Responsible gold mining and value distribution

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Managing Director, Gold for Development and Market Intelligence

This is the second edition of the Responsible gold mining and value distribution report, covering 2013 data. It further demonstrates the impact the responsible gold mining industry has in supporting economic development in host countries. The primary focus of this report is the money spent by gold mining companies and an analysis of how this money is split between the stakeholders, namely employees, suppliers, government, communities and investors.

In working on this report, the World Gold Council worked with our member companies to develop a common ‘Guidance note on expenditure definitions’. We encourage all gold mining companies to use this Guidance Note as the basis for providing data on their expenditures, as this will help all stakeholders better understand the economics of mining and the distribution of benefits.”

Gold salesas % of GDP GDPper capitaUS$ 11 9 13 15 17 0 2,000 6,000 10,000 Papua New Guinea Suriname Burkina Faso Kyrgyz Republic Ghana Mauritania Gold salesas % of GDP GDPper capitaUS$ 0.2 0 0.4 0.6 0.8 40,000 60,000 80,000 New Zealand Finland Canada USA Australia GDPper capitaUS$ 1 3 5 7 5,000 15,000 25,000 0 Gold salesas % of GDP Mexico Tanzania Mongolia Côte d'Ivoire Peru Indonesia Guatemala Dominican Republic China Russia Chile Turkey Brazil Argentina Greece

Responsible gold mining can be a catalyst for economic development

Over time, gold mining economies become less dependent on gold mining and their GDP per capita increases.

This chart shows countries are clustered into three distinct groups.

  • early stage - gold dependent
  • transitional stage
  • mature stage - well diversified
Gold salesas % of GDP GDP per capita
Gold salesas % of GDP GDP per capita (US$) 4 8 12 16 20,000 40,000 60,000 Papua New Guinea Suriname Burkina Faso Kyrgyz Republic Ghana Mauritania New Zealand Finland Canada USA Australia Mexico Tanzania Mongolia Côte d'Ivoire Peru Indonesia Guatemala Dominican Republic China Russia Chile Turkey Brazil Argentina Greece

Early stage: gold dependent

Early stage: gold dependent
  • Large-scale gold mining typically established more recently
  • Gold output represents >10% of GDP
  • Low or lower middle income with human development index <0.6
  • Percentage of in-country expenditure typically below global average but opportunities to increase it

Burkina Faso

Gold sales as % of GDP
13.0%
GDP per capita
$729m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$537m

Number of employees
and contractors

2,503

Total expenditure 2013

$332m Total in country expenditure

Total out of country expenditure $205m

In country expenditure 2013
Payments to government

$50m

Payments to suppliers

$244m

People and communities

$38m

Improving market access of local farmers
Improving market access of local farmers

IAMGOLD’s Essakane mine in Burkina Faso has put significant effort into building the capacity of local suppliers so they can participate in the supply chain and more fully benefit from the presence of mining in the region. The market gardening project has been particularly successful. It involves over 400 producers of fruits and vegetables in the region surrounding the mine. Following the introduction of solar-powered wells and drip irrigation systems, the producers raised production by 30% while reducing water use by 40%. As a result, the mine has been able to purchase a significant portion of food directly from community markets. This not only increases household income and food security in the region, but also reduces inventory costs and strengthens relationships with host communities.

The project was recognised with the 2013 Towards Sustainable Mining Community Engagement Award from the Mining Association of Canada.

Ghana

Gold sales as % of GDP
11.1%
GDP per capita
$1,730m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$2,129m

Number of employees
and contractors

10,958

Total expenditure 2013

$1,677m Total in country expenditure

Total out of country expenditure $452m

In country expenditure 2013
Payments to government

$331m

Payments to suppliers

$1,190m

People and communities

$156m

Smallholder palm oil plantations
Smallholder palm oil plantations

Golden Star operates two gold mines in Ghana. As part of its commitment to host communities’ sustainable economic development, the company has invested in a number of community projects including almost $5m in a large, sustainable oil palm plantation over a total area of 800 hectares on land close to the operations. This initiative, which is well supported by local and broader communities, won the first Nedbank Green Mining Award outside of South Africa.

