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A BARRICK GOLD REPORT ON RESPONSIBLE MINING | BEYOND BORDERS70%Local goodsand servicesabg revenue retained in tanzania (2009)40%Local salaries20%30%Imported goodsand servicesTaxes, royaltiesand communities10%KEEPING MINING REVENUES IN-COUNTRYABG has invested over $1.6 billion in capital in Tanzania to date.In fact, the vast majority of revenue generated from Barrick’soperations in Tanzania is retained in the country. In 2009, 60 percent was paid out to local employees as well as in payments forlocal goods and services. Another 10 per cent was paid in taxesand royalties and was invested to benefit communities. ABGspent only about 30 per cent on imported goods and services fromoutside Tanzania. Thus, out of the total revenue ABG generated in2009, roughly 70 per cent was retained in the country.Overall, more than 46 per cent of the value of mined mineralsgenerated by the mining industry is kept in Tanzania, paidout through taxation, government contributions, employmentsalaries, training, infrastructure, procurement within Tanzania,and corporate social investments. The total contributed is nearly$3 billion thus far. With mineral extraction set to ramp up in thenext few years, that number will increase.CREATING NEW JOBS IN MININGLarge-scale mining employs nearly 15,000 Tanzanians, morethan the total of those employed in all the utility sectorscombined. Barrick alone has 4,200 employees in its mines andhires an additional 5,000 contractors.Indirect employment is even greater. It is generally believedthat for every job in the mining sector, three indirect jobsare created. Approximately 50,000 Tanzanians are currentlyemployed in jobs related to mining. Barrick’s local procurementpolicy ensures that, whenever possible, all supplies are sourcedat a local or regional level. Although large-scale supplies arenot always available for purchase in developing countries suchas Tanzania, Barrick has created a local supplier developmentprogram to increase the capacity of local businesses.Since July 2010, Nyemo Chiwaligo has been working withBarrick to supply a steady stream of recruits for work at theBulyanhulu mine in Tanzania’s Lake Zone region. Chiwaligo’scompany, IBUKA, is creating an inventory of skills available inthe local labour market and matching it to Barrick’s labour needs.Through its partnership with Barrick, the company is creatingemployment opportunities for local residents. IBUKA itself ispoised to earn upwards of $50,000 annually for its work. This is asignificant amount in a country where the average income hovers14at around $1 per day and finding reliable, long-term employmentcan be a challenge. Chiwaligo says his company is now planningfor the future.“We have a plan to introduce sustainable development projects,particularly income-earning projects, that will help membersof the society change their economic welfare,” he said. “We willalso train board members to acquire leadership and managementskills in areas of people management and recruitment.”INVESTING IN EMPLOYEE TRAININGPerhaps one of the most significantoutcomes of a strong mining sector is theability for Tanzanians to carve out solidcareers in a constantly evolving industry.The mining industry has spent more than$35 million to train local employees towork in the sector. In 2009 alone, AfricanBarrick Gold invested $1 million in skillsGODLIVER MANUMBUdevelopment.Take, for example, Godliver Manumbu. She began her careerat Barrick as a personal assistant to the general manager at thelocal mining office in Buzwagi. After a year, she was appointedas the mine team-building co-ordinator, focused on employeebusiness understanding and conflict management. During thistime, Manumbu continued her education, receiving a Bachelorof Arts in sociology with a major in human psychology.“I was promoted to take up the role of Community RelationsManager,” Manumbu said. For two years, she worked in therole until she was promoted to Community Relations systemsco-ordinator, a job she currently occupies.For Shufaa Lukoo the story is much the same. She was workingin sales at a local hotel when she heard about a job opening withBarrick. She started as a document controller and received twopromotions in just two years. Since becoming a quality systemsmanager, Lukoo has not only increased her take-home pay, buthas also received training opportunities.“While with Barrick, I had an opportunity to gain my Mastersin Business Administration,” she said.Godliver and Shufaa represent just two of the many successstories made possible by the presence of mining companies suchas Barrick.March 2011

A BARRICK GOLD REPORT ON RESPONSIBLE MINING | BEYOND BORDERSEACH YEAR BARRICK SPONSORS 20 SHOSHONE TEACHERS TO TRAVEL TO THEUNIVERSITY OF UTAH FOR A TEACHER TRAINING WORKSHOP.“This is my life’s work,” the 22-year old University of Oregonstudent said. “I believe that we have a really high chance ofbringing this language back.”The once-widespread language is now in danger of completelydying out. Experts put the number of fluent Shoshone speakersat less than 4,000 across the United States – perhaps evenless. The vast majority of these speakers are elders and mostonly know the language in its original oral form. Passing thelanguage along to subsequent generations has proved to be achallenge.The preservation of the Shoshone language and the culturalsignificance it holds for the Shoshone people is the focus of aBarrick-sponsored program at the University of Utah.Since 2007, Barrick has provided annual funding for theShoshone Language Project at the University’s Center forAmerican Indian Languages. The aim of the project is to createlearning and teaching tools for the disappearing language. Itbuilds upon the work of Wick R. Miller, an anthropologicallinguist who collected recordings of more than 500 narrativesand songs by fluent Shoshone speakers during the late 1960s andearly 1970s.“The original funding from Barrick allowed us to completethe transcription, translation and a first proofreading of thiscollection,” said Marianna Di Paolo, associate professor in thedepartment of linguistics and administrator of the program.“Completing this work was a very important milestone in thepreservation of the traditional oral culture of the Shoshonepeople.”Through Barrick’s continued support, the project has grownto include a genealogy database containing family relationshipinformation for the speakers interviewed by Miller and anongoing electronic dictionary which already includes more than30,000 words translated from Shoshone to English.“The basic work on preserving and disseminating theWick R. Miller Collection materials has spun off into variousactivities, including claymation films, children’s storybooks,teacher training workshops, and many others,” Di Paolo said.Bill Upton, Barrick’s director of Environment for BarrickNorth America, has been administrating the program on the16March 2011

