2017 economic contributions report · 8 2017 economic contributions report barrick gold corporation...

2017 ECONOMIC CONTRIBUTIONS REPORT

ii 2017 ECONOMIC CONTRIBUTIONS REPORT BARRICK GOLD CORPORATION

SUSTAINABILITY VISION

We partner with host governments and communities to transform their

natural resources into sustainable benefits and mutual prosperity.

We aim to be a welcome and trusted partner of host governments and

communities, the most sought-after employer, and the natural choice for

long-term investors.

1BARRICK GOLD CORPORATION 2017 ECONOMIC CONTRIBUTIONS REPORT

2017 Highlights 2

CSO Letter 3

About This Report 4

Barrick At-A-Glance 5

Our Approach to Social 6 and Economic Development

Our Approach to Tax 8

Local Purchases 14

Local Employment 15

Community Investments 16

Barrick Around the World 18

Argentina 18

Canada 20

Chile 22

Dominican Republic 24

Peru 26

United States 28

Zambia 30

Extractive Sector 32 Transparency Measures Act Report

Basis of Report Preparation 38

CONTENTS

2 2017 ECONOMIC CONTRIBUTIONS REPORT BARRICK GOLD CORPORATION

2017 HIGHLIGHTS

Invested in the countries in which we operate.

Invested in educational initiatives.

Of goods and services Barrick purchased (by dollar value) from local, regional, or national suppliers.

Of our people come from local communities near our mines.

Of our people come from the countries where we operate.

Payments to employees .

Taxes and royalties to governments.

Purchases of goods and services from local communities.

Increase in purchases from local businesses.

$5.1B $6.3M84%

60% 97%$1.2B

$1.1B 37% $350M


Mining requires disciplined allocation of capital and talent,

operational and technical excellence, and decades-long

collaboration among businesses, governments, non-profits,

and local communities to succeed. Investors invest in gold for

safety. That is why trust and partnership are at the core of our

business. By partnering with host governments, communities,

indigenous peoples, NGOs, regulators, and other distinctive

companies who share our values, we can create sustainable

prosperity without undue risk for investors. Our employees are

emotionally and financially invested in our business too. Access

to better data and systems and collaborative behaviours is

creating a trust-based culture. As a collective, we aim to make

better decisions together.

Through this Economic Contributions Report, we share the

range of economic contributions we make in the countries and

communities where we operate and our progress in generating

significant value for our partners.

The value we help create comes in many forms, through local

job creation, demand for local services, investment in educa-

tion and health, procurement of locally sourced materials, and

taxes and royalties that we pay, which totaled over $1.1 billion

in 2017. Our presence helps create sustainable livelihoods

to over 10,000 employees and 13,000 contractors. In 2017,

wages and benefits to employees alone were approximately

$1.2 billion and we spent almost $2.7 billion on purchases in

the countries where we operate. With 97 percent of our em-

ployees coming from the countries and communities where we

operate, and a commitment to buy locally wherever we can,

we are creating meaningful contributions to local and national

economies.

We are changing lives and advancing together.

This report is one of several ways that Barrick is putting its

commitment to transparency into action. We encourage you to

visit our website for more information on our environmental,

social, and economic performance, and to share your feedback

with us via email at [email protected].

Peter Sinclair

Chief Sustainability Officer

CHIEF SUSTAINABILITY OFFICER’S MESSAGE

At Barrick we are challenging preconceived ideas about mining. As a company we seek to partner

with host governments, contribute to a more stable and prosperous society, and create real and

sustainable value for our shareholders.

mailto:responsiblemining%40barrick.com?subject=


This is Barrick’s 2017 Economic Contributions Report.

Through this and future reports, we aim to show our prog-

ress in generating economic value for our stakeholders.

This report describes in detail how Barrick’s activities sup-

port the social and economic development of the coun-

tries and communities where we operate, including our

tax strategy, our efforts to prioritize local employment

and local procurement, and our community investments.

We report on these metrics for the Company as a whole,

and for each country where we operate.

Report Parameters

To ensure consistency and comparability between

ourselves and other mining companies, Barrick uses the

World Gold Council’s Guidance Note on Expenditure

Definitions and reports to the Global Reporting

Initiative’s (GRI) Sustainability Reporting Standards, in

accordance with the Core option. Expenditure data is

provided on an accrual basis. The data in this report cov-

ers the 2017 calendar year, which corresponds to Barrick’s

financial year, and all information in this report is current

as of December 31, 2017, unless otherwise indicated. This

report and accompanying data tables contain informa-

tion on all of Barrick’s wholly-owned operations and joint

ventures where we are the operator, as well as on our

country and corporate offices, projects, and closure sites.

We report on 100 percent of the data from joint-ven-

ture operations where we are the operator. All currency

amounts in this report are expressed in U.S. dollars, unless

otherwise indicated.

ABOUT THIS REPORT


$2+ B Operating Cash Flow

in 2017

5.32 MOZGold production

in 2017

11 COUNTRIESwith operating mines

and projects in 2017

10,000+People directly

employed in 2017

13,000+Contractors

in 2017

* Projects

KCGM JV (50%)

Lumwana

BuyanhuluBuzwagiNorth Mara

Pueblo Viejo JV (60%)

Veladero JV (50%)

Porgera JV (47.5%)

Jabal Sayid JV (50%)TorontoHemloDonlin Gold JV* (50%)

Lagunas Norte

Barrick Nevada

Turquoise Ridge JV (75%)

Golden Sunlight

Zaldivar JV (50%)

Pascua-Lama*

Norte Abierto JV* (50%)

Head Office Barrick Operated JVs not operated by Barrick Partner Operated JVs Affiliate

BARRICK AT A GLANCE


Our sustainability vision is to partner with host governments

and communities to transform their natural resources into

sustainable benefits and mutual prosperity.

This means not treating every negotiation as zero-sum, but

recognizing that we will be working with our local partners for

decades. By working collaboratively and transparently with our

host governments and communities, we can add value and

create broader prosperity. This puts us in a much better posi-

tion to maintain trust and goodwill and strengthen our license

to operate, which will allow us to make long-term investment

decisions with confidence.

Barrick has established company-wide systems, standards, and

targets to help us live up to the expectations of our community

and government partners, our employees, and our shareholders.

• Barrick has a Local Procurement and Contracting

Standard, which requires our Community Relations and

Supply Chain teams to develop the capacity of local and

regional suppliers and help them improve their access to

mine contracts and supplier opportunities.

• Barrick requires site Community Relations and Human

Resources teams to develop Local Employment Plans,

which help create more opportunities for local people to

work at our mines.

• Our Local Content Framework helps sites use more

local labor and buy more local goods and services. The

framework is a guide, outlining the steps to develop local

employment and local procurement programs and refer-

encing best international practice. It helps sites be better

partners in community and socio-economic develop-

ment, which ultimately helps build a more secure license

to operate. At Barrick, local is defined in consultation

with external stakeholders. In general it includes nearby

communities most impacted by mine activities or ancillary

properties (such as power lines).

• Our approach to tax reflects a commitment to comply

with all tax laws in the countries in which we operate and

to work transparently with revenue authorities to resolve

any areas of uncertainty. We recognise the significant

taxes and royalties derived from our mining operations

are important sources of government revenue, used for

infrastructure projects, health care, education, and other

important public services.

By doing all of these things well, by being agile, by listening

to feedback, and by adapting to circumstances, we can create

wealth for our government and community partners, our em-

ployees, and our shareholders over the long term.

OUR APPROACH TO SOCIAL AND ECONOMIC DEVELOPMENT Communities and host governments rightly expect to share

in the benefits of mining.


I NVESTMENT EXPLORATION CONSTRUCTION EARLY OPERATION OPERATIONS CLOSURE

Jobs

Few people employed as most work is automated or highly technical.

Highest number of people employed as there is increased activity around the mine site.

Fewer people required than during construc-tion. Employment stabilizes once produc-tion begins.

Stable number of employees to support successful, efficient, and safe production.

Employment slowly declines as production winds down and the mine closes.

Goods

and Services

Goods and services spend is lowest during exploration due to minimal activity.

Goods and services spend is highest to support the mine’s construction.

Goods and services spend fluctuates depending on the mine’s needs as production begins.

Goods and services spend stabilizes as the supply chain has been established and normal production continues.

Goods and services spend decreases as mine activity slows and eventually closes.

Payments to

Govern-ments

Few taxes paid due to lack of production. Some payments related to exploration licenses and value added taxes.

Few taxes paid due to lack of production. Indirect taxes generated through purchases of goods and services and through taxes on employee wages.

Payments related to royalties on production. Generally lower corporate income tax paid than later in operations as mine is still paying back capital invested in construction.

Significant taxes paid through production for example, royalties and corporate income taxes.

