Community Relations Vision
Working together with local communities for mutual long-term success
In emerging markets with limited infrastructure, gold mining in particular has been identified as an industry which can be an early-stage catalyst for longer-term development.
Mutual Benefits in Tanzania
In the Motongo village in Tanzania, a small group of residents have joined forces in a local farming project to supply fresh produce to the North Mara mine. The mine has now become a reliable market for their produce, feeding around 1,700 employees and contractors, and the main source of their livelihood. African Barrick Gold (ABG) provided the seeds and training in modern farming techniques. Sodexo, ABG’s catering service provider, is also working closely with the farmers to increase output by expanding farmland and advising on methods to improve the produce quality and quantity.
The North Mara project builds on the success of a larger initiative to support farmers at the company’s Bulyanhulu mine, also located in Tanzania. At Bulyanhulu, hundreds of former subsistence farmers have been able to benefit. By learning to operate as a business, monthly revenue for local farmers has increased 50 percent. Today, Sodexo is able to supply more than 20 percent of the fruit and vegetables needed at Bulyanhulu from local sources, which translates into savings of as much as $15,000 per month for the operation.
In total, 91 percent of Sodexo’s purchasing for ABG’s four Tanzanian mines is in-country.
New Directions Training
In November 2011, Donlin Gold, in partnership with the local health services provider in rural southwestern Alaska—the Yukon Kuskokwim Health Corporation—co-sponsored two 5-day substance abuse healing workshops. The first week was held for Donlin Gold employees and family members, with the second week devoted to residents within the Donlin Gold project area. New Directions Training Group, of the Alkali Lake community in British Columbia, led the healing workshops at the Donlin Gold Campsite. Alkali Lake is a small community that overcame extreme substance abuse and social devastation through rediscovery of their spirituality and culture. The New Direction Training Group uses a culturally appropriate approach and integrates evidence-based strategies for North American Indigenous Peoples, such as deliberate efforts to foster reconnection of the community and extended families and reintroduce cultural resources such as sweat lodges.
Community Development
It is often through sustainable programs and initiatives, created with our community partners, that development in a community is sustained beyond the life of the mine. Over the last 27 years, Barrick has seen many of our host communities prosper, showing visible signs of an improved quality of life and standard of living.
Leaving a positive and sustainable legacy requires a strong understanding of the social and economic relationships between the mine and the surrounding communities. A sustainable legacy also represents a shift from a traditional philanthropy approach to strategic social investment and partnership development. Barrick focuses on sustainable development to benefit local communities over the long term. Our mines may operate in communities for 20 years or more in some cases, so we strive to provide opportunities for people to increase their skills and capabilities during that time. This can bring lasting benefits to the community while we operate and after we leave.
Providing opportunities at the community level includes local employment, local procurement, and community development projects. Associated with these opportunities are our efforts to develop lasting capacities, which will continue after mine closure.
Barrick supports students from local communities by building schools, donating textbooks and computers, and providing scholarships.
Impact Assessments
Environmental & Social Impact Assessments (ESIAs) or equivalent studies are completed at each project prior to development, and during major expansions to existing operations. The ESIA process includes gathering baseline information (both quantitative – demographics, employment, wildlife counts, soils analysis – and qualitative – perceptions of the project and the company), consultation with community stakeholders, and consultation with local organizations and NGOs. The scope of an ESIA includes ancillary facilities as well, so transport routes, power plants, etc. are also included. The ESIA baseline information helps us to ensure that marginalized and vulnerable community members are included in community consultation.
To assess community health issues and risks and to map out mitigation strategies, Barrick now completes Health Impact Assessments (HIAs) and/or Baseline Health Surveys at relevant projects and operations. In 2012, HIAs will be completed in communities surrounding Buzwagi and Tulawaka, and will commence in Bulyanhulu and North Mara in Tanzania. HIAs or health surveys will also be competed at Donlin Gold in Alaska and in the communities surrounding the Porgera mine, in Papua New Guinea.
Capacity building is a long-term, continuing process involving activities which strengthen the knowledge, abilities, skills and behaviour of individuals. These activities can improve institutional structures and processes such that a community or region can efficiently meet its sustainable development goals and objectives.
For Barrick, capacity building activities are tailored to local needs and can include infrastructure development (e.g. building roads, power sources, schools, medical clinics and water wells), apprenticeship programs, support for community initiatives, training and education opportunities, and scholarships for community members.
