Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — ESG Presentation (May 2017)
83 slides from Barrick Mining's sustainability presentation, May 9, 2017
Slide 1: Sustainability Briefing for Investors
Sustainability Briefing for Investors Barrick Gold Corporation | Toronto May 9, 2017 Sustainability Briefing for Investors | 1
Slide 2: Sustainability Briefing for Investors
Sustainability Briefing for Investors 1. Introduce Barrick’s sustainability leadership 2. Clear and growing interest among investors 3. Sustainability is integral to our core business Partnership Transparency Innovation Talent Operational Culture Commitment Focus Development Excellence Sustainabilit
Slide 3: Cautionary Statement on Forward-Looking Information
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION Certain information contained or incorporated by reference in this presentation, including any information as to our sustainability strategy and vision, projects, plans, or future financial or operating performance, constitutes "forward-looking sta
Slide 4: Today's Speakers
Today’s Speakers Peter Sinclair Richard Williams Patrick Malone John McCartney Chief Sustainability Officer Chief Operating Officer Vice President Vice President Environment Water Management Manuel Fumagalli Jim Whittaker Fernando Giannoni Manuel Rocha Nancy Lockhart Executive Director, Peru General
Slide 5: Sustainability Briefing for Investors
Sustainability Briefing for Investors May 9th 2017, 10:00 am – 12:00pm | Barrick Offices, Toronto, Ontario, Canada Welcome & Opening Remarks Peter Sinclair Operations Overview Richard Williams Operations and Sustainability Barrick + Sustainability Peter Sinclair 10:00 – 10:50 Environmental Managemen
Slide 6: Operations and Sustainability
Operations and Sustainability Richard Williams Chief Operating Officer Sustainability Briefing for Investors | 6
Slide 7: Our Vision
Our Vision Our Vision is the generation of wealth through responsible mining – wealth for our owners, our people, and the countries and communities with which we partner. We aim to be the leading mining company focused on gold, growing our cash flow per share by developing and operating high quality
Slide 8: Decentralized Operating Model
Decentralized Operating Model Sites are stand-alone businesses – Run by empowered leaders – Dynamic partnership between EDs, GMs, CFOs Role of Head Office – Articulates vision, sets strategy – Sets broad objectives – Allocates human and financial capital Sustainability Briefing for Investors | 8
Slide 9: Managing Risk & Opportunities
Managing Risk & Opportunities Functional strategies – Aligned with international standards – Risk-based audit system Business Plan Review – Weekly review of progress – Single, agile, networked team – Quicker to spot issues and resolve them Sustainability Briefing for Investors | 9
Slide 10: Current Operational Priorities, Process and Incentives
Current Operational Priorities, Process and Incentives Aligning Priorities, Processes and Incentives is vital to success Rewards A-level B-level C-level Health and Enterprise-wide Safety Best-in-Class Transformation Environment Improvements Immediate Objectives Impact Sustainability Briefing for I
Slide 11: Veladero - Processing Solution Incidents + Action
Veladero ‐ Processing Solution Incidents + Action 2015-2017: Three processing solution incidents within two years – Related to solution pipe failures – Design vulnerabilities, weather impact and human error – Remedial actions from previous incidents carried out or underway 2017 proposal to autho
Slide 12: Veladero: 2017 Remedial Plan
Veladero: 2017 Remedial Plan Immediate remedial work plan: – Estimated cost of $3.5M – Replacement and relocation of processing solution pipes – Raising of perimeter berms – Tertiary containment, new diversion channel – Installation of censors and CCTV – Workforce training Additional $7M of envi
Slide 13: 100-Year Sustainable Investment Framework
100‐Year Sustainable Investment Framework Partnership Exploration Innovation Trusted Employer Organic or through Sustainable Mergers and Economic Reliable Business Acquisition Opportunities Partner Developing New Responsible Global Technologies and Citizen Systems Sustainability Briefing for Investo
Slide 14: Barrick and Shandong strategic partnership in San Juan
Barrick and Shandong have entered into a strategic partnership to develop mining in San Juan for the next 100 years Barrick and Shandong will join forces under a new MAG will provide capital and know-how to develop Brand: Minera Argentina Gold (MAG) San Juan’s rich human capital and natural resource
Slide 15: Sustainability - Creating Value for our Partners
