2007 Responsibility Report - English (PDF) - Barrick Gold Corporation

BarrickResponsibilityReport 2007

2007 TARGETS AND OBJECTIVES 2007 PROGRESS 2008 TARGETS AND OBJECTIVESEnvironment• Finalize Energy Management Policy• Complete remaining energyefficiency self-assessments• Implement additional mercuryemissions control technology• Continue EnvironmentalManagement System Standard(EMSS) implementation• Issue Climate Change Policyand Program• Zero fines• Policy captured within ClimateChange Program. Energy managementguidelines developed foroperations• Completed• Mercury sampling and stack testingunderway. Mercury control enhancementcompleted at two operations• EMSS – Leadership and LegalObligations Register elementsintroduced• Climate Change Program completed.Board approval received infirst quarter 2008• Two operations received finesrelated to three environmentalincidents• Measurement, tracking andreporting of energy use establishedat all sites• Third-party energy efficiency assessmentsconducted at selected sites• Additional mercury controls willbe implemented where testingidentifies a need• Continue EMSS implementation –Risk Assessment and ChangeManagement elements• Implement Climate Change Program• Finalize and implement WaterConservation Policy and Program• Zero fines• Complete Cyanide CodeCertification of our designatedoperationsSafety and Health• Zero Fatalities • Two fatalities • Zero Fatalities• 12% reduction in Lost TimeAccidents (LTAs)• Continue implementation of theHealth Program• Continue Courageous Leadershipthrough refresher courses• LTAs increased by 7%, howevertotal injury frequency rate decreasedby 9%• On target• Refresher training completed forcurrent employees; full trainingprogram for new workers• 15% reduction in LTAs• Improve health reportingwith data management system• Conduct gap analysis against theHealth System Standards• Courageous Leadership Refreshertraining for current employees; fulltraining program for new workersBarrick Responsibility Report 2007 3

25 Years of Responsible MiningA Culture ofResponsibilityAs we conduct our business around the world, we are guided by our commitment to ResponsibleMining. That was true 25 years ago when Barrick first began and is true today. In practice,Responsible Mining translates into bringing long-term benefits to the communities where weoperate, protecting the environment and fostering a culture of safety, excellence and collaborationamong our employees. By upholding this commitment in everything we do, we open upopportunities to earn the trust of our stakeholders and to create shared value.1983 1994American Barrick ResourcesCorporation is officiallyincorporated.Environmental, Health &Safety Committee of theBoard is formed.1986Barrick provideshousing andeducation supportin Elko Nevada.1995Corporate EnvironmentalPolicy Statement isimplemented.20011998Corporate Health & SafetyPolicy Statement isimplemented.Barrick and CAREInternational partner inTanzania to provideeducation support forcommunities.6 Barrick Responsibility Report 2007

Governance, Commitment and EngagementCorporate Governance2007 PERFORMANCE• The Supplier Code of Ethics was approved andimplemented in 2007• The Security Policy was approved in 2007• Training on the Code of Business Conduct andEthics was completed for all new employeesin 2007• All management and supervisory personnelcompleted annual compliance certification forthe Code of Business Conduct and Ethics in 2007Governance, Ethics and TransparencyBarrick’s success is built on a commitment to the highest standardsof corporate governance and professional integrity. Weconduct our business around the world in an ethical, honestand accountable manner and in accordance with all applicablelaws, rules and regulations. We value and are committed totransparency in our business practices, consistent with goodgovernance and commercial confidentiality. Barrick supportsimproved governance through the full publication andverification of government revenues generated by mining.As one of the first Canadian corporations to endorse theExtractive Industries Transparency Initiative (EITI), Barrickencourages other companies in our sector to become EITIsignatories. Barrick is also a member of TransparencyInternational – Canada.Our Code of Business Conduct and Ethics (the Code) outlinesour obligations to prevent conflicts of interest, maintain confidentiality,protect company assets and deal fairly with suppliersand competitors. Associated policies include our DisclosurePolicy, Insider Trading Policy, Anti-Fraud Policy and our Policyon Doing Business Abroad. All Barrick employees completetraining sessions on the Code and its associated policies,and management and supervisory personnel are required toannually recertify their compliance with the Code.Barrick has established a clear communication frameworkwithin the Company to ensure that concerns about ethicalissues are reported appropriately. Barrick treats all concernsabout suspected Code violations and any related investigationsas confidential. To support compliance with the Code and theAnti-Fraud Policy, we have a Code of Business Conduct andEthics/Anti-Fraud Escalation Policy to ensure that suspectedviolations of the Code are reported to appropriate levels ofmanagement and the Audit Committee of the Board ofDirectors of Barrick. Elements of the framework are summarizedin the Code, and include formal reporting channels foremployees to report suspected code violations. Our confidentialCompliance Hotline encourages employees to anonymouslyreport Code violations, express concerns and ask questionsregarding ethical issues even from remote sites and in thelanguage of their choice.Governance StructureThe Company’s approach to social responsibility is framed byour Corporate Social Responsibility Charter available atwww.barrick.com/CorporateResponsibility.Barrick’s Board of Directors is responsible for the stewardshipof the Company and for oversight of the management of thebusiness and affairs of the Company, while our senior managementis responsible for the management and day-to-day8 Barrick Responsibility Report 2007

operation of the Company. In 2007, the Board was comprisedof 15 members, 10 of whom are independent, consistent withthe applicable corporate governance standards of securityauthorities and/or stock exchanges. With respect to corporatesocial responsibility matters, the Board has an Environmental,Health and Safety Committee which is responsible for monitoringand reviewing environmental, safety and health policies andprograms. To promote the effective functioning of the Board ofDirectors and its Committees, the Board has adopted a set ofcorporate governance guidelines and formal mandates settingout the roles and responsibilities of the Board and Committees.As well, senior management has an Executive Environmental,Health, Safety and Sustainability (EHSS) Committee whichreviews corporate social responsibility performance trends andissues and approves EHSS strategic business plans and setsCompany policy.Risk ManagementWe believe that as part of our responsibility to create value forour shareholders, employees and local communities, we mustunderstand and manage the risks associated with our business.To do so, we have implemented a variety of programs toidentify, evaluate and address the issues that either threatenthe achievement of our strategic objectives or represent opportunitiesfor competitive advantage.Membership and InitiativesAt Barrick, we maintain a continuous dialogue with the public,governments and regulators at all levels regarding regulatoryissues and other items of business interest. This means contributingto government inquiries and requests for information,engaging on issues, and undertaking research on the impactsof our activities. We are members of various industry associationsand advocacy organizations. Early in 2008, Barrickbecame a permanent member of the International Council onMining and Metals and we committed to partner with theClinton Giustra Sustainable Growth Initiative to improve childnutrition and support sustainable business development inPeru. We work with the Mining Association of Canada topromote Towards Sustainable Mining.Our relationships with non-government organizations, universitiesand research institutes support our Corporate SocialResponsibility (CSR) activities and research initiatives. Forexample, our partnership with the African Medical & ResearchFoundation (AMREF) strengthens our fight against HIV/AIDSin the communities around our African sites.Additional information on our memberships and partnershipsis available at www.barrick.com/CorporateResponsibility.Whether at the early stages of a project development or inthe processing of our financial transactions, Barrick takesresponsibility to assess and mitigate risk. Risks, such as thoseimpacting the health, safety, and security of our employees, ourneighboring communities and the environment in which weoperate, as well as our operational and financial performance,are assessed using both qualitative and quantitative methods,and appropriate solutions implemented. Our efforts to managerisk are validated through comprehensive assurance programs.Barrick Responsibility Report 2007 9

Barrick and CommunitiesCommunityResponsibilityCan a mining company be a catalyst forsustainable community development?10 Barrick Responsibility Report 2007

Active and genuine engagement with the local communities and otherkey stakeholders is a fundamental part of the way in which we operate.Local consultation is essential to ensure the benefits of mining areshared and have a long-lasting effect. But it is also critical to understandthe concerns and issues of the community in order for theCompany to put appropriate mitigation and management plans inplace in order to ensure risks are managed and any potential impactof mining is adequately addressed.Barrick’s Community Relations programs are managed at the executive level by theExecutive Vice President, Corporate Affairs. At the Regional Business Units (RBU) there isa senior person responsible for developing strategy and overseeing the implementationof the Community Relations programs. At the site level, our Community Relations teamsvary in size depending on need.Our Community Relations teams and other mine employees are guided by Barrick’sCommunity Engagement and Sustainable Development Guidelines which outline theprinciples, standards and approaches applied by Barrick. The guidelines cover our communityprograms throughout the mine’s life cycle, from exploration through operations toclosure, and are based on international best practice including the International FinanceCorporation Performance Standards and ICMM’s Sustainable Development Framework.VALUE ADDED(In millions of dollars)Community BenefitsRoyalties & TaxesWages & BenefitsRegional Goods& ServicesLocal Goods& Services41.91,417.81,040.71,368.72,740.6COMMUNITY BENEFITS(In millions of dollars)2007 PERFORMANCE• Site or regional-level Community Engagement and SustainableDevelopment Plans were developed at all RBUs and operations• Early stage community relations programs were started or strengthenedat six project sites• Three comprehensive Social Impact Assessments were commissionedor completedDonationsCommunity InitiativesInfrastructureDevelopmentScholarships6.89.321.44.4Barrick Responsibility Report 2007 11