One way we create and implement integrated development programs is through the Participatory Rural Appraisal (PRA) engagement methodology. The PRA methodology enables our community relations teams, government officials, consultants and local people to work together to plan context-appropriate development programs. For example, in 2011 the Porgera mine community relations team visited 21 villages located near the mine and began a dialogue on the issues of population, health and nutrition, education, sanitation and governance. The next step will be the completion of formal community development plans, designed by the communities, the Porgera mine, local government and NGOs. These plans will then be implemented across the villages. The Porgera team is looking to expand the PRA methodology to the broader Porgera District in 2012.
Capacity building is a long-term, continuing process which strengthens knowledge, abilities and skills.
The Porgera mine also supports the Porgera District Women’s Association (PDWA) by providing financial and infrastructure support on a number of initiatives. One such initiative is the micro-credit scheme which enables women to establish their own business enterprises, in turn creating independent financial capacity and a sustainable source of income. The PDWA Social Development group will be granting $57,000 to 60 new recipients early in the second quarter of 2012.
In the Dominican Republic, our Pueblo Viejo project promotes sustainable economic development by supporting small business groups in local communities. In July 2011, the Pueblo Viejo community relations team funded a booth at a business fair to allow local small businesses to market their products to wholesalers interested in placing major orders. As a result, several of the vendors made arrangements with wholesalers, allowing them to expand their reach beyond local markets.
The Pueblo Viejo project is also contracting services with local businesses. In one case, the vehicle fleet of Transporte Hernandez Vargas Co. has tripled in size since first contracting with Barrick at the beginning of project construction.
At the North Mara mine in Tanzania, we sponsored an entrepreneurship course for villagers near the mine in 2006. The training has enabled a number of villagers to start their own businesses. One such business, Kiribo Construction Limited, has grown over the past five years, and in 2011, employed 150 workers, with the majority of them being youth from nearby villages. The company continues to grow and has had a number of contracts with the mine as well as within the local communities.
Support for community health is an important component of our capacity building activities . Barrick supports numerous, wide-ranging health programs in communities near our mines. These programs include funding HIV/AIDS and tuberculosis awareness programs and clinics in Tanzania, Papua New Guinea and North America; health education for children through a mobile learning centre in Australia; an oral hygiene program for children in Argentina; and the distribution of bed nets in Tanzania to combat malaria.
One way to share the benefits of mining is to contribute to the construction and maintenance of local infrastructure. For Barrick, significant areas of infrastructure development and investment include building schools and medical clinics and the construction of local services such as water supply, power, and sewer projects. What we build depends on the needs of local communities. In 2011, we invested, globally, over $46.7 million in community benefits.
As an example, over the past few years, ABG has invested over $100 million extending the Tanzanian national electrical grid to our mine sites, thereby providing access to electricity for neighbouring villages and those located along the route. The introduction of electricity has helped to bolster basic services such as health care and education in local communities and has lead to an increase in small businesses in the villages. In the small town of Kakola for example, electricity used to come from expensive and dirty diesel generators. Power was considered a luxury. Now reliable, clean electricity means that shopkeepers can stay open for longer hours and sell more sophisticated electronic equipment and appliances, including televisions, refrigerators and music systems, to local residents. Business now flourishes and the quality of life for community residents has improved.
Also in Tanzania, the Bulyanhulu mine is committed to providing up to $2 million in support for the construction of a water pipeline that will deliver fresh water to three nearby districts. A 60 kilometre water pipeline will pass through communities located in the Geita, Kahama and Shinyanga districts providing residents with a reliable source of fresh water. Currently, lack of access to clean, safe drinking water is the leading cause of health issues facing the residents of the area.
The Bugando Medical Centre, the only referral hospital for over 14 million people from six Lake Victoria regions in Tanzania, has been in dire need of expansion. In 2011, Barrick pledged $300,000 to fund two of the five new operating rooms needed and the purchase of an endoscopy machine.
In Tudcum, a small town near Barrick’s Veladero mine in Argentina, we are contributing $325,000 towards the construction of the new Tudcum Community Center. The new facility, expected to open early in 2012, will replace the aging building currently used by the community. Another example of Barrick’s commitment to providing local infrastructure.
Support for Education in 2011
Barrick has provided ongoing support to the Great Basin College in Nevada for 25 years.