BEYOND BORDERS | A BARRICK GOLD REPORT ON RESPONSIBLE MININGIN 2009, 10 STUDENTS PARTICIPATED IN THE SHOSHONE YOUTH LANGUAGEAND APPRENTICESHIP PROGRAM AT THE UNIVERSITY OF UTAH. BESIDESGETTING A CHANCE TO EXPERIENCE POST-SECONDARY EDUCATION, THESESTUDENTS WORKED ON PROJECTS DESIGNED TO REVIVE THE DECLININGSHOSHONE LANGUAGE FOR THEIR COMMUNITIES.ABOVE: STEPHANIE TABIBIANAND OTHER YOUNG SHOSHONESPEAKERS ARE DEDICATED TOPRESERVING THEIR LANGUAGEWITH SUPPORT FROM BARRICK,WHICH HAS SPONSORED ASHOSHONE LANGUAGE PROGRAMAT THE UNIVERSITY OF UTAHSINCE 2007. LEFT: HIGH SCHOOLSTUDENTS IN THE SHOSHONELANGUAGE AND CULTURE PROGRAMPRODUCE TRADITIONAL ART.BRIAN MASON, ENVIRONMENTALSUPERINTENDENT AT RUBY HILL, HASASSISTED MEMBERS OF HIS COMMUNITY(DUCK VALLEY) IN PARTICIPATING IN THELANGUAGE PROGRAM.company’s behalf since the beginning. “We have had nothingbut positive feedback from communities about this program,” hesaid. “It has been very successful.”While the program receives support from the University andgovernment grants, Barrick has been the sole corporate sponsorof the initiative, donating more than $700,000 to date.One of the most exciting aspects of the program is theShoshone Youth Language and Apprenticeship Program, heldat the university each summer. High school students fromvarious Shoshone tribes travel to Salt Lake City for a six-weekpaid internship. They live in dormitories, study the Shoshonelanguage and work on preservation projects.Two years ago, Tabibian was one of the participants. Theprogram helped her along her path towards language studiesat the University of Oregon and fostered a sense of hope thatShoshone can be revived. She is returning this summer to workas a research assistant.“When I first started learning Shoshone, my grandpa wasskeptical that the language could be learned in a few hours aday,” she said. “But he has been impressed.” Tabibian says hergrandfather – a fluent Shoshone speaker – is now teaching himselfhow to read and write in the language using the tools createdby the program. “The elders find the idea of language revivalvery exciting,” she said.To help along those elders who want to pass their languageskills on to younger generations, Di Paolo and her team at theuniversity have created teaching curriculums and hold annualteacher workshops. The next one is planned for April, 2011.Barrick will sponsor travel and accommodation costs for 20Shoshone teachers to attend the workshop. Di Paolo says thatgetting young people to speak the language again is a big task,but important to the identity of the community. “I can see thatthe Shoshone people want to keep their language alive and Iwant to help them,” she said.For Tabibian, knowing the language of her ancestors speaksto the core of her identity as a member of her tribe. “It providesyou with an understanding as to why songs are sung and whatmeaning each song has,” she said. “It is part of what makes youwho you are.”March 201117

Barrickhelps farmers see greenin fields of red18March 2011

SUN-DRIED TOMATOES NOWBIG BUSINESS FOR ARGENTINA FARMING COMMUNITIESJose Seeman shakes hishead as he walks throughacres of dried-out onionfields in his hometown ofJachal, in the foothills of Argentina’s Andes Mountains. “This is a communityof about 20,000 residents and we’ve always mainly relied on onion production,”says Seeman, an experienced local farmer. “But that’s a practice whose time hasrun out. It has no future.”Long considered the onion capital of Argentina, Jachal’s history of single-cropfarming led to soil degradation and over-saturation of the commercial market.Low crop yields meant that farmers in this tight-knit community, located nearBarrick’s Veladero mine and the company’s Pascua-Lama project, lacked a sustainableincome. A low standard of living also meant no capital to invest backinto their business.“With onions, you get farther and farther behind,” said Nelson Jofre, anotherlocal farmer. “Ten years go by and maybe just one year is a good one, so it’s notprofitable anymore. It’s bad. Really bad.”Barrick helped to launch a sun-dried tomato exporting initiative to helpJachal farmers in Argentina develop a sustainable livelihood and expand theirproduction and markets. In 2005, an agreement was signed between Barrickand the Jachal Farmers Association to assist local farmers to diversify theircrops, improve productivity and sell their produce on the international marketat competitive prices. The government of San Juan province was also a signatoryto the agreement, which was warmly welcomed by the struggling farmingcommunity.Barrick also upgraded existing irrigation systems, which improved soilconditions and crop yields for farmers in both Jachal and the neighbouringIglesia community.March 2011 19