As a natural succession, Golden Star established a trial oil palm plantation on a closedout tailings storage facility as part of its rehabilitation programme. Fruit production from this trial plantation was achieved in six years, showing that rehabilitation can contribute to the sustainability of the local economy. The company continues to seek further innovation for its rehabilitation and closure programmes with the aim of generating value for local stakeholders on previously mined land.

Kyrgyz Republic

Gold sales as % of GDP
12.7%
GDP per capita
$1,280m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$615m

Number of employees
and contractors

2,935

Total expenditure 2013

$303m Total in country expenditure

Total out of country expenditure $312m

In country expenditure 2013
Payments to government

$130m

Payments to suppliers

$73m

People and communities

$100m

Local purchasing
Local purchasing

Centerra’s Kumtor mine is the largest private sector purchaser of goods and services in the country, with over $70 million procured within the Kyrgyz Republic in 2013.

Due to quality issues, metal grinding balls were only procured internationally until 2012. These metal balls are used to crush and mill ore in preparation for the gold extraction processes. In 2012, Vulcan Plus was established in the Kyrgyz Republic with the primary purpose of supplying Kumtor with a portion of its grinding balls. In 2013, Kumtor purchased $1.7 million grinding balls from this supplier.

Another example is the safety and specialist working clothes worn by workers at the Kumtor mine. Many are supplied by a local company Aiko Seiko LLC, based in Karakol, which was founded by a female entrepreneur. Aiko Seiko demonstrated it could consistently meet Kumtor’s quality, quantity and safety requirements, becoming a preferred supplier. Established in 2003, the company now employs approximately 120 people.

Mauritania

Gold sales as % of GDP
10.8%
GDP per capita
$1,127m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$972m

Number of employees
and contractors

7,245

Total expenditure 2013

$460m Total in country expenditure

Total out of country expenditure $512m

In country expenditure 2013
Payments to government

$23m

Payments to suppliers

$379m

People and communities

$58m

Supporting livelihoods and empowering people
Supporting livelihoods and empowering people

In Mauritania, Kinross’ benefit footprint is substantial: in 2013, the Company procured $379 million in goods and services from 637 Mauritanian suppliers, paid $55 million in wages to Mauritanian employees and contributed $23 million in taxes, royalties and other payments to government.

Evidence shows that the company’s operations are having a measurable, positive impact on the quality of life of the communities around the Tasiast mine. A 2013 survey conducted by Mauritanian sociologists found that the number of local households living below the extreme poverty line had been reduced by more than half since 2011, from 28% to 13%, the unemployment rate had declined from 47% to 24%, and per capita spending had doubled. Kinross has implemented competency-based employment and established training programs to help non-skilled Mauritanians gain access to job opportunities at the mine. The company also partners with the local community cooperative, to build capacity and identify business opportunities.

Papua New Guinea

Gold sales as % of GDP
18.0%
GDP per capita
$2,283m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$2,208m

Number of employees
and contractors

11,133

Total expenditure 2013

$1,378m Total in country expenditure

Total out of country expenditure $830m

In country expenditure 2013
Payments to government

$61m

Payments to suppliers

$1,030m

People and communities

$287m

Addressing domestic violence against women
Addressing domestic violence against women

Violence against women is a significant issue in Papua New Guinea.

At Lihir, where Newcrest’s mine is located, employees participate in the national Haus Krai. The Haus Krai is a traditional house of mourning, where people come together and mourn the death of a relative or loved one. It has been adopted as a national institution of protest over killings, violence and abuse against women. The protests involved a community walk to the Lihir Meri (Women’s) Development Centre, where all joined in the mourning for women impacted by violence and abuse. Discussion and awareness of the issues of violence against women were part of the activities during the day. Newcrest Lihir supported the day, enabling employees working at the mine to participate on the day through their morning tool box meetings, raising further awareness within the workforce and setting an example to other stakeholders in Lihir.

