Security Management System (PDF) - Barrick Gold Corporation

Barrick’s Security MandateThe Barrick global security team enables the company’s success throughdevelopment and implementation of security practices that create a secureworking environment. In developing countries where the rule of law may notyet be well established, the security function is particularly important tosafeguard employees and protect company interests.The Barrick Security group is committed to act in accordance with theVoluntary Principles on Security and Human Rights. Barrick is a formalmember of the Voluntary Principles on Security and Human Rights Plenary.Reflecting Barrick’s vision to be the world’s best gold company, thesecurity team is committed to best practice approaches employing highlytrained professionals, recognized global standards, and appropriatetechnologies that meet the company’s needs wherever we operate. Ourcomprehensive security approach focuses on:■Risk management■Strong control measures■Effective standards, policies, and procedures■Appropriate response to incidentsThe corporate security group includes functional experts in all aspects ofphysical security, electronics, crime investigation, training, gold security, andother aspects. These experienced specialists develop strategies and plans tomeet Barrick’s worldwide security needs. They also consult and provideadvice to our network of regional and site security personnel. The strongreporting relationship between corporate, regional and site security staffcreates consistency in deploying the Barrick Security Management System,and facilitates sharing of best practices.Although Barrick is a Canadian company and has Canadian securityexperts, the security team is truly international, with people in key roles frommany countries. Each person brings important knowledge and perspective tothe group. Most have law enforcement or military training, along withspecialized expertise or local knowledge.As a team, our mandate is to identify security risks and ensure thateffective controls are in place to protect people, product, assets, and companyreputation. We are driven by Barrick’s corporate vision to be the world’s bestgold company by finding, acquiring, developing and producing qualityreserves in a safe, profitable and socially responsible manner.Mark WallVice PresidentAsset Protection andCrisis ManagementBARRICK GOLD CORPORATION SECURITY MANAGEMENT SYSTEM 3

Security PolicyWe Believe■■■■Respect for people and human rights is fundamental to our ResponsibleMining approach. Compliance with laws and regulatory requirementsis a mustMaintaining an effective security function is critical to the protectionof Barrick people, product, assets and reputationSecurity is an important factor in the future growth and developmentof the companyEffective security controls, standards, policies and procedures contributeto the safety and protection of employees as well as the communitiesin which we operateWe Promise■■■■■■■■■■To treat all people with respect and dignity, and to be guided in ourapproaches and actions by the Voluntary Principles on Security andHuman RightsTo provide the security expertise and resources required to developa safe and secure working environmentTo establish security strategies, plans, standards, policies and proceduresto support achievement of Barrick’s business objectivesTo identify and manage risks effectively, with a focus on preventingsecurity incidentsTo be prepared to respond to incidents with appropriate and testedresponse plansTo establish programs that protect employees, company assets andshareholders from loss from theft, fraud, and other inappropriate activityTo investigate and analyze security incidents, to take appropriate actionand continuously improveTo operate in accordance with the laws of the countries where wedo businessTo maintain a high degree of professionalism, knowledge and integrityamong security staff with appropriate recruiting, training, resources,and contracting proceduresTo use proven technology to increase the reliability and efficiencyof our operationsBARRICK GOLD CORPORATION SECURITY MANAGEMENT SYSTEM 5

Barrick’sapproach alignspolicy andimplementation,and providesoversightto ensureaccountabilityfor activitiesand results.GovernanceBarrick provides governance for the Security function as part of an integratedframework that also includes Community Relations, Environment, andSafety and Health. Barrick wants to be a welcome partner in the communitieswhere it operates; therefore, these functions are all integral parts of ourResponsible Mining approach. We recognize that our activities in these areasinfluence the company’s reputation, and they are particularly important inmaintaining public support and the social license to operate.Barrick has established committees at the site, regional and corporatelevels, and each committee includes representatives from the variousfunctional groups. These committees have a clear mandate to receive inputfrom the community, regulators, subject experts with best practices, andother sources to inform and shape their activities. The committees manageprograms and monitor performance, raising issues to the next level asappropriate. The Operations Committee provides strategic direction andsets performance targets for regions and sites, and results are reported toa committee of the Board of Directors. In addition, a special ExecutiveCommittee develops policy and strategic advice on major issues, and inputis provided to the Board Committee.This governance model ensures alignment between policy direction andimplementation, with oversight at each level to ensure accountability foractivities and results.Within the Security function, Barrick has established a special unit tosupport the governance process. The Global Security Governance Groupconducts ongoing audits, reviews and internal investigations of securitygroups throughout the company to assure compliance with company policies,standards and procedures, including the Security Code of Conduct.6 BARRICK GOLD CORPORATION SECURITY MANAGEMENT SYSTEM

