Barrick Responsibility Report 2007 What Is Responsible Mining?

Barrick Responsibility Report 2007 What is responsible mining?

About this Report

The 2007 Responsibility Report summarizes Barrick’s global environmental, health, safety and social (EHSS) performance. The Responsibility Report and supplemental documents provide information on all of our operations and joint ventures, as well as corporate and regional offices. Data presented in this report are for the calendar year 2007. The data are aggregated globally and intensity indices are used where relevant.

We recognize that the audience for our responsibility reporting is diverse and their information needs are broad. In order for us to meet the needs of all our stakeholders the 2007 Responsibility Report focuses on our performance and the significant issues we are confronting. It is supplemented on our website by more detailed Regional Responsibility Reports, comprehensive data tables and more information on our management approach to Corporate Social Responsibility. See www.barrick.com/CorporateResponsibility.

Our annual report on the International Council on Mining and Metals (ICMM) Principles, our Global Reporting Initiative (GRI-G3) Index and the UN Global Compact Communication on Progress (COP) report are all available on our website.

We are committed to transparent disclosure of our social responsibility performance and critical issues raised during the year. Issues discussed in this report and on our website were identified by:

• Stakeholder feedback and concerns • Consideration of key environmental, health, safety and social risks to our business • Use of the Global Reporting Initiative including the new G3 guidelines

Barrick includes, with each Responsibility Report, a third-party review of our report and the associated process of data collection and verification. In 2008, we retained Environmental Resources Management to provide an independent assessment of the 2007 Responsibility Report and associated website information. The independent assessment is located on page 36 of this report.

Please see Barrick’s Annual Report to Shareholders for financial performance information. Good governance and ethics Helping local communities Empowering employees Fostering safe workplaces Protecting the environment

Performance Snapshot 2 Your thoughts are important to us. Please take a Executive Viewpoint 4 moment to provide us your comments, either directly to the Communications Department at A Culture of Responsibility 6 the address on the back cover of our report, or by Corporate Governance 8 filling out the Feedback form on our website at Community Responsibility 10 www.barrick.com/CorporateResponsibility and go to Reporting. Employee Responsibility 20 Safety and Health Responsibility 24 Environmental Responsibility 28 Independent Assessment 36 About Barrick Gold IBC Glossary IBC

Barrick Responsibility Report 2007 1 Performance Snapshot Performance Snapshot

2007 TARGETS AND OBJECTIVES 2007 PROGRESS 2008 TARGETS AND OBJECTIVES

Ethics

• Approve and implement the • Security Policy developed – based • Implement the Security Policy via a Security Policy on the VPSHR security strategic planning process • Approve and implement the Supplier • Supplier Code of Ethics approved • Develop a standardized training Code and implemented across the program for the VPSHR • Continue implementation of the Company • Monitor the implementation of Voluntary Principles on Security and • Security gap assessments completed the VPSHR via an external review Human Rights (VPSHR) at all at-risk sites process • Developed one-day ethics and • Develop and implement a multi- integrity leadership seminar disciplined approach to improve • Senior managers across the Company illegal/artisanal mining issues participated in the ethics and • Continue to implement ethics and integrity leadership seminar integrity leadership training throughout the Company • Develop and implement on-line ethics training for employees

Employees

• Institute Powerful Leadership • Powerful Leadership phase one • Powerful Leadership phase two training Company-wide was delivered to 1900+ supervisors will be delivered to the same target and managers Company-wide, audience. It will provide insight exceeding targets for participation, into managing performance skills transfer and participant challenges, maximizing team satisfaction performance and retention

Community

• Develop site-level or regional- • 16 site level CE&SD plans and • Develop a new Corporate level Community Engagement one regional (North America) plan Community Relations Strategic Plan and Sustainable Development developed • Establish a community relations (CE&SD) plans • Draft key performance indicators leadership team • Develop and pilot a social perform- developed. Social performance • Develop a social performance ance review program review under development monitoring framework • Develop stakeholder engagement • Corporate stakeholder engagement plans at the corporate level plan complete and being implemented

2 Barrick Responsibility Report 2007 2007 TARGETS AND OBJECTIVES 2007 PROGRESS 2008 TARGETS AND OBJECTIVES

Environment

• Finalize Energy Management Policy • Policy captured within Climate • Measurement, tracking and Change Program. Energy manage- reporting of energy use established ment guidelines developed for at all sites operations

• Complete remaining energy • Completed • Third-party energy efficiency assess- efficiency self-assessments ments conducted at selected sites

• Implement additional mercury • Mercury sampling and stack testing • Additional mercury controls will emissions control technology underway. Mercury control enhance- be implemented where testing ment completed at two operations identifies a need

• Continue Environmental • EMSS – Leadership and Legal • Continue EMSS implementation – Management System Standard Obligations Register elements Risk Assessment and Change (EMSS) implementation introduced Management elements

• Issue Climate Change Policy • Climate Change Program com- • Implement Climate Change Program and Program pleted. Board approval received in • Finalize and implement Water first quarter 2008 Conservation Policy and Program

• Zero fines • Two operations received fines • Zero fines related to three environmental • Complete Cyanide Code incidents Certification of our designated operations

Safety and Health

• Zero Fatalities • Two fatalities • Zero Fatalities

• 12% reduction in Lost Time • LTAs increased by 7%, however • 15% reduction in LTAs Accidents (LTAs) total injury frequency rate decreased • Improve health reporting by 9% with data management system

• Continue implementation of the • On target • Conduct gap analysis against the Health Program Health System Standards

• Continue Courageous Leadership • Refresher training completed for • Courageous Leadership Refresher through refresher courses current employees; full training training for current employees; full program for new workers training program for new workers

Barrick Responsibility Report 2007 3 Executive Viewpoint Our Vision – Responsible Mining

At Barrick, our commitment to Responsible Mining defines who we are as a company and drives our way of doing business. As we mark our 25th anniversary, it has been a remarkable journey for a company that began with one mine to our current position as a leading international gold mining company, with 20,000 employees at 27 operating mines and projects on five continents.

Barrick is now the world’s preeminent gold mining company. a healthy environment. In 2007, Barrick added the International As such, we recognize and embrace our responsibility to the Council on Mining & Metals and the Clinton Global Initiative communities where we operate, to our stakeholders and to to our growing list of respected partners worldwide. our employees. Reflecting back, I am proud of Barrick’s role in the development I am convinced that our success over the past 25 years is tied of the Cyanide Code and the leadership we are demonstrating directly to the important contributions we have made to build- today within our industry. By January 2008, nine of Barrick’s 21 ing stronger, more prosperous communities, safeguarding the participating operations had received Code certification, having environment and improving our safety record. undergone rigorous third-party audits.

Over the past year, Barrick has continued to make substantial Sustainable Development progress in all of these areas. We have further developed our We believe that our mining operations are an important well-established community programs in partnership with catalyst to sustainable economic development and have put organizations such as World Vision, CARE Tanzania and the in place programs that contribute to the health and prosperity African Medical & Research Foundation (AMREF). Many of of people living near our mines. Barrick makes meaningful con- these programs focus on health and education, particularly tributions to community initiatives and infrastructure develop- where systemic gaps exist in the developing world. ment in places where poverty exists and essential infrastructure We have strengthened our commitment to international is limited or nonexistent. standards and best practices, such as the Voluntary Principles In 2007, we added over $6 billion to the economies of the on Security and Human Rights and the International Cyanide host countries and local communities where we operate. This Management Code. illustrates the immense contribution that mining makes on Our membership in other voluntary initiatives such as the an annual basis in the communities where we operate. Our United Nations Global Compact and the Global Business contributions included investments in schools and teacher Coalition on HIV/AIDS, Malaria and Tuberculosis promote trans- training programs as well as hospitals and health clinics, partic- parency, good corporate citizenship, healthy communities and ularly in Africa, South America and Papua New Guinea. We have built wells and infrastructure to supply clean water to

4 Barrick Responsibility Report 2007 communities in Tanzania, Peru and elsewhere. The economic benefits of mining are also enabling local businesses to develop into sustainable enterprises and employers.

Barrick’s commitment to sustainable development was also recognized in 2007 as the company was added to the annual Dow Jones Sustainability Index (DJSI), North America – one of the world’s foremost indices of leadership in corporate Our total medical treatment injury rate has been decreasing for social responsibility. 10 years and one third of our operations and projects reported Environment no lost time incidents in 2007. However, our excellent safety record was tempered by two fatalities in 2007. Tragically, two Climate change has emerged as a global issue and Barrick contractors lost their lives at our operations, one in an under- recognizes its responsibility to address the risks of a changing ground rock fall incident and the second due to an electrical climate. In 2007, we developed a Climate Change Program, accident. I am deeply saddened by these losses and I continue which includes targets for greenhouse gas intensity, energy to assert our goal of a zero-incident environment. efficiency and renewable energy. We are also incorporating energy efficiency into regular business management processes. We are committed to ethical conduct and good governance, Our latest green energy projects include solar panels in Nevada improving lives in the communities where we operate, respect and windmills in Chile. These projects attest to the growing for the environment and keeping our people safe and healthy. role of renewable energy in our industry. Water availability is We recognize that strong performance in these areas is vital to also becoming an increasing concern globally. A water conser- maintaining our social license to operate. vation strategy was also developed in 2007 which will be Barrick has a proud history to build on, as we set our sights for implemented at all of our operations by 2009. greater leadership in the future. We will continue to embrace Employees Responsible Mining and do what is right and responsible at all of our operations and projects worldwide. One of most the obvious and important ways we contribute to economic development is by hiring locally. Barrick provides competitive pay and benefits and the promise of additional career opportunities as we continue to grow as a company. We respect the right of every employee to work in an environment free from discrimination where human rights are upheld Greg Wilkins and equal opportunities are provided. President and Chief Executive Officer

The safety of our people has always come first, above any other concern. We are continually improving our safety record. Enthusiastic buy-in from both management and front-line employees has created a genuine culture of safety at Barrick.

Barrick Responsibility Report 2007 5 25 Years of Responsible Mining A Culture of Responsibility

As we conduct our business around the world, we are guided by our commitment to Responsible Mining. That was true 25 years ago when Barrick first began and is true today. In practice, Responsible Mining translates into bringing long-term benefits to the communities where we operate, protecting the environment and fostering a culture of safety, excellence and collaboration among our employees. By upholding this commitment in everything we do, we open up opportunities to earn the trust of our stakeholders and to create shared value.

