The Pueblo Viejo mine, operated by Barrick Gold Corporation, paid
$108 million in taxes and royalties this month to the Dominican
government. This includes advance payment of income tax, net profit
interest and royalties, including an advance payment of the royalty
for the year 2021 estimated at $47 million.
This is the fourth tax payment the mine has made so
far this year and brings its contribution to the Dominican
government for 2020 to $385 million. Pueblo Viejo has also agreed
to advance the royalty payment for the years 2022 and 2023,
estimated at $95 million, to support the government mission to
combat the health and economic crisis caused by Covid-19. Pueblo
Viejo will not receive any discount or charge interest on the
advance royalty payments.
Taxes for 2020 have been significantly higher than
the $195 million paid in 2019 due to the impact of the increase in
the price of gold. The tax regime set out in the Special Lease
Agreement of Mining Rights with the government is structured in
such a way that if gross income and sales increase, the tax base
also increases resulting in a higher tax
payment.
Pueblo Viejo has also paid $20 million in indirect
taxes resulting mainly from withholding taxes for salaries, wages
and payments to foreign suppliers.
In addition to taxes, Pueblo Viejo has contributed
to the Dominican economy through its support for the campaign
against Covid-19, local purchases and local employment. It has
allocated $1 million to mitigate the impact of Covid-19 in the
country and in the communities around the mine. This includes the
donation of tests, pulsometers, masks, gowns, oxygen, antibacterial
gel, non-perishable food kits and 83 thousand gallons of alcohol
for sanitization.
From 2013 to 2019, Pueblo Viejo has spent more than
$2 billion with local suppliers and contractors. It employs 2,247
people, of whom 98% are Dominicans, and has been awarded the
Igualando RD Seal, Gold Level and been certified under NORDOM 775
for maintaining good employment practices and a culture of gender
equality in the workplace.
"Barrick Pueblo Viejo is committed to responsible
mining and contributing to the development of the Dominican
Republic. Our contributions have not only been economic, but have
also included the largest in-country environmental clean-up,
remediating environmental damage left by previous operations at the
mine. Prior to Barrick’s arrival, the water flowing from the Pueblo
Viejo mine to the Margajita River was heavily impacted and unable
to sustain aquatic life. Since we took over the asset from the
previous operator, Barrick has undertaken extensive environmental
remediation in and around the mine and the water quality now meets
regulatory standards and sustains life,” says Juana Barceló,
president of Pueblo Viejo.
Water management is one of the key aspects of
Pueblo Viejo’s environmental performance. For this reason, the
water that comes from the operational area is treated before
discharge, in compliance with Dominican standards. An extensive
network of more than 100 monitoring wells and 90 surface water
quality stations ensures compliance with these standards. Results
are reported every six months to the Ministry of Environment. In
addition, since 2012 Pueblo Viejo has been inviting communities to
participate in quarterly environmental monitoring, which includes
water sampling.
As part of the Barrick group, Pueblo Viejo is a
supporter of the Extractive Industry Transparency Initiative (EITI)
and implements its standards in the Dominican Republic. Barrick
discloses taxes, royalties and other payments made to governments
on its website. In its annual Extractive Sector Transparency
Measure Act (ESTMA) report, Barrick publicly
discloses payments to governments on a country by country and
project level basis. For more information on this report, please
visit Barrick’s website www.barrick.com.
ABOUT PUEBLO VIEJO
Pueblo Viejo is located in the Dominican Republic,
approximately 100 kilometers northwest of the capital city of Santo
Domingo and is operated by the Pueblo Viejo Dominicana Corporation
— a joint venture between Barrick (60%) and Newmont (40%).
Development of the Pueblo Viejo project started in 2009, with first
production in 2012. The company’s workforce is 98% Dominican.
Earlier this year, the conversion of the mine’s Quisqueya 1 power
plant to natural gas was successfully commissioned. This will
reduce greenhouse gases by 30% and nitrogen oxide by 85%, further
reducing Pueblo Viejo’s impact on the environment. An agribusiness
project is also planned as an additional benefit for the local
communities.