Suriname

Gold sales as % of GDP
16.7%
GDP per capita
$9,240m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$466m

Number of employees
and contractors

1,650

Total expenditure 2013

$293m Total in country expenditure

Total out of country expenditure $173m

In country expenditure 2013
Payments to government

$93m

Payments to suppliers

$146m

People and communities

$54m

Powered by the sun
Powered by the sun

In November 2013, IAMGOLD announced a new solar power project in partnership with the government of Suriname. The five megawatt project allows the mine operations to reduce their greenhouse gas emissions while supporting the country’s long-term renewable energy strategy, thus enabling a reduction of the mine’s energy costs while creating significant benefits for the host country and the environment.

The company is sharing information with the local University, State Utility Company, and Ministry of Natural Resources so that others in Suriname can gain insight into the benefits of solar energy.

Transitional stage

Transitional stage
  • Countries with long gold mining history, modern large-scale mining started 50-100 years ago
  • Economy less dependent on gold mining, but gold sales still constitute a significant proportion of exports and GDP
  • Middle income and development levels
  • Increasing percentage of procurement in the host country

Argentina

Gold sales as % of GDP
0.5%
GDP per capita
$11,766m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$3,672m

Number of employees
and contractors

9,897

Total expenditure 2013

$2,546m Total in country expenditure

Total out of country expenditure $1,126m

In country expenditure 2013
Payments to government

$482m

Payments to suppliers

$1,805m

People and communities

$259m

Education for economic development
Education for economic development

Goldcorp’s Cerro Negro project is located near the town of Perito Moreno, in northern Santa Cruz Province, Argentina. In an area that is seeking to diversify its economic development options, Goldcorp looked for ways to partner on education and training that contribute to the skills base in order to provide socio-economic improvement that will last beyond the life of the mine.

Among several programmes, Goldcorp supported an eight-month professional-level workshop in the fabrication of industrial workwear, and a workshop on the creation of artisanal chocolate products. The workshops were organised in cooperation with community institutions and authorities with the intent of developing skills that have the potential to grow from home-based work to successful small businesses. Goldcorp also offers a number of programmemes that benefit students, families, and local education systems, such as university and sports scholarships and internship programmes.

Brazil

Gold sales as % of GDP
0.2%
GDP per capita
$11,311m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$637m

Number of employees
and contractors

3,422

Total expenditure 2013

$566m Total in country expenditure

Total out of country expenditure $71m

In country expenditure 2013
Payments to government

$44m

Payments to suppliers

$444m

People and communities

$78m

Building trust through community concern and dialogue
Building trust through community concern and dialogue

Kinross’ Paracatu mine borders a historic mining city of 84,000 inhabitants. The company takes specific steps to reduce the effects of blasting by using the most technologically advanced electronic explosives available, reducing the amount of explosives and packing more material on top of the explosives to limit the escape of noise energy. As a result, the air pressure vibration level generated by a blast averages below two millimetres per second, which is far below the maximum 15 millimetres permissible by local law.

Community members participate in daily monitoring to ensure noise and vibration levels are met. The company has also introduced a 24 hour telephone hotline, which allows the company to respond immediately to community complaints. This constant communication and interaction has helped the mine anticipate potential issues ahead of time and integrate community priorities into the mine plan.

Chile

Gold sales as % of GDP
0.8%
GDP per capita
$15,776m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$1,621m

Number of employees
and contractors

8,840

Total expenditure 2013

$1,480m Total in country expenditure

Total out of country expenditure $141m

In country expenditure 2013
Payments to government

$179m

Payments to suppliers

$1,102m

People and communities

$199m

Community water monitoring
Community water monitoring

The Atacama region, where Barrick’s Pascua-Lama project is located, receives very little annual precipitation, making water-related issues a top concern for local communities. To promote transparency around the project’s impacts, Barrick invited community representatives from the project area to participate in community water monitoring. Community members learned about the water sample collection process and how baseline measurements are established. They joined staff from the mine in sampling water at various monitoring points. The samples were delivered to an independent, accredited laboratory and tested for 95 different parameters. Involving the local community is an important part of Barrick’s broader engagement efforts. Doing so helps promote transparency and builds trust both in the process and results of water quality assessments that happen regularly around the project area.