Few taxes paid as mine is no longer producing.

In Action

Our Donlin Gold project supports programs that benefit education, community wellness, cultural preservation and environmental protection.

At Pueblo Viejo, 11,000 indirect jobs are estimated to have been created as a result of the mine’s construction phase. In 2014, 2.2 percent of the National GDP growth was attribut-able to the construc-tion of the Pueblo Viejo mine.

The Pueblo Viejo mine has steadily increase the proportion of employees who are Dominican nationals – from 90 percent in 2012 to 95 percent in 2017.

In Nevada, Barrick has partnered with Cisco and Great Basin College to bring free digital education to employees and Northern Nevadans. This is a critical step in our digital transforma-tion to ensure we are building a sustainable, skilled workforce to support our business in the future.

As part of Pierina’s closure program, 84 percent of leaders from 19 local compa-nies have been trained in production, finance, and sales. Moreover, all 19 local compa-nies that the mine works with have been trained in marketing, commercial communi-cations, tenders, and commercial tools.

Exploration

Construction

EarlyOperation

Operations

Closure

Value Chain


Paying the appropriate amount of tax under the law is the

starting point to putting our commitment to responsible min-

ing into practice. The funds we pay to governments are a sig-

nificant source of revenue, helping to build infrastructure and

fund social programs, driving both economic growth and social

development. Our approach to tax is guided by and aligned

with our Sustainability Vision, Code of Business Conduct and

Ethics, and Company Values.

We believe we have to work in partnership with the tax

authorities in each and every jurisdiction in which we operate.

Barrick aims to proactively build relationships with the local tax

authorities on the basis of transparency and open communica-

tions.

Barrick has a Company-wide policy describing our approach to

taxes. The policy sets out global standards and provides guid-

ance on tax risk management. Tax personnel work with all key

functional and business areas within Barrick to meet our com-

pliance obligations in all of the countries in which we operate.

Sufficient resources are allocated to tax returns, tax audits,

financial reporting, tax risks, tax advocacy, and tax planning.

The following principles underpin our approach to tax:

Compliance and AuditsBarrick complies with all relevant tax legislation in a responsible

manner in all of the countries in which we operate. Tax files we

submit are supported by applicable tax legislation taking into

account existing administrative positions. Tax returns are filed

on time in the prescribed form unless otherwise agreed with

the tax authority.

Where legislation is unclear and subject to different interpreta-

tions, advice is sought from internal and external experts with

careful consideration given to industry practice. Government

incentives and concessions are pursued with technical analysis

and an understanding of underlying policy intent.

In such situations where the application of judgment is re-

quired, it is made by appropriately qualified tax professionals

within a collaborative environment of consultation with the

Company’s tax group and the business as a whole. Barrick

employs appropriately trained tax professionals in the countries

where we have material economic activities.

Tax audits are conducted in a transparent manner. We provide

documentation and analysis to the tax authorities in support of

positions taken. When possible, meetings are conducted with

tax auditors prior to the formal commencement of an audit to

effectively plan the audit process and to present key positions

taken by Barrick. If legislatively or administratively permitted,

Barrick enters into tax audit agreements / protocols with local

tax authorities that, among other things, outline the conduct

of the audit, audit processes, materiality levels and timing.

We aim to be as current as possible with regards to tax audits,

subject to the resource constraints and other limitations of

local tax authorities. Tax risk is lower where issues are identi-

fied early and resolved. For example, as a result of the efficient

coordination and successful cooperation between the Internal

Revenue Service (IRS) and Barrick in past U.S. tax audits, the IRS

has placed Barrick into a new real-time audit program (known

as the Compliance Assurance Process) which allows discussion

and resolution of issues prior to returns being filed.

OUR APPROACH TO TAX


Relevant Mining Tax Regimes

COUNTRY CORPORATE TAX RATE GOVERNMENT ROYALTY OTHER TAXES

Argentina 35%2 3% modified net smelter royalty

Canada 25% (15% federal + 10% Ontario manufacturing rate (otherwise 11.5%))

– Ontario mining tax – 8.5% (after application of minimum processing allowance)

Chile 25.5%; 27% for 2019 and subse-quent years (distribution regime).

Combined corporate and shareholder level tax remains at 35%

Mining Royalty ranges from 5% to 14% based on operating margin (operating results / gross sales); rate applied to operating income

–

Dominican Republic

Special Lease Agreement – 25% (27% per general regime)

3.2% net smelter royalty (for gold and silver)

Net profit interest – of 28.75% generally applied on cash flow which includes a deduction for income tax but interest expense is not deductible

Peru 29.5% for 2017 and subsequent years

As Lagunas Norte is subject to 2.51% net smelter royalty, general mining royalty regime is not appli-cable

Specific Tax on Mining, marginal rates ranging from 2% to 8.4% applicable on operating margin

United States Higher of 35% regular tax and 20% alternative minimum tax (federal only)3

– Nevada net proceeds tax ranges from 2% to 5%. Barrick’s Nevada oper-ations are subject to the maximum 5% rate

Zambia 30% income tax rate Mining royalty rates are 4% for cop-per below $2.04/lb; 5% at copper prices between $2.04/lb and $2.72/lb; and 6% at a copper price of $2.72/lb and above, of gross metal value which is determined with refer-ence to the monthly average London Metal Exchange cash price

Export tax of 10% on copper concentrates unless processed by Zambian smelters

2 For 2018 and 2019, the blended income tax and dividend withholding tax rate will be 34.9% and for 2020 and onwards, the blended income tax and dividend

withholding tax rate will be 34.75%.

3 For 2018 and onwards, the rate is 21%, and there is no alternative minimum tax after 2017.


Risk Management and MitigationTax risks are identified, evaluated and monitored with the

objective of the mitigation of such risks within acceptable tol-

erance levels. Barrick’s tax group continually seeks to improve

processes for assessing, recording, and reporting of tax risks to

ensure transparency and to facilitate risk management.

Tax planning is based on reasonable interpretations of the tax

legislation and is aligned with the substance of the econom-

ic activity. Related party transactions are treated similarly to

third-party transactions and are structured consistent with

functions performed, risks assumed, and assets utilized.

Developments on the international tax front within various

global organizations (such as the Organization for Economic

Cooperation and Development or International Monetary

Fund) are carefully monitored and assessed for their impacts on

Barrick in its jurisdictions of operations.

Entities in low tax jurisdictions are in place for commercial rea-

sons (such as a neutral location for joint ventures) and serve as

holding companies, or they have been inherited from historic

acquisitions. Barrick actively works to simplify its corporate

structure where it makes sense to do so.

Relationships with AuthoritiesWe seek to build and sustain healthy relationships with

governments and tax authorities in an honest, respectful, and

constructive way.

In situations where tax legislation has adverse effects on

Barrick’s business activity, there is proposed legislative reform,

or there are opportunities for improvements in the law, the

Company will engage directly with governments or via industry

groups to influence change in a way that does not materially

impact investments in its operations.

TAXES AND GOVERNMENT ROYALTIES4 – 2017

Argentina $ 33,490,000

Canada $ 8,860,000

Chile $ -4,570,0005

Dominican Republic $ 180,730,000

Peru $ 121,750,000

United States $ 688,700,000

Zambia $ 89,540,000

Barrick Total $ 1,118,500,000

Tax Transparency and ReportingTransparency is a powerful tool that helps stakeholders, includ-

ing governments and tax authorities, understand the nature

and extent of tax contributions in the context of the capital

intensive nature of the mining industry. Meaningful public dis-

closures work to prevent allegations of corruption and demon-

strate ethical conduct – they help maintain Barrick’s license to

operate and demonstrate corporate social responsibility.

Barrick was the first Canadian mining company to be a

signatory to the Extractive Industries Transparency Initiative.

We report detailed country-by-country tax and royalty pay-

ments along with environmental and social data in our annual

Sustainability Report and in this, our annual economic contri-

butions report. We continuously monitor global and host coun-

try developments and work to continuously improve disclosure.

4 From Barrick-operated sites.

5 The tax rate is negative due to refunds on taxes paid in Chile.


The taxes and royalties we pay can be a significant

source of revenue, helping governments build

important infrastructure, fund social programs,

and ultimately help drive their economic growth

and social development.

44%BARRICK’S EFFECTIVE CORPORATE INCOME

TAX RATE IN 2017

Direct Impacts

Through the people we employ, the goods and services we

procure, and the taxes we pay, Barrick has made a lasting

impact on the economy of Nevada.

