Executive Viewpoint

Responsibility at Barrick

Within the mining industry today, stakeholder expectations have increased and the range of issues affecting the industry continues to expand. At Barrick, we are meeting this challenge and have made corporate social responsibility (CSR) an integral part of our global business strategy.

We have 26 operations and 11 projects in our pipeline, a number of which are in developing and emerging regions. At all locations, our aim is to conduct our activities to the highest social, environmental and safety standards and successfully manage the impact of mining activities.

Each year, we take steps to improve our practices and performance.  In 2011, we continued to strengthen our responsible mining practices across all functional areas, commencing at earliest exploration through to mine closure.  We are guided in these efforts by leading industry standards including the International Council on Mining and Metals (ICMM), the International Cyanide Management Code, the Voluntary Principles on Security and Human Rights and ISO 14001.

As CEO, I recognize that Barrick’s success depends on our ability to earn and maintain the support of the communities in which we operate. Our strategy is to be responsive to the needs and aspirations of these communities and our host countries, while continuing to create value for our shareholders. This approach ensures we remain a trusted partner in resource development across five continents.

These are some of the significant steps we have taken:

• Human Rights: Ongoing implementation of a comprehensive, global human rights compliance program, aligned with the UN Framework for Business and Human Rights. This includes the adoption of a new human rights policy, which underscores our zero tolerance for human rights abuses and applies to all employees, contractors and suppliers. We have also implemented a global human rights training initiative and have begun a program to conduct human rights assessments at all of our sites and projects.

• CSR Advisory Board: Establishment of a CSR Advisory Board and the naming of five distinguished individuals to serve as inaugural members.  The Advisory Board will provide a sounding board on a wide range of issues, including community relations, the environment, human rights and stakeholder engagement.

• Community Relations: Implementation of a Community Relations Policy and a Community Relations Management System (CRMS), which sets out a systematic and disciplined approach across all sites. The new CRMS provides clear standards for stakeholder engagement and procedures to achieve best practice in this critical area.  We are also strengthening grievance mechanisms at our sites to ensure community members have an effective mechanism to voice their concerns and complaints.

• Environmental Stewardship: Barrick’s environmental management system (EMS) has been successfully implemented at the majority of our sites (21), with full implementation at all operations expected in 2012.  Barrick’s EMS is aligned with ISO 14001 and, to date all North American business units and South American operations have achieved 1SO  certification. We continue to make important progress meeting rigorous company standards in such areas as water, energy and biodiversity conservation.  To reduce our carbon footprint, we are increasing our reliance on renewable power, reflected by the inauguration of our $50 million Punta Colorada wind farm in Chile.

I am proud that our performance has been recognized.  Barrick is ranked as a global leader in corporate responsibility by the Dow Jones Sustainability World Index and the NASDAQ Global Sustainabililty Index, two of the world’s most respected sustainability rankings. In Canada, Barrick was named a Carbon Disclosure Leader and our Hemlo operation received a special Towards Sustainable Mining Leadership Award from the Mining Association of Canada.

We also faced our share of challenges in 2011 and are taking concrete and appropriate actions to resolve them.

At all locations, we put the safety and health of our people first. Through our Safety and Health Management System and our network of safety professionals at every site, we have training, standards and initiatives in place to continually improve our practices and build a safety culture across the organization. Over the past 10 years, we have steadily reduced our incident frequency rates, but will not be satisfied until we reach our goal of zero incidents.

Despite improving statistics on many levels, regrettably, we had two fatalities in 2011, one from a ground fall and the other a driving incident. In response, we have instituted new standards for ground control to prevent ground falls and avoid injuries. Driving incidents account for a high proportion of all company safety incidents. To address this challenge, we are conducting safe driver training programs and installed driver mentoring systems in all light vehicles in 2011. This program has helped reduce driving incidents by 68 percent compared to 2010.

At the North Mara mine in Tanzania, owned and operated by our affiliate African Barrick Gold (ABG), ABG encountered human rights allegations and security challenges. Working with the international NGO Search for Common Ground, ABG has been moving forward with a comprehensive strategy to address issues at this operation and develop conflict resolution and human rights training in the region. This strategy, which features increased community investment, supports greater social and economic development. It builds on efforts to address legacy issues, increase awareness of human rights and improve community infrastructure in such areas as education and access to water. ABG has tripled its investment in community development initiatives to $10 million annually in Tanzania and, most recently, signed agreements valued at $8.5 million with seven villages surrounding the North Mara mine.

At our Porgera mine in Papua New Guinea, we are implementing a comprehensive framework of human rights initiatives in response to allegations of violence against women in 2010. This includes a remediation program and specific initiatives to combat gender violence.

Barrick’s operations are a powerful engine of economic growth and social development in 11 countries.  We make significant investments in our host communities that create opportunities for many thousands of people, often providing a level of prosperity and stability that would not otherwise exist.  In 2011, Barrick’s global economic value-added was approximately $13 billion. This figure includes good-paying jobs, revenue to governments and local businesses, improvements to health care and education, as well as clean water and electricity. At our Pueblo Viejo project in the Dominican Republic, for example, we employed about 9,000 people during construction phase, conducted extensive skills training programs, and worked with communities and organizations to build the capacity of the region to profit from our business.

When working with communities, governments, and other stakeholders, our objective is to understand their most pressing needs and priorities and align our efforts accordingly. In less developed regions, where more complex social and economic conditions exist, we strive to be a catalyst for positive change. We recognize it is in our best interests as a company to do our part to support improvements to law and order, respect for human rights and poverty alleviation.

We are also engaging in a more open dialogue on the issues affecting our company and our industry, through our memberships on the Steering Committee on the Voluntary Principles on Security and Human Rights, the ICMM, the UN Global Compact and other multilateral forums. Barrick’s CSR Advisory Board, which I will chair, will also provide valuable input to the company on these matters.

Looking to the future, our strategy is to have consistent performance management systems in place that provide our sites with the tools to manage our social and environmental risks and maintain broad stakeholder support. We expect to achieve full implementation of Barrick’s CRMS and have an Indigenous People’s plan in place at all relevant sites by 2013.

As enhancements to our human rights compliance program continue, we are also ensuring that anyone acting on behalf of Barrick is aware of their obligation to do their utmost to respect human rights.

Over the past year, I believe that we have made important progress and have strengthened our ability to manage challenging issues affecting our industry. We have demonstrated our strong commitment to meet ever higher levels of corporate responsibility and better the lives of the people impacted by operations.  This commitment is making Barrick a better company, creating a positive legacy and building brighter futures.

Aaron Regent
President and Chief Executive Officer