Sustainability – Creating Value for our Partners Peter Sinclair Chief Sustainability Officer Sustainability Briefing for Investors | 15
Slide 16: Sustainability - Creating Value for our Partners
Sustainability – Creating Value for our Partners 1. Barrick’s Sustainability Vision 2. How we are working towards our vision 3. Approach to climate change Sustainability Briefing for Investors | 16
Slide 17: Barrick's Sustainability Vision
Barrick’s Sustainability Vision We partner with host governments and communities to transform their natural resources into sustainable benefits and mutual prosperity. We aim to be a welcome and trusted partner of host governments and communities, the most sought‐after employer, and the natural choic
Slide 18: Sustainability Vision - Social Investment
Sustainability Vision – Social Investment Partnership with Host Communities New Business Incubator 97% 11,000 National Hires +$1B in Wages Sustainability Briefing for Investors | 18
Slide 19: Sustainability Vision - Digital Innovation
Sustainability Vision – Digital Innovation Strengthening License to Operate VR Site Tour Networking Academy Sustainability Briefing for Investors | 19
Slide 20: Sustainability Vision - Climate Change
Sustainability Vision – Climate Change Energy costs have fallen by 44% LNG Conversions since 2014 ($391M over 2yrs) Innovation will drive GHG reductions Climate change focus in 2017 – Conduct risks assessments – Develop targets Wind Power CDP Leadership (A- score) Sustainability Briefing for
Slide 21: Barrick's Sustainability Vision
Barrick’s Sustainability Vision We partner with host governments and communities to transform their natural resources into sustainable benefits and mutual prosperity. We aim to be a welcome and trusted partner of host governments and communities, the most sought‐after employer, and the natural choic
Slide 22: Environmental Stewardship
Environmental Stewardship Patrick Malone Vice President, Environment Sustainability Briefing for Investors | 22
Slide 23: Barrick's Environmental Policy
Barrick’s Environmental Policy Comply with all applicable environmental laws and regulations Prevent pollution and mitigate impacts Continuously improve environmental systems and performance Communicate openly and transparently Sustainability Briefing for Investors | 23
Slide 24: Performance - Reportable Environmental Incidents
Performance – Reportable Environmental Incidents Total Reportable Environmental Incidents 53 36 29 13 Water monitoring at Pueblo Viejo 2013 2014 2015 2016 Sustainability Briefing for Investors | 24
Slide 25: Lessons from Veladero
Lessons from Veladero Focus efforts on high concern areas: cyanide, tailings and leach facility integrity We must go beyond the requirements of our permits and approvals to ensure stakeholder confidence is restored Veladero open pits and crushing facilities Sustainability Briefing for Investors
Slide 26: Strategic Pillars
Strategic Pillars Reduce Risk Earn Trust Focus Permits Prioritize Deliver on Obligations Align Interests Significant Risks Increase Internal and Meet Expectations Full Life of Mine External Transparency Deliver on Risk Assurance Commitments Develop Talent Assess Competencies and Provide Growth Oppor
Slide 27: Sustainability Update for Investors
Sustainability Update for Investors | 27
Slide 28: Strategic Pillars
Strategic Pillars Reduce Risk Earn Trust Focus Permits Prioritize Deliver on Obligations Align Interests Significant Risks Increase Internal and Meet Expectations Full Life of Mine External Transparency Deliver on Risk Assurance Commitments Develop Talent Assess Competencies and Provide Growth Oppor
Slide 29: Aligned Interests - Biodiversity
Aligned Interests – Biodiversity Partnering with Greater Nature Conservancy Sage Grouse and US Govt. Range Turquoise Ridge Goldstrike Cortez NEVADA Greater Sage Grouse (Centrocercus Urophasianus) Sustainability Briefing for Investors | 29
Slide 30: Strategic Pillars Underpinned by Talent Development
Strategic Pillars Underpinned by Talent Development Reduce Risk Earn Trust Focus Permits Prioritize Deliver on Obligations Align Interests Significant Risks Increase Internal and Meet Expectations Full Life of Mine External Transparency Deliver on Risk Assurance Commitments Develop Talent Assess Com
Slide 31: Our People: At the Heart of this Strategy
Our People: At the Heart of this Strategy Sustainability Briefing for Investors | 31
Slide 32: Water Management
Water Management John McCartney Vice President, Water Management Sustainability Briefing for Investors | 32
Slide 33: Water at Veladero