In 2017, the Company directly employed 3,500 people in

Nevada, and an additional 3,000 contractors worked with

Barrick. Of our people, more than 96 percent are Nevadans and

over 99 percent are American. Beyond Barrick, the mining indus-

try supports more than 29,000 jobs in Nevada. Mining is one of

the highest paying industries in the state with an average wage

of $93,000 compared to the state average of $47,000.6

In 2015, Barrick made it a priority to expand its presence

to southern Nevada with the opening of our Global Shared

Services Office in Henderson. This office helped fulfill objec-

tives set out in the state’s economic development plan to bring

high-skilled jobs to urban Nevada. Barrick took the extra step

of locating the office in a suburban office park in Henderson,

making us part of the local business community. Our Henderson

office employs almost 100 people, including dozens of high-

skilled digital and technology people who are working to

advance Barrick’s digital transformation. A major initiative for

the company is bringing in top technology talent to work with

mine operators to develop digital tools that make mining more

efficient. The Henderson office is supported by Switch, Nevada’s

leading technology company and one of the largest data center

operators in the world.

Barrick’s impact on Nevada’s economy also extends through

our supply chain. In 2017, the Company purchased more than

$272 million in goods and services in Nevada and supported

approximately 500 local Nevada business. From purchasing

CASE STUDYA Presence in All of Nevada


The mining industry is well developed in Nevada, dating back

more than 150 years. It has been an important source of jobs in

rural areas and has helped the state to diversify its economy from

the gaming and tourism industries. The mining industry contin-

ues to grow, and today more than 20 minerals are being actively

mined in the state.5

Barrick’s roots run deep in Nevada. The Company has been a ma-

jor source of economic opportunity and community support since

its purchase of the Goldstrike mine in Eureka County in 1986.

Since then, the company has grown its presence in the state.

Today, its Nevada operations consist of Barrick Nevada (com-

prised of the Cortez and Goldstrike operations), the Turquoise

Ridge Joint Venture, and its Goldrush project, which is expected

to enter production in 2022. We are proud that our Nevada op-

erations encompass the entire state, both urban and rural, from

our mines in Eureka, Lander, and Humboldt counties to a power

plant near Reno to our offices in suburban Las Vegas.

6500 JOBS FOR NEVADANS IN 2017

$1B INVESTED IN NEVADA IN 2017

5 https://www.nevadamining.org/minerals-in-nevada/

6 https://www.nnbusinessview.com/news/nevada-

mining-prez-industry-one-of-highest-paying-in-state/#

gypsum to fleet vehicles, our supply chain activities help stim-

ulate the state’s economy and contribute to local jobs beyond

our direct footprint. These indirect impacts extend outside

Nevada’s borders, as evidenced by the Company’s $1.35 billion

in expenditures on American goods and services.

To ensure our presence maximizes sustainable benefits, we

extend our commitment to corporate social responsibility (CSR)

to our supply chain partners. We have developed mandatory

CSR requirements as part of the bidding process for opera-

tions-related projects. These requirements include mandatory

CSR onboarding and refresher training for contractors and local

hiring and procurement requirements for contractors that work

with Barrick Nevada on large-scale projects.

Barrick’s contribution to Nevada also includes the significant

taxes we pay. The Company contributed more than $149

million in taxes in Nevada in 2017, and is one of the top 10

highest assessed taxpayers in the state. The mining industry

pays every tax that other businesses pay in Nevada, as well as

a higher business tax rate on payroll (2.0 percent). The industry

is also subject to a mining-specific tax, the Net Proceeds of

Minerals Tax. In total, mining and logging account for ap-

proximately 1.1 percent of employment in Nevada, but 4.2

percent of taxes generated for the State General Fund. Mining

also accounts for about 10 percent of all sales tax revenue in

the state, primarily due to the purchasing of equipment. In

addition to the taxes that Barrick pays in Nevada, the Company

also contributed significantly through federal taxes. In 2017,

this amounted to more than $500 million in corporate income

taxes.

Supporting Communities

Barrick also supports the communities where we operate

through social investments that lead to sustainable outcomes.

Ultimately, we know that effectively engaging with local com-

munities is vital to the success and sustainability of our mines.

In Nevada, we work closely with local communities to support

education programs, contributing over $4.7 million in 2017

to support these types of programs in Nevada. In addition, we

spent more than $4.9 million on economic development and

other programs in our host communities in Nevada in 2017.

An example of our program support is through our partnership

with Cisco and Great Basin College, located in Elko. Through

this partnership, we are bringing free digital education,

through Cisco’s Networking Academy, to employees, depen-

dents, veterans and Western Shoshone tribal members. As

more and more jobs require digital skills, the program prepares

participants to be competitive in the job market across all

industries, including mining. More broadly, we partner with

Communities in Schools to provide wrap-around services for

challenged schools in Las Vegas and Elko County, and at the

Public Education Foundation, we sponsor an innovative pro-

gram to train school principals in agile leadership in partnership

with Harvard and Georgetown universities.

Barrick also supports local Western Shoshone communities by

providing scholarships for the pursuit of post-secondary educa-

tion at accredited institutions through the Western Shoshone

Scholarship Foundation. To date, the company has contributed

more than $8.4 million and the Foundation has awarded more

than 1,410 scholarships. We also partner with eight Western

Shoshone communities to provide mentoring, counseling and

after-school programs for youth, removing obstacles to learning

and improving high school graduation and college entrance rates.

Looking Forward

Over the past 30-plus years, Barrick has become part of Nevada.

Looking forward, we expect our expansions at Barrick Nevada

and Turquoise Ridge and our discoveries at the Goldrush and

Fourmile deposits will support our presence in Nevada for years

to come. Being an active neighbor across the state, we believe

we are one of the state’s few “All-Nevada” companies and that

we have helped localize a multi-national mining company. In

doing so, we are honored to have been recognized with a series

of awards, including the prestigious Education Hero Award

and Corporation of the Year from Nevada’s Latin Chamber of

Commerce. As the Company continues to develop new projects

in the state, we look forward to continuing to invest in Nevada

and Nevadans for years to come.

BARRICK GOLD CORPORATION 2017 ECONOMIC CONTRIBUTIONS REPORT 13


We believe that responsible economic development can and

should improve the lives of people in the regions where we

operate. When done responsibly, economic development is a

contributor to a broad spectrum of positive impacts. Through

local procurement, the presence of our operations can directly

help host communities and individuals enjoy the rights to

work, to food and property, and to an adequate standard of

living. Barrick’s Local Procurement and Contracting Standard

requires Community Relations and Supply Chain teams to de-

velop the capacity of local and regional suppliers and increase

their access to mine contracts and supplier opportunities.

To support these efforts, Barrick has put in place a Local

Content Framework. This framework outlines the steps that

our sites can take to develop local employment and local

procurement programs, referencing best international practic-

es and embedding lessons learned from other Barrick sites. It

helps our sites be partners in the community and socio-eco-

nomic development, which ultimately contributes to a more

secure license to operate. The development of the framework

was a collaboration with all groups impacted by local content

policies, including Supply Chain leads, Community Relations,

Human Resource leads, mine General Managers, country

Executive Directors, construction managers, and Project

Directors.

Along with buying locally whenever possible, Barrick often

works with regional government economic development com-

mittees, where they exist, to help our suppliers diversify so that

the eventual closure of a mine will not impose undue hardships

on local businesses.

LOCAL PURCHASES

Barrick made approximately $351 million in local purchases

near our mine sites in 2017 —

approximately 11 percent of our total

procurement spend.

$351,300,000

$530,150,000

$282,130,000

$2,135,280,000

Local Purchases

International Purchases

National Purchases

Regional Purchases

$3,298,860,000

Purchases of Goods and Services in 2017


A diverse workforce encourages creativity and innovation. We

draw our workforce from many countries around the world,

and our global workforce is extremely diverse in terms of na-

tional and ethnic backgrounds. However, we are also commit-

ted to the localization of our workforce and many of our sites

have explicit targets for local employment. To achieve these

aims, Barrick requires sites to develop plans to guide local em-

ployment efforts over the life of the mine. In 2017 60 percent

of our workforce was from the local areas near our operations.

In addition, 97 percent of our employees are nationals of the

countries where we operate.

Our Human Resources teams develop and lead these local em-

ployment plans, supported by the Community Relations group.

In general, these plans integrate recruitment and retention of

local employees into the broader human resources approach.

This includes an assessment of the skills and capabilities avail-

able in the local community, the development of recruitment

and retention programs targeted specifically at local commu-

nities, guidance on helping address skills shortages, and the

creation of a culturally appropriate work environment.

In addition to our Local Procurement and Contracting

Standard, we have also developed a Local Content Framework

to further support the efforts of our Supply Chain and Human

Resources teams. The Framework details the steps that sites

can take to develop effective local employment and local pro-

curement programs, which reflects international best practice.