Barrick and CommunitiesSharing thebenefits of miningCommunity DialogueWe recognize that there are risks and opportunities associatedwith our interactions at the community level, and believe thatongoing dialogue with our community stakeholders remainsone of the most effective tools we have to address theseaspects of our business. Public meetings and citizen committeesprovide valuable opportunities for sharing and learning,for both local residents and for Barrick.Community dialogue starts at an early stage in the life of a mine– well before actual mining begins. We establish active outreachprograms in host communities, including village meetings, openhouses, site tours, community newsletters, town-hall meetings,both formal and informal question and answer sessions andone-on-one discussions. Very often, we establish communityliaison offices in the local towns in order to provide easier accessfor the community to discuss issues with Company representatives.As mining commences, and up to and past mine closure,we keep the lines of communication open, continuing withpublic meetings and often with the formation of a communityadvisory group. Additionally, Barrick responds to community andother stakeholder concerns through its site-level grievance procedures,open and ongoing dialogue, press releases, the Barrickwebsite and this Responsibility Report along with other CSRreports. In 2007, over 1,800 meetings were held with membersof our host communities, local and regional governments, nongovernmentorganizations and other interested stakeholders.Partnerships in Community DevelopmentIn a world where half the population lives on less than $2 aday 1 , responsible mining can be a powerful engine of economicand social development, not only for the local area throughjobs, local procurement and community projects but also at thenational level through programs funded by taxes, royalties andother government revenues. In emerging markets with limitedinfrastructure or institutional base, gold mining in particularhas been identified as an industry which can be an early-stagecatalyst for longer-term development.As we pass the half-way point in the fifteen-year plan to reachthe UN Millennium Development Goals, there is now clear recognitionthat mining can make a significant contribution to povertyalleviation. But there are millions of people in the areas wherewe work who still need access to clean water, food, health care,housing and education. Barrick’s business is mining and that iswhere our expertise lies. However, we recognize it is our responsibilityto assist our host communities to improve their quality oflife in areas where we have the capacity and the capability toinfluence. In order to do this effectively, our highly-skilled communityrelations people develop integrated development programsand often partner with governments, non-governmentorganizations, individuals, or other institutions who have expertisein this area including CARE International, African Medical &Research Foundation (AMREF) and World Vision Canada.1 2007 Human Development Report. UN Development Program.12 Barrick Responsibility Report 2007

For example, we recently opened a newly reconstructed healthclinic providing HIV/AIDS services near our Porgera mine inPapua New Guinea (PNG). The clinic is the result of the leadershipof the Asian Development Bank with support from thePNG government and Barrick. Barrick also has other HIV/AIDSprograms in at-risk countries, such as Tanzania and SouthAfrica, working in partnership with AMREF and the GlobalBusiness Coalition on HIV/AIDS, Tuberculosis and Malaria. Wealso support the work of Aid for AIDS of Nevada, USA.Barrick partners with World Vision and local residents near ourPierina and Lagunas Norte mines in rural regions of Peru totackle the problem of child malnutrition. By the end of 2007,nearly 200 households had received training to establish householdfruit and vegetable gardens. As well, numerous water andsewage projects are underway to improve water quality andbasic sanitation in 11 communities, and area farmers, trained incrop diversification, are now producing highly nutritious quinoa(a cereal) to feed local children.In Argentina we partner with Organización de Servicos DirectosEmpresarios (OSDE), a private health service, to improvewomen’s health through education and early detection ofbreast and uterine cancer.In 2007, Barrick and CARE International Tanzania announcedthe results of a six-year partnership which has improvededucation for thousands of children living near the Bulyanhulumine. Since our $2 million investment in a long-term educationprogram in 2001, primary school enrollment has increased by75 percent, and more children are now making the transitionto high school, where enrollment has more than doubled.Barrick community relations officers worked in collaborationwith CARE, the Kahama District Education Department, theMinistry of Education, parents and community leaders todevelop this successful program.In Australia, our Kanowna mine partnered with the KalgoorlieBoulder Community High School in 2007 to help young at-riskgirls stay in school, through an innovative basketball andleadership development program.Partnerships are an integral element in sharing the benefits ofmining with our host communities in the most effective andmeaningful way.Economic Contributions and Value Addedto CommunitiesStrong communities contribute positively to our competitivenessthrough their ability to host thriving supplier industries, create astable business environment, retain a skilled base of employeesand provide essential services to their residents (which includeour workers). One measure of social responsibility is our economiccontributions to our host communities and regions insupport of these attributes. Barrick’s economic contributionsinclude wages and benefits for our employees, taxes and royaltiespaid to governments, purchases of goods and services fromBarrick Responsibility Report 2007 13

Barrick and Communitieslocal and regional suppliers, capacity building activities (seebelow) and charitable donations. In 2007, Barrick contributedover $6 billion to the local and regional economies of our hostcountries.Capacity BuildingFor Barrick, capacity building activities are tailored to localneeds and include infrastructure development (building roads,power sources, schools, medical clinics, water wells, etc.)apprenticeship programs, support for community initiatives,training and education opportunities and scholarships for communitymembers.For example, activities in 2007 included construction of primaryand secondary schools near our Tulawaka and Bulyanhulumines in Tanzania and near our Pierina mine in Peru. We alsotrained representatives from five communities neighboringLagunas Norte to participate in water monitoring activities onthe Perejil and Chuyuhual Rivers near the mine. At Bulyanhulu,Barrick is working in partnership with our catering servicesprovider, Sodexho, enabling over 100 local farmers to tap intothe demand for fresh produce at the mine. This local procurementprogram is enabling villages in the area that once existedon subsistence farming activities to generate as much as$50,000 per year in income. In Chile, Barrick continued to offertraining courses and workshops in the Huasco Valley to givelocal residents the skills they will need to work at Pascua-Lamaor in a related industry. To date, more than 3,500 people haveparticipated in courses ranging from basic industrial knowledge,to skilled trades, construction and local crafts. Also inAlanna RondiExecutive Director, AMREF Canada”Rooted in our shared values andcommitment to the health of mineworkers and communities, AMREFand Barrick’s partnership extendsfrom field staff to the highestlevels of corporate management.Bringing together diversestrengths, we work respectfully, productively and in a transparentmanner to address the unmet health needs of thecommunities in which we work. AMREF looks forward toexpanding our partnership to provide better access to healthfor mine workers, their families and communities acrossBarrick’s operations in Tanzania.“2007, at our North Mara mine in Tanzania, we began constructionof a 350 kilometer power line which will supply powerto our mine and to 67,000 community residents. We spent$2.5 million on road maintenance and construction near ourPorgera mine in Papua New Guinea.Artisanal and Small-Scale MiningMillions of people around the world maintain their livelihoodsthrough artisanal and small-scale mining (ASM). The individualsand groups engaged in ASM near our operations are keystakeholders and we actively engage, learn from and providesupport to them.For example, in late 2007, in collaboration with the governmentof Tanzania, Barrick initiated a comprehensive program toassist the artisanal and small scale miners near our North Maramine. The first stages involved extensive consultation with theASM groups in order to understand the complexities of theirorganization, management and working methods. An externalexpert in the field of ASM was hired to ensure the programdesign incorporated lessons from other experiences in theASM sector. The first phase of the program will facilitate andstrengthen the formation of “ASM cooperatives” in order foractivities to be more efficient and effective. Training programsare due to start in 2008 and will focus on topics includinghealth and safety, working conditions, environmental concerns(especially the use of mercury), and technology and managementtraining. An additional focus of the program will be theeradication of child labor in small scale mining.In Papua New Guinea (PNG), where there is also a concentrationof artisanal miners near our operations, we are working incollaboration with the PNG government and local communitiesto establish programs which enhance the income-generatingpotential of artisanal mining or provide alternative livelihoodoptions. For example, our Porgera mine has partnered with aPNG vegetable marketing cooperative, Alele, to help re-establishlivelihoods in the highlands potato industry.Illegal Mining ActivitiesMany mining operations in developing countries are located inremote, often marginalized areas where poverty and unemploymentrates are high. While the potential benefits to a region aresignificant, a challenging issue facing mining companies operatingin this environment is illegal mining activities and trespassing.Illegal miners enter mine property without permission with theintention of stealing gold-bearing ore. The level of criminalityand violent behavior often displayed by illegal miners canthreaten both the local community and Barrick employees, thevast majority of whom are also from local communities.14 Barrick Responsibility Report 2007

