino Cáceres de Cuncashc). For Lagunas Norte, includes 14 population centers (El Sauco, Chuyugual, Cushuro, Pampa Verde, Corral Grande, Los Loros, Totoras, San Pedro, Yanivilca, La Victoria, Santos Genoveva, Canibamba Alto, Quesquenda and Quiruvilca). 12 For Pierina, includes the rest of the district of Jangas and Independencia, the Province of Huaraz, and the Region of Ancash. For Lagunas Norte,includes the rest of the districts of Quiruvilca, Sanagorán and Usquil; the Provinces of Santiago de Chuco, Sanchez Carrión and Otuzco; and the Region of La Libertad.

26 24 Barrick Gold Corporation 2016 Economic Contributions Report Barrick in the United States 2016 At-A-Glance Employees 3,761 Contractors 675 Operations Cortez 13 Goldstrike 13 Turquoise Ridge Golden Sunlight Projects Goldrush Gold Production Cortez 1,059,000 oz Goldstrike 1,096,000 oz Turquoise Ridge (75%) 266,000 oz Golden Sunlight 34,000 oz Barrick purchases goods and services from more than 500 Nevada-based businesses. Barrick has contributed an average of $2.6 billion each year to the American economy since In February 2017, Barrick announced a process to unify Goldstrike and Cortez into a single operating business known as Barrick Nevada. The integration will be conducted in phases, and will eventually include the Turquoise Ridge mine. IN THE COMMUNITY / Elko 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.

27 2016 Economic Contributions Report Barrick Gold Corporation 25 Economic Contributions to the United States Taxes and Government Royalties $ 115,330,000 $ 174,450,000 $ 373,540,000 Income Taxes 56,910, ,080, ,180,000 Other Taxes 12,430,000 23,280, ,150,000 Royalties Paid to Governments Sales & Value Added Tax 45,990,000 36,090,000 42,210,000 Payments to Employees $ 784,670,000 $ 829,720,000 $ 616,980,000 Employee Benefits 255,110, ,690, ,900,000 Employment Taxes 32,970,000 27,650,000 Payroll Taxes 95,340,000 92,090,000 91,540,000 Wages or Salaries 434,220, ,970, ,890,000 Community Investments $ 14,750,000 $ 12,310,000 $ 9,680,000 Arts, Culture & Sports 1,710, ,000 Community Engagement 1,920, ,000 Economic Development 670, ,000 Education 4,910,000 5,170,000 5,860,000 Environment 670,000 1,360, ,000 Health 1,870, , ,000 Other Activities 7,300, , ,000 Infrastructure 90,000 Other Payments $ 68,160,000 $ 56,370,000 $ 56,550,000 Purchases of goods and services $ 2,286,440,000 $ 1,635,300,000 $ 1,109,370,000 State Purchases 690,880, ,430, ,640,000 National Purchases 1,595,560,000 1,224,870, ,730,000 Total In-Country Expenditures $ 3,269,350,000 $ 2,708,140,000 $ 2,166,100,000 International Purchases 72,040,000 32,520,000 36,780,000 Total Economic Contributions $ 3,341,390,000 $ 2,740,660,000 $ 2,202,880,000 Employment in the United States 2016 United States Goldstrike Cortez Turquoise Ridge Offices Golden Sunlight Total Employees 3,761 1,641 1, State Residents 91% 3,415 95% 1,555 94% 1,190 98% % % 45 Nationals 8% 302 4% 72 6% 72 2% 11 51% 147 Foreign Nationals 1% 44 1% 14 0% 6 0% 1 28% 23 Senior Site Management 2016 Goldstrike Cortez Turquoise Ridge Golden Sunlight Total Senior Management Employees State Residents 90% 9 90% 9 100% 9 100% 8 Foreign Nationals 10% 1 10% 1

28 26 Barrick Gold Corporation 2016 Economic Contributions Report Barrick in Zambia 2016 At-A-Glance Employees 1,693 Contractors 2,087 Operations Lumwana Lumwana Copper 271 million pounds Production Barrick has spent an average of $330 million each year at Zambian businesses since In 2016, 50% of senior management at Lumwana was Zambian, up from 38% in IN THE COMMUNITY / Lumwana 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.

29 2016 Economic Contributions Report Barrick Gold Corporation 27 Economic Contributions to Zambia Taxes and Government Royalties $ 40,840,000 $ 140,850,000 $ 89,780,000 Income Taxes (170,000) 8,120,000 5,370,000 Other Taxes 600, ,000 1,210,000 Royalties Paid to Governments 38,880,000 97,670,000 49,110,000 Sales & Value Added Tax 1,530,000 34,210,000 34,090,000 Payments to Employees $ 118,110,000 $ 83,220,000 $ 75,250,000 Employee Benefits 12,120,000 3,980,000 8,090,000 Payroll Taxes 23,920,000 17,550,000 14,790,000 Wages or Salaries 82,070,000 61,690,000 52,370,000 Community Investments $ 1,360,000 $ 1,080,000 $ 1,160,000 Arts, Culture & Sports 70,000 Community Engagement 10, ,000 Economic Development 580, ,000 Education 420, , ,000 Environment Health 70,000 20,000 50,000 Other Activities 870,000 10, ,000 Infrastructure 100,000 10,000 Other Payments $ $ 1,610,000 $ 1,060,000 Purchases of Goods and Services $ 388,180,000 $ 329,150,000 $ 272,050,000 LoCAl PURCHASES 14 4,630,000 6,500,000 52,730,000 north WEsTERn PRovinCE PURCHASES 8,330,000 Zambian Purchases 381,680, ,420, ,090,000 Total In-Country Expenditures $ 548,490,000 $ 555,900,000 $ 439,300,000 International Purchases 66,860,000 48,470,000 64,170,000 Total Economic Contributions $ 615,350,000 $ 604,370,000 $ 503,470,000 Employment in Zambia LUMWANA Total Employees 1,693 Local Communities 14 40% 670 North Western Province 22% 370 Zambians 35% 593 Foreign Nationals 4% 60 Senior Site Management 2016 LUMWANA Total Senior Management Employees 10 Zambians 50% 5 Foreign Nationals 50% 5 14 Chiefdoms of Mukumbi, Mumena or Matebo.