1983 1994

Environmental, Health & Safety Committee of the Board is formed.

American Barrick Resources Corporation is officially incorporated. 1995 1998

Corporate Environmental Corporate Health & Safety 1986 Policy Statement is Policy Statement is implemented. implemented. Barrick provides housing and education support in Elko Nevada. 2001

Barrick and CARE International partner in Tanzania to provide education support for communities.

6 Barrick Responsibility Report 2007 Barrick was created in 1983 by entrepreneur and current chairman, Peter Munk. Bob Smith joined the Company in 1984 and took the reins as President from 1987 until 1996. Bob created a team that excelled not only in mining expertise but also in the human qualities of trust and respect. For Bob, operating excellence extended beyond production results to include a strong sense of responsibility to the environment, local communities and Company employees.

Bob’s sense of integrity was most evident in programs established in Elko Nevada, the community located closest to Bob Smith (left) with Peter Munk in Elko, Nevada. Barrick’s Goldstrike mine which was purchased in 1986. Barrick constructed hundreds of new homes for employees in Bob Smith became Vice Chairman in 1997 and passed away the community of Elko and provided mortgage guarantees to in 1998, but his vision of sharing the benefits of mining with help many employees buy their first homes. Bob also estab- employees and host communities grew as the Company lished the Barrick scholarship program for employees’ children expanded. And, 25 years after Barrick’s beginnings, this vision in 1986. As Bob explained, “Our employees are the main is firmly embedded in the Company culture and applied in all reason for Barrick’s success. The scholarship program is a way areas where we operate. to share the benefits.”

2002 2006 2004

Corporate Social Responsibility Charter is implemented.

Barrick becomes a signatory Barrick joins the Global AMREF / Colin O’Connor to the International Cyanide Business Coalition of Barrick and AMREF Barrick joins the Nevada Management Code and HIV/AIDS, Tuberculosis and partner in Tanzania to Voluntary Mercury Air begins certification of its Malaria as it intensifies its promote children’s health Emissions Reduction operations. health-related activities in and fight HIV/AIDS. Program. Africa and South America.

2005 2007

Barrick joins the As part of our continued involvement UN Global Compact. in the Clinton Global Initiative, Barrick committed to support the Clinton 2003 Giustra Sustainable Growth Initiative in September 2007. Barrick and World Vision partner in Peru to provide education and health benefits to communities.

Barrick Responsibility Report 2007 7 Governance, Commitment and Engagement Corporate Governance

2007 PERFORMANCE Our Code of Business Conduct and Ethics (the Code) outlines our obligations to prevent conflicts of interest, maintain confi- • The Supplier Code of Ethics was approved and dentiality, protect company assets and deal fairly with suppliers implemented in 2007 and competitors. Associated policies include our Disclosure • The Security Policy was approved in 2007 Policy, Insider Trading Policy, Anti-Fraud Policy and our Policy • Training on the Code of Business Conduct and on Doing Business Abroad. All Barrick employees complete Ethics was completed for all new employees training sessions on the Code and its associated policies, and management and supervisory personnel are required to in 2007 annually recertify their compliance with the Code. • All management and supervisory personnel completed annual compliance certification for Barrick has established a clear communication framework within the Company to ensure that concerns about ethical the Code of Business Conduct and Ethics in 2007 issues are reported appropriately. Barrick treats all concerns about suspected Code violations and any related investigations Governance, Ethics and Transparency as confidential. To support compliance with the Code and the Barrick’s success is built on a commitment to the highest stan- Anti-Fraud Policy, we have a Code of Business Conduct and dards of corporate governance and professional integrity. We Ethics/Anti-Fraud Escalation Policy to ensure that suspected conduct our business around the world in an ethical, honest violations of the Code are reported to appropriate levels of and accountable manner and in accordance with all applicable management and the Audit Committee of the Board of laws, rules and regulations. We value and are committed to Directors of Barrick. Elements of the framework are summa- transparency in our business practices, consistent with good rized in the Code, and include formal reporting channels for governance and commercial confidentiality. Barrick supports employees to report suspected code violations. Our confidential improved governance through the full publication and Compliance Hotline encourages employees to anonymously verification of government revenues generated by mining. report Code violations, express concerns and ask questions As one of the first Canadian corporations to endorse the regarding ethical issues even from remote sites and in the Extractive Industries Transparency Initiative (EITI), Barrick language of their choice. encourages other companies in our sector to become EITI Governance Structure signatories. Barrick is also a member of Transparency International – Canada. The Company’s approach to social responsibility is framed by our Corporate Social Responsibility Charter available at www.barrick.com/CorporateResponsibility.

Barrick’s Board of Directors is responsible for the stewardship of the Company and for oversight of the management of the business and affairs of the Company, while our senior management is responsible for the management and day-to-day

8 Barrick Responsibility Report 2007 operation of the Company. In 2007, the Board was comprised Membership and Initiatives of 15 members, 10 of whom are independent, consistent with At Barrick, we maintain a continuous dialogue with the public, the applicable corporate governance standards of security governments and regulators at all levels regarding regulatory authorities and/or stock exchanges. With respect to corporate issues and other items of business interest. This means con- social responsibility matters, the Board has an Environmental, tributing to government inquiries and requests for information, Health and Safety Committee which is responsible for monitor- engaging on issues, and undertaking research on the impacts ing and reviewing environmental, safety and health policies and of our activities. We are members of various industry associa- programs. To promote the effective functioning of the Board of tions and advocacy organizations. Early in 2008, Barrick Directors and its Committees, the Board has adopted a set of became a permanent member of the International Council on corporate governance guidelines and formal mandates setting Mining and Metals and we committed to partner with the out the roles and responsibilities of the Board and Committees. Clinton Giustra Sustainable Growth Initiative to improve child As well, senior management has an Executive Environmental, nutrition and support sustainable business development in Health, Safety and Sustainability (EHSS) Committee which Peru. We work with the Mining Association of Canada to reviews corporate social responsibility performance trends and promote Towards Sustainable Mining. issues and approves EHSS strategic business plans and sets Our relationships with non-government organizations, univer- Company policy. sities and research institutes support our Corporate Social Risk Management Responsibility (CSR) activities and research initiatives. For example, our partnership with the African Medical & Research We believe that as part of our responsibility to create value for Foundation (AMREF) strengthens our fight against HIV/AIDS our shareholders, employees and local communities, we must in the communities around our African sites. understand and manage the risks associated with our business. To do so, we have implemented a variety of programs to Additional information on our memberships and partnerships identify, evaluate and address the issues that either threaten is available at www.barrick.com/CorporateResponsibility. the achievement of our strategic objectives or represent opportunities for competitive advantage.

Whether at the early stages of a project development or in the processing of our financial transactions, Barrick takes responsibility to assess and mitigate risk. Risks, such as those impacting the health, safety, and security of our employees, our neighboring communities and the environment in which we operate, as well as our operational and financial performance, are assessed using both qualitative and quantitative methods, and appropriate solutions implemented. Our efforts to manage risk are validated through comprehensive assurance programs.

Barrick Responsibility Report 2007 9 Barrick and Communities Community Responsibility

Can a mining company be a catalyst for sustainable community development?

10 Barrick Responsibility Report 2007 Active and genuine engagement with the local communities and other VALUEADDED (In millions of dollars) key stakeholders is a fundamental part of the way in which we operate. Local consultation is essential to ensure the benefits of mining are shared and have a long-lasting effect. But it is also critical to understand the concerns and issues of the community in order for the Company to put appropriate mitigation and management plans in place in order to ensure risks are managed and any potential impact of mining is adequately addressed.

Barrick’s Community Relations programs are managed at the executive level by the Community Benefits 41.9 Executive Vice President, Corporate Affairs. At the Regional Business Units (RBU) there is Royalties & Taxes 1,417.8 a senior person responsible for developing strategy and overseeing the implementation Wages & Benefits 1,040.7 of the Community Relations programs. At the site level, our Community Relations teams Regional Goods 1,368.7 & Services vary in size depending on need. Local Goods 2,740.6 & Services Our Community Relations teams and other mine employees are guided by Barrick’s Community Engagement and Sustainable Development Guidelines which outline the principles, standards and approaches applied by Barrick. The guidelines cover our commu- COMMUNITYBENEFITS nity programs throughout the mine’s life cycle, from exploration through operations to (In millions of dollars) closure, and are based on international best practice including the International Finance Corporation Performance Standards and ICMM’s Sustainable Development Framework.

2007 PERFORMANCE • Site or regional-level Community Engagement and Sustainable Development Plans were developed at all RBUs and operations • Early stage community relations programs were started or strengthened at six project sites • Three comprehensive Social Impact Assessments were commissioned Donations 6.8 Community Initiatives 9.3 or completed Infrastructure 21.4 Development Scholarships 4.4

Barrick Responsibility Report 2007 11 Barrick and Communities Sharing the benefits of mining

Community Dialogue Partnerships in Community Development

We recognize that there are risks and opportunities associated In a world where half the population lives on less than $2 a with our interactions at the community level, and believe that day1, responsible mining can be a powerful engine of economic ongoing dialogue with our community stakeholders remains and social development, not only for the local area through one of the most effective tools we have to address these jobs, local procurement and community projects but also at the aspects of our business. Public meetings and citizen commit- national level through programs funded by taxes, royalties and tees provide valuable opportunities for sharing and learning, other government revenues. In emerging markets with limited for both local residents and for Barrick. infrastructure or institutional base, gold mining in particular has been identified as an industry which can be an early-stage Community dialogue starts at an early stage in the life of a mine catalyst for longer-term development. – well before actual mining begins. We establish active outreach programs in host communities, including village meetings, open As we pass the half-way point in the fifteen-year plan to reach houses, site tours, community newsletters, town-hall meetings, the UN Millennium Development Goals, there is now clear recog- both formal and informal question and answer sessions and nition that mining can make a significant contribution to poverty one-on-one discussions. Very often, we establish community alleviation. But there are millions of people in the areas where liaison offices in the local towns in order to provide easier access we work who still need access to clean water, food, health care, for the community to discuss issues with Company representa- housing and education. Barrick’s business is mining and that is tives. As mining commences, and up to and past mine closure, where our expertise lies. However, we recognize it is our respon- we keep the lines of communication open, continuing with sibility to assist our host communities to improve their quality of public meetings and often with the formation of a community life in areas where we have the capacity and the capability to advisory group. Additionally, Barrick responds to community and influence. In order to do this effectively, our highly-skilled com- other stakeholder concerns through its site-level grievance pro- munity relations people develop integrated development procedures, open and ongoing dialogue, press releases, the Barrick grams and often partner with governments, non-government website and this Responsibility Report along with other CSR organizations, individuals, or other institutions who have expert- reports. In 2007, over 1,800 meetings were held with members ise in this area including CARE International, African Medical & of our host communities, local and regional governments, non- Research Foundation (AMREF) and World Vision Canada. government organizations and other interested stakeholders.