China

Gold sales as % of GDP
0.2%
GDP per capita
$6,747m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$438m

Number of employees
and contractors

3,020

Total expenditure 2013

$341m Total in country expenditure

Total out of country expenditure $97m

In country expenditure 2013
Payments to government

$54m

Payments to suppliers

$247m

People and communities

$40m

Health and safety beyond the mine
Health and safety beyond the mine

Positive reinforcement in health and safety is a growing concept in China. Eldorado Gold’s Jinfeng health, safety, training and emergency response team is educating workers and local communities in the new ‘Positive Safety’ philosophy. This philosophy aims to increase workforce interaction and provide encouragement to those who are applying good safety management and hazard recognition principles. Jinfeng awards many civil contracts to local communities that increase the villages’ incomes and also provide skill development.

The increased training for the surrounding Buyi communities, employees and their families is resulting in a better understanding of personal health and safety. Training includes a tailor-made programme to provide first-aid skills for all community members, the first of its kind to be completed in the region.

Côte d'Ivoire

Gold sales as % of GDP
2.2%
GDP per capita
$1,175m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$129m

Number of employees
and contractors

800

Total expenditure 2013

$85m Total in country expenditure

Total out of country expenditure $44m

In country expenditure 2013
Payments to government

$4m

Payments to suppliers

$66m

People and communities

$15m

Partnership with the UNDP
Partnership with the UNDP

Hire is a township of some 40,000 people, which is located approximately 15km from Newcrest’s Bonikro mine. The town has developed rapidly in recent years, and much of the growth has been driven by Bonikro, as well as other mining activities in the region. At this stage, the facilities and services in Hire are not adequate to cope with the population. Therefore, the company has undertaken a town sanitation and maintenance project as a major capacity-building exercise in partnership with UNDP.

The objective is to facilitate adequate waste management and drainage controls to ensure that the needs of the local population are met. The Newcrest-UNDP sanitation project aims at achieving a fundamental re-evaluation and re-education on how a micro-society should manage their wastes in a developing urban setting where people are not fully educated in the management of modern waste.

Dominican Republic

Gold sales as % of GDP
2.0%
GDP per capita
$5,834m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$3,306m

Number of employees
and contractors

3,580

Total expenditure 2013

$3,086m Total in country expenditure

Total out of country expenditure $220m

In country expenditure 2013
Payments to government

$320m

Payments to suppliers

$2,745m

People and communities

$21m

The rehabilitation of the Margajita River
The rehabilitation of the Margajita River

The Margajita River used to flow dark red due to acidic water, a product of acid rock drainage (ARD), discharged by the previous operator of the Pueblo Viejo mine. ARD occurs naturally in the area around the Margajita River and, if not properly treated, can be exacerbated by the large open pits and waste rock produced during the mining process.

When a joint venture between Barrick (60%) and Goldcorp (40%) acquired control of the Pueblo Viejo mine, a large water treatment plant was built. Approximately 40,000 cubic meters of water are treated daily at the plant.

The changes in the Margajita River were evident within days of the treatment plant starting operations. Instead of dark red, the water turned clear, reflecting its natural colour. The water’s pH level climbed dramatically and there are early signs of aquatic life returning to the river. Now locals enjoy fishing on the river once again.

Greece

Gold sales as % of GDP
0.0%
GDP per capita
$21,857m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$157m

Number of employees
and contractors

1,083

Total expenditure 2013

$147m Total in country expenditure

Total out of country expenditure $10m

In country expenditure 2013
Payments to government

$14m

Payments to suppliers

$81m

People and communities

$52m

Rehabilitation of the Olympias Valley
Rehabilitation of the Olympias Valley

At Eldorado Gold’s Olympias site, the company is overseeing one of the largest environmental rehabilitation projects in Greece. Mining activities by the previous project owner left behind more than 2.4 million tonnes of tailings. Consequently, the company is rehabilitating 26.5 hectares of land, an area equivalent to the size of about 35 football fields. Works include the removal and reprocessing of the old tailings, as well as restoring soil to the area so that it can support vegetation.