A BARRICK GOLD REPORT ON RESPONSIBLE MINING | BEYOND BORDERSIn the year following the agreement, a group of 10 local farmersagreed to participate in a small pilot project to see how tomatoeswould take to the climate. Barrick offered training, technicalsupport and advice to these farmers and organized instructionalvisits to successful large-scale farms in other parts of San Juanprovince. A total of 10 hectares were sown that year. The harvestwas processed at a drying facility owned by Prune SA in San Juan,where the fresh tomatoes were turned into the popular sun-driedproduct.The results from the first year were impressive, yielding ahealthy tomato crop and providing the farmers with a sustainableincome for the first time in decades. In the subsequent growingseason, the cultivation area was doubled to 20 hectares and resultswere equally promising.“We found that the international market for sun-dried tomatoeswas growing and the product produced in San Juan provincewas of excellent quality,” said Julio Claudeville, Corporate Affairsmanager for Barrick Argentina. “That made the producers enthusiasticabout the crop and gave them confidence in continuing ona larger scale.”In 2009, Barrick worked with local partners to construct atomato drying facility in Jachal to serve the home-grown industry.That year, more farmers expressed an interest in starting tomatooperations. In all, 23 producers took part with 50 hectares of landsown in Jachal and Iglesia. The industry is primed to grow witheach coming year.“Tomato production has generated a lot of interest,” saidAlberto Ray, a local farmer hired to manage the new drying plantin Jachal. “A lot of people have become involved and it’s turnedinto a good business.”What began with a batch of modest tomatoes baking in theblazing sun has turned into big business in San Juan provinceand prosperity for local farming families. Today, both Jachal andIglesia are becoming world-renowned for their production ofsun-dried tomatoes and local farmers are reaping the economicbenefits.“I started two years ago and this season I’m going to doublethe amount I planted last year, just because the results are sogood,” said Marcelo Balmaceda, a local tomato producer. Nearby,Marcelo Tejada is also seeing excellent results with his tomatocrops. “Barrick has been helping us,” Tejada said. “They’ve alwayshelped us with the supplies we need. They’ve been providing uswith lots of things that have been making all this possible.”Since the start of the initiative in 2007, Barrick has investednearly $600,000 to help local farmers get their operations offthe ground. The company has been involved in every step of theproject’s development, hiring professional agrologists to providetraining and quality control to producers keen to be part of theburgeoning industry. As part of the company’s contribution,quality seedlings appropriate for the climate have also beenprovided to ensure a high rate of success.The success of the sun-dried tomatoes produced by farmers inSan Juan province is having an international impact. In Brazil,where sun-dried tomatoes are becoming a mainstay of the diet,importers are reportedly thrilled with the high-quality product.“The Argentine sun-dried tomato, and especially this brand ElPlata from San Juan, is one of the finest you’ll find in the market,”said Hermes Verniano, a representative of the Fornello companyin Brazil. “It has a nice texture, good consistency and a flavour thatmakes it stand out from the dried tomatoes of other countries.”Since the product began appearing in Brazil, its sales havegrown year after year, providing the farmers in San Juan with atidy profit and an increased demand for their produce.The eastern slopes of the Central Andes Mountains are nowablaze with tomato plants and a renewed economic optimism forthe future of agriculture. “This is opening up a whole new futurefor us,” said farmer Jose Seeman. “Giving us a chance to diversifyour farms.”20March 2011

BEYOND BORDERS | A BARRICK GOLD REPORT ON RESPONSIBLE MININGAustralia’s Super Pit mineengages communitywith “open door” approachWidely known across Australia as “the Super Pit”,KCGM is an iconic gold mine that brings together115 years of mining history in the middle of“The Golden Mile”, once reputed to be the richestsquare mile on earth.The mine is adjacent to the Outback city ofKalgoorlie in Western Australia, which hasbeen sustained by the mining industry for overa century. Today, the KCGM operation is jointlyowned by Barrick Gold and Newmont and is thelargest open-pit gold mine in Australia.Despite a long history of mining in the area,KCGM has no shortage of challenges when itcomes to community relations. The mine and thecommunity are literally neighbours. Subdivisionsrun along the mining lease boundary on thewestern side and a major road hugs the edge ofthe open pit. When your neighbour is runningmassive haul trucks 24 hours a day, moving 89million tons of material per year, and blastingrock on a routine schedule, you may have to dealwith some concerns.KCGM employs an “open door” policy thatencourages all community members to bringforward their issues or concerns. The minehas embraced its role as a vital member of theKalgoorlie community, and has stationed itsCommunity Relations team in the town itself tofacilitate this open-door approach.The hub of this activity is the Super Pit Shop,an innovative space that combines communityrelations activities, multi-media educationalmaterial, and tourism. Opened in 2005, the shopwelcomes more than 28,000 residents and touristsevery year.“The shop is a place where everyone is welcometo learn more about KCGM, ask questions andeven raise concerns,” says Holly Phillips, actingCommunity Relations manager. “We have aMarch 201121

A BARRICK GOLD REPORT ON RESPONSIBLE MINING | BEYOND BORDERSBELOW: FIREWORKS LIGHT THE SKY OVER THE OPEN PIT AS KCGM CELEBRATESITS 20TH ANNIVERSARY WITH A HUGE COMMUNITY PARTY. RIGHT: BARRICKCEO AARON REGENT (LEFT) VISITS THE SUPER PIT SHOP, A PLACE FOR THECOMMUNITY TO GET INFORMATION AND RAISE CONCERNS. BOTTOM RIGHT: KCGMEMPLOYEES HOST A BBQ CELEBRATION WITH THE COMMUNITY, UNDERSCORINGTHE MINE’S CLOSE RELATIONSHIP WITH ITS NEIGHBOURS.very open approach and welcome the chance to speak withcommunity members on a regular basis.”Because of its location adjacent to the community, KCGMfields concerns about blasting activity, noise, dust and airemissions. The mine has systems and protocols in place tominimize the impact on the community. Where problems dooccur, Phillips and her team facilitate an official grievancemechanism for people who wish to escalate their concerns.In addition to the community office, the mine also operates a24-hour telephone hotline that local residents can use to reporttheir concerns or ask questions.Beyond community engagement, the Super Pit Shop is also amagnet for tourists, who come to Kalgoorlie to learn more aboutits gold mining history and to see the Super Pit itself. Describedby one local newspaper as Kalgoorlie’s answer to the Eiffel Tower,the Super Pit is a matter of local pride.The shop sells a variety of souvenirs, and reinvests the profitsin community sponsorships and various programs, allowingthe town to further benefit from tourism. Items include SuperPit merchandise, books, model CAT trucks and the company’svery own mascot – KC Bear. A popular but expensive choice isgold splatters from the mine’s processing facility, created during22March 2011