1 2007 Human Development Report. UN Development Program.

12 Barrick Responsibility Report 2007 For example, we recently opened a newly reconstructed health program in 2001, primary school enrollment has increased by clinic providing HIV/AIDS services near our Porgera mine in 75 percent, and more children are now making the transition Papua New Guinea (PNG). The clinic is the result of the leader- to high school, where enrollment has more than doubled. ship of the Asian Development Bank with support from the Barrick community relations officers worked in collaboration PNG government and Barrick. Barrick also has other HIV/AIDS with CARE, the Kahama District Education Department, the programs in at-risk countries, such as Tanzania and South Ministry of Education, parents and community leaders to Africa, working in partnership with AMREF and the Global develop this successful program. Business Coalition on HIV/AIDS, Tuberculosis and Malaria. We In Australia, our Kanowna mine partnered with the Kalgoorlie also support the work of Aid for AIDS of Nevada, USA. Boulder Community High School in 2007 to help young at-risk Barrick partners with World Vision and local residents near our girls stay in school, through an innovative basketball and Pierina and Lagunas Norte mines in rural regions of Peru to leadership development program. tackle the problem of child malnutrition. By the end of 2007, Partnerships are an integral element in sharing the benefits of nearly 200 households had received training to establish house- mining with our host communities in the most effective and hold fruit and vegetable gardens. As well, numerous water and meaningful way. sewage projects are underway to improve water quality and basic sanitation in 11 communities, and area farmers, trained in Economic Contributions and Value Added crop diversification, are now producing highly nutritious quinoa to Communities (a cereal) to feed local children. Strong communities contribute positively to our competitiveness In Argentina we partner with Organización de Servicos Directos through their ability to host thriving supplier industries, create a Empresarios (OSDE), a private health service, to improve stable business environment, retain a skilled base of employees women’s health through education and early detection of and provide essential services to their residents (which include breast and uterine cancer. our workers). One measure of social responsibility is our economic contributions to our host communities and regions in In 2007, Barrick and CARE International Tanzania announced support of these attributes. Barrick’s economic contributions the results of a six-year partnership which has improved include wages and benefits for our employees, taxes and royal- education for thousands of children living near the Bulyanhulu ties paid to governments, purchases of goods and services from mine. Since our $2 million investment in a long-term education

Barrick Responsibility Report 2007 13 Barrick and Communities

local and regional suppliers, capacity building activities (see 2007, at our North Mara mine in Tanzania, we began construc- below) and charitable donations. In 2007, Barrick contributed tion of a 350 kilometer power line which will supply power over $6 billion to the local and regional economies of our host to our mine and to 67,000 community residents. We spent countries. $2.5 million on road maintenance and construction near our Porgera mine in Papua New Guinea. Capacity Building Artisanal and Small-Scale Mining For Barrick, capacity building activities are tailored to local needs and include infrastructure development (building roads, Millions of people around the world maintain their livelihoods power sources, schools, medical clinics, water wells, etc.) through artisanal and small-scale mining (ASM). The individuals apprenticeship programs, support for community initiatives, and groups engaged in ASM near our operations are key training and education opportunities and scholarships for com- stakeholders and we actively engage, learn from and provide munity members. support to them.

For example, activities in 2007 included construction of primary For example, in late 2007, in collaboration with the govern- and secondary schools near our Tulawaka and Bulyanhulu ment of Tanzania, Barrick initiated a comprehensive program to mines in Tanzania and near our Pierina mine in Peru. We also assist the artisanal and small scale miners near our North Mara trained representatives from five communities neighboring mine. The first stages involved extensive consultation with the Lagunas Norte to participate in water monitoring activities on ASM groups in order to understand the complexities of their the Perejil and Chuyuhual Rivers near the mine. At Bulyanhulu, organization, management and working methods. An external Barrick is working in partnership with our catering services expert in the field of ASM was hired to ensure the program provider, Sodexho, enabling over 100 local farmers to tap into design incorporated lessons from other experiences in the the demand for fresh produce at the mine. This local procure- ASM sector. The first phase of the program will facilitate and ment program is enabling villages in the area that once existed strengthen the formation of “ASM cooperatives” in order for on subsistence farming activities to generate as much as activities to be more efficient and effective. Training programs $50,000 per year in income. In Chile, Barrick continued to offer are due to start in 2008 and will focus on topics including training courses and workshops in the Huasco Valley to give health and safety, working conditions, environmental concerns local residents the skills they will need to work at Pascua-Lama (especially the use of mercury), and technology and manage- or in a related industry. To date, more than 3,500 people have ment training. An additional focus of the program will be the participated in courses ranging from basic industrial knowl- eradication of child labor in small scale mining. edge, to skilled trades, construction and local crafts. Also in In Papua New Guinea (PNG), where there is also a concentra- tion of artisanal miners near our operations, we are working in collaboration with the PNG government and local communities to establish programs which enhance the income-generating Alanna Rondi Executive Director, AMREF Canada potential of artisanal mining or provide alternative livelihood options. For example, our Porgera mine has partnered with a ”Rooted in our shared values and PNG vegetable marketing cooperative, Alele, to help re-estab- commitment to the health of mine workers and communities, AMREF lish livelihoods in the highlands potato industry. and Barrick’s partnership extends Illegal Mining Activities from field staff to the highest levels of corporate management. Many mining operations in developing countries are located in Bringing together diverse remote, often marginalized areas where poverty and unemploy- strengths, we work respectfully, productively and in a trans- ment rates are high. While the potential benefits to a region are parent manner to address the unmet health needs of the communities in which we work. AMREF looks forward to significant, a challenging issue facing mining companies operat- expanding our partnership to provide better access to health ing in this environment is illegal mining activities and trespassing. for mine workers, their families and communities across Barrick’s operations in Tanzania.“ Illegal miners enter mine property without permission with the intention of stealing gold-bearing ore. The level of criminality and violent behavior often displayed by illegal miners can threaten both the local community and Barrick employees, the vast majority of whom are also from local communities.

14 Barrick Responsibility Report 2007 Barrick brought together a multi-disciplinary working group in 2007 which developed strategic guidelines focused on From Philanthropy to Participation addressing this important issue in a holistic manner, by taking in Tanzania into account the root causes of illegal mining. The main Historically there are many companies that have been components of the strategy include government liaison, stake- generous in making donations to communities and Barrick holder communication, security and community development is no exception. However in the developing countries projects to address the root causes of the problem. We will where we operate, our Community Relations Teams are continue to strive to manage the issue of illegal mining in order looking beyond philanthropy and determining new and to improve the safety of the local communities, the Company, innovative ways to proactively engage local community our employees and the illegal miners themselves. members, governments, and other stakeholders in com- Resettlement munity development initiatives. This participatory development increases a community’s sense of ownership in the Barrick works together with host governments to manage, in initiatives and leads to community capacity building. a manner consistent with local laws and international best practice, the resettlement of people that may be affected by Even before work gets started on community projects, our planned operations. Engagement of affected communities planning is a collective effort. For example, at all of our is the cornerstone of Barrick’s commitment and the key to operational sites in Tanzania, our on-site Community successful resettlement programs. Relations Teams work with local villages on participatory development planning. Participatory Rural Appraisal (PRA) At the Buzwagi development project in Tanzania, a compre- methods are being used to assist communities in identify- hensive resettlement program, covering approximately two- ing development priorities and, more importantly, in devel- hundred households, was initiated in 2007 and will continue oping collective solutions. Notably, this approach ensures into 2008. Upgraded family dwellings (designed in consultation that the community develops initiatives that are not reliant with the community) have been constructed, most of which are on extensive, ongoing funding from Barrick and that build within the boundaries of the original villages. Two schools have lasting capabilities where they are much needed. also been upgraded and over fifty community water wells have been deepened and improved. The house-building and other A typical example is the Mwenda Kulima ward community construction projects draw heavily on the use of local labor and in which community members, the District Council and provide a substantial source of income for the local population Barrick’s Buzwagi project are jointly constructing a secondary in an area of very high unemployment. school. A memorandum of understanding was developed, stipulating each party’s responsibilities and agreed upon by Plans for a government-led resettlement program in the all. Barrick Buzwagi is providing all construction materials Dominican Republic were also finalized in 2007 in consultation and technical supervision, the District Council is supplying with the affected local communities. Of note was the success furniture, while the Mwenda Kulima community provides in resolving, through an extensive negotiation process with the labor. This type of partnership not only provides for a the government and community members, a series of long- community facility and community ownership; but also standing historical grievances in one community related to helps in skills development and a heightened awareness of resettlement by the previous owners of the Pueblo Viejo site. safety among community members who work together with Instrumental at both sites was the work of multi-stakeholder the skilled and safety conscious Barrick team. resettlement working groups which have steered the process This type of participatory development is vital in making and attained a high level of participation and support within certain that development initiatives are owned by the the communities. communities and local government, and that community residents are not reliant on cash donations from a company that will one day close its facility and leave the area. We want to leave a lasting positive legacy wherever we operate, and while donated buildings and other infrastructure provide the basics, what we really hope is that our outreach activities can empower people and strengthen capacities for self-driven sustainable development.