As part of this project, the mine is doing tests with the Aristotle University of Thessaloniki to identify which native plants are best suited to the area. These native species are grown in Eldorado’s nursery, one of the largest in northern Greece, and will then be planted at the site. When the project is complete, the valley area will be returned to a greenfield state.

Guatemala

Gold sales as % of GDP
0.5%
GDP per capita
$3,513m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$314m

Number of employees
and contractors

3,142

Total expenditure 2013

$278m Total in country expenditure

Total out of country expenditure $36m

In country expenditure 2013
Payments to government

$52m

Payments to suppliers

$189m

People and communities

$37m

Maximising water recycling
Maximising water recycling

Goldcorp’s Marlin mine has two freshwater production wells in operation which supply water to the process plant, underground mine, dust suppression water trucks and camp/administration areas via a raw water storage pond. As the mine continued to grow and increase production, it did so with the objective of continuously improving the water balance efficiency and increasing the percentage of recycled water from the tailings storage facility to the supply system and decrease the percentage of freshwater extracted from the environment. In 2011, filtration of the tailings began and the water recycle rate peaked at 97%.

Since then, modifications that could be made to improve water recycling from the tailings storage facility were made, and the water recycling rate to the plant has remained stable at approximately 98%.

Indonesia

Gold sales as % of GDP
0.5%
GDP per capita
$3,510m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$728m

Number of employees
and contractors

10,409

Total expenditure 2013

$578m Total in country expenditure

Total out of country expenditure $150m

In country expenditure 2013
Payments to government

$77m

Payments to suppliers

$364m

People and communities

$137m

Corporate Social Responsibility
Corporate Social Responsibility

Newcrest’s CSR programme at Gosowong places a priority on sustainable economic development, including the diversification and development of local agriculture, farming and aquaculture industries. It is supplemented by annual allocations to each village for them to develop their own community infrastructure, health and education interventions. The programme currently supports the creation of cassava, corn and sago plantations, and associated marketing and sales arrangements.

The first cassava harvest took place in 2013, producing 20,000kg of cassava which was further processed to produce tapioca flour. Such agriculture projects are estimated to increase the current average income of the families involved by almost 40%. This extra money can be used to support other business development activities and improve living standards. The next phase of this programme will be to transfer ownership and control to local farmers.

Mexico

Gold sales as % of GDP
0.4%
GDP per capita
$10,630m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$2,452m

Number of employees
and contractors

10,796

Total expenditure 2013

$2,240m Total in country expenditure

Total out of country expenditure $212m

In country expenditure 2013
Payments to government

$368m

Payments to suppliers

$1,537m

People and communities

$335m

A systematic approach to health and safety
A systematic approach to health and safety

The safety system at Primero’s San Dimas Mine is a model of improvement for teams and working groups whose purpose is to promote a safety-first culture and monitor safety performance. The Central Health and Safety Committee, Document System Subcommittee and Planned Observations teams monitor performance, define work procedures and conduct field observations highlighting safe behaviour while identifying improvement opportunities in workplace conditions or work habits. The Circles of Prevention employee involvement programme promotes a safety-first work culture implementing improvement opportunities while supporting ongoing safety programmes. The joint Accident and Incident Investigation Subcommittee meet regularly to analyse and investigate lost-time accidents and near-miss incidents.

In July 2014 the Secretary of Labor and Social Welfare in Durango recognised the company’s exemplary safety performance and invited it to share their programme successes with the mining sector as an example for the rest of the state.

Mongolia

Gold sales as % of GDP
7.0%
GDP per capita
$3,972m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$88m

Number of employees
and contractors

352

Total expenditure 2013

$70m Total in country expenditure

Total out of country expenditure $18m

In country expenditure 2013
Payments to government

$28m

Payments to suppliers

$35m

People and communities

$7m

Minesite rehabilitation
Minesite rehabilitation

Mine closure at Centerra’s Boroo mine has been planned since before commencing operations in 2003. Physical reclamation activities started as early as 2006 and include contouring disturbed land, spreading previously stockpiled topsoil, and re-vegetating these areas. Local communities, universities and government agencies are involved in native seed collection, establishing tree nurseries and re-introducing marmot. By the end of 2013, Boroo had fully reclaimed nearly 400 hectares or 50% of the previously disturbed land and handed it back to the local government.