BARRICK ENQUIRIES
Kathy du PlessisInvestor and Media
Relations+44 20 7557 7738barrick@dpapr.com
CAUTIONARY STATEMENT ON FORWARD-LOOKING
INFORMATION
Certain information contained in this press
release, including any information as to Barrick’s strategy or
future financial or operating performance, constitutes
“forward-looking statements”. All statements, other than statements
of historical fact, are forward-looking statements. The words
“support”, “commit”, “aim”, “continue”, “contribute”, “provide”,
“consider”, “will”, “challenge” and similar expressions identify
forward-looking statements. In particular, this press release
contains forward-looking statements including, without limitation,
with respect to funds to be provided to help mitigate the impact of
the Covid-19 virus in the Dominican Republic and the communities
near the Pueblo Viejo mine; ongoing environmental remediation and
water management initiatives in the area around the mine; Barrick’s
contributions to the social and economic development of the
Dominican Republic; disclosure of payments to governments; proposed
reductions in greenhouse gas emissions from the Quisqueya 1 power
plant; and the potential benefits of a proposed agribusiness
project for local communities.
Forward-looking statements are necessarily based
upon a number of estimates and assumptions; including material
estimates and assumptions related to the factors set forth below
that, while considered reasonable by Barrick as at the date of this
press release in light of management’s experience and perception of
current conditions and expected developments, are inherently
subject to significant business, economic, and competitive
uncertainties and contingencies. Known and unknown factors could
cause actual results to differ materially from those projected in
the forward-looking statements, and undue reliance should not be
placed on such statements and information. Such factors include,
but are not limited to: fluctuations in the spot and forward price
of gold, copper or certain other commodities (such as silver,
diesel fuel, natural gas and electricity); changes in national and
local government legislation, taxation, controls, or regulations
and/or changes in the administration of laws, policies, and
practices, expropriation or nationalization of property and
political or economic developments in the Dominican Republic; the
speculative nature of mineral exploration and development; changes
in mineral production performance, exploitation and exploration
successes; increased costs, delays, suspensions and technical
challenges associated with the construction of capital projects;
operating or technical difficulties in connection with mining or
development activities, including geotechnical challenges and
disruptions in the maintenance or provision of required
infrastructure and information technology systems; non-renewal of
key licenses by governmental authorities; risks associated with new
diseases, epidemics and pandemics, including the effects and
potential effects of the global Covid-19 pandemic; failure to
comply with environmental and health and safety laws and
regulations; lack of certainty with respect to foreign legal
systems, corruption and other factors that are inconsistent with
the rule of law; risks associated with illegal and artisanal
mining; risk of loss due to acts of war, terrorism, sabotage and
civil disturbances; timing of receipt of, or failure to comply
with, necessary permits and approvals; litigation and legal and
administrative proceedings; damage to the Barrick’s reputation due
to the actual or perceived occurrence of any number of events,
including negative publicity with respect to the Barrick’s handling
of environmental matters or dealings with community groups, whether
true or not; contests over title to properties, particularly title
to undeveloped properties, or over access to water, power, and
other required infrastructure; employee relations including loss of
key employees; increased costs and physical risks, including
extreme weather events and resource shortages, related to climate
change; and availability and increased costs associated with mining
inputs and labor. In addition, there are risks and hazards
associated with the business of mineral exploration, development,
and mining, including environmental hazards, industrial accidents,
unusual or unexpected formations, pressures, cave-ins, flooding,
and gold bullion, copper cathode, or gold or copper concentrate
losses (and the risk of inadequate insurance, or inability to
obtain insurance, to cover these risks).
Many of these uncertainties and contingencies can
affect our actual results and could cause actual results to differ
materially from those expressed or implied in any forward-looking
statements made by, or on behalf of, us. Readers are cautioned that
forward-looking statements are not guarantees of future
performance. All of the forward-looking statements made in this
press release are qualified by these cautionary statements.
Specific reference is made to the most recent Form 40-F/Annual
Information Form on file with the SEC and Canadian provincial
securities regulatory authorities for a more detailed discussion of
some of the factors underlying forward-looking statements, and the
risks that may affect Barrick’s ability to achieve the expectations
set forth in the forward-looking statements contained in this press
release.
Barrick disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result
of new information, future events or otherwise, except as required
by applicable law.
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