Barrick Responsibility Report 2007 15 Barrick and Communities

Indigenous Peoples The Diaguita Community Constructive dialogue is the cornerstone of our engagement approach with Indigenous Peoples in the areas where we have Barrick is working in partnership with the Diaguita com- operations and exploration projects – including the Tahltan First munity of the Huasco Alto near our Pascua-Lama project, Nations at our Eskay Creek mine, the Pic River First Nations developing programs that contribute to the strengthening near the Hemlo mines, the Western Shoshone at Cortez Hills in of their culture and traditions. Aspects of the program Nevada, Native Alaskan communities neighboring the Donlin include: workshops that combine commercial training and Creek project, the Diaguita of the Huasco Alto near our Pascua- reviving ancestral Diaguita artisanal techniques, participa- Lama project in Chile and the Wiradjuri Condobolin community tion in fairs and cultural and productive gatherings, and near the Cowal mine in Australia. Our consultation activities the Forestry and Agricultural Cooperation Program that are customized, adapting to local realities, historical culture and provides technical training and context, to the specific needs of our projects and the individual specialized services to Diaguita Indigenous communities affected by our operations. At our community members who sites around the world, Barrick works effectively with our live in geographically Indigenous partners to develop sustainable land use plans, isolated locations. environmental monitoring programs, employment and procurement opportunities, formal collaboration agreements and cultural protection projects. staff or retain contractors to protect our employees and assets. For example, the Cortez mine in Nevada has engaged with In 2006 we developed a comprehensive security policy based Western Shoshone Tribal leaders and community members for on the Voluntary Principles on Security and Human Rights many years. Originally a joint venture, early in 2008 Barrick (VPSHR). The policy will be implemented globally in 2008. In acquired 100 percent ownership of Cortez and the adjacent 2007 assessments of all ‘at risk’ operations were conducted in Cortez Hills project. Consistent with our commitment to direct collaboration with an independent expert on the VPSHR. and open engagement, Barrick convenes frequent dialogue sessions open to all Western Shoshone community members. As part of our security program, all security managers and These forums provide a constructive process for sharing infor- security officers who carry firearms have received human rights mation on the mine, community updates, addressing issues of training and all operations where firearms are used are gov- concern and helping to create an environment of cooperation. erned by the requirements of the United Nations Guidelines for Many Western Shoshone community members participate in the Use of Force and Firearms by Law Enforcement Officials (as wide-ranging educational, economic and community wellness required by the VPSHR). In addition to meeting the protective opportunities generated by our mining activities. For more security requirements for our people and operations, 2007 saw information on our engagement with the Western Shoshone, an expansion of our security programs in partnership with local please visit our website. communities. An example of these programs is the initiative at our Tanzanian operations where people from local villages are Security provided training and engaged, via a village security organiza- Barrick explores and operates in places in the world where our tion, to assist our operations with security services. employees and assets may need to be protected from theft and Managing Grievances and Conflict related violent activities. In these places we employ security Barrick’s commitment to listen and respond to the concerns of local residents helps to build goodwill and trust with our host communities and other local stakeholders. Through our community feedback mechanisms, we are kept informed about issues and concerns in the community and we can respond quickly to settle minor issues or disputes before they escalate into more significant grievances. Discussion on significant issues for 2007 can be found on our website.

16 Barrick Responsibility Report 2007 COWALMINE: A Study in Sustainable Development

Introduction

The success of Barrick’s Cowal Gold Mine, located in New South Wales (NWS), Australia, can be attributed to a strong sense of responsibility to the community and the environment. Upon acquiring the undeveloped Cowal project from Homestake in 2001, Barrick recognized the importance of maintaining the support of the community and investing back into the region. To address this need, the Company embarked on an extensive program of community engagement, beginning during the project’s earliest days. During this process, Barrick gained a clear understanding of the interests of the farmers and other residents located in the communities around Lake Cowal, as well as members of the Wiradjuri indigenous community. feasible. More recently, this has involved the purchase of a fleet Building a Robust Economy of 40 light vehicles, as well as trailers, employee clothing and bus and cleaning services from local suppliers. In addition, we During the earliest stages of mining exploration in the Lake help to support community-based organizations, especially Cowal area, hiring and training opportunities were provided where the influx of Barrick employees has had an impact, such locally, commencing what would become a long-term eco- as the Bland Children’s Services Unit. In this case, Barrick con- nomic stimulus promoting the development of the region. tributed $80,000 towards the construction of an expanded Prior to this time, the Lake Cowal region had slid into a state facility in West Wyalong that now provides pre-school, family of economic decline, characterized by an aging population and daycare, a toy library and vacation care services to working limited job opportunities. The need to reinvigorate the local families in West Wyalong. economy may be one reason the Lake Cowal communities This process of proactive community engagement remains an were predominantly supportive of the mining project from the ongoing priority. A community complaints hotline has been outset. In a 2004 survey conducted by an external market established to promptly identify and address the concerns of research company, only seven percent of surveyed communities local residents. Barrick also extends invitations to community were negative to the presence of the proposed mine. groups to visit the Cowal Mine and produces a community Employment figures at the height of the mine’s construction, newsletter when required to keep residents fully informed as between early 2004 and April 2006 peaked at 700, including to Company activities. This Responsible Mining approach has locally hired and trained geological technicians, exploration helped to make the Cowal Gold Mine an employer of choice drillers, and construction workers. According to a subsequent and an important part of the fabric of the community. survey in 2006, the year the Cowal mine poured its first gold, the negative attitude towards the mine had declined to Environmental Conservation Paramount four percent. Among the Company’s central responsibilities is meeting rigor- Today, most of the 250 employees at the Cowal mine and ous environmental standards for the management, protection approximately 60 contractors reside in West Wyalong and and conservation of Lake Cowal, a nationally recognized wet- neighboring towns, including Forbes and Condobolin. In 2007, land ecosystem. Lake Cowal forms part of a large wetland total wages and salaries for this group were estimated at $16 system in the Lachlan Catchment in Central New South Wales. million. Compounding this fiscal injection into the region are The lake is ephemeral, meaning it fills primarily due to river statutory payments and royalties to local and state govern- flooding but not during drier years or, as has been the case ments amounting to $4 million in 2007. This economic impact most recently, drought years. When flooding occurs, the lake is has been further strengthened as a result of a “buy local” home to significant concentrations of water birds and becomes policy that gives preference to local goods and services when

Barrick Responsibility Report 2007 17 a fertile breeding ground, as was recognized by the Australian The Lake Cowal Foundation sponsors field days for Heritage Commission, which designated Lake Cowal as an local farmers. environmentally significant site in 1992.

In the mid-1990s, rigorous examination of the potential envi- Barrick’s role in the establishment and ongoing activities of the ronmental impacts of mine construction and operation was Foundation underlines its commitment to the environment that undertaken as part of the mine approvals process, which took exists well beyond the mine fence. Environmental management into account that 2,650 hectares of the 11,000 hectares of of the Cowal mining lease remains the sole responsibility of mine site land, encroaches onto the western side of Lake Barrick. However, the Foundation’s mandate is wide-ranging Cowal. Following two public Commissions of Inquiry (in 1995 over the whole Lake Cowal catchment area, far beyond the and 1998), government authorities concluded that the project mining lease and the direct influence of the mining operations. could be developed and operated in a manner compatible with Today the Foundation has 25 ongoing projects and a total five the environmental values of the lake and the surrounding year budget of around $5.6 million that includes cash contribu- region. Nonetheless, the project met with some opposition tions from a number of conservation groups, as well as in-kind from a vocal minority of environmental interests. contributions from local farming families.

“We have been able to demonstrate to date that we can meet The Lake Cowal Conservation Centre all the very strict environmental conditions that are part of our In 2007, Barrick participated in the opening of the Lake Cowal consent conditions to operate,” said Bill Shallvey, Cowal’s Conservation Centre (the Centre), located on Barrick’s Hillgrove Community Relations Manager. “Management here has property. The Centre was created through an agreement worked very hard to instill a clear understanding in all employ- between Barrick, the Lake Cowal Foundation, West Wyalong ees that our very livelihoods depend on an excellent environ- High School and the Lachlan Catchment Management mental record. We have had external audits six times since Authority. The Centre will provide the local community with an commencement of construction in Jan 2004, and we are education, training and resource center for environmental absolutely on track, not a single non-compliance issue.” management. “It is now fully operational and we are already The Lake Cowal Foundation estimating more than 5,000 school students, landholders and community members from across the Lachlan Catchment will Extensive consultations ensued with mine personnel, environ- visit the Centre each year,” said Bill Shallvey. “The new conser- mental groups and other non-government organizations vation Centre is ideally situated to set up demonstration sites, during the early years of mine development, leading to the test innovative farming practices and implement conservation establishment of the Lake Cowal Foundation, a not-for-profit projects and activities through education and engagement.” Environmental Trust, in 2000. The Foundation is primarily sponsored through royalties from the Cowal Mine. The aim “The Centre has been established to engage and educate the of the Lake Cowal Foundation is to protect and conserve the local community in catchment management issues. One of Lake Cowal area. the main benefits of the Centre will be an enhanced level of

18 Barrick Responsibility Report 2007 understanding about how agriculture, conservation and On May 22, 2003, the following joint announcement was industry can be integrated in a sustainable way,” said Peter Hill, made: a project manager with the Lake Cowal Foundation. “Barrick Australia Limited and the Wiradjuri Condobolin Native Respecting and Strengthening the Wiradjuri Title Claim Group have reached an agreement that promotes Community and protects the Wiradjuri cultural heritage while ensuring that a wide range of benefits will flow to the Wiradjuri community Barrick recognizes the importance of respecting the unique cul- during the life of Barrick’s proposed Cowal Gold project.” tural characteristics of all indigenous peoples and is committed to developing constructive relationships with indigenous com- That year, as a result of a Native Title Agreement, the Wiradjuri munities wherever we operate. This engagement is based on Condobolin Corporation was established. The registered com- an understanding that indigenous communities may seek direct pany is supported by Barrick financially as well as with initia- involvement in mining projects near their traditional settle- tives that pursue opportunities which can lead to business ments and may wish to secure direct benefits from mining initiatives, further education and employment for the Wiradjuri operations. Lake Cowal and the Cowal Mine are situated in people. The Company employed the Wiradjuri Corporation to Wiradjuri Country. The Wiradjuri people are recognized as the manage Wiradjuri heritage protection activities during mine pre-European occupiers of the land and had been known to development. At the height of these activities, as many as sixty camp occasionally along the banks of the lake. Wiradjuri heritage field officers and archaeologists were responsible for identifying and preserving any artifacts found at Barrick worked with the Wiradjuri Council of Elders, the the site. The Corporation also provides a cultural heritage Registered Native Title Claimants, over a 15-month period to induction course for new Barrick employees. negotiate an equitable Native Title Agreement, which was signed by both parties in 2003. Under the terms of the Barrick continues engagement with the Wiradjuri Condobolin Agreement, the Company agreed to measures to support the communities through a number of formal committees and community in the areas of environmental and cultural heritage, meets regularly to continue to develop opportunities for employment, training and education and business development. employment, business and training opportunities for the Wiradjuri. To date, seven university scholarships and four trade apprenticeships have been awarded to young Wiradjuri men and women in mining-related studies or trades. Two of the scholarship holders completed undergraduate studies in 2007 NEWSOUTHWALES and one apprenticeship was completed in 2007. Cowal Sydney “Many Wiradjuri people have been employed in full-time, responsible jobs. They also supervise cultural heritage activities Canberra on-site. Young Wiradjuri people are provided an opportunity to VICTORIA study at university, while yet others take apprenticeships. These Melbourne young people are our future leaders. They now have an opportunity that wasn’t there before the Barrick mine.” Excerpt from a 2007 media release from Percy Knight, Chief Executive Officer of the Wiradjuri Condobolin Corporation. Henty TASMANIA In addition to creating jobs and scholarships, Barrick is assisting Hobart with support for the construction of a Centre for Wiradjuri Studies, which will serve as a key education and cultural center The Cowal Gold Mine is located in Bland Shire, on and a place of learning for the indigenous community. the western shore of Lake Cowal, 40 km north-east Barrick is committed to making a positive difference in the of West Wyalong and approximately 350 km west of communities where we operate and to protecting the environ- Sydney. In 2001 Barrick acquired the undeveloped ment impacted by our activities. We are doing both at our Cowal Gold project from Homestake. Construction Cowal Gold Mine. commenced in 2004 and was completed in 2006, when gold production began at the mine.