Barrick has a strong interest in supporting education. Some examples of this focus include:
Alto del Carmen, Chile – Barrick provided construction materials and employees from the Zaldívar mine and Pascua-Lama project donated their time to repair and update a library room at a local school.
Nevada – Barrick contributed $150,000 to the Great Basin College in Elko for their endowment fund which will be used to develop and support new college programs.
Nevada – Barrick donated $50,000 to the non-profit Public Education Foundation to help launch a state-wide academy to train school principals in leadership.
New South Wales, Australia – Barrick donated $45,000 to Life Education Australia’s Mobile Learning Centre, an innovative mobile learning facility. The Life Education program provides health and lifestyle education to primary school children in the shires located near the Cowal mine.
Tanzania – The Bugarama Secondary School was built by Barrick in 2005. In 2011 the school celebrated its fourth graduating class. Barrick continues to support the school, with building improvements and student sponsorships, along with support for technical school training once high school is complete.
Ontario – Barrick donated $150,000 to Lakehead University in Thunder Bay, $35,000 for a student bursary at the Northern Ontario School of Medicine (NOSM) and a further $100,000 for general support of NOSM.
Peru – Barrick invests more than $900,000 a year to implement and support educational programs aimed at improving math skills and reading comprehension for more than 45,000 elementary school children.
There are people in many of the areas where we mine who need access to clean water, food, health care, housing, and education. We have dedicated significant resources to helping host communities improve their quality of life in these areas. In order to do this effectively, our community relations teams often partner with governments, non-government organizations, donor agencies, and multi-lateral agencies. Our most successful partnerships are with organizations whose focus complements our existing community development programs.
In collaboration with our partners, we are able to provide access to clean water, health care, housing and education for thousands of people in the communities where we operate. These stronger communities contribute positively to our competitiveness through their ability to host thriving supplier industries, create a stable business environment, attract and retain a skilled base of employees and provide essential services to their residents (which, in most cases, include our workers).
As an example, in rural Tanzania, ABG teamed up with Bridge2Aid, a non-governmental dental organization based in the United Kingdom (UK), to increase access to emergency dentistry by training local health workers to provide simple but vital dental procedures. In the past five years, Bridge2Aid’s global training programs have increased access to dental care for more than one million people worldwide.
The first Bridge2Aid program at Bulyanhulu began in May 2009 and was a great success. The Bridge2Aid program was extended to the Buzwagi and Tulawaka mines in 2010, where additional clinical officers were trained. In 2011, Bridge2Aid delivered eight additional training programs to health workers in the area of our mines, with logistical and accommodation support from the mine sites themselves for six of these programs, along with over $100,000 in funding from AGB. The success of the program has resulted in plans for expansion of the training model for 2012 in the regions around our operations as well as other jurisdictions in the country.
The Cowal mine and the Wiradjuri Condobolin Corporation (WCC) have partnered together since signing a formal agreement in 2003. Over the years, this partnership has benefited both the Wiradjuri people – the traditional owners of the land on which the Cowal mine is located – and the Cowal mine. Their most recent initiative, the Wiradjuri Study Centre (WSC), opened in September 2011. The WSC is an inclusive centre that aims to develop socio-economic opportunities for Wiradjuri people through employment and training programs in a culturally appropriate manner. The centre also welcomes non-Aboriginal people through tourism, language classes and a range of other programs and initiatives. The WSC provides a cultural heritage Keeping Place, a Wellness Centre, conference facilities, a ‘men’s shed’ meeting place and an educational facility where people can participate in a wide range of programs.
Partnerships in Peru
Barrick employees directly participated in the construction of homes in Peru, while Barrick provided funding.
In Peru, where the Lagunas Norte and Pierina mines are located, Barrick formed a partnership with the Farming Alternative Institute to implement the Productive Highlands Program. This program is helping farmers in the community of Cahuide manage the challenges of farming more than 4,000 metres above sea level. The Productive Highlands Program is teaching local farmers how to use new farming technology and water conservation techniques to increase productivity. Two years later, all technologies have been implemented and improvement in living conditions is evident among local farming families. Barrick has also received two awards for this program, which recognize its positive influences.