BEYOND BORDERS | A BARRICK GOLD REPORT ON RESPONSIBLE MININGthe gold-pouring process. The shop sells these rare Golden Milemementoes with a certificate of authenticity.The shop also runs a tour of the mine on the third Sunday ofevery month. Although just one part of its community relationsapproach, the Super Pit Shop is helping KCGM maintain apositive relationship with the local community, embedding themine in the town itself.LOCAL FOCUS MEANS BIG BENEFITS FOR KALGOORLIEKCGM spends more than $260 million a year with localsuppliers in the Goldfields region. The mine is a significantuser of local business, and 36 per cent of its suppliers have alocal office in Kalgoorlie. The mine’s economic impact is huge.Every year, KCGM injects $82 million in salaries and benefitsinto the community, plus $22 million in taxes and royalties togovernment.The Super Pit is also a residential operation, which meansthat 99 per cent of its employees live in the community theywork in. Not only that, all staff and contractors are encouragedto participate in KCGM’s volunteer program. In 2010 alone,mine volunteers spent more than 720 hours volunteering in theKalgoorlie area.While maintaining economic viability is vital, the Super Pitoperations need the support of the local community to reach fullpotential. KCGM actively employs measures to ensure that theoperations are environmentally responsible and that factorssuch as blasting activity, noise, dust, saline water seepage andsulphur/metal emissions are carefully monitored and reduced,so as not to leave a footprint that is detrimental to both theenvironment and the local community.KCGM’s goal is to continue to build a good relationship withthe community through its Consider, Communicate, Contributeprinciples. To expand on this, the key aims are to:• Consider all cultural, social and heritage issues when planningany activity• Consider buying local first• Commit to employing local residents or those willing torelocate• Communicate openly and effectively with both employees andthe community• Listen to the community about its concerns and expectations• Contribute positively through sponsorship, support andparticipation• Encourage employees through training and resources toimprove community relationsMarch 201123

A BARRICK GOLD REPORT ON RESPONSIBLE MINING | BEYOND BORDERSPoverty levels fall as economic activity surges24March 2011

BEYOND BORDERS | A BARRICK GOLD REPORT ON RESPONSIBLE MININGin mining regions of Argentina and PeruBARRICK’S PIERINA MINE IN PERU BEGAN PRODUCTION IN1998. A NEW STUDY SHOWS PIERINA HAS HAD A PROFOUNDLYPOSITIVE IMPACT ON LOCAL COMMUNITIES, WHERE POVERTYHAS DECLINED SIGNIFICANTLY SINCE THE MINE OPENED, ANDLITERACY RATES ARE ON THE RISE. POVERTY RATES IN THEDISTRICT OF JANGAS, LOCATED CLOSEST TO THE MINE, HAVEPLUMMETED FROM 80 PER CENT IN 1993 TO 31 PER CENT BY2007, SITTING WELL BELOW THE NATIONAL AVERAGE.March 201125

VELADERO MINE JUMP-STARTS DEVELOPMENTPerched high in the southern Andes Mountains of Argentinasits Barrick’s Veladero mine. The prolific gold and silver mine islocated some 375 kilometres northwest of the city of San Juan.Since construction of Veladero began in 2003, the mine hasfostered an economic revival of sorts. The province has seen anincrease in jobs and new investment, and a marked decline inthe poverty rate.The mine’s positive impact is documented in a recent study bythe Chilean consultancy firm Consultora Malthus. “Veladero hascreated a more stable and diversified economy in the provinceof San Juan,” the study noted. “Positive employment trends,sectoral activity and growth in local tax revenues are all clearsignals of Veladero’s direct and indirect impact.”LOCAL VALLENAR BUSINESSMAN ABDÓN BARAQUI IN HISSUPERMARKET IN ARGENTINA.SAN JUAN’S ECONOMIC OUTLOOK ON THE RISEBarrick’s construction of the Veladero mine came along at anideal time. At the start of the decade, Argentina’s economyfell into a devastating recession. The country’s gross domesticproduct plummeted from $269 billion in 2001 to $102 billion justone year later.Unemployment hit 21.5 per cent and direct foreign investment(DFI) slumped with the rest of the economy. Foreign companies,which had pumped $8 billion into Argentina annually from 1992to 1999, cut their spending to just under $1.7 billion by 2003.Largely dependent on agriculture, forestry and other primaryindustries, San Juan province suffered the effects of the recession,along with the rest of the country. Provincial unemploymenthovered at 16 per cent in 2001. Barrick began construction ofVeladero in 2003. That year, the company’s capital spendingprogram amounted to 36 per cent of total direct foreign investmentinto the country. The mine created nearly 1,000 direct jobs,supporting another 5,000 indirect jobs across the province. Jobopportunities and investment created by the mine helped bringthe provincial unemployment rate down to 6.9 per cent by 2008.26March 2011

THE CONSULTORA MALTHUS STUDY REPORTED THAT BARRICK HAS INVESTEDAPPROXIMATELY $850 MILLION BETWEEN 1996 AND 2009 TO BUILD AND OPERATE THEPIERINA MINE IN PERU, WHICH DIRECTLY EMPLOYS 500 PEOPLE AT THE MINE SITE ANDANOTHER 1,900 INDIRECTLY THROUGH THE PURCHASE OF LOCALLY PRODUCED GOODSAND SERVICES.“Veladero was a clear sign of faith in San Juan province,in the overall Argentine economy, in the policies of thenational government after the crisis years of 2002 to 2003,” theConsultora Malthus report concluded.The report estimates that Veladero, alone, accounts for 23per cent of the province’s economy and has led to a 38 per centincrease in regional employment.“One of the most significant effects of the mine is that it hasdiversified the economy,” the study stated. “It has generated newdemands and contributed to stable, long-term growth.”Social conditions throughout the province have alsoimproved. The number of people living in poverty declined from53 per cent in 2003 to 17 per cent in 2008. The infant mortalityrate also fell from 20 deaths per 1,000 children to 13.NEW BUSINESSES SPRING UPFurther signs of a robust and growing economy are also reflectedin the emergence of thriving new businesses. Alejandro MontesGraffigna is one of many local success stories. He operated asmall TV and video production company in the city of San Juanprior to the construction of the mine. Today, he is producingsafety and training material for Barrick and has been able togrow his business. “We are a direct supplier to Barrick,” MontesGraffigna said. “We have grown from three employees to seven,and we intend to keep growing.”Similar success stories abound across the province. NoeliaMunoz is a 34-year old single mother of five. She lives in Tudcumin the district of Iglesia, about 180 kilometres from the mine.Prior to the opening of the mine, she sold eggs and bread in thelocal market, which supplies her village of 700 people. Whenthe mine began operating, Munoz and three other local womenformed a company called Sabor a Mi (My Taste) and now providesboxed lunches for mine workers. Their company employsfour other people. “Our company was born because of Barrick,”March 2011 27