LOCAL EMPLOYMENT

Foreign Nationals

3%National

27%

Local

60%

Regional

9%

Local Employment in 2017

In 2016, Barrick created a program to make all Barrick employees—

from the millwright to the mine clerk—a Barrick shareholder. With

an initial allocation of 25 common shares per person the program

has grown to a total of 165 shares distributed per employee. These

shares must be held as long as the employee is working for Barrick.

We expect this program to continue to grow over time, in line with the

Company’s performance. Our people are not just employees, they are

owners, with all that this implies.

Spotlight on Ownership


Community development programs undertaken in collabora-

tion with—and reflecting the interests of—host communities,

governments, civil society, suppliers and others can help mitigate

social risk, improve our ability to sustain a license to operate,

and generate long-term, sustainable value.

Barrick’s community development programs are designed to

fulfill social obligations, mitigate social impacts and social risks,

and support community priorities. Our community development

activities are also planned with closure in mind.

We take a partnership approach to our community investments,

which relies on knowing what matters to our partners—in-

cluding communities, governments, NGOs and others—and

reflecting those interests in our partnerships. This means clearly

defining roles, responsibilities and resources, and spelling these

out in Memoranda of Understandings.

COMMUNITY INVESTMENTS IN 2017

Barrick Total $ 23,410,000

Education $ 6,330,000

Environment $ 2,090,000

Health $ 1,420,000

Infrastructure $ 2,820,000

Arts, Culture and Sports $ 2,160,000

Community Engagement $ 3,180,000

Economic Development $ 3,080,000

Other Activities $ 2,330,000

COMMUNITY INVESTMENTS

Barrick invested more than $6.3 million in educational programs in 2017,

including providing more than 470 scholarships.

As part of our commitment to education, Barrick is deepening our part-

nership with Cisco’s NetAcad to bring digital training and skills devel-

opment to our people, their families, and communities. For example,

in 2017, Barrick, Cisco, and Great Basin College formally launched our

partnership to bring Cisco’s NetAcad technology skills development cours-

es, free of charge, to groups in the community. Two for-credit, teacher-led

foundational classes began in September 2017 at the college.

Spotlight on Education


At our Hemlo mine in Canada, the site has developed a partnership with

Pioneer Construction and BMC, a construction company jointly owned by

the neighboring Biigtigong Nishnaabeg and Pic Mobert First Nations, for the

construction of the tailings management facility perimeter dams. The vision

of the partnership is for BMC to develop into a sustainable business that will

be able to take advantage of future opportunities within the mining and

construction industry. Barrick has supported the partnership through business

development funding, collaboration in developing the scope of work (which

included aggregate pit development and haulage) and worker training.

Partnership in Action at Hemlo

2017 ECONOMIC CONTRIBUTIONS REPORT BARRICK GOLD CORPORATION18

2017 At-A-GlanceBarrick Employees 75

Projects Pascua-Lama

Gold Production 432,000 oz

BARRICK IN ARGENTINA

Spotlight on Veladero

Local Purchases

$2,730,000

Community Investments

$2,820,000

Payments to Employees

$120,950,000

Taxes and Royalties

$120,530,000

Regional Purchases

$260,490,000

National Purchases

$295,990,000

Purchase of Goods and Services

$559,210,000

0

100000

200000

300000

400000

500000

600000

International Purchases

$75,210,000

$803.5MTOTAL ECONOMIC

CONTRIBUTIONS IN VELADERO IN 2017

Total Employees

Foreign Nationals

26

Argentines

192

From Jachal and Iglesia

321

From San Juan Province

965

From Jachal and Iglesia

0

From San Juan Province

2

Argentines

3

Foreign Nationals

7

2017 data for Barrick in Argentina does not include contributions from Veladero. Veladero is a 50-50 joint venture operation with Shandong Gold Group, overseen by a joint Board of Directors, consisting of three nominees nominated by each JV partner. Data from Veladero has been shared on the sites behalf in the Spotlight below.


ECONOMIC CONTRIBUTIONS TO ARGENTINA 2015 2016 2017

Taxes and Government Royalties7 $ 52,930,000 $ 108,590,000 $ 33,490,000

Import Taxes & Duties 0 0 0

Income Taxes 5,320,000 64,100,000 0

Other Taxes 20,510,000 20,450,000 19,700,000

Royalties Paid to Governments 27,100,000 22,150,000 0

Sales & Value Added Tax – 1,890,000 13,790,000

Payments to Employees $ 109,830,000 $ 93,390,000 $ 12,550,000

Employee Benefits 760,000 5,900,000 2,820,000

Employment Taxes 20,430,000 9,620,000 1,390,000

Payroll Taxes 10,240,000 15,360,000 2,230,000

Wages or Salaries 78,400,000 62,510,000 6,110,000

Community Investments $ 1,920,000 $ 1,420,000 $ 520,000

Arts, Culture & Sports 50,000 140,000 10,000

Community Engagement 60,000 50,000 20,000

Economic Development 1,260,000 450,000 400,000

Education 80,000 370,000 30,000

Environment 10,000 – 0

Health 40,000 20,000 0

Other Activities 10,000 180,000 60,000

Infrastructure 410,000 210,000 0

Other Payments $ 1,070,000 $ 1,030,000 $ 8,250,000

Purchases of goods and services $ 490,300,000 $ 356,640,000 $ 42,160,000

Jachal and Iglesia Purchases243,420,000

6,080,000 680,000

San Juan Province Purchases 164,700,000 12,240,000

Argentine Purchases 246,880,000 185,850,000 29,240,000

Total In-Country Expenditures $ 656,050,000 $ 561,060,000 $ 96,970,000

International Purchases 63,810,000 47,630,000 3,490,000

Total Economic Contribution $ 719,860,000 $ 608,690,000 $ 100,460,000

EMPLOYMENT IN ARGENTINA – 2017 LAMA

Jachal and Iglesia 4 5%

San Juan Province 39 52%

Nationals 24 32%

Foreign nationals 8 11%

Total Employees 75

7 2017 data does not include contributions from Veladero. Veladero is a 50–50 joint venture operation with Shandong Gold Group, overseen by a joint Board of

Directors, consisting of three nominees nominated by each JV partner.


2017 At-A-GlanceEmployees 810

Contractors 289

Operations Hemlo

Offices AuTec (Vancouver) Toronto Head Office


$3B Amount Barrick has contributed to the Canadian economy since 2013.

The mining industry is the largest private sector employer of Indigenous peoples in Canada on a proportional basis, and a major customer of Indigenous-owned businesses.8

BARRICK IN CANADA

In the Community

Barrick’s Hemlo mine in northern Ontario

is within close proximity to the Pic Mobert

and Biigtigong Nishnaabeg (formerly Pic

River) First Nations. We have agreements

in place with these communities, which

provide a foundation of positive working

relationships, specifically with regard to in-

formation sharing, monitoring environmen-

tal impacts, community/cultural support,

youth support, capacity building, training

and employment. An Implementation

Committee has been formed with both

First Nations consisting of representatives

from the First Nation and the mine. The

groups meet every six weeks, which helps

facilitate dialogue, transparency, and con-

structive working relationships. 8 http://www.mining.ca/resources/mining-facts


ECONOMIC CONTRIBUTIONS TO CANADA 2015 2016 2017

Taxes and Royalties $ 8,550,000 $ 10,680,000 $ 8,860,000

Import Taxes & Duties 6,220,000 6,500,000 6,670,000

Income Taxes 2,330,000 4,180,000 2,190,000

Royalties Paid To Governments – – –

Sales & Value Added Tax – – –


Employee Benefits 20,680,000 33,780,000 8,760,000


Payroll Taxes 55,990,000 52,320,000 59,480,000


Community Investments $ 3,220,000 $ 1,620,000 $ 2,320,000

Arts, Culture & sports 540,000 70,000 150,000


Economic Development 600,000 660,000 660,000

Education 90,000 190,000 310,000

Environment 90,000 10,000 10,000

Health 890,000 90,000 300,000


Other Payments $ 11,490,000 $ 19,330,000 $ 9,780,000

Purchases of Goods and Services $ 319,180,000 $ 325,700,000 $ 279,410,000

Local Purchases9 285,970,000

38,850,000 31,280,000

Ontario Purchases 255,850,000 207,500,000

Canadian Purchases 33,210,000 31,000,000 40,630,000

Total in-Country Expenditures $ 566,400,000 $ 744,400,000 $ 508,460,000



EMPLOYMENT IN CANADA – 2017 CANADA HEMLO TORONTO AUTEC

Local Communities9 489 60% 489 94% – – – –

Canada 233 29% 29 6% 157 67% 47 84%

Foreign Nationals 88 11% 2 0% 77 33% 9 16%

Total Employees 810 520 234 56

SENIOR SITE MANAGEMENT – 2017 HEMLO

Living in Local Communities9 8 80%

Living in Ontario 2 20%

Total Senior Management Employees 10

9 For Hemlo, White River, Manitouwadge, Marathon, Pic Mobert First Nation and Biigtigong Nishnaabeg.


2017 At-A-GlanceEmployees 221

Contractors 830

Operations Zaldivar (50%)10

Projects Pascua-Lama Alturas

Norte Alberto

Copper Production 114,000,000 lbs

700 Barrick’s community relations team held more than 700 face-to-face meetings with people in communities near the Pascua-Lama project in 2017.