Centerra also recognises the social dimension of mine closure. In consultation with labour union representatives, Boroo provided language training courses to improve the opportunities of our former workforce to find jobs elsewhere. Former staff have found that their practical training and experiences gained while working at the mine have greatly improved their employability.

Peru

Gold sales as % of GDP
4.0%
GDP per capita
$6,674m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$2,417m

Number of employees
and contractors

19,368

Total expenditure 2013

$2,325m Total in country expenditure

Total out of country expenditure $92m

In country expenditure 2013
Payments to government

$582m

Payments to suppliers

$1,388m

People and communities

$355m

Investing in water management
Investing in water management

Building or improving water infrastructure in the highlands of Peru is a major engineering challenge that cannot be accomplished by a single institution because of the high costs and specific technical skills. In this context, Buenaventura has adopted a collaborative strategy with the Minister of Agriculture and Irrigation (MINAGRI) and four local governments in the regions of Lima, Arequipa and Ayacucho.

Buenaventura is responsible for the technical studies and leads coordination between the different parties. Local governments secure the maintenance of the projects and the MINAGRI is responsible for their evaluation and funding. This private-public partnership is in the process of building two irrigation channels, two dams and one reservoir with a total investment of more than $7 million. The new infrastructure will add 2,943 acres of irrigated land and will directly benefit more than 3,000 agricultural producers.

Russia

Gold sales as % of GDP
0.5%
GDP per capita
$14,819m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$694m

Number of employees
and contractors

2,200

Total expenditure 2013

$506m Total in country expenditure

Total out of country expenditure $188m

In country expenditure 2013
Payments to government

$151m

Payments to suppliers

$252m

People and communities

$103m

Developing a skilled workforce
Developing a skilled workforce

Kinross’ Kupol operations are located in the remote Chukotka region of northeastern Russia, 200 kilometres from the nearest town. While mining has historically been a cornerstone of the region’s economy, most of the previous mining was completed decades ago and did not employ modern technologies. Kupol is one of only a few significant employers in the area, providing much-needed jobs at its two underground mines – Kupol and Dvoinoye, and processing mill.

The mine operates an on-site training centre that helps locals acquire the skills to work at modern mining operations. Workers who complete the training receive accredited professional certifications recognised throughout Russia under a licence obtained from Chukotka’s Department of Education. Currently, the centre provides 36 different certificates in such careers as underground miner and haul truck driver. Since the centre opened in 2008, approximately 2,000 people have been trained and Kinross has issued more than 860 certificates to employees, including 67 indigenous residents.

Tanzania

Gold sales as % of GDP
6.5%
GDP per capita
$703m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$1,025m

Number of employees
and contractors

8,658

Total expenditure 2013

$647m Total in country expenditure

Total out of country expenditure $378m

In country expenditure 2013
Payments to government

$49m

Payments to suppliers

$439m

People and communities

$159m

African Barrick Gold (ABG) – investing in Tanzania
For every employee 11 jobs are created somewhere in the Tanzanian economy
ABG $1,500 $16,400 5,084 jobs 34,900 jobs 21,800 jobs 93% 1x 1x 11x Indirect (supply chain) 6.9x Induced (consumers) 4.3x ABG is a high-wage employer Tanzanian national employees were paid an average wage nearly 11x higher than the national average in 2013 93.2% of ABG employees in Tanzania are Tanzanians % based on year-end 2013 ABG employment in Tanzania National average wage ABG average wage Tanzanian employees
Induced (consumers) 4.3x 21,800 jobs National average wage $1,500 $16,400 ABG average wage Tanzanian employees ABG is a high-wage employer Tanzanian national employees were paid an average wage nearly 11x higher than the national average in 2013 11x 1x 34,900 jobs Indirect (supply chain) 6.9x 93 % ABG 5,084 jobs 1 x 93.2% of ABG employees in Tanzania are Tanzanians % based on year-end 2013 ABG employment in Tanzania