PLANNING PROCESS FOR RESPONSIBLE MININGBARRICK BUSINESS PLANCOMMUNITYRELATIONSBUSINESS PLANENVIRONMENTBUSINESS PLANSAFETY & HEALTHBUSINESS PLANSECURITYBUSINESS PLANBoard CommitteeEnvironmental,Health & SafetyResponsible MiningCompany PerformanceCONTINUOUSIMPROVEMENTSTRATEGIESCorporateResponsibilityCommitteeLong-term MonitoringSite / RegionalPerformancePerformance Monitoringof Activities and ResultsShort-term MonitoringINFORMATION GATHERING• Community input, expectations• Regulations• Best practices• New technologies• Other external influencesThis diagram shows how Barrick’s governance model for Responsible Mining ensures alignment and provides for strong oversightof activities and results at every level of the organization.BARRICK GOLD CORPORATION SECURITY MANAGEMENT SYSTEM 7

Elements of the Barrick Security Management System1. Security Risk Assessment Process and Reviews2. Information Gathering and Analysis3. Voluntary Principles on Security and Human Rights4. Control Frameworks5. Critical Incident Management6. InvestigationsBARRICK SECURITY METHODOLOGYPROACTIVEIdentify &analyzeASSESSMENT ACTIVITY1. Security Risk AssessmentProcess & Reviews2. Information Gathering & AnalysisCOMPLIANCEReduce theprobability ofrisks occurringCONTROL MEASURES3.Voluntary Principles onSecurity and Human Rights4.Control FrameworksCONTINUOUSIMPROVEMENTRESPONSEMinimizethe impactEFFECTIVE RESPONSE5.Critical Incident Management6.InvestigationsThis diagram illustrates how the six elements of the Barrick Security Management System work together to help Barrickachieve exceptional security performance and continuously improve.8 BARRICK GOLD CORPORATION SECURITY MANAGEMENT SYSTEM

3Voluntary Principles onSecurity and Human RightsBarrick strives to be a welcome partner in communities where it operatesby treating people with respect and dignity. Barrick recognizes that itsrelationships with people and host communities determine its sociallicense to operate, and that effective security is a combination of physicalsecurity measures and strong community support.Barrick is firmly committed to the Voluntary Principles on Securityand Human Rights, and is a formal signatory and member of theVoluntary Principles Plenary. This set of principles, developed by agroup of international government, business and non-governmentalorganizations, provides a guide for extractive-industry companieson maintaining security of people and operations while ensuring respectfor human rights and freedoms. Barrick’s global security functionoperates based on the Voluntary Principles, and they are integrated intoBarrick’s Security Policy. All relevant personnel are trained and mustcomply. The global security function structure provides for single-pointoversight for the implementation of the Voluntary Principles to ensurea consistent approach.Using these principles, Barrick strives to ensure that human rights arepreserved in its relations with public security, private security providers,and contractors. Barrick emphasizes the importance of communication,consultation, and monitoring of interactions with public securityand government officials. Wherever Barrick operates, security personnelmaintain a good relationship with local law enforcement, and workcooperatively with communities to prevent crime and enhance site safety.For its security and contractor personnel, Barrick insists on carefulscreening of personnel and thorough training. Personnel have strictguidelines to observe laws and regulations, achieve high proficiencystandards, and maintain ethical conduct. Furthermore, Barrick seeks toensure that the company’s investments, activities and security practicesdo not cause or exacerbate conflicts in the community.This approach is part of Barrick’s responsible mining approach andreduces exposure to operational, financial and legal risks, and minimizespotential damage to its reputation. Good governance in this area createsbusiness opportunities by enhancing stakeholder confidence.Effectivesecurity is acombinationof physicalsecuritymeasures andstrongcommunitysupport.BARRICK GOLD CORPORATION SECURITY MANAGEMENT SYSTEM 11

Barrick hasestablished a setof physical andtechnologicalsecuritymeasures thatmust be usedat all globaloperations.4ControlFrameworksBarrick’s security management takes a systematic approach to the company’ssecurity needs by providing appropriate frameworks, procedures, standards,and guidelines that can be consistently applied across all operations.This enables the company to implement best practices and achieve plannedsecurity outcomes on a global basis.A major focus for Barrick has been developing robust, world-classstandards and guidelines for asset protection. Barrick produces a preciouscommodity – gold. In addition, mine sites house valuable plant andequipment, vehicles, commodities, and materials. To protect these assets,Barrick has established a set of physical and technological securitymeasures that must be used at all global operations. These standardsprovide a level of assurance to the senior leadership team, the Board,shareholders, and to external stakeholders that Barrick is taking propersteps to protect people and property.Barrick’s approach considers relevant risks and exposures, alongwith an evaluation of the appropriate balance between technology andstaff resources. They are developed in consultation with key stakeholdersto achieve these objectives:■Establish minimum compliance levels■Enable effective auditing to ensure standardsare being maintained■Create controls over unnecessary or redundant expenditure■Align security activity with key priorities acrossthe corporationA security plan developed for each site will include a variety of measures to controlaccess and monitor site safety.12 BARRICK GOLD CORPORATION SECURITY MANAGEMENT SYSTEM