Barrick brought together a multi-disciplinary working groupin 2007 which developed strategic guidelines focused onaddressing this important issue in a holistic manner, by takinginto account the root causes of illegal mining. The maincomponents of the strategy include government liaison, stakeholdercommunication, security and community developmentprojects to address the root causes of the problem. We willcontinue to strive to manage the issue of illegal mining in orderto improve the safety of the local communities, the Company,our employees and the illegal miners themselves.ResettlementBarrick works together with host governments to manage, ina manner consistent with local laws and international bestpractice, the resettlement of people that may be affected byour planned operations. Engagement of affected communitiesis the cornerstone of Barrick’s commitment and the key tosuccessful resettlement programs.At the Buzwagi development project in Tanzania, a comprehensiveresettlement program, covering approximately twohundredhouseholds, was initiated in 2007 and will continueinto 2008. Upgraded family dwellings (designed in consultationwith the community) have been constructed, most of which arewithin the boundaries of the original villages. Two schools havealso been upgraded and over fifty community water wells havebeen deepened and improved. The house-building and otherconstruction projects draw heavily on the use of local labor andprovide a substantial source of income for the local populationin an area of very high unemployment.Plans for a government-led resettlement program in theDominican Republic were also finalized in 2007 in consultationwith the affected local communities. Of note was the successin resolving, through an extensive negotiation process withthe government and community members, a series of longstandinghistorical grievances in one community related toresettlement by the previous owners of the Pueblo Viejo site.Instrumental at both sites was the work of multi-stakeholderresettlement working groups which have steered the processand attained a high level of participation and support withinthe communities.From Philanthropy to Participationin TanzaniaHistorically there are many companies that have beengenerous in making donations to communities and Barrickis no exception. However in the developing countrieswhere we operate, our Community Relations Teams arelooking beyond philanthropy and determining new andinnovative ways to proactively engage local communitymembers, governments, and other stakeholders in communitydevelopment initiatives. This participatory developmentincreases a community’s sense of ownership in theinitiatives and leads to community capacity building.Even before work gets started on community projects,planning is a collective effort. For example, at all of ouroperational sites in Tanzania, our on-site CommunityRelations Teams work with local villages on participatorydevelopment planning. Participatory Rural Appraisal (PRA)methods are being used to assist communities in identifyingdevelopment priorities and, more importantly, in developingcollective solutions. Notably, this approach ensuresthat the community develops initiatives that are not relianton extensive, ongoing funding from Barrick and that buildlasting capabilities where they are much needed.A typical example is the Mwenda Kulima ward communityin which community members, the District Council andBarrick’s Buzwagi project are jointly constructing a secondaryschool. A memorandum of understanding was developed,stipulating each party’s responsibilities and agreed upon byall. Barrick Buzwagi is providing all construction materialsand technical supervision, the District Council is supplyingfurniture, while the Mwenda Kulima community providesthe labor. This type of partnership not only provides for acommunity facility and community ownership; but alsohelps in skills development and a heightened awareness ofsafety among community members who work together withthe skilled and safety conscious Barrick team.This type of participatory development is vital in makingcertain that development initiatives are owned by thecommunities and local government, and that communityresidents are not reliant on cash donations from a companythat will one day close its facility and leave the area.We want to leave a lasting positive legacy wherever weoperate, and while donated buildings and other infrastructureprovide the basics, what we really hope is that ouroutreach activities can empower people and strengthencapacities for self-driven sustainable development.Barrick Responsibility Report 2007 15

Barrick and CommunitiesIndigenous PeoplesConstructive dialogue is the cornerstone of our engagementapproach with Indigenous Peoples in the areas where we haveoperations and exploration projects – including the Tahltan FirstNations at our Eskay Creek mine, the Pic River First Nationsnear the Hemlo mines, the Western Shoshone at Cortez Hills inNevada, Native Alaskan communities neighboring the DonlinCreek project, the Diaguita of the Huasco Alto near our Pascua-Lama project in Chile and the Wiradjuri Condobolin communitynear the Cowal mine in Australia. Our consultation activitiesare customized, adapting to local realities, historical culture andcontext, to the specific needs of our projects and the individualIndigenous communities affected by our operations. At oursites around the world, Barrick works effectively with ourIndigenous partners to develop sustainable land use plans,environmental monitoring programs, employment and procurementopportunities, formal collaboration agreements andcultural protection projects.For example, the Cortez mine in Nevada has engaged withWestern Shoshone Tribal leaders and community members formany years. Originally a joint venture, early in 2008 Barrickacquired 100 percent ownership of Cortez and the adjacentCortez Hills project. Consistent with our commitment to directand open engagement, Barrick convenes frequent dialoguesessions open to all Western Shoshone community members.These forums provide a constructive process for sharing informationon the mine, community updates, addressing issues ofconcern and helping to create an environment of cooperation.Many Western Shoshone community members participate inwide-ranging educational, economic and community wellnessopportunities generated by our mining activities. For moreinformation on our engagement with the Western Shoshone,please visit our website.SecurityBarrick explores and operates in places in the world where ouremployees and assets may need to be protected from theft andrelated violent activities. In these places we employ securityThe Diaguita CommunityBarrick is working in partnership with the Diaguita communityof the Huasco Alto near our Pascua-Lama project,developing programs that contribute to the strengtheningof their culture and traditions. Aspects of the programinclude: workshops that combine commercial training andreviving ancestral Diaguita artisanal techniques, participationin fairs and cultural and productive gatherings, andthe Forestry and Agricultural Cooperation Program thatprovides technical training andspecialized services to Diaguitacommunity members wholive in geographicallyisolated locations.staff or retain contractors to protect our employees and assets.In 2006 we developed a comprehensive security policy basedon the Voluntary Principles on Security and Human Rights(VPSHR). The policy will be implemented globally in 2008. In2007 assessments of all ‘at risk’ operations were conducted incollaboration with an independent expert on the VPSHR.As part of our security program, all security managers andsecurity officers who carry firearms have received human rightstraining and all operations where firearms are used are governedby the requirements of the United Nations Guidelines forthe Use of Force and Firearms by Law Enforcement Officials (asrequired by the VPSHR). In addition to meeting the protectivesecurity requirements for our people and operations, 2007 sawan expansion of our security programs in partnership with localcommunities. An example of these programs is the initiative atour Tanzanian operations where people from local villages areprovided training and engaged, via a village security organization,to assist our operations with security services.Managing Grievances and ConflictBarrick’s commitment to listen and respond to the concernsof local residents helps to build goodwill and trust with ourhost communities and other local stakeholders. Through ourcommunity feedback mechanisms, we are kept informed aboutissues and concerns in the community and we can respondquickly to settle minor issues or disputes before they escalateinto more significant grievances. Discussion on significantissues for 2007 can be found on our website.16 Barrick Responsibility Report 2007

COWAL MINE:A Study in Sustainable DevelopmentIntroductionThe success of Barrick’s Cowal Gold Mine, located in NewSouth Wales (NWS), Australia, can be attributed to a strongsense of responsibility to the community and the environment.Upon acquiring the undeveloped Cowal project from Homestakein 2001, Barrick recognized the importance of maintaining thesupport of the community and investing back into the region.To address this need, the Company embarked on an extensiveprogram of community engagement, beginning during theproject’s earliest days. During this process, Barrick gained aclear understanding of the interests of the farmers and otherresidents located in the communities around Lake Cowal, aswell as members of the Wiradjuri indigenous community.Building a Robust EconomyDuring the earliest stages of mining exploration in the LakeCowal area, hiring and training opportunities were providedlocally, commencing what would become a long-term economicstimulus promoting the development of the region.Prior to this time, the Lake Cowal region had slid into a stateof economic decline, characterized by an aging population andlimited job opportunities. The need to reinvigorate the localeconomy may be one reason the Lake Cowal communitieswere predominantly supportive of the mining project from theoutset. In a 2004 survey conducted by an external marketresearch company, only seven percent of surveyed communitieswere negative to the presence of the proposed mine.Employment figures at the height of the mine’s construction,between early 2004 and April 2006 peaked at 700, includinglocally hired and trained geological technicians, explorationdrillers, and construction workers. According to a subsequentsurvey in 2006, the year the Cowal mine poured its firstgold, the negative attitude towards the mine had declined tofour percent.Today, most of the 250 employees at the Cowal mine andapproximately 60 contractors reside in West Wyalong andneighboring towns, including Forbes and Condobolin. In 2007,total wages and salaries for this group were estimated at $16million. Compounding this fiscal injection into the region arestatutory payments and royalties to local and state governmentsamounting to $4 million in 2007. This economic impacthas been further strengthened as a result of a “buy local”policy that gives preference to local goods and services whenfeasible. More recently, this has involved the purchase of a fleetof 40 light vehicles, as well as trailers, employee clothing andbus and cleaning services from local suppliers. In addition, wehelp to support community-based organizations, especiallywhere the influx of Barrick employees has had an impact, suchas the Bland Children’s Services Unit. In this case, Barrick contributed$80,000 towards the construction of an expandedfacility in West Wyalong that now provides pre-school, familydaycare, a toy library and vacation care services to workingfamilies in West Wyalong.This process of proactive community engagement remains anongoing priority. A community complaints hotline has beenestablished to promptly identify and address the concerns oflocal residents. Barrick also extends invitations to communitygroups to visit the Cowal Mine and produces a communitynewsletter when required to keep residents fully informed asto Company activities. This Responsible Mining approach hashelped to make the Cowal Gold Mine an employer of choiceand an important part of the fabric of the community.Environmental Conservation ParamountAmong the Company’s central responsibilities is meeting rigorousenvironmental standards for the management, protectionand conservation of Lake Cowal, a nationally recognized wetlandecosystem. Lake Cowal forms part of a large wetlandsystem in the Lachlan Catchment in Central New South Wales.The lake is ephemeral, meaning it fills primarily due to riverflooding but not during drier years or, as has been the casemost recently, drought years. When flooding occurs, the lake ishome to significant concentrations of water birds and becomesBarrick Responsibility Report 2007 17