WOMEN FROM THE PIERINA COMMUNITY SELL LOCALLY PRODUCEDMARMALADES AND CAKES AT A FAIR TO BOOST FAMILY INCOMES.TRAINING SESSIONS FOR FARMERS IN PERU ARE GUIDED BY “YACHACHIQS”,A QUECHUA WORD THAT MEANS “THE ONE WHO KNOWS AND TRANSMITSKNOWLEDGE.” THE YACHACHIQS ARE FARMERS THEMSELVES, TEACHING FAMILIESHOW TO APPLY IMPROVED AGRICULTURAL METHODS.Munoz said. She says the entire community has benefitted fromthe presence of the mine, and points to infrastructure as oneexample. “Thanks to the company, today there are roads in thistown.”Other local residents who run businesses, from sign paintingshops to audio-visual production houses, say they have alsobeen helped by having a thriving mining operation in theregion. “Our company was created and started up because ofBarrick,” says Pedro Ponte, a 33-year old entrepreneur. He liveswith his wife and two children in the city of San Juan. “Weprovide transportation to the workers going up to the mine,” hesaid. “We now have approximately 220 employees.”THE PIERINA MINE IN PERU TRANSFORMS COMMUNITIESArgentina isn’t the only South American country getting aneconomic boost from Barrick’s mines. A second ConsultoraMalthus report also assessed the economic impact of Barrick’sPierina mine, which is located on the Peruvian side of the Andes.The study concluded that by almost any yardstick – beit literacy rates, levels of poverty, households with potabledrinking water, or even colour TV – life has markedly improvedfor residents of the surrounding districts of Independencia andJangas since the Pierina mine opened.Pierina is situated about 10 kilometres northwest of the cityof Huaraz in the Ancash region of north-central Peru. Theopen-pit mine began producing in 1998, with output peakingat approximately 900,000 ounces of gold per year from 2001to 2003.According to the Consultora Malthus report Barrick investedapproximately $850 million between 1996 and 2009 to build andoperate Pierina, which directly employs 500 people and another1,900 indirectly through the purchase of locally produced goodsand services. These are significant numbers in an area where largeportions of the population get by through subsistence farming.The district of Jangas is located closest to Pierina and isVeladero Mine – Argentina·Accounts for 23% of San Juan’s gross domestic product38% increase in regional employment·Numbers that speakPOSITIVE ECONOMIC IMPACTOF BARRICK’S VELADERO AND PIERINA MINESPierina Mine – PeruPoverty rate in Jangas reduced from 80% to 31% (1993-2007)Local literacy rates increased from 55% to 76%Consultora Malthus Independent Studies28

A YACHACHIQ GUIDE DEMONSTRATES FARMING TECHNIQUES INTHE CAHUIDE COMMUNITY.AWARD-WINNING PROJECT HELPS FARMERS IN PERUhome to about 4,000 people. The study noted a dramatic declinein the community’s poverty rate from 80 per cent to 31 per centbetween 1993 and 2007. Illiteracy rates also declined, droppingfrom a startling 56 per cent in 1993 to 31 per cent by 2007. Eventhe rate of higher education improved. A mere one per cent ofpeople in Jangas had completed education beyond high schoolin 1993, but the figure had risen to six per cent by 2007.While more urbanized than its neighbours, the peopleof Independencia also saw a marked improvement in livingconditions during this same period. Urbanization increasedfrom 67 per cent to 89 per cent and the poverty rate fell from57 to 31 per cent. Illiteracy rates also dropped in the districtfrom 36 per cent to 24 per cent. The number of those pursuing ahigher education nearly doubled, going from nine to 17 per cent– well above the national average of 13 per cent.The improvement in living conditions was in sharp contrastto the rest of the country. By 2007, 40 per cent of Peruvians fellbelow the poverty line.POPULATION IN POVERTY CONDITIONS 1993 – 2007ACCORDING TO BASIC UNMET NEEDS IN PERU0.80.70.60.50.40.30.20.101993 2007 1993 2007Independencia district Jangas districtIn Peru, Barrick has partnered with the FarmingAlternative Institute to implement the ProductiveHighlands Program, which is helping farmers deal withthe challenges of farming more than 4,000 metresabove sea level.The community of Cahuide, in the province ofSantiago de Chuco, relies heavily on rainfall for theirrigation of its land. The Productive Highlands Programhas been teaching these Peruvian farmers how to usenew farming technologies and water conservation toincrease productivity.More than 210 families are now taking advantage ofan irrigation system that features reservoirs that allowfarmers to collect and store water all year round. Newirrigation practices are just one part of the positivechanges underway. Simple technologies like organicfertilizers and a water-purifying system, combinedwith strong community buy-in and participation, aregarnering impressive results.One year after the Highlands Project began, thepeople of the nine hamlets of Cahuide are producingfarming and livestock products they can sell in themarketplace, vastly improving their livelihoods. Theproject is also being implemented in other communitiesin the province.The Productive Highlands Program was recentlyrecognized as the first runner-up in the BBC’s corporatesocial responsibility World Challenge Competition.March 2011 29