Turkey

Gold sales as % of GDP
0.2%
GDP per capita
$10,815m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$708m

Number of employees
and contractors

1,614

Total expenditure 2013

$435m Total in country expenditure

Total out of country expenditure $273m

In country expenditure 2013
Payments to government

$103m

Payments to suppliers

$282m

People and communities

$50m

Investing in local communities
Investing in local communities

As part of its commitment to principles of sustainable development, Alamos Gold consulted extensively with residents of the communities surrounding the company’s project sites in Turkey in order to assess their priorities. Alamos then proceeded to undertake several initiatives in support of cultural activities and infrastructure development in the local region. Examples include the planting of more than 14,000 trees and 200 kilograms of indigenous flowers, providing scholarships to more than 80 students, construction of a milk cold storage centre, renovation and construction of housing, and planned construction and maintenance of a sewage system and water pipeline. In addition, as part of the proposed development of its Kirazlı and Ağı Dağı projects in Turkey, Alamos plans to construct a large water reservoir project facility that will not only meet the needs of the company’s projects, but will also provide clean, healthy drinking and utility water to several nearby villages. The company believes these contributions will improve the social and economic welfare of the local communities, and provide a foundation for sustainable prosperity benefiting future generations.

Mature stage: well-diversified

Transitional stage
  • Typically long history of large-scale gold mining; started by a mid-19th century gold rush
  • Large, diversified economies
  • High income and development levels
  • Almost all expenditure is in-country

Australia

Gold sales as % of GDP
0.8%
GDP per capita
$64,863m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$6,332m

Number of employees
and contractors

10,035

Total expenditure 2013

$6,287m Total in country expenditure

Total out of country expenditure $45m

In country expenditure 2013
Payments to government

$363m

Payments to suppliers

$4,836m

People and communities

$1,088m

Kultarr awareness programme
Kultarr awareness programme

The small, nocturnal Kultarr is an endangered marsupial that has been seen – rarely – in the area surrounding New Gold’s Peak Mines’ operations. To learn more, the mine enlisted the local community. The operation’s Environment and Social Responsibility (ESR) Superintendent, developed the Kultarr Awareness and Identification Program to teach school-age locals how to identify the elusive marsupial. Beginning in 2012 and continuing through 2014, New Gold staff presented educational seminars at schools and other community events. Soon Kultarr sighting reports began to come in – to date, 18 formally recorded sightings. “These are the first recorded Kultarr sightings in many years,” said the operation’s ESR Superintendent. “When we have good data on the population and distribution, we’ll bring in an external expert. We want to know why the Kultarr are attracted to a specific area, and what they need.” The success of the programme was recently recognized with an Environmental Achievement Award at the Cobar Business Awards and represents a good example of how the gold mining industry is contributing to increased understanding and protection of these rare marsupials.

Canada

Gold sales as % of GDP
0.3%
GDP per capita
$51,990m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$4,152m

Number of employees
and contractors

10,796

Total expenditure 2013

$3,870m Total in country expenditure

Total out of country expenditure $282m

In country expenditure 2013
Payments to government

$324m

Payments to suppliers

$2,435m

People and communities

$1,111m

Mine rehabilitation in government partnership
Mine rehabilitation in government partnership

Agnico Eagle’s Goldex mine, located in Val d’Or, Quebec, has formed a unique partnership with the Quebec government in the restoration of the nearby abandoned Manitou mine site. When Agnico Eagle was developing its Goldex mine for production, it began looking for a suitable location to construct a tailings impoundment area that could safely store the tailings. The quality of the Goldex tailings was determined to be non-acid generating, non-leachable and had great neutralising potential.

The Manitou site, containing an estimated 11 million tonnes of acid generating tailings, posed a great restoration challenge. The acid drainage seeping from the tailings was contaminating the local environment and rivers with toxic metals.

Testing on the Goldex tailings determined that, when placed as a cover over the Manitou tailings, the long-term effect showed promising results as a safe and effective solution to rehabilitating the Manitou site. Since 2007, at least 50% of the Manitou site has been rehabilitated.