a fertile breeding ground, as was recognized by the AustralianHeritage Commission, which designated Lake Cowal as anenvironmentally significant site in 1992.In the mid-1990s, rigorous examination of the potential environmentalimpacts of mine construction and operation wasundertaken as part of the mine approvals process, which tookinto account that 2,650 hectares of the 11,000 hectares ofmine site land, encroaches onto the western side of LakeCowal. Following two public Commissions of Inquiry (in 1995and 1998), government authorities concluded that the projectcould be developed and operated in a manner compatible withthe environmental values of the lake and the surroundingregion. Nonetheless, the project met with some oppositionfrom a vocal minority of environmental interests.“We have been able to demonstrate to date that we can meetall the very strict environmental conditions that are part of ourconsent conditions to operate,” said Bill Shallvey, Cowal’sCommunity Relations Manager. “Management here hasworked very hard to instill a clear understanding in all employeesthat our very livelihoods depend on an excellent environmentalrecord. We have had external audits six times sincecommencement of construction in Jan 2004, and we areabsolutely on track, not a single non-compliance issue.”The Lake Cowal FoundationExtensive consultations ensued with mine personnel, environmentalgroups and other non-government organizationsduring the early years of mine development, leading to theestablishment of the Lake Cowal Foundation, a not-for-profitEnvironmental Trust, in 2000. The Foundation is primarilysponsored through royalties from the Cowal Mine. The aimof the Lake Cowal Foundation is to protect and conserve theLake Cowal area.The Lake Cowal Foundation sponsors field days forlocal farmers.Barrick’s role in the establishment and ongoing activities of theFoundation underlines its commitment to the environment thatexists well beyond the mine fence. Environmental managementof the Cowal mining lease remains the sole responsibility ofBarrick. However, the Foundation’s mandate is wide-rangingover the whole Lake Cowal catchment area, far beyond themining lease and the direct influence of the mining operations.Today the Foundation has 25 ongoing projects and a total fiveyear budget of around $5.6 million that includes cash contributionsfrom a number of conservation groups, as well as in-kindcontributions from local farming families.The Lake Cowal Conservation CentreIn 2007, Barrick participated in the opening of the Lake CowalConservation Centre (the Centre), located on Barrick’s Hillgroveproperty. The Centre was created through an agreementbetween Barrick, the Lake Cowal Foundation, West WyalongHigh School and the Lachlan Catchment ManagementAuthority. The Centre will provide the local community with aneducation, training and resource center for environmentalmanagement. “It is now fully operational and we are alreadyestimating more than 5,000 school students, landholders andcommunity members from across the Lachlan Catchment willvisit the Centre each year,” said Bill Shallvey. “The new conservationCentre is ideally situated to set up demonstration sites,test innovative farming practices and implement conservationprojects and activities through education and engagement.”“The Centre has been established to engage and educate thelocal community in catchment management issues. One ofthe main benefits of the Centre will be an enhanced level of18 Barrick Responsibility Report 2007

understanding about how agriculture, conservation andindustry can be integrated in a sustainable way,” said Peter Hill,a project manager with the Lake Cowal Foundation.Respecting and Strengthening the WiradjuriCommunityBarrick recognizes the importance of respecting the unique culturalcharacteristics of all indigenous peoples and is committedto developing constructive relationships with indigenous communitieswherever we operate. This engagement is based onan understanding that indigenous communities may seek directinvolvement in mining projects near their traditional settlementsand may wish to secure direct benefits from miningoperations. Lake Cowal and the Cowal Mine are situated inWiradjuri Country. The Wiradjuri people are recognized as thepre-European occupiers of the land and had been known tocamp occasionally along the banks of the lake.Barrick worked with the Wiradjuri Council of Elders, theRegistered Native Title Claimants, over a 15-month period tonegotiate an equitable Native Title Agreement, which wassigned by both parties in 2003. Under the terms of theAgreement, the Company agreed to measures to support thecommunity in the areas of environmental and cultural heritage,employment, training and education and business development.NEW SOUTH WALESVICTORIAMelbourneCowalHentyTASMANIAHobartCanberraSydneyThe Cowal Gold Mine is located in Bland Shire, onthe western shore of Lake Cowal, 40 km north-eastof West Wyalong and approximately 350 km west ofSydney. In 2001 Barrick acquired the undevelopedCowal Gold project from Homestake. Constructioncommenced in 2004 and was completed in 2006,when gold production began at the mine.On May 22, 2003, the following joint announcement wasmade:“Barrick Australia Limited and the Wiradjuri Condobolin NativeTitle Claim Group have reached an agreement that promotesand protects the Wiradjuri cultural heritage while ensuring thata wide range of benefits will flow to the Wiradjuri communityduring the life of Barrick’s proposed Cowal Gold project.”That year, as a result of a Native Title Agreement, the WiradjuriCondobolin Corporation was established. The registered companyis supported by Barrick financially as well as with initiativesthat pursue opportunities which can lead to businessinitiatives, further education and employment for the Wiradjuripeople. The Company employed the Wiradjuri Corporation tomanage Wiradjuri heritage protection activities during minedevelopment. At the height of these activities, as many as sixtyWiradjuri heritage field officers and archaeologists wereresponsible for identifying and preserving any artifacts found atthe site. The Corporation also provides a cultural heritageinduction course for new Barrick employees.Barrick continues engagement with the Wiradjuri Condobolincommunities through a number of formal committees andmeets regularly to continue to develop opportunities foremployment, business and training opportunities for theWiradjuri. To date, seven university scholarships and four tradeapprenticeships have been awarded to young Wiradjuri menand women in mining-related studies or trades. Two of thescholarship holders completed undergraduate studies in 2007and one apprenticeship was completed in 2007.“Many Wiradjuri people have been employed in full-time,responsible jobs. They also supervise cultural heritage activitieson-site. Young Wiradjuri people are provided an opportunity tostudy at university, while yet others take apprenticeships. Theseyoung people are our future leaders. They now have an opportunitythat wasn’t there before the Barrick mine.” Excerpt froma 2007 media release from Percy Knight, Chief ExecutiveOfficer of the Wiradjuri Condobolin Corporation.In addition to creating jobs and scholarships, Barrick is assistingwith support for the construction of a Centre for WiradjuriStudies, which will serve as a key education and cultural centerand a place of learning for the indigenous community.Barrick is committed to making a positive difference in thecommunities where we operate and to protecting the environmentimpacted by our activities. We are doing both at ourCowal Gold Mine.Barrick Responsibility Report 2007 19

Barrick and EmployeesEmployeeResponsibilityCan a company build employee excellence?20 Barrick Responsibility Report 2007

Attracting, retaining, motivating and developing our people iscritical to Barrick’s success. We are achieving this goal by providinginteresting and challenging work, attractive compensation andbenefits, and a work environment that promotes safety andemployee well-being.We have a blend of global, regional and site-based Human Resource programs at Barrickdue to the geographic and cultural diversity of our workforce. This approach allows us toimplement global programs and standards while enhancing the quality of the employeeexperience through targeted local and regional programs that address the unique labormarkets and social conditions in the countries where we operate.Jacqueline WhonderFinancial Analyst, Toronto“ I want to feel proud of thecompany I’m working for. I havea responsibility as a parent toraise my children to be sociallyresponsible and I have to leadby example by working for anethical company. I can feel proudto be part of Barrick.”At the end of 2007, we employed over 20,000 workers at our operations, joint ventures,exploration, development and closure projects and business offices in 13 countries.Attracting and Retaining Excellent EmployeesFor Barrick to achieve its full potential, we must make substantial investments in our people.We provide opportunities for personal advancement and skills development, competitivesalaries, culturally targeted benefits and a healthy work-life balance.EDUCATION AND SKILLS DEVELOPMENTPersonal development opportunities are an important benefit we provide for our employees.Skills development and apprenticeship programs are often made available at oursites. In many cases, tuition reimbursement is provided for off-site, employment-relatededucation. In 2007, Barrick provided 770,000 hours of environmental, health, safety andemergency response training and over 550,000 hours of technical, managerial and leadershipeducation offered both on- and off-site. We sponsored 246 apprenticeships at18 operations.Washington OnyangoEnvironment Manager,Buzwagi Project, Tanzania“[Responsiblemining] helps withthe attraction and retentionof new employees, allowing usto secure the best talent in theindustry.”We also have a professional development program for engineers and geoscientists thathave joined us directly from post-secondary education. This development program isdesigned to accelerate the learning curve and advance the careers of our technical employeesthrough active mentoring from more experienced professionals and targeted learning.Training programs play a major role in strengthening the Company across the globe. InTanzania, for example, Barrick invests in the Tanzanian workforce by sponsoring numerousshort courses and training sessions to advance their skills. Over the past few years, theAfrican Region has invested in long-term education by sending a number of employees toBarrick Responsibility Report 2007 21

Barrick and EmployeesAustralia and South Africa to study mining engineering andmetallurgy. Other Tanzanians have spent time abroad at otherBarrick operations in order to strengthen their professionalskills. The Company has also embarked on partnerships withTanzanian-based educational institutions with the objectiveof improving the technical educational delivery. Tanzanianuniversity students are offered vocational work assignmentsat our mines in Tanzania with the aim of developing theirpractical knowledge in their individual fields of study.FRONT LINE LEADERSHIPLeadership development is a vital part of our efforts to ensurethat the Company has the right leaders in the right places atthe right time. The Powerful Leadership program was developedin 2006 to strengthen the leadership skills of our superintendentsand front line leaders. By the end of the 2007, over1,900 supervisors and front line leaders had participated in theleadership and communication skills training course. Thesecond phase, which will continue in 2008, focuses on managingemployee performance and retaining talent. Advancedleadership development is achieved by sending our more seasonedmanagers through rotational and expatriate assignments,special projects and academic coursework. Many of ourregions have longstanding relationships with universities andprivate institutions in their region.SCHOLARSHIP PROGRAMSBarrick supports the educational development of employees’children by providing scholarships in some regions and bysupporting primary and secondary schools in others. We spentover $2.4 million on scholarships for employees’ children in2007. Please see the community section of this report to readabout our community education support activities.COMPENSATION & BENEFITSBarrick’s workforce consists of highly skilled employees whosecompensation commonly exceeds those in other industries.Compensation structures are developed regionally, ensuringlocal competitiveness and our ability to attract and retain highqualityemployees who are aligned with our core values. Barrickprovides a core group of benefits for employees pertaining tohealth care, regardless of the country in which we operate.Additional benefits are regional and are determined by localcompetitive practices. For more information on employeecompensation and benefits please see our website.Amy SchwalmSenior Director, Investor Relations,Toronto”In my mind, a Barrick leaderdemonstrates a personal commitmentto achieving goals andultimately, shows passion andenthusiasm for the Company. Thisis what impressed me most whenI started at Barrick. It’s whatcontinues to inspire me today.“22 Barrick Responsibility Report 2007