Barrick Responsibility Report 2007 19 Barrick and Employees Employee Responsibility

Can a company build employee excellence?

20 Barrick Responsibility Report 2007 Attracting, retaining, motivating and developing our people is Jacqueline Whonder Financial Analyst, Toronto critical to Barrick’s success. We are achieving this goal by providing interesting and challenging work, attractive compensation and “I want to feel proud of the company I’m working for. I have benefits, and a work environment that promotes safety and a responsibility as a parent to employee well-being. raise my children to be socially responsible and I have to lead We have a blend of global, regional and site-based Human Resource programs at Barrick by example by working for an ethical company. I can feel proud due to the geographic and cultural diversity of our workforce. This approach allows us to to be part of Barrick.” implement global programs and standards while enhancing the quality of the employee experience through targeted local and regional programs that address the unique labor markets and social conditions in the countries where we operate.

At the end of 2007, we employed over 20,000 workers at our operations, joint ventures, exploration, development and closure projects and business offices in 13 countries.

Attracting and Retaining Excellent Employees

For Barrick to achieve its full potential, we must make substantial investments in our people. We provide opportunities for personal advancement and skills development, competitive salaries, culturally targeted benefits and a healthy work-life balance. Washington Onyango EDUCATIONANDSKILLSDEVELOPMENT Environment Manager, Buzwagi Project, Tanzania Personal development opportunities are an important benefit we provide for our employees. Skills development and apprenticeship programs are often made available at our “[Responsible mining] helps with sites. In many cases, tuition reimbursement is provided for off-site, employment-related the attraction and retention of new employees, allowing us education. In 2007, Barrick provided 770,000 hours of environmental, health, safety and to secure the best talent in the emergency response training and over 550,000 hours of technical, managerial and lead- industry.” ership education offered both on- and off-site. We sponsored 246 apprenticeships at 18 operations.

We also have a professional development program for engineers and geoscientists that have joined us directly from post-secondary education. This development program is designed to accelerate the learning curve and advance the careers of our technical employees through active mentoring from more experienced professionals and targeted learning.

Training programs play a major role in strengthening the Company across the globe. In Tanzania, for example, Barrick invests in the Tanzanian workforce by sponsoring numerous short courses and training sessions to advance their skills. Over the past few years, the African Region has invested in long-term education by sending a number of employees to

Barrick Responsibility Report 2007 21 Barrick and Employees

Australia and South Africa to study mining engineering and SCHOLARSHIPPROGRAMS metallurgy. Other Tanzanians have spent time abroad at other Barrick supports the educational development of employees’ Barrick operations in order to strengthen their professional children by providing scholarships in some regions and by skills. The Company has also embarked on partnerships with supporting primary and secondary schools in others. We spent Tanzanian-based educational institutions with the objective over $2.4 million on scholarships for employees’ children in of improving the technical educational delivery. Tanzanian 2007. Please see the community section of this report to read university students are offered vocational work assignments about our community education support activities. at our mines in Tanzania with the aim of developing their COMPENSATION & BENEFITS practical knowledge in their individual fields of study. Barrick’s workforce consists of highly skilled employees whose FRONTLINELEADERSHIP compensation commonly exceeds those in other industries. Leadership development is a vital part of our efforts to ensure Compensation structures are developed regionally, ensuring that the Company has the right leaders in the right places at local competitiveness and our ability to attract and retain high- the right time. The Powerful Leadership program was devel- quality employees who are aligned with our core values. Barrick oped in 2006 to strengthen the leadership skills of our superin- provides a core group of benefits for employees pertaining to tendents and front line leaders. By the end of the 2007, over health care, regardless of the country in which we operate. 1,900 supervisors and front line leaders had participated in the Additional benefits are regional and are determined by local leadership and communication skills training course. The competitive practices. For more information on employee second phase, which will continue in 2008, focuses on manag- compensation and benefits please see our website. ing employee performance and retaining talent. Advanced leadership development is achieved by sending our more sea-

soned managers through rotational and expatriate assign- Amy Schwalm ments, special projects and academic coursework. Many of our Senior Director, Investor Relations, regions have longstanding relationships with universities and Toronto private institutions in their region. ”In my mind, a Barrick leader demonstrates a personal commitment to achieving goals and ultimately, shows passion and enthusiasm for the Company. This is what impressed me most when I started at Barrick. It’s what continues to inspire me today.“

22 Barrick Responsibility Report 2007 WORK-LIFEBALANCE To retain high-quality employees in today’s competitive labor Finding Good Employees Means Looking market, Barrick works to assist employees in balancing the Outside the Box demands of their work environment with those of their Australia is in the midst of a skilled labor shortage which personal lives. For example, the South American region has means that Barrick needs to look at non-traditional meth- implemented changes to shift starts at our operations so they ods to identify and attract candidates for professional and coincide better with the circadian rhythm of our employees. technical positions at our Australian operations. One Work-life balance tends to be an issue for many employees at new approach is the region’s Employee Referral Program the Australian region’s fly-in, fly-out operations. So, in 2007, adapted from Barrick’s corporate program. This program management introduced new shift rosters at the fly-in, fly-out encourages current employees to identify and refer sites in Western Australia to enable employees to spend more candidates for vacant positions. A financial incentive for time at home. successful referrals rewards employees for their efforts. Human Rights Our current employees are important ambassadors for the Company and can often promote our business more Barrick is committed to observe the fundamental tenets of effectively than an external recruitment agency. human rights. This commitment is imbedded in our corporate culture and led us to become a signatory to the UN Global Compact in 2005. We are committed to equal opportunity and freedom from discrimination for all our employees and contractors, to the rights of our employees to freedom of association Talent Management & Global Succession and collective bargaining and to providing a workplace where Planning all individuals are treated with dignity and respect. Please The Company has a robust talent management process in see our website for statistical information on employees and place in all of its Regions. It is an annual process that facili- human rights at our operations. tates the assessment and development of our employees. A diverse workforce encourages creativity and innovation. We It also helps to identify a high-performing, mobile group draw our workforce from many countries around the world, that we use to build our Global Succession Plan. In order including each country where we operate, with the result that to prepare the Company for the future, we pair succession our workforce is extremely diverse in terms of national and candidates with opportunities that ready them for identi- ethnic backgrounds. Our focus is to hire locally whenever fied succession roles. Although some of these development possible, and to develop the skills of our local employees. In opportunities are training based, most are “stretch roles” 2007, the number of expatriates at our operations varied and often involve special projects. This program offers regionally, but globally they represented less than two percent an accelerated career path for ambitious and mobile of our employees. employees while building leadership depth, cultural diversity and offering fresh leadership thinking to our different The workforce in the mining industry is predominantly male, regions and sites. and many women see this as a barrier to gaining employment in the industry. At Barrick, our focus is to employ the best person for the job; to choose people on merit. Our challenge is to ensure that we are welcoming to women, so that we can employ the best among a wide candidate base. In 2007 for example, to respond to this challenge, the Australia Pacific region held their first Women in Barrick Forum to identify ways to encourage women to seek employment with the Company.

Barrick Responsibility Report 2007 23 Barrick and Safety & Health Safety and Health Responsibility

What responsibility should a company have to keep people safe and healthy?

24 Barrick Responsibility Report 2007 Improving safety and health performance is a key goal in Barrick’s Strategic Objectives. As a major tool of our Safety and Health System, Courageous Leadership training has led to a global culture change that conveys the Corporate Vision of “every person going home safe and healthy every day.” Audits and inspection of processes in the Barrick Safety and Health System ensure safety and health management systems are effective. As a result, 2007 marks the 10th year of an improving trend in total reportable injury frequencies – a major safety milestone. This section of the Responsibility Report provides information on our 2007 safety and health performance. For information on our management approach and additional safety statistics, please see www.barrick.com/CorportateResponsibility.

2007 PERFORMANCE time and total reportable injury frequency rates from previous years to address areas that need improvement. As well, investi- In 2007, our lost-time injury rates increased by seven percent gation of our incidents, including near misses, helps us deter- from 2006 but the total reportable injury frequency rate mine root causes and appropriate corrective actions to put decreased by nine percent over the same period. This into place so that an injury does not reoccur. This knowledge decrease was overshadowed by two fatalities however. We is then shared throughout the Company and reinforces our are deeply saddened that two contractors were fatally injured commitment to a safe and incident-free workplace. on our sites during the year. As part of our commitment to an incident-free safety and health culture, a global team of certified Barrick investigators thoroughly investigated the TOTAL MEDICAL TREATMENT INJURY RATE incidents and the results, with lessons learned, were shared across the organization. 3.5

Globally, Barrick received 398 safety and health regulatory 3.0 2.5 actions at 17 sites in 2007. While most actions were for minor

2.5 2.4

issues, none were acceptable and actions were taken to 2.2 correct the problems and to prevent their recurrence. Related 2.0 to these regulatory actions, eight operations were fined a total 1.5 of $101,094. 1.4 1.2 1.0 What do our reported safety and health statistics mean?