A BARRICK GOLD REPORT ON RESPONSIBLE MINING | BEYOND BORDERSBarrick takes aim attropical diseases in theDominican RepublicRecognizing that the key to preventing a deadly outbreakof cholera and dengue fever in the Dominican Republic iseducation, Barrick has recently completed a health preventioneducational program that has reached over 22,000 people. Theglobal incidence of dengue fever and cholera epidemics hasgrown significantly in recent years and is a continuing healththreat in the Dominican Republic, home to the company’sPueblo Viejo project. The health program is a direct response tothe need for innovative community-based solutions.Newly trained and armed with educational materials, 200Dominicans travelled to the local municipalities of Cotuí,Fantino and Maimón to teach residents the latest in diseaseprevention and environmental sanitation. Barrick’s teams visitedneighbouring households with the goal of educating residents onhygiene, family and environmental health.“Barrick has had the privilege of working with communitiesaround Pueblo Viejo to help prevent these contagious andinfectious diseases. This has contributed to the creation of healthnetworks all around the region since 2009,” says Méjico Ángeles,Government and Regulatory Affairs manager at Barrick PuebloViejo. The long-term objective of the project is to establisha permanent community health committee that will helpstrengthen local health institutions.As an added benefit, Barrick was able to provide temporaryemployment for the 200 people participating in the campaign,many of them youth, adding an economic benefit to thisgrassroots health program.The importance of this program has been recognized as asignificant factor in reducing the presence of dengue fever inthe province, according to the Health Department of SánchezRamírez. Since the completion of the second phase of theprogram there have been no reports of cholera or dengue fevercases in the region.The second phase of this project began in late 2009, sponsoredby the Ministries of Labour and Public Health, Barrick and thelocal municipalities of Cotuí, Fantino and Maimón.30March 2011

BEYOND BORDERS | A BARRICK GOLD REPORT ON RESPONSIBLE MININGAS PART OF A BARRICK-FUNDED PROGRAM, PUBLIC HEALTHEDUCATORS VISIT HOMES TO TEACH PARENTS HOW TO PREVENTAND TREAT CHOLERA AND DENGUE FEVER. TO DATE, 200 HEALTHEDUCATORS REACHED MORE THAN 22,000 PEOPLE IN EFFORTSTO PREVENT THESE TWO DEADLY DISEASES.March 201131

A BARRICK GOLD REPORT ON RESPONSIBLE MINING | BEYOND BORDERSStrengtheningGrievance ProceduresSuccess in the mining industry today depends on being ableto effectively engage with governments, civil society and hostcommunities. Open dialogue between mine representatives andlocal stakeholders allows mining companies to better understandthe needs and aspirations of communities, while resolvingissues of concern. Barrick’s local communities need to know thatif they have any concerns, they can come to the company foranswers. By being responsive to the issues and expectations ofstakeholders, Barrick builds the trust that is necessary to achievelong-term support for its operations around the world.Although Barrick has had formal and informal grievancemechanisms in place at its operations for some time, thecompany has been working to strengthen and enhance theseprocedures. Grievance mechanisms are designed to give thecommunity a voice, and provide a systematic way to resolvecomplaints before they turn into something more serious.32A number of related initiatives are also underway to bolsterthe company’s ability to effectively respond to communitygrievances, if and when they arise.“We now have a fully-revised and detailed CommunityGrievance Management and Resolution Procedure whichincorporates current best practices in resolution management,including issues related to human rights,” says Peter Sinclair,Barrick’s vice president of Corporate Social Responsibility. “Thecompany’s updated procedure has been informed by the UNSpecial Representative for Business and Human Rights, JohnRuggie’s ‘Protect, Respect and Remedy’ framework, which is thestandard guiding principle in this area.”These procedures also support Barrick’s commitment to theVoluntary Principles on Security and Human Rights, consideredto be the gold standard in security practices for extractivecompanies operating in developing countries. The revisedMarch 2011

A BARRICK GOLD REPORT ON RESPONSIBLE MINING | BEYOND BORDERSBarrick responds toserious criminal allegationsin Papua New GuineaBarrick has taken a series of actions in response to disturbingallegations of serious crimes at the Porgera Joint Venture (PJV)in Papua New Guinea. In late June 2010, the international NGOHuman Rights Watch provided specific, detailed informationconcerning alleged sexual assaults against local women by minesecurity personnel. This specific information assisted Barrickand the PNG police in conducting comprehensive investigations,which have recently resulted in a number of arrests andemployee terminations.Barrick condemns these alleged criminal acts in the strongestpossible terms and wishes to see anyone involved broughtto justice under PNG law. These allegations run contrary toeverything we stand for as a company firmly committed toprotecting human rights and human dignity. Barrick takes azero tolerance approach to human rights abuses. We expectCHRONOLOGYJune 2010:• The PJV received detailed information from Human Rights Watchconcerning allegations of serious crimes.• The company promptly contacted the PNG Commissioner of Policeand requested that a full criminal investigation be undertaken.• Barrick brought in a 15-member investigative team of expertsto conduct a comprehensive internal investigation over severalmonths.• The PJV also asked a former Chief Ombudsman of PNG to conductan independent inquiry into the allegations and report findingsdirectly to police.November 2010:• Barrick joined the Voluntary Principles on Security and HumanRights, reinforcing the company’s commitment to these importanthuman rights principles.January 2011:• The PNG Special Police Taskforce announced arrests and indicatedthat more are anticipated.all our employees to obey the law and to conduct themselvesaccording to high ethical standards, consistent with thecompany’s Code of Business Conduct and Ethics.While Papua New Guinea is a highly complex and challengingoperating environment, the same expectations apply to everyemployee in every location where Barrick does business, withoutexception. The company’s deepest concern is for the women whomay have been the victims of deplorable criminal acts.Barrick is taking meaningful steps to implement changes tohelp prevent incidents like this from reoccurring. This includesa range of initiatives both at the mine site, following a review ofthe security function and grievance mechanisms, as well as inthe surrounding community. Further funding has been providedto the Porgera District Women’s Association to enhance supportand services to victims of sexual assault and domestic violenceand engage in community prevention efforts.Barrick and the PJV continue to work in close co-operationwith the PNG police authorities as they conduct theirinvestigation. The company looks forward to continuedconstructive engagement with Human Rights Watch. Barrickis working towards solutions with the community, its ownworkforce and other stakeholders to help to address thepervasive problem of sexual violence against women in PNG.ADDITIONAL ACTIONS UNDERWAY• Security: Changes include renewed human rights training andmonitoring of PJV security personnel through a “real time”tracking system. Recruitment of more female security staff is alsounderway.• Community Grievance Mechanisms: An expert has been engagedto improve internal and third-party grievance mechanisms.• Research: In addition to enhanced support to the Porgera DistrictWomen’s Association, an expert is conducting research on sexualassault and violence against women in PNG to ensure futurecompany-supported interventions are appropriate.• Human Rights Compliance: Enhancements to Barrick’s corporatehuman rights compliance structure will include a formal humanrights policy and other elements to better detect and preventhuman rights abuses.• Capacity-Building: PJV continues to be a leading partner in themulti-stakeholder Restoring Justice Initiative, designed to addresslocal law and order problems and build the capacity of the justicesystem.• Zero Tolerance: Following Barrick’s internal investigation,employees found to have breached Barrick’s policies wereterminated – including those who had knowledge of but did notreport assaults against women and other serious crimes.February 2011:• Human Rights Watch released a report concerning the PJV.• Barrick issued a statement announcing a range of company actionsand indicated that further dismissals may occur, pending theoutcome of the ongoing police investigation.34March 2011