WORK-LIFE BALANCETo retain high-quality employees in today’s competitive labormarket, Barrick works to assist employees in balancing thedemands of their work environment with those of theirpersonal lives. For example, the South American region hasimplemented changes to shift starts at our operations so theycoincide better with the circadian rhythm of our employees.Work-life balance tends to be an issue for many employees atthe Australian region’s fly-in, fly-out operations. So, in 2007,management introduced new shift rosters at the fly-in, fly-outsites in Western Australia to enable employees to spend moretime at home.Human RightsBarrick is committed to observe the fundamental tenets ofhuman rights. This commitment is imbedded in our corporateculture and led us to become a signatory to the UN GlobalCompact in 2005. We are committed to equal opportunity andfreedom from discrimination for all our employees and contractors,to the rights of our employees to freedom of associationand collective bargaining and to providing a workplace whereall individuals are treated with dignity and respect. Pleasesee our website for statistical information on employees andhuman rights at our operations.A diverse workforce encourages creativity and innovation. Wedraw our workforce from many countries around the world,including each country where we operate, with the result thatour workforce is extremely diverse in terms of national andethnic backgrounds. Our focus is to hire locally wheneverpossible, and to develop the skills of our local employees. In2007, the number of expatriates at our operations variedregionally, but globally they represented less than two percentof our employees.The workforce in the mining industry is predominantly male,and many women see this as a barrier to gaining employmentin the industry. At Barrick, our focus is to employ the bestperson for the job; to choose people on merit. Our challenge isto ensure that we are welcoming to women, so that we canemploy the best among a wide candidate base. In 2007 forexample, to respond to this challenge, the Australia Pacificregion held their first Women in Barrick Forum to identify waysto encourage women to seek employment with the Company.Finding Good Employees Means LookingOutside the BoxAustralia is in the midst of a skilled labor shortage whichmeans that Barrick needs to look at non-traditional methodsto identify and attract candidates for professional andtechnical positions at our Australian operations. Onenew approach is the region’s Employee Referral Programadapted from Barrick’s corporate program. This programencourages current employees to identify and refercandidates for vacant positions. A financial incentive forsuccessful referrals rewards employees for their efforts.Our current employees are important ambassadors forthe Company and can often promote our business moreeffectively than an external recruitment agency.Talent Management & Global SuccessionPlanningThe Company has a robust talent management process inplace in all of its Regions. It is an annual process that facilitatesthe assessment and development of our employees.It also helps to identify a high-performing, mobile groupthat we use to build our Global Succession Plan. In orderto prepare the Company for the future, we pair successioncandidates with opportunities that ready them for identifiedsuccession roles. Although some of these developmentopportunities are training based, most are “stretch roles”and often involve special projects. This program offersan accelerated career path for ambitious and mobileemployees while building leadership depth, cultural diversityand offering fresh leadership thinking to our differentregions and sites.Barrick Responsibility Report 2007 23

Barrick and Safety & HealthSafety and HealthResponsibilityWhat responsibility should a company haveto keep people safe and healthy?24 Barrick Responsibility Report 2007

Improving safety and health performance is a key goal in Barrick’s Strategic Objectives. Asa major tool of our Safety and Health System, Courageous Leadership training has led to aglobal culture change that conveys the Corporate Vision of “every person going home safeand healthy every day.” Audits and inspection of processes in the Barrick Safety and HealthSystem ensure safety and health management systems are effective. As a result, 2007marks the 10th year of an improving trend in total reportable injury frequencies – a majorsafety milestone. This section of the Responsibility Report provides information on our2007 safety and health performance. For information on our management approach andadditional safety statistics, please see www.barrick.com/CorportateResponsibility.2007 PERFORMANCEIn 2007, our lost-time injury rates increased by seven percentfrom 2006 but the total reportable injury frequency ratedecreased by nine percent over the same period. Thisdecrease was overshadowed by two fatalities however. Weare deeply saddened that two contractors were fatally injuredon our sites during the year. As part of our commitment toan incident-free safety and health culture, a global team ofcertified Barrick investigators thoroughly investigated theincidents and the results, with lessons learned, were sharedacross the organization.time and total reportable injury frequency rates from previousyears to address areas that need improvement. As well, investigationof our incidents, including near misses, helps us determineroot causes and appropriate corrective actions to putinto place so that an injury does not reoccur. This knowledgeis then shared throughout the Company and reinforces ourcommitment to a safe and incident-free workplace.TOTAL MEDICAL TREATMENT INJURY RATE3.5Globally, Barrick received 398 safety and health regulatoryactions at 17 sites in 2007. While most actions were for minorissues, none were acceptable and actions were taken tocorrect the problems and to prevent their recurrence. Relatedto these regulatory actions, eight operations were fined a totalof $101,094.What do our reported safety and health statistics mean?Barrick tracks the above statistics to give us an overall pictureof our safety and health performance. Injury incidents thathave resulted in lost time from work, restricted work duty,or medical treatment (even in minor cases) are investigatedthoroughly to prevent repeat incidents. We compare our lost3.02.52.01.51.00.50.00.82.50.42.20.42.40.31.40.3 1.203 04 05 06 07Medical Aid & Restricted Duty RateLost-time Injury RateBarrick Responsibility Report 2007 25

Barrick and Safety & HealthSafety Committees and TrainingBarrick believes that everyone is responsible for workplacesafety. Safety committees and safety training programs are inplace at all operations and projects. These programs areintended to provide employees and contractors with a clearunderstanding of their rights, responsibilities and accountabilitiesin creating and maintaining a safe workplace for all. In2007, over 745,000 hours of safety training and 89,000 hoursof emergency response training were provided to Barrick’semployees and contractors.Continuous ImprovementCourageous Safety Leadership Refresher training was also conductedthroughout 2007. These refresher courses are designedto support the culture of safety across the entire Company.The refresher courses are designed to provide a platform for allemployees and contractors for continuous safety improvementand sharing of best safety practices; the goal – a zero-incidentworkplace. Work-related injuries or illnesses are unacceptableand Courageous Safety Leadership strengthens our commitmentto build a safety culture where every employee is thinkingabout safety every day, whether on the job or at home.This year, Barrick has put into effect at all our operations athree-tiered, risk-based approach to decision making. The firsttier, High Level Risk Assessments, and the second tier, FormalRisk Assessments, were completed in 2007. The final tier, thecreation of “everyone is a risk manager” through the use ofField Level Risk Assessments was begun in mid-2007 and willbe completed in 2008. These assessments are assisting oursafety and management leaders in making the best decisionsfor employees to accomplish their tasks safely and withoutincident. We believe that safety is everyone’s responsibility andour risk-based approach helps us to meet the challenge ofcreating a workplace culture that embraces safety.AwardsOur emergency response teams are dedicated safety professionalsthat exhibit Barrick’s values and raise the bar with extensivetraining and competition. We received 53 external safetyawards in 2007. Many of our operations won site awards fromregulators and industry organizations for being safe mineswithin their jurisdictions, and individual employees receivedawards for modeling safe behaviors.Courageous Safety Leadership Appliesat Work and at Home.The knowledge gained through Courageous SafetyLeadership training is often applied in other areas of ouremployees’ lives. For example, Porgera mine siteemployee, Alfred Kumasi, learned first hand just howimportant courageous leadership can be outside of work.While on a field break, Alfred made a difficult decision hebelieves saved his and his family’s life.Alfred and his family hadgone shopping in thenearby town and werewaiting for the publicmotor vehicle to returnhome to their village. Ashe loaded his goods andfamily into the vehicle, henoticed that there were noseatbelts. He immediatelygathered up his family and goods and disembarked fromthe vehicle, much to his family’s frustration. Because it wasthe last vehicle of the day, Alfred and his family had tospend the night in town. The following day, however, hisfamily realized the full impact of Alfred’s decision whenthe news came that the vehicle he and his family hadchosen not to board collided with another truck in routeto the village, killing six people. “Through working atPorgera,” Alfred stated, “I have learned about many safetyinitiatives, including vehicle safety and training. That day,when I made the split decision to get out of the vehicle,was proof of how much this training has affected myhabits and attitudes. I have never appreciated my safetytraining as much as I did that day.”Alfred clearly embodies what Barrick’s Courageous SafetyLeadership program stands for. He made a CourageousLeadership decision to find a safe solution that ultimatelyprotected his life and that of his family.“Strong leadership is an essential ingredient to allaspects of our business. A safe workplace is at thetop of the list.”– Greg Wilkins, Barrick C.E.O.The annual Barrick Safety Awards recognize those locationsthat have achieved outstanding safety performance, and thoseindividuals who have shown courageous safety leadership. Fora complete list of awards (both internal and external), pleasesee our website.26 Barrick Responsibility Report 2007