10% Overall contribution of the mining sector to Chile’s GDP in 2017.

BARRICK IN CHILE

Reducing our Carbon Footprint

The Zaldívar copper mine in Chile will

be the country’s first mine to operate

with 100 percent renewable electrici-

ty. The mine, a joint venture between

Antofagasta and Barrick, recently signed

a contract with Colbun S.A. that calls

for Colbun to supply Zaldívar electricity

derived from hydro, solar, or wind sources

for a ten-year period beginning in July

2020. As a result of the agreement,

Zaldívar will be able to replace greenhouse

gas emissions equivalent to 350,000

tonnes per year, which equates to about

87,000 vehicles per year.

10 The Zaldívar copper mine is a 50/50 joint venture with

Antofagasta Plc, the operator of the mine.


ECONOMIC CONTRIBUTIONS TO CHILE 2015 2016 2017

Taxes and Royalties $ 21,900,000 $ 5,380,000 $ -4,570,000

Import Taxes & Duties 0 0 0

Income Taxes 19,680,000 0 -9,280,00011

Other Taxes 880,000 5,380,000 4,710,000

Royalties Paid to Governments 0 0 0

Sales & Value Added Tax 1,340,000 0 0



Employment Taxes 0 150,000 180,000

Payroll Taxes 5,880,000 5,120,000 5,840,000


Other Payments $ 170,000 $ 0 $ 0

Community Investments $ 3,500,000 $ 130,000 $ 550,000

Arts, Culture & Sports 0 0 0



Education 150,000 30,000 10,000

Environment 790,000 0 70,000

Health 270,000 0 10,000

In-Kind Donations 0 0 0

Infrastructure 0 0 10,000

Other Activities 1,190,000 10,000 0


Local Purchases12 23,610,000 2,280,000 2,220,000

National Purchases 96,360,000 48,010,000 141,210,000

Regional Purchases 0 27,140,000 10,060,000

Total in-Country Expenditures $ 194,620,000 $ 123,000,000 $ 187,270,000



EMPLOYMENT IN CHILE – 2017 CHILE PASCUA SANTIAGO ALTURAS CERRO CASALE

From Local Communities12 16 7% 15 13% 1 3% 67% 2

From Host Region13 17 8% 8 7% 9 30% – –

Chileans 184 83% 90 79% 74 96% 20 67% 33% 1

Foreign Nationals 4 2% 1 1% 3 4% – –

Total Employees 221 114 77 30 3

11 The tax rate is negative due to refunds of taxes paid received in 2017.

12 For Pascua, the communities of Alto del Carmen, Vallenar, La Higuera (La Higuera / El Trapiche / Punta Colorada) and the rest of Huasco Province. For Cerro Casale,

the communities of Tierra Amarilla, Copiapo and Caldera. For Alturas, the communities of Vallecillo Rio Seco, Huanta, Chapilca, Varillar, Rivadavia, Vicuña, and

Paihauno.

13 For Pascua and Cerro Casale, the region of Atacama. For Alturas, the region of Coquimbo.


BARRICK IN THE DOMINICAN REPUBLIC

In the CommunityPueblo Viejo

With the support of Barrick, female entre-

preneurs near the Pueblo Viejo mine have

turned a business idea into a successful

manufacturing company. Their company,

Candiver, is the main supplier of cleaning

products for local government agencies,

hospitals, and other large businesses based

in the province, including the Pueblo Viejo

mine. Candiver is owned by CEFORMOMALI,

a non-profit focused on eliminating poverty

in the region, especially among women

living in rural communities. Barrick covered

costs associated with Candiver for the first

three years of its operations.

2017 At-A-GlanceEmployees 2,198

Contractors 2,595

Operations Pueblo Viejo (60%)


19% Barrick increased its purchases from local suppliers by 19 percent in 2017.

#1 Pueblo Viejo is one of the Dominican Repub-lic’s largest exporters and the number one tax contributor, paying close to half of the national corporate tax.


ECONOMIC CONTRIBUTIONS TO THE DOMINICAN REPUBLIC 2015 2016 2017

Taxes and Government Royalties $ 213,050,000 $ 394,390,000 $ 180,730,000

Income Taxes 175,260,000 342,410,000 134,940,000

Other Taxes – – –

Royalties Paid to Governments 37,790,000 48,580,000 $45,790,000

Sales & Value Added Tax – 3,400,000 –



Employment Taxes – 5,930,000 6,380,000

Payroll Taxes 8,920,000 17,610,000 18,340,000



Arts, Culture & Sports 10,000 10,000 110,000



Education 170,000 190,000 120,000

Environment 180,000 – 40,000

Health 90,000 80,000 30,000

Infrastructure – 710,000 810,000

Other Activities 20,000 10,000 1,060,000

Other Payments $ 10,000 $ – $ 1,420,000


Local Purchases14 19,400,000 19,690,000 23,360,000

Dominican Purchases 238,240,000 230,840,000 279,740,000



Total Economic Contributions $ 861,080,000 $ 992,850,000 $ 834,770,000

EMPLOYMENT IN THE DOMINICAN REPUBLIC – 2017 PUEBLO VIEJO

From Local Communities14 740 34%

From Region 452 21%

Nationals 900 41%

Foreign Nationals 106 5%

Total Employees 2,198

SENIOR SITE MANAGEMENT – 2017 PUEBLO VIEJO

Nationals 3 19%



14 Local communities are defined as communities located within 25km from the center of any Pueblo Viejo components with significant risks or impacts from, or

relevance to, the operation. The site has prioritized 39 communities: 25 around the mine and 14 around the power facilities.

In the CommunityPueblo Viejo


BARRICK IN PERU

In the CommunityPierina

As the Pierina mine closes, the site

continues to work closely with the

community to improve local water in-

frastructure. As part of the program, a

reinforced concrete reservoir with stor-

age capacity of 300 m3 of water for

irrigation was built. This infrastructure

will allow irrigation of plots with crops

of potatoes, corn, and alfalfa in the dry

season and will benefit 800 residents.


Contractors 1,717

Operations Lagunas Norte (the Pierina mine is

in closure)


$750M Barrick has contributed more than $750 million in taxes and royalties to Peru since 2013.

99% Since 2014, 99 percent of our employees in Peru have come from Peru.


ECONOMIC CONTRIBUTIONS TO PERU 2015 2016 2017


Income Taxes 107,020,000 102,760,000 108,090,000

Other Taxes 60,000 40,000 20,000

Royalties Paid to Governments 17,030,000 14,190,000 12,650,000

Sales & Value Added Tax 1,100,000 1,480,000 990,000



Employment Taxes 50,000 60,000 60,000

Payroll Taxes 3,150,000 3,270,000 3,750,000



Arts, Culture & Sports – – 140,000


Economic Development 1,500,000 3,110,000 1,160,000

Education 1,610,000 580,000 1,030,000

Environment – 50,000 350,000

Health 470,000 30,000 20,000

Infrastructure 1,760,000 1,630,000 1,890,000

Other Activities 4,840,000 1,030,000 950,000

Other Payments $ 500,000 $ – $ 920,000


Local Purchases15 12,010,000 14,120,000 17,120,000

Regional Purchases16 22,810,000

Peruvian Purchases 274,780,000 282,720,000 269,830,000

Total In-Country Expenditure $ 498,430,000 $ 501,560,000 $ 523,800,000



EMPLOYMENT IN PERU – 2017 PERU LAGUNAS NORTE PIERINA LIMA

Local Communities15 215 16% 130 16% 30 7% 55 65%

Host Region16 437 33% 244 30% 193 47%

Peruvians 658 50% 439 54% 189 46% 30 35%

Foreign Nationals 1 1% 1 0%

Total Employees 1311 813 413 85

SENIOR SITE MANAGEMENT – 2017 LAGUNAS NORTE PIERINA

From Local Communities15 – – – –

From Host Region16 2 15% 2 22%

Peruvians 11 85% 6 67%

Foreign Nationals – – 1 11%

Total Senior Management Employees 13 9

15 For Pierina, includes 11 population centers and rural communities (Huanja, Mataquita; Atupa, Antahurán, San Miguel de Tinyash, Mareniyoc and Chaquecyaco,

San Isidro de Pacollón, Ramón Castilla, Miguel Grau de Shecta and Andres Avelino Cáceres de Cuncashc). For Lagunas Norte, includes 14 population centers (El

Sauco, Chuyugual, Cushuro, Pampa Verde, Corral Grande, Los Loros, Totoras, San Pedro, Yanivilca, La Victoria, Santos Genoveva, Canibamba Alto, Quesquenda

and Quiruvilca).