BEYOND BORDERS | A BARRICK GOLD REPORT ON RESPONSIBLE MININGPorgeraPAPUA NEW GUINEAPort MoresbyAUSTRALIAPACIFIC OCEANEditor’s NoteConfronting violenceagainst women in Papua New GuineaPapua New Guinea has one of the highest rates of familyviolence in the world. Independent studies by human rightsgroups and development agencies document a pervasive socialproblem that permeates the daily lives of women and girls.According to UNICEF, two-thirds of women experience violencein the home. A country analysis by Human Rights Watch earlierthis year states, “Violence against women and girls is epidemicin Papua New Guinea, with studies indicating that more thanhalf of all women in Papua New Guinea have suffered physicalassault by a male partner.” AUSAID, the Australian developmentagency, has described violence against women as a major barrierto PNG’s social, political and economic development. On a visitto the country in November, U.S. Secretary of State HillaryClinton agreed, participating in a women’s empowerment eventat Parliament House in the capital of Port Moresby.There are some positive signs that change can occur. TheNational Council of Women was established by the PNGGovernment to promote women’s rights and social justice.Council President Scholar Kakas believes her country is at acrossroads, moving from a traditional to a modern society.“We are running gender sensitization programs to help makepeople understand the importance of why violence is a majorproblem in this country and it has to stop.” Acting PNG PoliceCommissioner Tony Wagambie, who has been leading anintensive investigation into allegations of assaults on women bya small group of former security personnel at the Porgera mine,stated, “Enough is enough. Violence against others in any formwill not be tolerated on my watch.” Arrests have been made.Respect for the rights of women is a universal human rightsobligation that transcends distinctions between developed anddeveloping countries. Clearly, it is necessary to understand thecomplex cultural features of PNG society to allow for appropriateand effective responses. Rampant crime in some regions andlimited police resources are also key factors. The government,the justice and health sectors, credible human rights organizations,women’s groups and responsible companies all have arole to play. At the Porgera mine, improvements to the securityfunction and enhanced supportand services to the women in thecommunity are just some of theconstructive measures underway.Barrick is taking importantsteps forward and is committedto being a part of the solution.COUNCIL PRESIDENT SCHOLAR KAKASMarch 201135

A BARRICK GOLD REPORT ON RESPONSIBLE MINING | BEYOND BORDERSBarrick employees give back and36March 2011

BEYOND BORDERS | A BARRICK GOLD REPORT ON RESPONSIBLE MININGdrive responsible mining cultureEvery year, Barrick invests millions of dollars in programs designed to improvequality of life for the communities where it operates. Inspired by this work, employeesare finding ways to personally contribute to these communities, whether close tohome or in developing countries where poverty is endemic.This year, a group of Barrick employees in Toronto joined forces to make thatpossible. They created CanEducate, an independent charitable organization thatwill provide educational sponsorships to impoverished and at-risk children incommunities where Barrick operates. In its first fundraising campaign, thisemployee-driven program raised close to $100,000 through staff donations andmatching funding from the company. The money will help children in remotecommunities around the Bulyanhulu and Buzwagi mines in Tanzania, whereevery year thousands of kids are turned away from secondary school becausethey cannot afford to pay fees.March 201137

A BARRICK GOLD REPORT ON RESPONSIBLE MINING | BEYOND BORDERSCLOCKWISE: VELADERO MINE EMPLOYEES GO PINK TO RAISE AWARENESS ANDMONEY FOR BREAST CANCER RESEARCH; BARRICK EMPLOYEES IN TORONTOPARTICIPATE IN A HABITAT FOR HUMANITY BUILD PROJECT; GRIEVANCE OFFICERJOSEPHINE MKONO KISSES HER AWARD FOR EXCELLENCE IN CSR AT THE NORTHMARA MINE IN TANZANIA.In addition to the haul truck, women wore jackets embroideredwith pink ribbons, and employees wore a pink sticker on theirhard hats. Meanwhile, at the Cowal mine in Australia, the pinkhaul truck was on display for the mine’s Family and Communityopen house days.Since 2005, employees of Bulyanhulu have actively supportedneedy secondary school students who cannot afford to pay forschool fees, uniforms and other school expenses. To date morethan 120 Bulyanhulu employees sponsored 260 of the mostvulnerable children in 10 secondary schools.For the second consecutive year, Barrick employees in Torontoand Salt Lake City also volunteered to help Habitat for Humanity,a not-for-profit organization that builds affordable housingfor families in need. “It is great to have the opportunity to dosomething tangible for the community and to be able to helpfamilies that desperately need it,” said Miguel Pereira, Barrick’smanager of Planning and Reporting.In Toronto, employees participated in two Barrick Build Daysfinishing the interiors of four homes. In Salt Lake City, employeescompleted a playground at a Habitat project that included theconstruction of 21 homes.Proving you can have some fun with CSR activities while supportinga worthy cause, two Barrick mines in Australia andArgentina found a creative way to raise awareness and funds tosupport breast cancer research. Both sites painted a massive haultruck pink and organized events for employees in support of thecause. At the Veladero mine in Argentina, pink was everywhere.Globally, employee efforts to incorporate CSR considerations intotheir work are being rewarded and recognized. Barrick has createda series of annual awards that promote best practices andrecognize employees who demonstrate leadership in areas suchas CSR, Environment and Safety. These individuals are helping todrive Barrick’s responsible mining culture across the company.Tisha Wooley, environmental geologist at the Donlin Creek projectin Alaska, was recognized as a CSR Champion for her efforts toorganize an annual winter clothes drive for underprivileged schoolchildren in Bethel, Alaska. As the temperature in Anchoragedips to -70 Farenheit many families cannot afford to buy winterclothing for their children, and Tisha has taken it upon herself toanswer this need. “To know that 23 to 24 large boxes of items areliterally cleared within an hour of doors opening, tells us that ourefforts are welcomed. It’s remarkable how such a simple task canbenefit a community.” said Wooley.Another CSR Champion award winner is Lincoyán Roco Sánchez,Mechanical Specialist at the Zaldivar mine in Chile, who dedicateshis personal time to motivate and organize 240 employees fromZaldivar and other local companies to fundraise and to supportparents of children suffering from cerebral palsy and autism inthe communities of Antofagasta and La Serena, Chile.Around the world, Barrick employees have demonstrated just howseriously they take corporate social responsibility and are livingthe company’s values within and outside of the workplace.38March 2011