Barrick Health SystemOver the last several years, Barrick has made significantprogress in addressing both occupational health and generalhealth issues affecting its employees. In 2007, we continued tointegrate the Barrick Health System into the day-to-day operationat each of our sites. Working alongside the Barrick SafetySystem, the Health System is designed to allow the Company’soperations to look at health challenges in a systematic way tooptimize employee health and well-being.The Health System has six elements with specific goals andstandards associated with these elements. They include:Leadership and Personal Commitment; Policy and Objectives;Planning; Health Risk Assessment; Program andImplementation; and Performance Measurement andAssessment. The key element of the Barrick Health System,however, is the same as the Safety System – Leadership andPersonal Commitment. Our Health System supports the conceptof Courageous Leadership at all levels of the organization;that each individual can make a difference.To support our Health System, a data management softwaresystem has been implemented globally to facilitate collection ofoccupational health information and improve the managementof health risks. An audit protocol based on the Barrick HealthSystem was developed and corporate teams began auditingour sites on these protocols. Site occupational health audits willcontinue through 2008 to assist our sites in identifying additionalimprovements and opportunities. We also introduced aglobal “Smoke Free Policy” late in 2007. The policy prohibitssmoking in the workplace and provides support for those whowish to quit.HIV/AIDSBarrick’s HIV/AIDS programs, which serve our employees andthe wider community where our sites operate, are focused onOne element of the Barrick Safety System is training.This includes emergency response preparedness trainingas shown above.at-risk countries such as Tanzania, Papua New Guinea andSouth Africa. These programs are multifaceted and encompassprevention, treatment, counseling and care. In 2007, weopened a newly reconstructed health clinic providing HIV/AIDSservices near the company’s Porgera mine in Papua NewGuinea and will soon open a new health facility at theCompany’s Tulawaka mine in Tanzania.Regional PerformanceAll across the globe, Barrick’s commitment to a safe andhealthy workplace can be demonstrated. In 2007, for example,our South American Region issued a new policy on controllingfatigue and raising awareness about the importance of healthylifestyles. Near our North Mara mine in Tanzania, we have completeda major project that upgraded Nyamongo Hospital froma basic dispensary to a full hospital that delivers a wide rangeof medical services to our employees and communities surroundingthe mine. The Ruby Hill mine in Nevada, after severalyears of closure, has reopened and, in continuing their longtradition of safe operation, was awarded two prestigious safetyawards from the Nevada Mining Association and the U.S. MineSafety and Health Administration (MSHA). Our Kanowna minein Western Australia demonstrated their commitment to“safety before production” when they shut down the mine’sfleet of haul trucks for a day to make improvements to theirtraffic management system for vehicles traveling underground.Similar commitments are demonstrated globally by all ouremployees who contribute, encourage, and promote a safeworkplace as well as make safety a priority every day with theirfamilies and within their communities. Safety is everyone’sresponsibility.Barrick Responsibility Report 2007 27

Barrick and the EnvironmentEnvironmentalResponsibilityCan success in business and environmentalstewardship go hand in hand?28 Barrick Responsibility Report 2007

Barrick’s goal is to minimize our environmental footprint and safeguard the land, air, water andwildlife wherever we operate. We are guided in this endeavor by our Environmental Policy Statement.Environmental Management Systems (EMS) at each of our operations help us achieve the goals ofprotection and stewardship, and performance indicators help us measure how well we are doing.A global Environmental Management System Standard which applies to all Barrick operations ensuresthat the EMS at each site is robust and includes advanced planning against possible future events.This section of the Responsibility Report provides information on our 2007 environmentalperformance. For more information on our management approach and additional environmentalstatistics, please see www.barrick.com/CorporateResponsibility.We recognize that there may be impacts to the existing natural environment, both temporary and long-lasting, due to the presenceof our mining operations. As a result, we use a precautionary approach throughout the life of a mine by first assessing potentialimpacts, then evaluating how to avoid, control or mitigate these impacts.2007 PERFORMANCEOne of our goals is to operate in full compliance with all environmental regulatory requirementsand permits. In 2007 this goal was principally achieved. Any written directive from aregulatory agency is considered to be a regulatory action. In 2007 we received 48 regulatoryactions globally and two fines. Our Cortez operation in Nevada received two Notices ofViolation and a $1,250 fine for failing to notify the State prior to source testing of a singleair emissions point and for failure to provide timely sampling data as part of the sourcetesting report. Our KCGM operation in Australia received a fine of $21,250 in 2007 relatedto an air emissions incident that occurred in 2005.(above) Barrick is focusing oninnovative energy strategies(see page 33).There were 14 water permit incidents at six sites during 2007 resulting from detection ofelevated constituents in treated mine water. Most incidents related to pH outside the permittedrange and total dissolved solids higher than permitted levels. These were short-termexceedences and were addressed to the satisfaction of the permitting authorities. Therewere 23 air emission permit exceedences at three sites in Nevada in 2007. The exceedenceswere short-term in nature and corrective actions were taken. Neither the water incidentsnor the emission exceedences resulted in fines.We have controls in place at all our operations to protect the environment from chemicalsand fuels. These controls include spill containment, meters, alarms and regular inspections.While some spillage is inevitable, most spills are contained on-site and within primaryor secondary containment. In 2007, 20 spills escaped secondary containment, but wereBarrick Responsibility Report 2007 29

Barrick and the EnvironmentSafeguarding theenvironmentcontained within the mine property. One was a fuel spill whichoccurred when a truck overturned and was cleaned up, leavingno long-term impact. The remainder were process solutionspills and overflows from sediment traps caused by equipmentmalfunction or as the result of vandalism of pumps and valves.In these cases, the spilled material was captured on-site andequipment repaired or replaced. There were nine spills whichleft the mine property. They are summarized in the table onpage 35. There were no long-term consequences to people orthe environment as a result of any of the nine off-site spills.We have safeguards in place at our operations designed to protectwildlife and prevent them from coming into contact withprocess solutions or mine equipment. These safeguards includenetting, fencing and other barriers, as well as decoy and warningdevices. In spite of these protective measures, 14 mammals,215 birds and one amphibian were killed at our operations in2007. Most bird deaths (165) occurred in Australia where birdscontinue to gather at our processing facilities in spite of decoys,warning devices and routine inspections. We will continue towork towards reducing or eliminating wildlife mortalities.Tools for Environmental ExcellenceBarrick employs environmental professionals responsible fordeveloping, implementing and maintaining environmentalmanagement systems and controls, as well as promotingenvironmental stewardship at all sites across the Company.Regional and corporate environmental professionals providesupport to the site personnel as well as to other corporatedepartments within the Company, including exploration, technicalservices and capital projects. We are committed to environmentalexcellence and promote this objective throughtraining, monitoring and auditing.TRAININGEnvironmental training provides all workers with an understandingof their environmental responsibilities. Training varies fromsite to site; some sites provide informal training sessions weeklywhile others provide more formal training each year. In 2007,over 200,000 hours of environmental training were provided foremployees and contractors at our sites. In addition, our environmentalprofessionals attend external classes and seminars asappropriate for their region and career development.MONITORING AND AUDITINGOngoing environmental monitoring during the life of eachmine and through closure provides feedback on the effectivenessof each operation’s environmental management systemsand controls. Regular environmental audits are completed atour operations by audit professionals within the Company. Theaudit process is designed to verify that the environmentalmanagement systems are adequate to ensure that performancecommitments are achieved. Environmental audits are conductedannually at selected operations and developmentprojects. The remaining operations and development projects30 Barrick Responsibility Report 2007

are audited, in general, every two years. During the 2007 auditcycle, 29 environmental audits were conducted at producingoperations and development projects.Environmental Management System StandardBarrick’s Environmental Management System Standard wasdeveloped in 2005 to ensure that our standards of practice areconsistent Company-wide. In 2006, our sites assessed the statusof compliance of their operational Environmental ManagementSystems against the corporate Standard. Our operations currentlyhave many of the systems required by the Standard,including a number of sites which are ISO 14001 certified (seepage 32). Nonetheless, additional effort is required to bring alloperations into full compliance with the Barrick Standard. Aphased implementation of the Standard’s Principles began in2007 with the introduction of the Leadership and LegalCompliance Principles. Implementation of additional Principleswill continue in 2008.Materials and Waste ManagementBarrick’s commitment to manage all chemicals and materialsused at our operations in a safe and responsible manner meansthat the use of cyanide, explosives and fuels is closely monitored.Cyanide is used at 23 of our operations and, as a signatoryto the International Cyanide Management Code, we haverigorous procedures in place for the safe transport, storage,handling and disposal of cyanide at each of those sites. In 2007,we used 40.5 million kilograms of cyanide. See page 34 formore information on cyanide management at Barrick.Explosives and fuels are carefully managed at Barrick’s operationsand continuous improvement programs identify opportunitiesfor increasing efficiency in the use of these materials.Our focus on materials conservation has led to the establishmentof recycling and reuse programs at our operations. Avariety of materials are recycled, depending on the recyclingfacilities available near each location, and can include used oil,tires, scrap metals, wood, paper products, plastic and glass.Hazardous waste, including lead cupels, used batteries, usedoil, outdated chemicals, paints and solvents, etc., is removedfrom our properties by licensed waste handlers and eitherrecycled or disposed of in accordance with local and stateregulations. In 2007, we safely removed 2.9 million kilogramsof solid hazardous waste and 14.1 million liters of liquidhazardous waste from our operations.Water Management and Water ConservationWater use for ore processing, mine cooling, dust suppression,blasting activities, etc., is monitored at all our operations andresource conservation opportunities are actively pursued. Muchof the water used for ore processing is reused by recyclingthrough the processing facilities. Both surface and groundwatermay be used, depending on the availability at each site. InBarrick Responsibility Report 2007 31