16 For Pierina, includes the rest of the district of Jangas and Independencia, the Province of Huaraz, and the Region of Ancash. For Lagunas Norte,includes the rest of

the districts of Quiruvilca, Sanagorán and Usquil; the Provinces of Santiago de Chuco, Sanchez Carrión and Otuzco; and the Region of La Libertad.



Contractors 3,016

Operations Barrick Nevada Turquoise Ridge (75%)

Golden Sunlight

Projects Goldrush

Gold Production 2,552,000 oz

BARRICK IN THE UNITED STATES

In the CommunityWestern Shoshone Legacy Fund

In 2008, Barrick signed a Collaborative

Agreement with leaders of four Native

American communities in Nevada. The

Agreement included a commitment

to establish the Western Shoshone

Educational Legacy Fund. The Legacy

Fund is a stand-alone endowment.

The Board and Selection Steering

Committee both include one represen-

tative from each tribe that has signed

the Collective Agreement and one

representative from Barrick. The Legacy

Fund focuses on education, specifi-

cally scholarships for college-bound

Shoshone students.

29,000 The mining industry supports more than 29,000 direct jobs in Nevada.

Barrick is partnering with Cisco and Great Basin College to bring free digital education and training to employees and local Nevadans.


ECONOMIC CONTRIBUTIONS TO THE UNITED STATES 2015 2016 2017


Income Taxes 115,080,000 229,180,000 538,530,000

Other Taxes 23,280,000 102,150,000 101,400,000

Royalties Paid to Governments – – –

Sales & Value Added Tax 36,090,000 42,210,000 48,770,000




Payroll Taxes 92,090,000 91,540,000 94,680,000


Community Investments $ 12,310,000 $ 9,680,000 $ 9, 640,000

Arts, Culture & Sports 1,710,000 900,000 1,660,000

Community Engagement 1,920,000 660,000 850,000


Education 5,170,000 5,860,000 4,660,000

Environment 1,360,000 800,000 1,070,000

Health 860,000 630,000 1,010,000

Infrastructure – 90,000 30,000


Other Payments $ 56,370,000 $ 56,550,000 $ 54,400,000

Purchases of goods and services $ 1,635,300,000 $ 1,109,370,000 $ 1,351,680,000

In-State Purchases 410,430,000 134,640,000 272,120,000

National Purchases 1,224,870,000 974,730,000 1,079,560,000

Total In-Country Expenditures $ 2,708,140,000 $ 2,166,100,000 $ 2,736,070,000


Total Economic Contributions $ 2,740,660,000 $ 2,202,880,000 $ 2,797,670,000

EMPLOYMENT IN THE UNITED STATES – 2017 UNITED STATES BARRICK NEVADA TURQUOISE RIDGE OFFICES

GOLDEN SUNLIGHT

State Residents 96% 3,630 2,845 96% 458 97% 484 93% 52 98%

Americans 3% 123 101 3% 9 2% 18 3% 1 2%

Foreign Nationals 1% 21 8 1% 3 1% 20 4%

Total Employees 3774 2954 470 522 53

SENIOR SITE MANAGEMENT – 2017 BARRICK NEVADA TURQUOISE RIDGE GOLDEN SUNLIGHT

State Residents 15 88% 5 83% 6 100%

Foreign Nationals 2 12% 1 17%

Total Senior Management Employees 17 6 6



Contractors 2,347

Operations Lumwana

Copper Production 256,000,000 lbs

BARRICK IN ZAMBIA

In the CommunityLumwana Community Trust Fund

The Lumwana Community Trust Fund

remains as an important vehicle for lo-

cal social investment in socio-economic

infrastructure and as a platform for key

stakeholder engagement. The Fund

was established following a memoran-

dum of understanding signed between

Lumwana Mining Company and the

three host Chiefdoms of the local area.

The Fund supports infrastructure proj-

ects identified by a committee consist-

ing of local traditional leaders, govern-

ment and mine management. The cost

of identified projects is shared, with the

mine contributing 75 percent and the

balance covered by local communities.

77% Copper accounts for 77 percent of Zambia’s exports.

12% Mining accounts for approximately 12 percent of Zambia’s gross domestic product.


ECONOMIC CONTRIBUTIONS TO ZAMBIA 2015 2016 2017


Income Taxes 8,120,000 5,370,000 21,030,000

Other Taxes 850,000 1,210,000 2,420,000

Royalties Paid to Governments 97,670,000 49,110,000 61,540,000

Sales & Value Added Tax 34,210,000 34,090,000 4,550,000



Payroll Taxes 17,550,000 14,790,000 19,140,000



Arts, Culture & Sports 70,000 – 90,000



Education 280,000 360,000 170,000

Environment – – 550,000

Health 20,000 50,000 50,000

Infrastructure 100,000 10,000 20,000


Other Payments $ 1,610,000 $ 1,060,000 $ 2,600,000

Purchases of Goods and Services $ 329,150,000 $ 272,050,000 $ 329,110,000

From Local Communities17 52,730,000

4,630,000 4,520,000

North Western Province Purchases 8,330,000 12,520,000

Zambian Purchases 276,420,000 259,090,000 312,070,000




EMPLOYMENT IN ZAMBIA – 2017 LUMWANA

From Local Communities17 886 48%

Zambians 915 49%


Total Employees 1,864

SENIOR SITE MANAGEMENT – 2017 LUMWANA

Zambians 4 40%



17 Chiefdoms of Mukumbi, Mumena, and Matebo.


Payments by Payee1

COUNTRY PAYEE NAME

DEPARTMENTS, AGENCY, ETC…

WITHIN PAYEE THAT RECEIVED PAYMENTS2 TAXES ROYALTIES FEES

PRODUCTION ENTITLEMENTS BONUSES DIVIDENDS

INFRASTRUCTURE IMPROVEMENT

PAYMENTSTOTAL AMOUNT PAID

TO PAYEE NOTES

Argentina Government of the Province of San Juan

340,000 12,240,000 3,130,000 – – – 5,190,000 20,900,000

Australia Government of Australia 75,880,000 – - – – – – 75,880,000

Canada – Ontario Biigtigong Nishnaabeg – – 2,040,000 – – – – 2,040,000

City of Thunder Bay 120,000 – - – – – – 120,000

Government of Ontario 9,310,000 – - – – – – 9,310,000

Pic Mobert First Nation – – 2,240,000 – – – – 2,240,000

Town of Manitouwadge 220,000 – - – – – – 220,000

Town of Marathon 420,000 – - – – – – 420,000

Chile Government of Chile 5,550,000 – 4,260,000 – – – 720,000 10,530,000

Junta de Vigilancia de la Cuenca del Río Huasco y Sus Afluentes

– – – – – – 740,000 740,000

Municipality of Antofagasta

270,000 – – – – – – 270,000

Municipality of Coquimbo 1,010,000 – – – – – – 1,010,000

Municipality of Providencia

820,000 – – – – – – 820,000

Dominican Republic

Government of the Dominican Republic

282,670,000 43,210,000 480,000 – – – 1,000,000 327,360,000

Maimon Municipality – – – – – – 90,000 90,000

Zambrana Municipality – – – – – – 100,000 100,000

Peru Government of Peru 27,040,000 12,660,000 12,020,000 – – – – 51,720,000

La Libertad Regional Government

– – – – – – 1,930,000 1,930,000

Papua New Guinea

Government of Papua New Guinea

3,180,000 – – – – – – 3,180,000

EXTRACTIVE SECTOR TRANSPARENCY MEASURES ACT Annual Report

For the year ended December 31, 2017, as filed with Natural Resources Canada June 30, 2018.