Barrick tracks the above statistics to give us an overall picture 0.5 0.8 0.4 0.4 of our safety and health performance. Injury incidents that 0.3 0.3 0.0 have resulted in lost time from work, restricted work duty, 03 04 05 06 07 or medical treatment (even in minor cases) are investigated Medical Aid & Restricted Duty Rate thoroughly to prevent repeat incidents. We compare our lost Lost-time Injury Rate

Barrick Responsibility Report 2007 25 Barrick and Safety & Health

Safety Committees and Training Courageous Safety Leadership Applies Barrick believes that everyone is responsible for workplace at Work and at Home. safety. Safety committees and safety training programs are in place at all operations and projects. These programs are The knowledge gained through Courageous Safety intended to provide employees and contractors with a clear Leadership training is often applied in other areas of our understanding of their rights, responsibilities and accountabili- employees’ lives. For example, Porgera mine site ties in creating and maintaining a safe workplace for all. In employee, Alfred Kumasi, learned first hand just how 2007, over 745,000 hours of safety training and 89,000 hours important courageous leadership can be outside of work. of emergency response training were provided to Barrick’s While on a field break, Alfred made a difficult decision he employees and contractors. believes saved his and his family’s life.

Continuous Improvement Alfred and his family had gone shopping in the Courageous Safety Leadership Refresher training was also con- nearby town and were ducted throughout 2007. These refresher courses are designed waiting for the public to support the culture of safety across the entire Company. motor vehicle to return The refresher courses are designed to provide a platform for all home to their village. As employees and contractors for continuous safety improvement he loaded his goods and and sharing of best safety practices; the goal – a zero-incident family into the vehicle, he workplace. Work-related injuries or illnesses are unacceptable noticed that there were no and Courageous Safety Leadership strengthens our commit- seatbelts. He immediately ment to build a safety culture where every employee is thinking gathered up his family and goods and disembarked from about safety every day, whether on the job or at home. the vehicle, much to his family’s frustration. Because it was This year, Barrick has put into effect at all our operations a the last vehicle of the day, Alfred and his family had to three-tiered, risk-based approach to decision making. The first spend the night in town. The following day, however, his tier, High Level Risk Assessments, and the second tier, Formal family realized the full impact of Alfred’s decision when Risk Assessments, were completed in 2007. The final tier, the the news came that the vehicle he and his family had creation of “everyone is a risk manager” through the use of chosen not to board collided with another truck in route Field Level Risk Assessments was begun in mid-2007 and will to the village, killing six people. “Through working at be completed in 2008. These assessments are assisting our Porgera,” Alfred stated, “I have learned about many safety safety and management leaders in making the best decisions initiatives, including vehicle safety and training. That day, for employees to accomplish their tasks safely and without when I made the split decision to get out of the vehicle, incident. We believe that safety is everyone’s responsibility and was proof of how much this training has affected my our risk-based approach helps us to meet the challenge of habits and attitudes. I have never appreciated my safety creating a workplace culture that embraces safety. training as much as I did that day.”

Awards Alfred clearly embodies what Barrick’s Courageous Safety Leadership program stands for. He made a Courageous Our emergency response teams are dedicated safety profes- Leadership decision to find a safe solution that ultimately sionals that exhibit Barrick’s values and raise the bar with exten- protected his life and that of his family. sive training and competition. We received 53 external safety awards in 2007. Many of our operations won site awards from “Strong leadership is an essential ingredient to all regulators and industry organizations for being safe mines aspects of our business. A safe workplace is at the within their jurisdictions, and individual employees received top of the list.” awards for modeling safe behaviors. – Greg Wilkins, Barrick C.E.O.

The annual Barrick Safety Awards recognize those locations that have achieved outstanding safety performance, and those individuals who have shown courageous safety leadership. For a complete list of awards (both internal and external), please see our website.

26 Barrick Responsibility Report 2007 Barrick Health System One element of the Barrick Safety System is training. This includes emergency response preparedness training Over the last several years, Barrick has made significant as shown above. progress in addressing both occupational health and general health issues affecting its employees. In 2007, we continued to at-risk countries such as Tanzania, Papua New Guinea and integrate the Barrick Health System into the day-to-day opera- South Africa. These programs are multifaceted and encompass tion at each of our sites. Working alongside the Barrick Safety prevention, treatment, counseling and care. In 2007, we System, the Health System is designed to allow the Company’s opened a newly reconstructed health clinic providing HIV/AIDS operations to look at health challenges in a systematic way to services near the company’s Porgera mine in Papua New optimize employee health and well-being. Guinea and will soon open a new health facility at the The Health System has six elements with specific goals and Company’s Tulawaka mine in Tanzania. standards associated with these elements. They include: Regional Performance Leadership and Personal Commitment; Policy and Objectives; Planning; Health Risk Assessment; Program and All across the globe, Barrick’s commitment to a safe and Implementation; and Performance Measurement and healthy workplace can be demonstrated. In 2007, for example, Assessment. The key element of the Barrick Health System, our South American Region issued a new policy on controlling however, is the same as the Safety System – Leadership and fatigue and raising awareness about the importance of healthy Personal Commitment. Our Health System supports the con- lifestyles. Near our North Mara mine in Tanzania, we have com- cept of Courageous Leadership at all levels of the organization; pleted a major project that upgraded Nyamongo Hospital from that each individual can make a difference. a basic dispensary to a full hospital that delivers a wide range of medical services to our employees and communities sur- To support our Health System, a data management software rounding the mine. The Ruby Hill mine in Nevada, after several system has been implemented globally to facilitate collection of years of closure, has reopened and, in continuing their long occupational health information and improve the management tradition of safe operation, was awarded two prestigious safety of health risks. An audit protocol based on the Barrick Health awards from the Nevada Mining Association and the U.S. Mine System was developed and corporate teams began auditing Safety and Health Administration (MSHA). Our Kanowna mine our sites on these protocols. Site occupational health audits will in Western Australia demonstrated their commitment to continue through 2008 to assist our sites in identifying addi- “safety before production” when they shut down the mine’s tional improvements and opportunities. We also introduced a fleet of haul trucks for a day to make improvements to their global “Smoke Free Policy” late in 2007. The policy prohibits traffic management system for vehicles traveling underground. smoking in the workplace and provides support for those who wish to quit. Similar commitments are demonstrated globally by all our employees who contribute, encourage, and promote a safe HIV/AIDS workplace as well as make safety a priority every day with their Barrick’s HIV/AIDS programs, which serve our employees and families and within their communities. Safety is everyone’s the wider community where our sites operate, are focused on responsibility.

Barrick Responsibility Report 2007 27 Barrick and the Environment Environmental Responsibility

Can success in business and environmental stewardship go hand in hand?

28 Barrick Responsibility Report 2007 Barrick’s goal is to minimize our environmental footprint and safeguard the land, air, water and wildlife wherever we operate. We are guided in this endeavor by our Environmental Policy Statement. Environmental Management Systems (EMS) at each of our operations help us achieve the goals of protection and stewardship, and performance indicators help us measure how well we are doing. A global Environmental Management System Standard which applies to all Barrick operations ensures that the EMS at each site is robust and includes advanced planning against possible future events. This section of the Responsibility Report provides information on our 2007 environmental performance. For more information on our management approach and additional environmental statistics, please see www.barrick.com/CorporateResponsibility.

We recognize that there may be impacts to the existing natural environment, both temporary and long-lasting, due to the presence of our mining operations. As a result, we use a precautionary approach throughout the life of a mine by first assessing potential impacts, then evaluating how to avoid, control or mitigate these impacts.

2007 PERFORMANCE

One of our goals is to operate in full compliance with all environmental regulatory require- (above) Barrick is focusing on ments and permits. In 2007 this goal was principally achieved. Any written directive from a innovative energy strategies regulatory agency is considered to be a regulatory action. In 2007 we received 48 regula- (see page 33). tory actions globally and two fines. Our Cortez operation in Nevada received two Notices of Violation and a $1,250 fine for failing to notify the State prior to source testing of a single air emissions point and for failure to provide timely sampling data as part of the source testing report. Our KCGM operation in Australia received a fine of $21,250 in 2007 related to an air emissions incident that occurred in 2005.

There were 14 water permit incidents at six sites during 2007 resulting from detection of elevated constituents in treated mine water. Most incidents related to pH outside the permitted range and total dissolved solids higher than permitted levels. These were short-term exceedences and were addressed to the satisfaction of the permitting authorities. There were 23 air emission permit exceedences at three sites in Nevada in 2007. The exceedences were short-term in nature and corrective actions were taken. Neither the water incidents nor the emission exceedences resulted in fines.

We have controls in place at all our operations to protect the environment from chemicals and fuels. These controls include spill containment, meters, alarms and regular inspections. While some spillage is inevitable, most spills are contained on-site and within primary or secondary containment. In 2007, 20 spills escaped secondary containment, but were

Barrick Responsibility Report 2007 29 Barrick and the Environment Safeguarding the environment

contained within the mine property. One was a fuel spill which Regional and corporate environmental professionals provide occurred when a truck overturned and was cleaned up, leaving support to the site personnel as well as to other corporate no long-term impact. The remainder were process solution departments within the Company, including exploration, tech- spills and overflows from sediment traps caused by equipment nical services and capital projects. We are committed to envi- malfunction or as the result of vandalism of pumps and valves. ronmental excellence and promote this objective through In these cases, the spilled material was captured on-site and training, monitoring and auditing. equipment repaired or replaced. There were nine spills which TRAINING left the mine property. They are summarized in the table on Environmental training provides all workers with an understand- page 35. There were no long-term consequences to people or ing of their environmental responsibilities. Training varies from the environment as a result of any of the nine off-site spills. site to site; some sites provide informal training sessions weekly We have safeguards in place at our operations designed to pro- while others provide more formal training each year. In 2007, tect wildlife and prevent them from coming into contact with over 200,000 hours of environmental training were provided for process solutions or mine equipment. These safeguards include employees and contractors at our sites. In addition, our environ- netting, fencing and other barriers, as well as decoy and warn- mental professionals attend external classes and seminars as ing devices. In spite of these protective measures, 14 mammals, appropriate for their region and career development. 215 birds and one amphibian were killed at our operations in MONITORINGANDAUDITING 2007. Most bird deaths (165) occurred in Australia where birds Ongoing environmental monitoring during the life of each continue to gather at our processing facilities in spite of decoys, mine and through closure provides feedback on the effective- warning devices and routine inspections. We will continue to ness of each operation’s environmental management systems work towards reducing or eliminating wildlife mortalities. and controls. Regular environmental audits are completed at Tools for Environmental Excellence our operations by audit professionals within the Company. The audit process is designed to verify that the environmental Barrick employs environmental professionals responsible for management systems are adequate to ensure that performance developing, implementing and maintaining environmental commitments are achieved. Environmental audits are con- management systems and controls, as well as promoting ducted annually at selected operations and development environmental stewardship at all sites across the Company. projects. The remaining operations and development projects