Water at Veladero Heap Leach Pad Mine drainage Wetlands Water supply Conveyance and storage Water treatment Erosion and sediments Waste rock and physical stability Sustainability Briefing for Investors | 33
Slide 34: Water Management Team
Water Management Team Water Management Strategy Ensuring our projects, operations and closed sites have the right talent, John McCartney Johnny Zhan Mei Shelp plans, and resources in place to Vice President Water Management Senior Manager Hydrology Manager Hydrology effectively manage water‐related
Slide 35: Our Approach to Water Management
Our Approach to Water Management Assess and Assess Understand our characterize both environment current and emerging water-related risks in order to mitigate these risks and identify Collaborate Collaborate with Building water critical controls to be partnerships internal and external digitized stak
Slide 36: Barrick's 2016 Water Performance
Barrick’s 2016 Water Performance Water Recycled Water Discharged Water Intensity 78% of the We returned We maintained water we use is 25 Mm3 of low water recycled water treated clean intensity water to the (0.38 m3/t of processed environment ore; c.f. 0.50 m3/t for a typical gold mine) Sustainabilit
Slide 37: Pierina - Water Management in Action
Pierina – Water Management in Action March 2017 heaviest rainfall on Contact water pond (during construction, now complete) record (403 mm) Appropriate investment in infrastructure met the challenge Collaboration between head office and site Met all regulatory and community commitments Water
Slide 38: Business Partnerships and Case Studies
Sustainability Briefing for Investors Business Partnerships and Case Studies Barrick Gold Corporation | Toronto May 9, 2017 Sustainability Briefing for Investors | 38
Slide 39: The ED/GM Partnership in Peru
The ED/ GM Partnership in Peru Jim Whittaker General Manager Lagunas Norte Manuel Fumagalli Executive Director, Peru Sustainability Briefing for Investors | 39
Slide 40: A 20 Year Partnership with Peru
A 20 Year Partnership with Peru Huamachuco La Libertad Lagunas Trujillo Norte 2005-current PERU Ancash Pierina Huaraz 0 miles 100 1998-2016 (progressive closure) Sustainability Briefing for Investors | 40
Slide 41: The Executive Director's Role
The Executive Director’s Role Partnership with General Managers Unique management structure Executive Director and General Managers share the same objectives Jim Whittaker Rodolfo Najar General Manager General Manager Lagunas Norte Pierina Sustainability Briefing for Investors | 41
Slide 42: The Executive Director's Role
The Executive Director’s Role Relationship building – Communities, government, media Managing social risks and impacts – Public / private partnerships – Meeting social commitments – Legal and regulatory affairs Leveraging external resources and partnerships Sustainability Briefing for Investor
Slide 43: ED / GM Partnership in Action: Pierina
ED / GM Partnership in Action: Pierina Collaboration with General Manager Rodolfo Najar – Social closure planning – Basin rainwater catchment to supply irrigation water Sustainability Briefing for Investors | 43
Slide 44: ED / GM Partnership in Action: Lagunas Norte
ED / GM Partnership in Action: Lagunas Norte Collaboration with General Manager Jim Whittaker – Licence to Operate and operations worked as one team – Minimizing impact to operations and providing community support Sustainability Briefing for Investors | 44
Slide 45: The ED/GM Partnership in Peru
The ED/ GM Partnership in Peru Jim Whittaker General Manager Lagunas Norte Manuel Fumagalli Executive Director, Peru Sustainability Briefing for Investors | 45
Slide 46: The General Manager's Role
The General Manager’s Role Focused on health and safety, environment, mine operations, security and projects Weekly site management meetings include operations and License to Operate functions Sustainability Briefing for Investors | 46
Slide 47: Lagunas Norte - La Libertad, Peru
Lagunas Norte – La Libertad, Peru Low cost producer Produced 435 koz in 2016 (10% of Barrick’s total) Perejil Transitioning from oxide ore Open Pit Chuyuhual N to sulfide ore 4 km 1,700 Barrick and contract employees Leach – Nearly 100% Peruvian Leach Pad Pad Caballo Moro Sustainability Brie
Slide 48: Lagunas Norte - Community
Lagunas Norte – Community ISO 14001 $40M IN WAGES Sustainability Briefing for Investors | 48
Slide 49: Collaborating with the Executive Director
Collaborating with the Executive Director Transition to Sulfide Expansion Managing Community Alliances Future of Lagunas Norte Information exchange LTO / Operations coordination Mobilizing emergency response Contributing to community planning Sustainability Briefing for Investors | 49
