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

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