30 Barrick Responsibility Report 2007 are audited, in general, every two years. During the 2007 audit we used 40.5 million kilograms of cyanide. See page 34 for cycle, 29 environmental audits were conducted at producing more information on cyanide management at Barrick. operations and development projects. Explosives and fuels are carefully managed at Barrick’s opera- Environmental Management System Standard tions and continuous improvement programs identify opportunities for increasing efficiency in the use of these materials. Barrick’s Environmental Management System Standard was developed in 2005 to ensure that our standards of practice are Our focus on materials conservation has led to the establish- consistent Company-wide. In 2006, our sites assessed the status ment of recycling and reuse programs at our operations. A of compliance of their operational Environmental Management variety of materials are recycled, depending on the recycling Systems against the corporate Standard. Our operations cur- facilities available near each location, and can include used oil, rently have many of the systems required by the Standard, tires, scrap metals, wood, paper products, plastic and glass. including a number of sites which are ISO 14001 certified (see Hazardous waste, including lead cupels, used batteries, used page 32). Nonetheless, additional effort is required to bring all oil, outdated chemicals, paints and solvents, etc., is removed operations into full compliance with the Barrick Standard. A from our properties by licensed waste handlers and either phased implementation of the Standard’s Principles began in recycled or disposed of in accordance with local and state 2007 with the introduction of the Leadership and Legal regulations. In 2007, we safely removed 2.9 million kilograms Compliance Principles. Implementation of additional Principles of solid hazardous waste and 14.1 million liters of liquid will continue in 2008. hazardous waste from our operations. Materials and Waste Management Water Management and Water Conservation Barrick’s commitment to manage all chemicals and materials Water use for ore processing, mine cooling, dust suppression, used at our operations in a safe and responsible manner means blasting activities, etc., is monitored at all our operations and that the use of cyanide, explosives and fuels is closely moni- resource conservation opportunities are actively pursued. Much tored. Cyanide is used at 23 of our operations and, as a signa- of the water used for ore processing is reused by recycling tory to the International Cyanide Management Code, we have through the processing facilities. Both surface and groundwater rigorous procedures in place for the safe transport, storage, may be used, depending on the availability at each site. In handling and disposal of cyanide at each of those sites. In 2007,

Barrick Responsibility Report 2007 31 Barrick and the Environment

2007, a total of 84.8 billion liters of water were consumed at an Energy Group which has been assisting our operations in our operations. implementing energy efficiency programs and initiatives. Energy efficiency will serve to minimize GHG emissions. To In 2007, we developed a global Water Conservation Standard provide corporate oversight of these programs and to more to standardize site water conservation programs at both our directly address the issue of climate change, we developed a operating and closed properties. This was done to ensure global Climate Change Program in 2007. consistency throughout the Company concerning water conservation, to support continuous improvements at our Implementation of our Climate Change Program will begin in operations and to establish Barrick as an industry leader in 2008. We will set global energy efficiency targets, renewable water conservation practices. Implementation of the Standard energy targets and greenhouse gas emissions intensity targets, will begin in 2008. along with incorporating energy management into regular business management processes. The expected future costs of Air Quality Management emitting GHG will now be included in our investment decisions. Emissions to air are an inevitable part of mining operations. However, in line with our commitment to continuous improvement, we require that our sites manage these emissions to reduce WATERCONSUMPTIONINTENSITY (Liters / Ton of Ore Processed) potential impacts. The emissions on which our efforts focus include dust, sulphur dioxide, mercury and greenhouse gases. 400 392 383 ISO14001 in South America 300 In 2007, the Veladero mine joined Barrick’s other three 283 281 South American mines – Lagunas Norte, Pierina and 200 246 Zaldivar – in achieving ISO 14001 certification. Introduced in 1996, ISO 14000 standards are voluntary, internationally

recognized standards for environmental management 100 issued under the auspices of the International Organization Pre-2006 figures do for Standardization. To achieve certification, a company’s not include former 0 Placer Dome properties. environmental management system must be formally 03 04 05 06 07 audited by a third-party and meet all the requirements of the ISO standard. ENERGYUSEINTENSITY (Megajoules / Ton of Ore Processed) With the knowledge we have gained through participation in the Nevada Mercury Control Program, we initiated the develop- 250 ment of a global mercury management system in 2006. In 173 2007, mercury sampling and stack testing was carried out at 200 173

five sites. Sampling and stack testing is continuing in 2008 and 124 119

controls will be installed at sites where testing identifies a need. 150 118

Climate Change and Energy Efficiency 100 The weight of the scientific evidence links greenhouse gas

(GHG) emissions to global climate change. While uncertainties 50 68 62 58 56 still exist as to the rate and magnitude of the change we can 55 Pre-2006 figures do not include former expect, these uncertainties should not delay effective action 0 Placer Dome properties. to counter the effects of this problem. In light of these risks, 03 04 05 06 07 responsible companies must take action to protect their share- Direct holders and society. Indirect

Barrick has been tracking and reporting GHG emissions from our operations for a number of years. We have also established

32 Barrick Responsibility Report 2007 GREENHOUSEGASEMISSIONSINTENSITY (Kilograms CO2e / Ton of Ore Processed) Innovative Energy Projects

30 As part of Barrick’s efforts to become more energy efficient and to reduce greenhouse gas emissions, we are 25 working on innovative energy strategies. Our growing 12 12 13.1 investment in clean power resulted in two initiatives in 12

20 11.9 Nevada in 2007. Construction was completed on our new geothermal and solar powered administration building in 15 Elko, Nevada and we constructed a one megawatt solar 13

10 12 farm located near our natural gas power plant. 11 12.1 11.7 In South America, we are investing in projects that will 5 Pre-2006 figures do not include former harness clean energy from wind power. In Chile, we are 0 Placer Dome properties. building a 20 megawatt wind farm. The Punta Colorada 03 04 05 06 07 wind farm project, once completed, will be the country’s Direct largest source of wind generated power. In Argentina, we Indirect installed a two megawatt wind turbine near the Veladero mine, which will be the only turbine in the world operating at more than 4,000 meters above sea level. LAND STATUS (in Hectares)

50000 Reclamation and Land Management

Land disturbance is an unavoidable consequence of mining; 40000 however careful planning at Barrick’s operations aims to restrict the area impacted by mining activities, to mitigate our impacts 30000 and to leave behind lands that will support productive post- mining land uses for future generations. 20000 In addition to restricting the areas disturbed by mining, land no longer required for mining activities is promptly reclaimed by 10000 Figures include both grading, seeding and shrub planting as needed. By reclaiming Barrick and former inactive land during mining and not waiting until mining 0 Placer Dome properties. 04 05 06 07 operations cease, final reclamation activities can be completed in a timely manner. At the end of 2007, the Company had New Reclamation Previous Reclamation impacted 46.8 thousand hectares of land globally of which Disturbed and Unreclaimed 12.1 thousand hectares have been successfully reclaimed.

Our environmental management strategy includes the development of closure and reclamation plans as part of initial project Waste Rock and Tailings Management planning and design. Closure and reclamation plans are then Mining involves the removal of non-economic rock to access routinely updated during the life of each operation to ensure ore deposits; this material is called waste rock. Tailings material that environmental effects are addressed and financial obliga- is the finely ground slurry remaining after ore has been processed tions are satisfied. Barrick has also developed corporate and the gold removed. It often contains small amounts of guidance for closure planning and cost estimation in an effort process chemicals and metals. Both tailings and waste rock to lead the industry in accurately estimating closure costs. are managed at our operations, either by being placed into engineered storage facilities or returned to open pits or underground workings. Each year our engineered storage facilities are diligently inspected by the engineer of record.

Barrick Responsibility Report 2007 33 Barrick and the Environment The Responsible Use of Cyanide

Cyanide has been used in the gold mining industry for decades The process for Code certification at Barrick operations typically as an effective agent for freeing gold from ore. The use of involves four steps. cyanide did not generate a great deal of public interest until • Using ICMI guidelines, operations designated for certifica- 2000. At that time, a cyanide spill from a Romanian gold mine tion conduct gap assessments (both internal and third-party) contaminated a tributary of the Danube River. This incident to determine a baseline in relation to Code compliance. raised international concern, and prompted calls for a ban on cyanide use in gold mining. • Action plans to manage gaps are then prepared and activities undertaken to address the items in the action plans. To address public concerns, a multi-stakeholder Steering • Once all items identified in the action plans have been Committee was formed, under the sponsorship of the United completed, third-party auditors conduct Code certification Nations Environment Program (UNEP) and the International audits, which are then submitted to the ICMI for review. Council on Metals and the Environment (ICME), to discuss options for avoiding similar incidents in the future. Participants • Upon ICMI approval, Code certification is awarded to included the gold mining industry‚ governments‚ non-govern- the operation. mental organizations‚ labor representatives‚ cyanide producers and financial institutions. Because of our commitment to safe and responsible mining, Barrick assumed an industry leadership role on the Committee. The result of this process was the development of the International Cyanide Management Code (the Code) which established safe and responsible cyanide management standards for the manufacture, transportation, use and disposal of cyanide. The Code is administered by the non-profit International Cyanide Management Institute (ICMI). Adoption and implementation of the Code is voluntary. In order to become certified as Code compliant, companies that adopt the Code commit to having their operations independ- All Barrick operations already have robust environmental and ently audited by a third-party and to meet all Code require- safety management systems in place to address most, if not all ments, including strict controls and practices for all aspects requirements of the Code. In 2006, Barrick’s Cowal Gold Mine of the cyanide life cycle. When Barrick became a signatory, in Australia became the first facility in the world to achieve we committed to certify all designated mines before the end Code Certification. In Cowal’s case, certification was “pre- of 2008. operational” as the project was still in the development stage. Cowal subsequently achieved operational certification in 2007. Barrick‘s Goldstrike and Ruby Hill mines in Nevada and the Pierina and Lagunas Norte mines in Peru achieved certification in 2007. The Marigold and Round Mountain mines, joint- venture operations in Nevada, were certified in 2006 and 2007, respectively. The Cortez and Bald Mountain mines in Nevada were certified in January 2008, and Veladero in Argentina was certified in early March 2008. The remaining designated operations are making progress toward certification. For more information please see www.cyanidecode.org.