Barrick and the Environment2007, a total of 84.8 billion liters of water were consumed atour operations.In 2007, we developed a global Water Conservation Standardto standardize site water conservation programs at both ouroperating and closed properties. This was done to ensureconsistency throughout the Company concerning waterconservation, to support continuous improvements at ouroperations and to establish Barrick as an industry leader inwater conservation practices. Implementation of the Standardwill begin in 2008.Air Quality ManagementEmissions to air are an inevitable part of mining operations.However, in line with our commitment to continuous improvement,we require that our sites manage these emissions to reducepotential impacts. The emissions on which our efforts focusinclude dust, sulphur dioxide, mercury and greenhouse gases.an Energy Group which has been assisting our operations inimplementing energy efficiency programs and initiatives.Energy efficiency will serve to minimize GHG emissions. Toprovide corporate oversight of these programs and to moredirectly address the issue of climate change, we developed aglobal Climate Change Program in 2007.Implementation of our Climate Change Program will begin in2008. We will set global energy efficiency targets, renewableenergy targets and greenhouse gas emissions intensity targets,along with incorporating energy management into regularbusiness management processes. The expected future costs ofemitting GHG will now be included in our investment decisions.WATER CONSUMPTION INTENSITY(Liters / Ton of Ore Processed)400ISO14001 in South AmericaIn 2007, the Veladero mine joined Barrick’s other threeSouth American mines – Lagunas Norte, Pierina andZaldivar – in achieving ISO 14001 certification. Introducedin 1996, ISO 14000 standards are voluntary, internationallyrecognized standards for environmental managementissued under the auspices of the International Organizationfor Standardization. To achieve certification, a company’senvironmental management system must be formallyaudited by a third-party and meet all the requirements ofthe ISO standard.With the knowledge we have gained through participation inthe Nevada Mercury Control Program, we initiated the developmentof a global mercury management system in 2006. In2007, mercury sampling and stack testing was carried out atfive sites. Sampling and stack testing is continuing in 2008 andcontrols will be installed at sites where testing identifies a need.3002001000250200150283124281119246118383ENERGY USE INTENSITY(Megajoules / Ton of Ore Processed)17339203 04 05 06 07173Pre-2006 figures donot include formerPlacer Dome properties.Climate Change and Energy Efficiency100The weight of the scientific evidence links greenhouse gas(GHG) emissions to global climate change. While uncertaintiesstill exist as to the rate and magnitude of the change we canexpect, these uncertainties should not delay effective actionto counter the effects of this problem. In light of these risks,responsible companies must take action to protect their shareholdersand society.500686255585603 04 05 06 07DirectIndirectPre-2006 figures donot include formerPlacer Dome properties.Barrick has been tracking and reporting GHG emissions fromour operations for a number of years. We have also established32 Barrick Responsibility Report 2007

GREENHOUSE GAS EMISSIONS INTENSITY(Kilograms CO 2 e / Ton of Ore Processed)Innovative Energy Projects30252015105050000121303 04 05 06 07Direct1212IndirectLAND STATUS(in Hectares)121113.112.111.911.7Pre-2006 figures donot include formerPlacer Dome properties.As part of Barrick’s efforts to become more energy efficientand to reduce greenhouse gas emissions, we areworking on innovative energy strategies. Our growinginvestment in clean power resulted in two initiatives inNevada in 2007. Construction was completed on our newgeothermal and solar powered administration building inElko, Nevada and we constructed a one megawatt solarfarm located near our natural gas power plant.In South America, we are investing in projects that willharness clean energy from wind power. In Chile, we arebuilding a 20 megawatt wind farm. The Punta Coloradawind farm project, once completed, will be the country’slargest source of wind generated power. In Argentina, weinstalled a two megawatt wind turbine near the Veladeromine, which will be the only turbine in the world operatingat more than 4,000 meters above sea level.Reclamation and Land Management4000030000Land disturbance is an unavoidable consequence of mining;however careful planning at Barrick’s operations aims to restrictthe area impacted by mining activities, to mitigate our impactsand to leave behind lands that will support productive postminingland uses for future generations.2000010000004 05 06 07New ReclamationPrevious ReclamationDisturbed and UnreclaimedFigures include bothBarrick and formerPlacer Dome properties.In addition to restricting the areas disturbed by mining, land nolonger required for mining activities is promptly reclaimed bygrading, seeding and shrub planting as needed. By reclaiminginactive land during mining and not waiting until miningoperations cease, final reclamation activities can be completedin a timely manner. At the end of 2007, the Company hadimpacted 46.8 thousand hectares of land globally of which12.1 thousand hectares have been successfully reclaimed.Waste Rock and Tailings ManagementMining involves the removal of non-economic rock to accessore deposits; this material is called waste rock. Tailings materialis the finely ground slurry remaining after ore has been processedand the gold removed. It often contains small amounts ofprocess chemicals and metals. Both tailings and waste rockare managed at our operations, either by being placed intoengineered storage facilities or returned to open pits or undergroundworkings. Each year our engineered storage facilitiesare diligently inspected by the engineer of record.Our environmental management strategy includes the developmentof closure and reclamation plans as part of initial projectplanning and design. Closure and reclamation plans are thenroutinely updated during the life of each operation to ensurethat environmental effects are addressed and financial obligationsare satisfied. Barrick has also developed corporateguidance for closure planning and cost estimation in an effortto lead the industry in accurately estimating closure costs.Barrick Responsibility Report 2007 33

Barrick and the EnvironmentThe Responsible Use of CyanideCyanide has been used in the gold mining industry for decadesas an effective agent for freeing gold from ore. The use ofcyanide did not generate a great deal of public interest until2000. At that time, a cyanide spill from a Romanian gold minecontaminated a tributary of the Danube River. This incidentraised international concern, and prompted calls for a ban oncyanide use in gold mining.To address public concerns, a multi-stakeholder SteeringCommittee was formed, under the sponsorship of the UnitedNations Environment Program (UNEP) and the InternationalCouncil on Metals and the Environment (ICME), to discussoptions for avoiding similar incidents in the future. Participantsincluded the gold mining industry‚ governments‚ non-governmentalorganizations‚ labor representatives‚ cyanide producersand financial institutions. Because of our commitment to safeand responsible mining, Barrick assumed an industry leadershiprole on the Committee. The result of this process was thedevelopment of the International Cyanide Management Code(the Code) which established safe and responsible cyanidemanagement standards for the manufacture, transportation,use and disposal of cyanide. The Code is administered by thenon-profit International Cyanide Management Institute (ICMI).Adoption and implementation of the Code is voluntary. Inorder to become certified as Code compliant, companies thatadopt the Code commit to having their operations independentlyaudited by a third-party and to meet all Code requirements,including strict controls and practices for all aspectsof the cyanide life cycle. When Barrick became a signatory,we committed to certify all designated mines before the endof 2008.The process for Code certification at Barrick operations typicallyinvolves four steps.• Using ICMI guidelines, operations designated for certificationconduct gap assessments (both internal and third-party)to determine a baseline in relation to Code compliance.• Action plans to manage gaps are then prepared and activitiesundertaken to address the items in the action plans.• Once all items identified in the action plans have beencompleted, third-party auditors conduct Code certificationaudits, which are then submitted to the ICMI for review.• Upon ICMI approval, Code certification is awarded tothe operation.All Barrick operations already have robust environmental andsafety management systems in place to address most, if not allrequirements of the Code. In 2006, Barrick’s Cowal Gold Minein Australia became the first facility in the world to achieveCode Certification. In Cowal’s case, certification was “preoperational”as the project was still in the development stage.Cowal subsequently achieved operational certification in 2007.Barrick‘s Goldstrike and Ruby Hill mines in Nevada and thePierina and Lagunas Norte mines in Peru achieved certificationin 2007. The Marigold and Round Mountain mines, jointventureoperations in Nevada, were certified in 2006 and 2007,respectively. The Cortez and Bald Mountain mines in Nevadawere certified in January 2008, and Veladero in Argentinawas certified in early March 2008. The remaining designatedoperations are making progress toward certification. For moreinformation please see www.cyanidecode.org.34 Barrick Responsibility Report 2007