Slide 50: Case Study: Veladero, Argentina
Case Study: Veladero, Argentina Fernando Giannoni Executive Director, Argentina Sustainability Briefing for Investors | 50
Slide 51: Barrick's Sustainability Vision
Barrick’s Sustainability Vision We partner with host governments and communities to transform their natural resources into sustainable benefits and mutual prosperity. We aim to be a welcome and trusted partner of host governments and communities, the most sought‐after employer, and the natural choic
Slide 52: Veladero in San Juan Province
Veladero in San Juan Province San Juan Province Veladero represents 25% of San Juan’s GDP Employment Government income (taxes) Business Communities Infrastructure 1 out 10 families in San Veladero paid ~$110M in In 2016, Veladero spent over Veladero currently employs $30M invested in a new
Slide 53: License to Operate: Three Important Lessons
License to Operate: Three Important Lessons Holistic engagement Connect people to the mine Cannot operate without trust Community Sponsorships Data Sharing Sustainability Briefing for Investors | 53
Slide 54: Veladero: License to Operate Plan
Veladero: License to Operate Plan Estimated investment of additional US$5m in 2017 Three elements to LTO plan: – Short term signaling of Minera Argentina Gold’s (MAG) commitment and goodwill – Medium term repositioning of MAG as a Barrick-Shandong joint venture – Long term engagement plan with l
Slide 55: Veladero: License to Operate Plan
Veladero: License to Operate Plan Short Term Medium Term Longer Term Commitment and Repositioning as Engagement with Goodwill Barrick/ Local Stakeholders Local employment Shandong Gold JV Increase local and purchasing Introduce Shandong to employment and local communities purchasing Upgrade Wi‐Fi De
Slide 56: Partnering in Argentina's Economic Progress
Partnering in Argentina’s Economic Progress Mining: major economic pillar Partnership with Shandong Developing the El Indio Belt Veladero Camp and Mine Sustainability Briefing for Investors | 56
Slide 57: LTO Case Study: Pueblo Viejo, Dominican Republic
LTO Case Study: Pueblo Viejo, Dominican Republic Manuel Rocha Senior Vice President, Partnerships Sustainability Briefing for Investors | 57
Slide 58: Pueblo Viejo, Dominican Republic
Pueblo Viejo, Dominican Republic Sustainability Briefing for Investors | 58
Slide 59: Pueblo Viejo - History & Environmental Legacy
Pueblo Viejo – History & Environmental Legacy State-run from 1979 to 1999 Left behind a difficult environmental legacy Margajita River before Barrick remediation efforts Sustainability Briefing for Investors | 59
Slide 60: Pueblo Viejo - World Class Project
Pueblo Viejo – World Class Project Special Lease Agreement signed in 2009 Investment of over $4 billion 2009-2012 Forced renegotiation with amended agreement in September 2013 Sustainability Briefing for Investors | 60
Slide 61: Pueblo Viejo - Environmental Remediation
Pueblo Viejo – Environmental Remediation $75 million Margajita River before Margajita River after commitment Created national and international goodwill for the project Acid Monitoring Station Public recognition from the Government Soil Erosion Control Sustainability Briefing for Investors | 6
Slide 62: Pueblo Viejo - Community Engagement
Pueblo Viejo – Community Engagement One Laptop Per Child Health Care Faby Manzano Business Development CSR Director Recruited local leaders to champion sustainable community Infrastructure projects Sustainability Briefing for Investors | 62
Slide 63: Pueblo Viejo - Local Employment
Pueblo Viejo – Local Employment Workforce 95% Dominican (~2000 people) Over half are from the two local provinces Favorable salaries and benefits Best ambassadors Sustainability Briefing for Investors | 63
Slide 64: Pueblo Viejo - Economic Development
Pueblo Viejo – Economic Development Provincial Impacts National Impacts Number of companies grown One of the largest exporters from 30 to over 350 Largest corporate tax contribution Each new job creates about at ~50% of national total 6-8 indirect new jobs Largest foreign investment in C
Slide 65: Pueblo Viejo: Transparency = Trust
Pueblo Viejo: Transparency = Trust Comprehensive Visitor’s Program – Academics, students – Journalists – Community and Business Leaders – Government officials Virtual reality site tours Sustainability Briefing for Investors | 65
Slide 66: Pueblo Viejo: Transparency = Trust
Pueblo Viejo: Transparency = Trust Sustainability Briefing for Investors | 66
Slide 67: Board Perspective
Sustainability Briefing for Investors Board Perspective Barrick Gold Corporation | Toronto May 9, 2017 Sustainability Briefing for Investors | 67