Finland

Gold sales as % of GDP
0.2%
GDP per capita
$47,129m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$45m

Number of employees
and contractors

693

Total expenditure 2013

$45m Total in country expenditure

Total out of country expenditure $0m

In country expenditure 2013
Payments to government

$12m

Payments to suppliers

$0m

People and communities

$33m

Cooperation with the Levi Tourist Office
Cooperation with the Levi Tourist Office

The Levi Tourist Office and Agnico Eagle Finland Oy’s Kittila mine have worked side by side ever since the mine was established. Levi has been a factor in recruitment of personnel for the Kittila mine. The mine’s employees actively use the services of Levi, and such elements as fresh air activities are essential for Agnico Eagle. Tourism and mining also offer a broad range of jobs in Kittila, making it easier for families to settle in the area.

Levi’s status as a year-round destination is reinforced by interest groups’ and mine personnel’s regular use of the region’s diverse services. Using the services makes them stronger and thus benefits all Kittila residents. Together, two strong industries – mining and tourism – bolster the municipality’s tax base, while simultaneously developing social and municipal services.

In addition to cooperating in organising events, the Levi Tourist Office and Agnico Eagle use each other’s communication networks and thus can reach wider audiences.

New Zealand

Gold sales as % of GDP
0.3%
GDP per capita
$40,481m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$145m

Number of employees
and contractors

313

Total expenditure 2013

$125m Total in country expenditure

Total out of country expenditure $20m

In country expenditure 2013
Payments to government

$6m

Payments to suppliers

$107m

People and communities

$12m

Waihi engages community on proposed mine expansion
Waihi engages community on proposed mine expansion

As current operations at Newmont’s Waihi mine are coming to an end, Newmont’s near-mine exploration activities identified the Correnso underground ore body, which would allow mining activities to continue. While at significant depths below the surface, parts of the deposit lie below existing homes. In addition to extensive studies to better understand the vibration, land stability and settlement impacts of the proposed underground mine, Newmont conducted robust stakeholder engagement, whose input fed into the Resource Consent process.

The result of the studies and engagement efforts, including a formal mediation of issues with residents, was the development of a property and community investment process, a voluntary initiative designed to secure property values, provide a framework for the acknowledgement of mine operations under residences and investment in community improvements. In 2013, Newmont received approval to construct the Correnso mine. This is the first time a mine under residential properties has been permitted in New Zealand.

USA

Gold sales as % of GDP
0.1%
GDP per capita
$53,101m

A survey by the World Gold Council of its member companies, looking at their financial expenditure in 2013:

Total expenditure

$7,497m

Number of employees
and contractors

16,474

Total expenditure 2013

$7,302m Total in country expenditure

Total out of country expenditure $195m

In country expenditure 2013
Payments to government

$750m

Payments to suppliers

$4,942m

People and communities

$1,610m

Mining and fish habitat co-exist in Alaska
Mining and fish habitat co-exist in Alaska

Kinross’ Fort Knox Mine is located on Fish Creek, northeast of Fairbanks in one of the largest gold producing areas in Alaska. As a result of mining activities since the Fairbanks Gold Rush of the early 1900s, water quality and fish habitats were seriously undermined by excessive sediment concentrations, uncontrolled run-off and erosion. Fish populations, including those of the Arctic grayling and the burbot, were decimated.

The development of Fort Knox created opportunities to fix the damage and revitalise the stream’s fisheries, restoring a habitat where native fish populations could thrive. By 2013, Alaska’s Department of Fish and Game monitoring showed the grayling population had grown to more than six times the original target, the burbot is selfsustaining and the habitat is supporting a variety of birds and wildlife. The fact that such success has been achieved in an area immediately downstream of the mine’s tailings storage facility is indicative of the high level of environmental protection that is central to ongoing operations at Fort Knox.

Responsible gold mining and value distribution, 2013 video

This, the second Responsible Gold Mining and Value Distribution report from the World Gold Council, explains the continued contribution responsible gold mining can make in supporting economic development in host countries.  This edition was released at the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development in Geneva, October 2014.