Payments by Payee1

COUNTRY PAYEE NAME






TO PAYEE NOTES

Argentina Government of the Province of San Juan

340,000 12,240,000 3,130,000 – – – 5,190,000 20,900,000

Australia Government of Australia 75,880,000 – - – – – – 75,880,000

Canada – Ontario Biigtigong Nishnaabeg – – 2,040,000 – – – – 2,040,000

City of Thunder Bay 120,000 – - – – – – 120,000

Government of Ontario 9,310,000 – - – – – – 9,310,000

Pic Mobert First Nation – – 2,240,000 – – – – 2,240,000

Town of Manitouwadge 220,000 – - – – – – 220,000

Town of Marathon 420,000 – - – – – – 420,000

Chile Government of Chile 5,550,000 – 4,260,000 – – – 720,000 10,530,000

Junta de Vigilancia de la Cuenca del Río Huasco y Sus Afluentes

– – – – – – 740,000 740,000

Municipality of Antofagasta

270,000 – – – – – – 270,000

Municipality of Coquimbo 1,010,000 – – – – – – 1,010,000

Municipality of Providencia

820,000 – – – – – – 820,000

Dominican Republic

Government of the Dominican Republic

282,670,000 43,210,000 480,000 – – – 1,000,000 327,360,000

Maimon Municipality – – – – – – 90,000 90,000

Zambrana Municipality – – – – – – 100,000 100,000

Peru Government of Peru 27,040,000 12,660,000 12,020,000 – – – – 51,720,000

La Libertad Regional Government

– – – – – – 1,930,000 1,930,000

Papua New Guinea

Government of Papua New Guinea

3,180,000 – – – – – – 3,180,000

Barrick is required to report in accordance with

the Extractive Sector Transparency Measures Act

(“ESTMA”) issued by the Government of Canada.

This report is prepared according to specific parame-

ters established by the Government of Canada.

In particular, reportable payments made to gov-

ernment are presented on a net cash basis for the

year ended December 31, 2017. Barrick’s Economic

Contributions Report is on an accrual basis. As a

result, the data included in the ESTMA Report and

Barrick’s Economic Contributions Report are not

directly comparable.


COUNTRY PAYEE NAME






TO PAYEE NOTES

United States of America

Elko County 980,000 – – – – – – 980,000

Eureka County 4,870,000 – 90,000 – – – – 4,960,000

Government of the United States of America

176,950,000 – 4,290,000 – – – – 181,240,000

Humboldt County 1,510,000 – – – – – – 1,510,000

Jefferson County 1,440,000 – – – – – – 1,440,000

Lander County 3,800,000 – 120,000 – – – – 3,920,000

Lawrence County 100,000 – – – – – – 100,000

State of Alaska 90,000 – – – – – – 90,000

State of California – – 110,000 – – – – 110,000

State of Montana 1,590,000 – – – – – – 1,590,000

State of Nevada 36,900,000 – 1,510,000 – – – 1,610,000 40,020,000

State of Utah 370,000 – – – – – – 370,000

Storey County 440,000 – – – – – – 440,000

Zambia Government of Zambia – 61,720,000 1,020,000 – – – – 62,740,000

1 The ‘Basis of report preparation’ section on pages 38 to 40 is an integral part of this ESTMA Report.2 Optional field.


COUNTRY PAYEE NAME






TO PAYEE NOTES


Elko County 980,000 – – – – – – 980,000

Eureka County 4,870,000 – 90,000 – – – – 4,960,000

Government of the United States of America

176,950,000 – 4,290,000 – – – – 181,240,000

Humboldt County 1,510,000 – – – – – – 1,510,000

Jefferson County 1,440,000 – – – – – – 1,440,000

Lander County 3,800,000 – 120,000 – – – – 3,920,000

Lawrence County 100,000 – – – – – – 100,000

State of Alaska 90,000 – – – – – – 90,000

State of California – – 110,000 – – – – 110,000

State of Montana 1,590,000 – – – – – – 1,590,000

State of Nevada 36,900,000 – 1,510,000 – – – 1,610,000 40,020,000

State of Utah 370,000 – – – – – – 370,000

Storey County 440,000 – – – – – – 440,000

Zambia Government of Zambia – 61,720,000 1,020,000 – – – – 62,740,000

1 The ‘Basis of report preparation’ section on pages 38 to 40 is an integral part of this ESTMA Report.2 Optional field.


Payments by Project

COUNTRY PROJECT NAME TAXES ROYALTIES FEESPRODUCTION

ENTITLEMENTS BONUSES DIVIDENDS



BY PROJECT NOTES

Argentina Veladero 260,000 12,240,000 3,060,000 – – – 4,570,000 20,130,000 We divested 50% of Veladero on June 30, 2017, bringing our ownership down to 50%. Payments reported relating to this project relate to payments made prior to the sale on June 30, 2017 or payments made on behalf of Barrick.

Lama 40,000 – 20,000 – – – 620,000 680,000

Exploration 40,000 – 50,000 – – – – 90,000

Australia Kalgoorlie 75,880,000 – - – – – – 75,880,000 Kalgoorlie is not controlled by Barrick. The reported payments were made directly by a Barrick controlled subsidiary in relation to the project.

Canada – Ontario Hemlo 10,070,000 – 4,280,000 – – – – 14,350,000

Chile Zaldívar 4,570,000

– -

– – – – 4,570,000 Zaldívar is not controlled by Barrick. The reported payments were made directly by a Barrick controlled subsidiary in relation to the project.

Pascua 650,000 – 1,080,000 – – – 860,000 2,590,000

Cerro Casale 600,000 – 1,310,000 – – – 600,000 2,510,000 We divested 50% of Cerro Casale on June 9, 2017, bringing our ownership down to 50%. Payments reported relating to this project relate to payments made prior to the sale on June 9, 2017.

Exploration 100,000 – 1,160,000 – – – – 1,260,000

Projects – – 270,000 – – – – 270,000

Closure Sites – – 440,000 – – – – 440,000

Non-project specific 1,730,000 – – – – – – 1,730,000

Dominican Republic

Pueblo Viejo 282,670,000 43,210,000 480,000 – – – 1,190,000 327,550,000

Peru Lagunas Norte 23,340,000 12,660,000 7,620,000 – – – 1,930,000 45,550,000

Pierina 3,510,000 – 4,400,000 – – – – 7,910,000

Exploration 190,000 – – – – – – 190,000

Papua New Guinea

Porgera 3,180,000 – – – – – – 3,180,000 Porgera is not controlled by Barrick. The reported payments were made directly by a Barrick controlled subsidiary in relation to the project.


Goldstrike 23,050,000 – 1,230,000 – – – – 24,280,000

Cortez 15,630,000 – 1,460,000 – – – 1,610,000 18,700,000

Turquoise Ridge 8,750,000 – 280,000 – – – – 9,030,000

Golden Sunlight 2,230,000 – 220,000 – – – – 2,450,000

Closure Sites 1,100,000 – 1,060,000 – – – – 2,160,000

Exploration – – 1,840,000 – – – – 1,840,000

Non-project specific 178,280,000 – 30,000 – – – – 178,310,000

Zambia Lumwana – 61,720,000 1,020,000 – – – – 62,740,000

1 The ‘Basis of report preparation’ section on pages 38 to 40 is an integral part of this ESTMA Report.


This report was prepared in accordance with the Extractive

Sector Transparency Measures Act (“ESTMA” or the “Act”)

issued by the Government of Canada. The information in this

report was prepared by Barrick Gold Corporation (“Barrick”)

for the sole purpose of complying with Barrick’s obligations

under the ESTMA. The information contained in this report is

provided solely for the benefit of Natural Resources Canada

(“NRCan”) and in connection with Barrick’s obligations under

the ESTMA. This report may not be used or relied upon by any

other person or for any other purpose without Barrick’s express

prior written consent.

1 Projects

According to the Technical Reporting Specifications issued by

NRCan, a project is the operational activities that are governed

by a single contract, license, lease, concession or similar legal

agreement and form the basis for payment liabilities with a

government. If multiple agreements are “substantially inter-

connected”, they are considered a single project. “Substantially

interconnected” means forming a set of operationally and geo-

graphically integrated contracts, licenses, leases or concessions

or related agreements with substantially similar terms that are

signed with a government and give rise to payment liabilities.

This report includes payments made that are reportable under

ESTMA for all of Barrick’s controlled projects, regardless of

Barrick’s ownership interest. In accordance with the Act, this

report does not include payments made by projects that Barrick

does not control, except if payments were made by a Barrick

controlled entity in relation to the project. Projects that Barrick

has an economic interest in but are not controlled by Barrick

consist of the following:

PLACE OF BUSINESS ENTITY TYPE ECONOMIC INTEREST ACCOUNTING METHOD

Norte Abierto Project 1 Chile Joint Operations 50% Our share

Donlin Gold Project 2 United States Joint Operations 50% Our share

Kalgoorlie Mine Australia Joint Operations 50% Our share

Porgera Mine Papua New Guinea Joint Operations 47.5% Our share

Veladero 3 Argentina Joint Operations 50% Our share

Jabal Sayid Saudi Arabia Joint Venture 50% Equity method

Kabanga Project Tanzania Joint Venture 50% Equity method

Zaldívar Chile Joint Venture 50% Equity method

1 We divested 25% of Cerro Casale on June 9, 2017, bringing our ownership down to 50%. As part of that transaction, we formed a joint operation with

Goldcorp. The joint operation, which is now referred to as Norte Abierto Project, includes the Cerro Casale and Caspiche deposits. Payments reported relating to

this project relate to payments made prior to the sale on June 9, 2017.