34 Barrick Responsibility Report 2007 OFF-SITESPILLS:

Operation Substance Amount Remedial Action

Eskay Creek Ethylene glycol 390 Liters Ethylene glycol leaked from a failed seal on a recirculation pump and spilled into a power generation station sump. From the sump, it flowed into the facility’s treatment ponds where it was discharged to a creek. The pump was replaced and water samples taken. Results showed there was no impact to the creek.

Hemlo Tailings slurry 11.0 million Failure of a tailings pipeline caused slurry to be released into a Liters containment area and an un-permitted area. The tailings material was removed and the tailings pipeline was repaired with several sections upgraded. There were no long-term consequences to the environment.

North Mara Two separate 9.4 million Liters 1. Overflow of water from the tailings dam sediment trap spills of occurred due to vandalizing of the pump. The pump was untreated water repaired and the water pumped back into the tailings storage facility. The water was tested and did not contain any contaminants. 2. Overflow of water from the Nyabiriama sediment trap occurred due to vandalizing of the pump. The pump was replaced. No remedial action was required.

North Mara Process water 1.7 million Liters Vandals opened a valve on a leachate pipeline. Water leaked into a containment pond. Some dead fingerlings were discovered in the river. The valve was repaired and water sampling completed. Remediation is ongoing.

North Mara Hexamine nitrate 20,000 Liters Hexamine nitrate spilled from a transport vehicle outside the mine area. The area was thoroughly cleaned.

Homestake Two separate 17.7 million 1. Untreated seepage bypassed the water treatment plant over Closure Project spills of Liters an eight-day period due to substantial rains and subsequent untreated runoff in the area. The seepage water was sampled and seepage constituents were below permit levels. There was no further remedial action. 2. Untreated seepage (3,700 Liters) bypassed the water treatment plant due to an upset condition caused by a frozen pipeline. The water discharged into a collection sump which subsequently overflowed into a creek. The pipeline was thawed, a level sensor and emergency shut-off valve were installed and new operating protocols were instituted.

Homestake Untreated 570,000 Liters Untreated storm water was released due to an open valve Closure Project storm water on a line to the water treatment plant over a 16 day period. Additional administrative protocols were put in place to prevent a recurrence.

Barrick Responsibility Report 2007 35 Independent Assessment Independent Assessment

Barrick Gold Corporation (Barrick) retained Environmental and regionally relevant issues, and site-level data reporting – Resources Management (ERM), a global provider of environ- provides information on the company’s EHSS impacts, mental, health, safety and social (EHSS) consulting services, programs, systems and challenges that meets external to provide an independent review and opinion of its 2007 expectations regarding completeness, relevance, accuracy Responsibility Report and associated website information. and responsiveness. ERM’s review focused on the credibility and quality of the The strengths of the Responsibility Report include the content of the report and the reliability of the data compilation following: process. The review was informed by the Global Reporting Initiative (GRI) G3 Sustainability Reporting Guidelines (2006) • The process for gathering and reporting data is effective and and AA1000 Assurance Standard (2003). ERM assessed the is supported by appropriate internal verification processes. information in the report in terms of the following: • The content of the report and related material on the • Completeness: does the Responsibility Report cover all the Barrick website are responsive to stakeholder issues operations and impacts that an external reader would need and concerns. to know about? • The report and supplemental documents provide significant • Relevance: does the report address appropriate indicators coverage of the GRI G3 Sustainability Reporting Guidelines, and programs, given the sector, type of operations and loca- the International Mining and Metals (ICMM) Principles, and tions involved? the UN Global Compact. • Accuracy: does the report accurately reflect Barrick’s per- ERM identified additional opportunities for enhancing future formance and challenges? reports and has reviewed these with Barrick management. • Responsiveness: does Barrick respond to a wide range of external expectations and pressures related to EHSS issues?

As part of this review, ERM interviewed several professionals at Barrick sites and corporate staff involved in the data reporting, compilation and review process. ERM is familiar with Barrick's EHSS issues and the management systems in place to address Barbara Winter-Watson them. Environmental Resources Management In ERM's opinion, the 2007 Responsibility Report – when read April 2008 in conjunction with the site-specific and regional reports and other information on the Corporate Responsibility section of the Barrick website that address management approach, locally

36 Barrick Responsibility Report 2007 About Barrick Gold Corporation

Barrick Gold Corporation is a leading international gold mining company with operating mines and development projects on five continents and exploration activities world wide. The Company’s head office is in Toronto, Canada. 2008 marks the 25th year of operation for Barrick. Barrick is organized into four regions: North America, South America, Australia-Pacific and Africa. The Company’s 27 operating mines are located in Argentina, Australia, Canada, Chile, Papua New Guinea, Peru, Tanzania and the United States. The Company also has, globally, seven advanced exploration and development projects. Barrick’s main product is gold; however copper comprises a significant portion of our production.

Glossary

Biodiversity – The variability among living Illegal Miners – People who gain unautho- Regulatory Action – Written directions organisms, and the ecosystems of which they rized access to mining leases in order to steal from a regulatory agency specifying that are part: this includes diversity within species, gold-bearing material. Often the motive for certain existing conditions must be corrected. between species and within ecosystems. this type of activity is poverty-based, where Due to varying degrees of regulatory over- people, usually young men, have limited sight, a common definition of regulatory Capacity Building – Capacity building opportunity and turn to illegal activities as action is used by Barrick for consistent includes activities and initiatives which a source of livelihood. reporting purposes. strengthen the knowledge, skills and behavior of individuals and improve structures Independent Director – A director who, Small-Scale Mining – Legal mining activities and processes such that communities can based on a determination of the Board as a conducted on ore bodies or deposits by grow and develop in a sustainable way. whole, has no material relationship with the persons using traditional techniques or low Company other than as a director, either mechanization methods (also known as Circadian Rhythm – Roughly a 24-hour directly or indirectly (such as a partner, share- artisanal mining). cycle in the physical and mental processes of holder or executive office of another entity living beings. Stakeholders – People or groups of people that has a relationship with the Company). that have an interest in the activities of the Community Infrastructure – The basic Indigenous People – Those people who are Company, including shareholders, employees facilities and systems serving a country, city, the descendants of the original inhabitants and their families, contractors, the communi- or rural area, including transportation, of a country or region, with a distinct social ties near mining operations, legislative communication, sanitation, medical and or cultural identity that may be vulnerable representatives, regulatory personnel and school systems. or disadvantaged in the current social and interested non-government organizations. Community Initiatives – Activities and economic context. Sustainable Development – Development support that strengthen the skills and abilities Joint Venture – The partnership of two or that meets the needs of today’s generation of people and community groups. more companies in a specific operation, each without compromising the ability of future Gap Assessment – The comparison between agreeing to share (according to ownership generations to meet their own needs what exists within a process or system and percentage) profit or loss. Operational control (Bruntland Commission, 1987). Exodus Graphics Corp. what is required. often depends on ownership percentage. The UN Millennium Development Goals – Greenhouse Gas Emissions (Direct and Local and Regional Goods and Services – In 2000, world leaders at the UN Millennium

Printing: Indirect) – Gaseous emissions to the atmos- At each location, regional and/or country-wide Summit agreed to a set of time-bound and phere that contribute to global warming and purchases of goods and services. Purchases measurable goals for combating poverty, climate change. Direct emissions are from from outside the country are excluded. hunger, disease, illiteracy, environmental sources owned or operated on our properties. degradation and discrimination against Reclamation – The process of converting Indirect emissions are from sources not owned women. The eight goals are to be addressed lands disturbed by mining activities to other or operated by us, but occur as a result of our by the target date of 2015. They have productive land uses. This process typically activities (e.g. purchased electricity). galvanized unprecedented efforts to meet involves reshaping areas to a stable configura- the needs of the world’s poorest people. Human Rights – Basic standards of treat- tion, establishment of drainage systems, ment to which all people are entitled, regard- placement of topsoil or plant growth media Unit Conversion Table – Metric measures less of nationality, gender, race, economic and revegetation through planting or seeding. are used in this report. To convert to non- status or religion. They include civil and politi- Concurrent reclamation is often practiced in metric units, the following factors apply: cal freedoms and liberties, and social and cul- order to limit the amount of land lying dis- 1 ton = 1.1025 tons (short) tural rights necessary for survival, human turbed during mining activities. It involves 1 kilometer = 0.6215 miles development and dignity. reclaiming disturbed lands promptly when no 1 hectare = 2.4691 acres nectar design + communications www.nectardesign.ca longer essential for mining, rather than wait- 1 liter = 0.2642 gallons (U.S.) ing for mine closure. 1 kilogram = 2.2046 pounds

Design: 1 megajoule = 0.278 kilowatt hours

Throughout this report the currency used is US dollars. A Sustainable Report

This report is printed on paper manufactured using 100% post Carbon Neutral consumer waste and wind-generated energy and is processed This document is carbon neutral. The carbon emissions resulting chlorine-free. The inks used in this report are vegetable based. from the manufacturing, printing and transportation of this The FSC logo identifies products which contain wood from well- publication have been balanced out using Zerofootprint’s ISO managed forests certified in accordance with the rules of the 14064-2 forest restoration carbon offsets. Forest Stewardship Council.

The choices we have made in producing this report help demonstrate our commitment to corporate social responsibility. By using this paper stock we have achieved the following environmental savings: Savings from the use of emission-free wind-generated electricity:

74 97 kg 119,786 liters 1,588 kg 3,127 kg 52,767,934 BTUs 1,625 kg 2 barrels trees saved waterborne waterflow solid waste greenhouse energy air emissions crude oil waste saved not created gases saved not created not used not created prevented

Barrick Gold Corporation Tel: (416) 861-9911 BCE Place, Canada Trust Tower Toll Free: (800) 720-7415 P.O. Box 212 Fax: (416) 861-2492 161 Bay Street, Suite 3700 Web: www.barrick.com Toronto, ON M5J 2S1 Canada Email: [email protected]