Slide 68: Board Perspectives
Board Perspectives Nancy Lockhart Member of the Board of Directors and Chair of the Corporate Responsibility Committee Sustainability Briefing for Investors | 68
Slide 69: About the Corporate Responsibility Committee
About the Corporate Responsibility Committee Mandate Barrick prioritizes long‐term and mutually beneficial relationships with host governments, communities, and its employees, while working to minimize and mitigate the social and environmental impacts of its activities. Assists the board in overse
Slide 70: Sustainability: From the Boardroom to Our Sites
Sustainability: From the Boardroom to Our Sites Connecting with our people and communities Seeing sustainability in practice Hearing from communities first hand Sustainability Briefing for Investors | 70
Slide 71: Corporate Social Responsibility Advisory Board
Corporate Social Responsibility Advisory Board Formed in 2012 Twice-yearly meetings Advises on a range of sustainability issues Sustainability Briefing for Investors | 71
Slide 72: Partnering for Long-Term Success
Partnering for Long‐Term Success Sustainability Briefing for Investors | 72
Slide 73: Barrick's Sustainability Vision: From Words to Action
Barrick’s Sustainability Vision: From Words to Action We partner with host governments and communities to transform their natural resources into sustainable benefits and mutual prosperity. We aim to be a welcome and trusted partner of host governments and communities, the most sought‐after employer,
Slide 74: Question Period
Sustainability Briefing for Investors Question Period Barrick Gold Corporation | Toronto May 9, 2017 Sustainability Briefing for Investors | 74
Slide 75: Barrick Participants (in Speaking Order)
BARRICK PARTICIPANTS (IN SPEAKING ORDER) Peter Sinclair Peter Sinclair joined Barrick in 2005 and has been Chief Sustainability Officer since September 2015. In this role, he provides strategic advice and support to Barrick's leaders in the field with respect to license-to-operate and corporate soci
Slide 76: Patrick Malone
Patrick Malone Patrick Malone joined Barrick in 2010 and has been Vice President Environment and Permitting since January 2016. In this role, Patrick provides oversight and strategic direction relating to the Company’s environmental obligations and responsibilities. He has more than seventeen years
Slide 77: James (Jim) Whittaker
James (Jim) Whittaker Jim Whittaker joined Barrick in late 2014 as Project Director South America, and in 2015 was appointed the Mine General Manager of Lagunas Norte. In his role, he oversees the mine’s day-to-day operations and overall performance. Prior to Barrick, he worked as an independent man
Slide 78: Nancy Lockhart
Nancy Lockhart Nancy Lockhart has been a Board Director since April 2014. She is the Chair of the Corporate Responsibility Committee and member of the Corporate Governance & Nominating Committee. Ms. Lockhart is also a director of Atrium Mortgage Investment Corporation, Gluskin Sheff & Associates In
Slide 79: Barrick Attendees
BARRICK ATTENDEES Catherine Raw Catherine Raw joined Barrick in May 2015 as Executive Vice President, Business Performance and was appointed to Chief Financial Officer in April 2016. Ms. Raw was previously Co-Manager of BlackRock’s flagship mining funds. Ms. Raw’s experience at one of the largest in
Slide 80: Rob Krcmarov
Rob Krcmarov Rob Krcmarov was appointed Executive Vice President, Exploration and Growth in March 2016. He was previously Senior Vice President, Global Exploration, with responsibility for Barrick’s exploration activities worldwide. With nearly 30 years of experience in geology and exploration, he l
Slide 81: Daniel Oh
Daniel Oh Daniel Oh joined Barrick in July 2016 as Senior Vice President of Investor Engagement & Governance, Investor Relations. He leads Barrick's Investor Relations team, and serves as a central point of contact for investor engagement on governance. He is responsible for building enduring partne
Slide 82: Craig Ross
Craig Ross Craig Ross joined Barrick in 2002 as the Site Safety Manager at Goldstrike, and was appointed to Vice President Safety and Health in 2010. He has 34 years of mining experience, with 27 years in safety management. During his time at Barrick he took on the role as Regional Safety and Health
Slide 83: Russ Blades
Russ Blades Russ Blades joined Barrick in 2008 and has been Director – Energy and Climate Change since 2016. In this role, he provides strategic direction, innovation and technical support to Barrick’s operating, legacy and new mines in development. Mr. Blades has more than 3 decades of experience i