OFF-SITE SPILLS:Operation Substance Amount Remedial ActionEskay Creek Ethylene glycol 390 Liters Ethylene glycol leaked from a failed seal on a recirculation pumpand spilled into a power generation station sump. From thesump, it flowed into the facility’s treatment ponds where it wasdischarged to a creek. The pump was replaced and watersamples taken. Results showed there was no impact to the creek.Hemlo Tailings slurry 11.0 millionLitersFailure of a tailings pipeline caused slurry to be released into acontainment area and an un-permitted area. The tailings materialwas removed and the tailings pipeline was repaired with severalsections upgraded. There were no long-term consequences tothe environment.North MaraTwo separatespills ofuntreated water9.4 million Liters 1. Overflow of water from the tailings dam sediment trapoccurred due to vandalizing of the pump. The pump wasrepaired and the water pumped back into the tailingsstorage facility. The water was tested and did not containany contaminants.2. Overflow of water from the Nyabiriama sediment trapoccurred due to vandalizing of the pump. The pump wasreplaced. No remedial action was required.North Mara Process water 1.7 million Liters Vandals opened a valve on a leachate pipeline. Water leaked intoa containment pond. Some dead fingerlings were discovered inthe river. The valve was repaired and water sampling completed.Remediation is ongoing.North Mara Hexamine nitrate 20,000 Liters Hexamine nitrate spilled from a transport vehicle outside themine area. The area was thoroughly cleaned.HomestakeTwo separate17.7 million1. Untreated seepage bypassed the water treatment plant overClosure Projectspills ofLitersan eight-day period due to substantial rains and subsequentuntreatedrunoff in the area. The seepage water was sampled andseepageconstituents were below permit levels. There was no furtherremedial action.2. Untreated seepage (3,700 Liters) bypassed the water treatmentplant due to an upset condition caused by a frozenpipeline. The water discharged into a collection sump whichsubsequently overflowed into a creek. The pipeline was thawed,a level sensor and emergency shut-off valve were installed andnew operating protocols were instituted.HomestakeClosure ProjectUntreatedstorm water570,000 Liters Untreated storm water was released due to an open valveon a line to the water treatment plant over a 16 day period.Additional administrative protocols were put in place toprevent a recurrence.Barrick Responsibility Report 2007 35

Independent AssessmentIndependent AssessmentBarrick Gold Corporation (Barrick) retained EnvironmentalResources Management (ERM), a global provider of environmental,health, safety and social (EHSS) consulting services,to provide an independent review and opinion of its 2007Responsibility Report and associated website information.ERM’s review focused on the credibility and quality of thecontent of the report and the reliability of the data compilationprocess. The review was informed by the Global ReportingInitiative (GRI) G3 Sustainability Reporting Guidelines (2006)and AA1000 Assurance Standard (2003). ERM assessed theinformation in the report in terms of the following:• Completeness: does the Responsibility Report cover all theoperations and impacts that an external reader would needto know about?• Relevance: does the report address appropriate indicatorsand programs, given the sector, type of operations and locationsinvolved?• Accuracy: does the report accurately reflect Barrick’s performanceand challenges?and regionally relevant issues, and site-level data reporting –provides information on the company’s EHSS impacts,programs, systems and challenges that meets externalexpectations regarding completeness, relevance, accuracyand responsiveness.The strengths of the Responsibility Report include thefollowing:• The process for gathering and reporting data is effective andis supported by appropriate internal verification processes.• The content of the report and related material on theBarrick website are responsive to stakeholder issuesand concerns.• The report and supplemental documents provide significantcoverage of the GRI G3 Sustainability Reporting Guidelines,the International Mining and Metals (ICMM) Principles, andthe UN Global Compact.ERM identified additional opportunities for enhancing futurereports and has reviewed these with Barrick management.• Responsiveness: does Barrick respond to a wide range ofexternal expectations and pressures related to EHSS issues?As part of this review, ERM interviewed several professionals atBarrick sites and corporate staff involved in the data reporting,compilation and review process. ERM is familiar with Barrick'sEHSS issues and the management systems in place to addressthem.In ERM's opinion, the 2007 Responsibility Report – when readin conjunction with the site-specific and regional reports andother information on the Corporate Responsibility section ofthe Barrick website that address management approach, locallyBarbara Winter-WatsonEnvironmental Resources ManagementApril 200836 Barrick Responsibility Report 2007

About Barrick Gold CorporationBarrick Gold Corporation is a leading international gold mining company with operating mines and development projects on five continents andexploration activities world wide. The Company’s head office is in Toronto, Canada. 2008 marks the 25th year of operation for Barrick.Barrick is organized into four regions: North America, South America, Australia-Pacific and Africa. The Company’s 27 operating mines are locatedin Argentina, Australia, Canada, Chile, Papua New Guinea, Peru, Tanzania and the United States. The Company also has, globally, seven advancedexploration and development projects. Barrick’s main product is gold; however copper comprises a significant portion of our production.GlossaryDesign: nectar design + communications www.nectardesign.ca Printing: Exodus Graphics Corp.Biodiversity – The variability among livingorganisms, and the ecosystems of which theyare part: this includes diversity within species,between species and within ecosystems.Capacity Building – Capacity buildingincludes activities and initiatives whichstrengthen the knowledge, skills and behaviorof individuals and improve structuresand processes such that communities cangrow and develop in a sustainable way.Circadian Rhythm – Roughly a 24-hourcycle in the physical and mental processes ofliving beings.Community Infrastructure – The basicfacilities and systems serving a country, city,or rural area, including transportation,communication, sanitation, medical andschool systems.Community Initiatives – Activities andsupport that strengthen the skills and abilitiesof people and community groups.Gap Assessment – The comparison betweenwhat exists within a process or system andwhat is required.Greenhouse Gas Emissions (Direct andIndirect) – Gaseous emissions to the atmospherethat contribute to global warming andclimate change. Direct emissions are fromsources owned or operated on our properties.Indirect emissions are from sources not ownedor operated by us, but occur as a result of ouractivities (e.g. purchased electricity).Human Rights – Basic standards of treatmentto which all people are entitled, regardlessof nationality, gender, race, economicstatus or religion. They include civil and politicalfreedoms and liberties, and social and culturalrights necessary for survival, humandevelopment and dignity.Illegal Miners – People who gain unauthorizedaccess to mining leases in order to stealgold-bearing material. Often the motive forthis type of activity is poverty-based, wherepeople, usually young men, have limitedopportunity and turn to illegal activities asa source of livelihood.Independent Director – A director who,based on a determination of the Board as awhole, has no material relationship with theCompany other than as a director, eitherdirectly or indirectly (such as a partner, shareholderor executive office of another entitythat has a relationship with the Company).Indigenous People – Those people who arethe descendants of the original inhabitantsof a country or region, with a distinct socialor cultural identity that may be vulnerableor disadvantaged in the current social andeconomic context.Joint Venture – The partnership of two ormore companies in a specific operation, eachagreeing to share (according to ownershippercentage) profit or loss. Operational controloften depends on ownership percentage.Local and Regional Goods and Services –At each location, regional and/or country-widepurchases of goods and services. Purchasesfrom outside the country are excluded.Reclamation – The process of convertinglands disturbed by mining activities to otherproductive land uses. This process typicallyinvolves reshaping areas to a stable configuration,establishment of drainage systems,placement of topsoil or plant growth mediaand revegetation through planting or seeding.Concurrent reclamation is often practiced inorder to limit the amount of land lying disturbedduring mining activities. It involvesreclaiming disturbed lands promptly when nolonger essential for mining, rather than waitingfor mine closure.Regulatory Action – Written directionsfrom a regulatory agency specifying thatcertain existing conditions must be corrected.Due to varying degrees of regulatory oversight,a common definition of regulatoryaction is used by Barrick for consistentreporting purposes.Small-Scale Mining – Legal mining activitiesconducted on ore bodies or deposits bypersons using traditional techniques or lowmechanization methods (also known asartisanal mining).Stakeholders – People or groups of peoplethat have an interest in the activities of theCompany, including shareholders, employeesand their families, contractors, the communitiesnear mining operations, legislativerepresentatives, regulatory personnel andinterested non-government organizations.Sustainable Development – Developmentthat meets the needs of today’s generationwithout compromising the ability of futuregenerations to meet their own needs(Bruntland Commission, 1987).The UN Millennium Development Goals –In 2000, world leaders at the UN MillenniumSummit agreed to a set of time-bound andmeasurable goals for combating poverty,hunger, disease, illiteracy, environmentaldegradation and discrimination againstwomen. The eight goals are to be addressedby the target date of 2015. They havegalvanized unprecedented efforts to meetthe needs of the world’s poorest people.Unit Conversion Table – Metric measuresare used in this report. To convert to nonmetricunits, the following factors apply:1 ton = 1.1025 tons (short)1 kilometer = 0.6215 miles1 hectare = 2.4691 acres1 liter = 0.2642 gallons (U.S.)1 kilogram = 2.2046 pounds1 megajoule = 0.278 kilowatt hoursThroughout this report the currency usedis US dollars.

A Sustainable ReportThis report is printed on paper manufactured using 100% postconsumer waste and wind-generated energy and is processedchlorine-free. The inks used in this report are vegetable based.The FSC logo identifies products which contain wood from wellmanagedforests certified in accordance with the rules of theForest Stewardship Council.Carbon NeutralThis document is carbon neutral. The carbon emissions resultingfrom the manufacturing, printing and transportation of thispublication have been balanced out using Zerofootprint’s ISO14064-2 forest restoration carbon offsets.The choices we have made in producing this report help demonstrate our commitment to corporate social responsibility.By using this paper stock we have achieved the following environmental savings:Savings from the use of emission-freewind-generated electricity:74trees saved97 kgwaterbornewastenot created119,786 literswaterflowsaved1,588 kgsolid wastenot created3,127 kggreenhousegasesprevented52,767,934 BTUsenergysaved1,625 kgair emissionsnot created2 barrelscrude oilnot usedBarrick Gold CorporationBCE Place, Canada Trust TowerP.O. Box 212161 Bay Street, Suite 3700Toronto, ON M5J 2S1 CanadaTel: (416) 861-9911Toll Free: (800) 720-7415Fax: (416) 861-2492Web: www.barrick.comEmail: communications@barrick.com