All gold processing areas are closely monitored from the control room.In addition to the minimum standards, regional and site securitymanagers are encouraged to put in place additional measures or controlsrequired or recommended at their particular operation.Specific to gold, Barrick has developed a comprehensive, industryleadingapproach through its Gold Security Standards. This is a proprietaryset of best practice measures for the protection of gold through all phasesof extraction, processing, and shipment. The Gold Security Standardsare supported by an audit program, detailed procedures, and an alternatecontrol/exemption process. Any site requesting an exception to thestandard will be subject to a thorough risk assessment process and mustsatisfy senior management that an appropriate alternate control is inplace. Through the auditing process, Barrick ensures that effective internalcontrols are implemented. If any control gaps are identified, the auditprocess outlines any remedial actions required.Standards and guidelines for protecting fuel, explosives and othermaterials are also part of the Barrick Security Management System, alongwith standard operating procedures for various tasks and responsibilitiesof security personnel.Barrick’s security function has an annual audit plan that addressesthe highest priority risks. These periodic audits ensure that security iscompliant with corporate strategy, standards, legislation, and regulations.In addition to the annual audit plan, management or the Board mayrequest focused audits or reviews as desired. The audit scope may covervarious technical, procedural and/or organizational areas. Audits willbe conducted by members of the security team who may be assisted byinternal and external resources. Combined with periodic risk assessments,reviews, and information analysis, these audits help determine thecontinuing suitability and effectiveness of security controls implementedfor a particular risk environment.Barrick’sGold SecurityStandards area proprietary setof best practicemeasures forthe protectionof gold throughall phasesof extraction,processingand shipment.BARRICK GOLD CORPORATION SECURITY MANAGEMENT SYSTEM 13

For criticalincidents,Barrick developsa criticalincidentmanagementplan.5Critical IncidentManagementLike any major corporation in the primary industries, Barrick is subject toa wide range of security challenges in the course of its normal operations.These challenges may include critical incidents, which we defineas single high-impact security events that require an immediate localresponse. Examples of critical incidents include:■Fraud■Armed or other incursion■Armed robbery■Major theft■Strike■Kidnap/abduction■Bomb threat■EvacuationFor high-impact critical incidents, Barrick develops a critical incidentmanagement plan to ensure an appropriate response and an orderlyrecovery process.Each plan outlines the resources and equipment required for animmediate response to mitigate and contain any impact. The plan clearlyidentifies – according to the nature of the incident – the required actionsand participants’ roles and responsibilities. The critical incident planalso details decision points that require engagement of the regional andcorporate crisis management teams. Crisis management plans containguidelines for engagement with the media, host community, andother stakeholders.These plans help Barrick manage a critical incident effectively,and ensure integration into the Barrick Crisis Management System.This approach reduces the potential for harm to people, ensuresthe continuity of the business, and reduces financial loss and negativeimpacts on company reputation.Barrick’s critical incident plans provide for quick, effective response and ensure anorderly recovery.14 BARRICK GOLD CORPORATION SECURITY MANAGEMENT SYSTEM

6InvestigationsBarrick’s security function conducts investigations to support informeddecision making and focused action. Investigative services are broad inscope and have a direct link to the company’s business activities at the site,regional and corporate levels.Barrick may initiate an investigation to understand and managespecific risks to the business. This is a preventative action that can reducethe company’s exposure to loss. The investigative process contributes tothe protection of people, product, assets and reputation.Investigations may also be initiated in response to a specificincident or report of suspicious activity. All security investigations aregoverned by guidelines set out in Barrick’s corporate security standards,and are conducted in compliance with the laws and regulations of the hostjurisdiction. Investigations are conducted fairly and confidentially.Barrick’s security investigators work with the associated legal, complianceand audit managers during the course of the investigation, and ensurealignment with Barrick’s Code of Business Conduct and Ethics.Investigative findings are presented to management to determineappropriate action. Where there is a prima facie case of fraud or theft,management may decide to pursue internal, civil, or criminal action.In this case, Barrick will turn the matter over to local law enforcement,which is responsible for investigation and prosecution of crimes.Barrick’s security personnel then continue to work closely with lawenforcement and with Barrick’s Legal department to ensure investigationsare thoroughly and properly conducted.Investigationsare conductedin compliancewith the lawsand regulationsof the hostjurisdiction.Barrick reviews the findings of all incident investigations to identify areas for improvedsecurity such as revised procedures or new control measures.BARRICK GOLD CORPORATION SECURITY MANAGEMENT SYSTEM 15

Barrick Gold CorporationBarrick Gold Corporation is the gold industry leader in production and reserves. Barrick has interestsin operating mines located in North America, South America, Australia Pacific, and Africa, employing20,000 people worldwide. The company also has projects and exploration programs on some ofthe world’s most prospective mineral trends. Barrick’s vision is to be the world's best gold companyby finding, acquiring, developing and producing quality reserves in a safe, profitable and sociallyresponsible manner. The head office is located in Toronto, Canada. Barrick shares are listed on theToronto and New York stock exchanges.Barrick Gold Corporation161 Bay Street, Suite 3700Toronto, Canada M5J 2S1Telephone: 416-861-9911www.barrick.com07/2012