BEYOND BORDERS | A BARRICK GOLD REPORT ON RESPONSIBLE MININGEnvironmentalupdateMEMBERS OF BARRICK’S SENIOR LEADERSHIP TEAM VISIT A TREE NURSERY AT THE PUEBLO VIEJO PROJECT IN THE DOMINICAN REPUBLIC WHEREHALF A MILLION PLANTS HAVE BEEN TRANSPLANTED.Around the world, Barrick operates to high environmentalstandards and is committed to continuous improvement.Consistent with this commitment, in 2010 Barrick’sEnvironmental Management System (EMS) was implemented atall sites and underwent a third-party review to identify possibleareas of improvement. The company also completed a three-yearrisk assessment to review the safety of tailings impoundmentsat all operations and closed sites. A tailings guidance manualwas developed to ensure the company is meeting or exceedingindustry best practices in this area.In 2010, the company also set its sights on industry-wideissues, such as addressing water use, safeguarding biodiversity,and reducing energy use and greenhouse gas emissions.Barrick was recognized by the Carbon Disclosure Project asa carbon disclosure leader highlighting the company’s publicreporting practices and management strategy. The CarbonDisclosure Project is the only global climate change reportingsystem that asks companies to disclose their greenhouse gasemissions and climate change strategies. The collected data ismade available for use by a wide audience including investors,corporations, policy makers, government bodies, academicsand the public. “At Barrick, we have established a global climatechange program that aims to mitigate our carbon footprint,”said Bill Williams, vice president of Environment. “We willcontinue to report on the progress we are making as we pursueopportunities to reduce energy, consumption and greenhouse gasemissions and adopt renewable energy projects at our operations.”Water conservation is an area where Barrick is demonstratingleadership, reflected in improved, more systematic managementand monitoring of water use at our operations. Three industryleadingwater conservation pilot projects are now underway inAustralia, Tanzania and North American sites. Eighteen Barrickmines are now zero water discharge operations, with all waterrecycled and reused for mining processes on site. In 2011, Barrickwill participate in the Water Disclosure Project to contribute to agreater understanding of global industrial water use.For the second year, the company has established regionaltargets to improve energy and carbon efficiencies at alloperations. Overall, Barrick has improved ore processes,resulting in less GHG emissions per tonne of ore processed.Using this measure, Barrick’s emissions decreased 15 per centbetween 2006 and 2009.Barrick has long been an advocate of the InternationalCyanide Management Code, having achieved Code certificationat 20 operations. In collaboration with the Mining Associationof Canada, the company is taking this commitment one stepfurther by publicly advocating that Code safety standards andcertification become standard practice within the gold miningindustry.Finally in 2011, Barrick will begin a process to makeadditional annual environmental data at each operationpublicly available.For more information visit www.barrick.comMarch 201139

In 2009, Barrick helped launch a sun-dried tomato exporting initiative to assist Jachal farmers in Argentina to develop a sustainable livelihood program and expand production.The results from the first year were impressive, yielding a healthy tomato crop and providing the farmers with a sustainable income for the first time in decades.BEYOND BORDERS IS A REPORT TO STAKEHOLDERS PRODUCED AND PUBLISHED BY BARRICK GOLD CORPORATION,FEATURING THE LATEST NEWS AND UPDATES ON BARRICK’S SOCIAL, ENVIRONMENTAL, SAFETY AND ECONOMIC DEVELOPMENT PROGRAMS.AS A RESPONSIBLE MINING COMPANY, WE STRIVE TO CONTINUALLY IMPROVE OUR PERFORMANCE.WE WELCOME YOUR COMMENTS, QUESTIONS AND FEEDBACK.TO SUBSCRIBE TO BEYOND BORDERS OR TO RECEIVE BY E-MAIL,CONTACT US AT: RESPONSIBILITY@BARRICK.COMADDRESS: EDITOR, BEYOND BORDERS, BARRICK GOLD CORPORATION, BROOKFIELD PLACE,TD CANADA TRUST TOWER, SUITE 3700, 161 BAY STREET, TORONTO, ONTARIO, CANADA M5J 2S1EDITOR: NANCY J. WHITEDEPUTY EDITOR: ANDY LLOYDGLOBAL CONTRIBUTORS: LOU SCHACK (NORTH AMERICA), CARLA ZEGERS (SOUTH AMERICA)FOR MORE INFORMATION ON BARRICK’S RESPONSIBLE MINING INITIATIVES VISIT:WWW.BARRICK.COM/CORPORATERESPONSIBILITY