The Poverty Reduction and Alleviation (PRA) Project was created in 1998 by USAID to reduce poverty in rural regions across Peru. It connects small businesses directly to potential buyers for their products. This process is facilitated by economic service centres set up by the PRA Project at strategic locations across Peru. In 2011, Barrick signed agreements with the PRA Project to create two economic service centers in north-western Peru. One is in La Libertad, near our Lagunas Norte mine and the second is in the Ancash region, where our Pierina mine is located. We are matching USAID’s $590,000 investment over a three-year period to establish and operate the La Libertad Economic Service Centre. The Ancash agreement runs 18 months and involves a $270,000 commitment by Barrick. Both agreements have targets for sales, job creation and third-party investments. Connecting producers to markets is the key to the success of these projects, as is shown by the $1,200,000 in incremental sales achieved during 2011 by the Economic Service Centre.
Also in Peru, Barrick is partnering with A Roof for My Country (Un Techo Para Mi Pais) to provide emergency housing for families living in poverty in the Huaraz province. Volunteers for this international NGO, including some Barrick employees, assist the families to build their homes. Over the next three years, 355 homes will be built in communities around the Pierina mine. Barrick will contribute $400,000 to build 135 of these homes.
Another Peruvian partnership involves the Canadian International Development Agency (CIDA), Barrick and World Vision in a project to improve economic and social development in the district of Quiruvilca. Barrick and CIDA will each contribute $490,000 over the life of the project, which aims to convert mining revenue into sustainable development initiatives that help diversify the local economy. This project is the third collaboration between Barrick and World Vision in the past eight years. Since 2003, Barrick and World Vision have partnered to build the capacity of community leaders and mothers from impoverished families to address the urgent health needs of children living in rural communities where malnutrition is common.
Citizen’s Environmental Oversight Committee at Pascua-Lama
For our cross-border Pascua-Lama project in Chile and Argentina, a Citizens’ Environmental Oversight Committee has been established. The objective of the Committee is to provide community-based oversight and monitoring for the project, as well as a forum to enable the community to channel concerns to the company and, if needed, for conflict resolution. This Committee is comprised of local authorities, community leaders and Barrick representatives. In Argentina, there is a comprehensive integrated monitoring plan which includes active participation by the community.
Community Environmental Monitoring Group at Cowal
Barrick’s Cowal mine in Australia has a Community Environmental Monitoring Consultative Committee (CEMCC), which was established to ensure compliance with the social and environmental requirements of the project permit. This Committee meets quarterly and consists of representatives from local government, communities, business and local farmers. The Committee is provided with project updates and with the opportunity to ask questions on behalf of local communities and relevant stakeholders. Outcomes from the meetings are published in the local newspaper and the minutes of the meetings are provided to the local Council for distribution on their website.
Pueblo Viejo Community Biodiversity Monitoring Program
The Pueblo Viejo project’s Community Biodiversity Monitoring program was initiated in July 2010, in collaboration with local communities. The overall objective of the first field program was to obtain baseline data on bird species variety and population densities and to establish a monitoring program that would allow understanding of the effects of mining on bird communities and populations over time. In order to achieve this goal, 296 point count stations have been established within and around the project area. Two leaders, from each community involved, joined the bird monitoring program to establish identified sampling points. The community members were instructed on the objectives, methods, and scope of the study and continue to participate actively in the bird count and the characterization of habitats, and provide information on plant species and plant phrenology.
The PEAK Committee at Porgera
At the Porgera mine in Papua New Guinea (PNG), the Porgera Environmental Advisory Komiti (PEAK) monitors and advises on the social and environmental performance of the mine and comments on its reports and activities. PEAK was established in 1997 in response to community concerns over the environmental impact of the Porgera mine.
PEAK’s activities were expanded in 2003 to incorporate the key social and economic issues that will affect the Porgera Valley and surrounding areas following mine closure. PEAK continues to focus its activities on waste discharge, tailings disposal, social issues surrounding mine closure, long term sustainability of relocated communities, community health and education, law and order, and capacity building. In 2010, PEAK published its first annual Report Card on the health of the Porgera/Strickland river system. In 2011, PEAK sponsored tertiary research examining the direct impact on women’s lives due to the introduction of mining to the Porgera area.
The Porgera Community Issues Committee
The Porgera mine, in conjunction with local landholding clans, has also established a group known as the Community Issues Committee. This group, which is comprised of representatives of the 24 local landholding clans, together with representatives of the mine, meets regularly to deal with concerns and issues that arise within the mine-associated communities. The Committee also assists in the development of agreements and contracts such as relocation agreements, and ensures that local communities have a strong voice in managing any mine-related issues that may affect them.