2 Donlin Gold LLC is a non-reporting U.S. entity. Its shares are owned 50/50 by Barrick Gold Corporation and NovaGold Resources Inc. (“NovaGold”). Neither

Barrick nor NovaGold control Dolin Gold LLC. In accordance with the additional guidance provided by NRCan in August 2017 and April 2018, NovaGold has

included 100% of payments made by Donlin Gold LLC to enhance transparency.

3 We divested 50% of Veladero on June 30, 2017, bringing our ownership down to 50%. Payments reported relating to this project relate to payments made prior

to the sale on June 30, 2017 or payments made on behalf of Barrick.

BASIS OF REPORT PREPARATION


Barrick also holds a 63.9% interest in Acacia Mining Plc

(“Acacia”). Acacia is subject to the reporting requirements of

the EU’s “Accounting and Transparency Directives”, and will

be filing a report under that directive by June 30, 2018. That

report will also be submitted to Natural Resources Canada

in accordance with section 10(2) of the Act and published at

http://www.acaciamining.com.

Non-significant projects, in which insignificant payments to

governments were made, have been grouped together and

presented as exploration sites, closed sites, or projects.

Non-project specific payments relate to payments made for the

commercial development of minerals that have been calculated

and paid on a consolidated basis and are difficult to split or

disaggregate to a specific project.

2 Governments

Government is defined as:

a. any government in Canada or in a foreign state

b. a body that is established by two or more governments,

any trust, board, commission, corporation or body or

authority that is established to exercise or perform, or

that exercises or performs, a power, duty or function of

government for a government referred to in paragraph (a)

or a body referred to in paragraph (b).

3 Reporting Currency

Reportable payments to governments have been disclosed in

United States (“US”) dollars, unless otherwise shown. This is

consistent with Barrick’s functional currency for consolidated

accounting purposes. Payments denominated in currencies

other than US dollars were translated using the exchange rate

at the time the payment was made. The average exchange

rates for 2017 are as follows:

CURRENCY AVERAGE EXCHANGE RATE

Argentinean peso ARS per $US 16.56

Australian dollar $US per $AUD 0.77

Canadian dollar $CAD per $US 1.30

Chilean peso CLP per $US 649

Dominican peso DOP per $US 47

Papua New Guinea Kina PGK per $US 0.3039

Peruvian sol PEN per $US 3.26

Zambian kwacha ZMW per $US 9.54

4 Payments

Reportable payments made to governments are presented on a

net cash basis for the year ended December 31, 2017.

Any payment, whether made as a single payment or a series

of payments, below $77,080 (CAD $100,000 threshold as set

out under the Act converted to USD using the full year average

exchange rate) in a given category to a particular government

was not reported.

Reportable payments have been rounded to the nearest

$10,000 but rounding was not to be used for determining

reportable payments.

A TaxesThis category consists of taxes paid to governments based on

income, profit or production in relation to the commercial de-

velopment of minerals. The following are not included in total

payments to governments:

• Consumption tax, such as value-added tax, excise tax and

custom tax

• Personal income tax

• Withholding tax

• Taxes which were offset by credits

• Other taxes that do not relate to the commercial devel-

opment of minerals, such as payroll tax, stamp tax and

personal asset tax

B RoyaltiesThis category consists of royalties paid to governments relating

to the commercial development of minerals. No royalties paid

in kind have been made to governments for the year ended

December 31, 2017.

C FeesThis category consists of fees paid to governments relating to

the commercial development of minerals, such as permit and

license fees. This does not include amounts paid in the ordinary

course of commercial transactions in exchange for services

provided by governments, such as utilities paid at market rates.

http://www.acaciamining.com


D Production entitlementsThis category includes payments made to governments relating

to a share of production under production sharing agreements.

There were no production entitlements payments made to gov-

ernments for the year ended December 31, 2017.

E BonusesThis category includes signing, discovery, production and any

other type of bonuses paid to governments. There were no

bonus payments made to governments for the year ended

December 31, 2017.

F DividendsThis category consists of dividends paid to governments on

shares given in lieu of a bonus, production entitlements, royal-

ties or other fees. This does not include dividends paid to gov-

ernments as an ordinary shareholder. There were no dividends

paid to governments for the year ended December 31, 2017.

G Infrastructure improvement paymentsThis category consists of payments made to governments

for the construction of public infrastructure, such as roads,

schools and hospitals that directly relate to the commercial

development of minerals. This does not include infrastructure

improvement payments that relate primarily to the operational

purposes of Barrick. Payments are reported in the period in

which the payment was made.


Cautionary Statement on Forward-Looking Information

Certain information contained or incorporated by reference in this document, including any information as to our economic contri-butions, sustainability strategy and vision, projects, plans, or future financial or operating performance, constitutes “forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements. The words “believe”, “expect”, “target”, “plan”, “objective”, “aim”, “project”, “continue”, “estimate”, “potential”, “may”, “will”, “can”, “could”, “should” and similar expressions identify forward-looking statements. In particular, this document contains forward-looking statements including, without limitation, with respect to (i) Barrick’s social and economic development contributions, targets, systems and expected impacts; (ii) Barrick’s strategy and approach to tax, including policies, expected benefits and anticipated tax rates; (iii) Barrick’s corporate social responsibility (including sustainable development and community relations; (iv) Barrick’s policies and targets for local purchases and local employment; (v) the estimated timing to achieve environmental, social and energy reduction targets; (vi) projected capital, operating and exploration expenditures; (vii) joint ventures and partnerships; (viii) ongoing exploration and development efforts, including in Nevada; (ix) production rates; and (x) expectations regarding future performance and other outlook or guidance.

Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by the Company as at the date of this document in light of management’s experience and perception of current conditions and expected developments, are inherently subject to signif-icant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: changes in national and local government legislation, taxation, controls or regulations, and/or changes in the administration of laws, policies, and practices, expropriation or nationalization of property and political or economic developments in Canada, the United States, and other jurisdictions in which the Company does or may carry on business in the future; lack of certainty with respect to foreign legal systems, corruption and other factors that are inconsistent with the rule of law; damage to the Company’s reputation due to the actual or perceived occurrence of any number of events, including negative publicity with respect to the Company’s handling of environmental matters or dealings with community groups, whether true or not; availability and increased costs associated with mining inputs and labor; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; litigation; contests over title to properties, particularly title to undeveloped properties, or over access to water, power and other required infrastructure; risks associated with working with partners in jointly controlled assets; employee relations including loss of key employees; the benefits expected from transactions being realized; our ability to successfully integrate acquisitions or complete divestitures; risks associated with the implementation of Barrick’s digital transformation initiative; increased costs and risks related to the potential impact of climate change; fluctuations in the spot and forward price of gold, copper, or certain other commodities (such as silver, diesel fuel, natural gas, and electricity); the speculative nature of mineral exploration and development; changes in mineral production performance, exploitation, and exploration successes; diminishing quantities or grades of reserves; increased costs, delays, suspensions, and technical challenges associated with the construction of capital projects; operating or technical difficulties in connection with mining or develop-ment activities, including geotechnical challenges, and disruptions in the maintenance or provision of required infrastructure and informa-tion technology systems; failure to comply with environmental and health and safety laws and regulations; timing of receipt of, or failure to comply with, necessary permits and approvals; uncertainty whether some or all of the Best-in-Class initiatives and targeted investments and projects will meet the Company’s capital allocation objectives and internal hurdle rate; the possibility that future exploration results will not be consistent with Barrick’s expectations; risks that exploration data may be incomplete and considerable additional work may be required to complete further evaluation, including but not limited to drilling, engineering and socioeconomic studies and investment; risks associated with the fact that certain of the initiatives described in this document are still in the early stages and may not materialize; and business opportunities that maybe presented to, or pursued by, the Company. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unex-pected formations, pressures, cave-ins, flooding and gold bullion, copper cathode or gold or copper concentrate losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks).

Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this document are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a more detailed discussion of some of the factors underlying forward-looking statements and the risks that may affect Barrick’s ability to achieve the expectations set forth in the forward-looking statements con-tained in this document.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new infor-mation, future events or otherwise, except as required by applicable law.

www.barrick.com

Barrick Gold Corporation

Head Office:

Brookfield Place

TD Canada Trust Tower 161 Bay Street

Suite 3700

P.O. Box 212

Toronto, Canada M5J 2S1

Tel: 416 861-9911

Toll-free throughout North America: 1 800 720-7415

Fax: 416 861 2492

Email: [email protected]

Connect with Us

http://www.barrick.com

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