Local First Policy Drives Barrick’s Procurement Practices
June 23 2023 - 6:00AM
The Lumwana copper mine has purchased approximately
$4.3 billion in goods and services from Zambian registered
businesses since it went into production, in line with Barrick Gold
Corporation’s (NYSE:GOLD) (TSX:ABX) local procurement and economic
development practices.
President and chief executive Mark Bristow said
Lumwana’s local procurement expenditure in 2022 was
$432 million, out of a total of $520 million, which
represents 83% of the mine’s total procurement spend. Since 2019,
when Barrick was reconstituted following its merger with Randgold
Resources, local expenditure has increased year on year.
Additionally, all Lumwana’s copper concentrates are delivered to
Zambian smelters by a local transporter.
“Our procurement practices prioritize local
companies, followed by those from the larger Zambian region. We
only use international suppliers when the goods and services we
require are not available in the country,” Bristow said.
In total, since Barrick assumed operatorship in
2011, Lumwana has contributed more than $8.2 billion to
Zambia’s economy in the form of royalties and taxes, salaries and
goods and services.
In 2022, Barrick launched the ‘Business Accelerator
Program’ aimed at building business capacity for Zambian
contractors in its mining supply chain and to support them in
effecting their own growth plans and diversifying their markets to
become independent and sustainable beyond Lumwana’s life of
mine.
Barrick is also committed to local employment, with
99.3% of Lumwana’s employees and 98% of its contractors comprising
nationals. “Prioritizing the provision of jobs and business
opportunities for our local communities and host countries is
critical to the development of our social license to operate. Local
employees and business partners also bring diversity to our
operations and business and help us better understand customs,
cultural practices and the impact our activities have on host
communities,” said Bristow.
Enquiries:Investor and Media
RelationsKathy du Plessis+44 20 7557 7738Email:
barrick@dpapr.com
Website: www.barrick.com
Cautionary Statement on Forward-Looking
Information
Certain information contained or incorporated by
reference in this press release, including any information as to
our strategy, projects, plans or future financial or operating
performance, constitutes “forward-looking statements”. All
statements, other than statements of historical fact, are
forward-looking statements. The words “drives”, ”prioritize”,
“support”, “commit”, “build”, “bring”, “develop”, “will” and
similar expressions identify forward-looking statements. In
particular, this press release contains forward-looking statements
including, without limitation, with respect to: the anticipated
benefits of Barrick’s local procurement policy in Zambia for the
Lumwana mine and the local economy, Barrick’s economic
contributions to Zambia, Barrick’s sustainability policy and
commitment to developing its host communities and countries, and
Barrick’s commitment to local employment and workforce
diversity.
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 the Company 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); risks
associated with projects in the early stages of evaluation and for
which additional engineering and other analysis is required; lack
of certainty with respect to foreign legal systems, corruption and
other factors that are inconsistent with the rule of law;
expropriation or nationalization of property and political or
economic developments in Zambia or other countries in which Barrick
does or may carry on business in the future; risks relating to
political instability in certain of the jurisdictions in which
Barrick operates; timing of receipt of, or failure to comply with,
necessary permits and approvals; failure to comply with
environmental and health and safety laws and regulations; damage to
the Company’s reputation due to the actual or perceived occurrence
of any number of events, including negative publicity with respect
to the Company’s handling of environmental matters or dealings with
community groups, whether true or not; litigation and legal and
administrative proceedings; risks related to disruption of supply
routes which may cause delays in construction and mining
activities, including disruptions in the supply of key mining
inputs due to the invasion of Ukraine by Russia; risk of loss due
to acts of war, terrorism, sabotage and civil disturbances; risks
associated with artisanal and illegal mining; the impact of
inflation, including global inflationary pressures driven by supply
chain disruptions caused by the Covid-19 pandemic, and risks
associated with diseases, epidemics and pandemics, including the
effects and potential effects of the global Covid-19 pandemic.
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. We disclaim 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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