Argentina Economic Investments Report · B Value of mineral exports from Argentina (2014) $14.5B...
Transcript of Argentina Economic Investments Report · B Value of mineral exports from Argentina (2014) $14.5B...
Argentina
Economic Investments Report | 2016
Advancing. Together.
The Mining Context in Argentina
32%
Proportion of Argentine gold production that comes from the Veladero mine
(2015)
Source: EY, KPMG
15th
Argentina’s global ranking in gold production
and reserves (2015)
$3B
Value of mineral exports from
Argentina (2014)
$14.5B
Value of mining projects pending
development(2016)
All figures in USD
Barrick in Argentina
Veladero1
▪ Operational since 2005▪ Produced 544,000 ounces of gold in 2016▪ Accounted for 9.9% of Barrick’s total gold
production in 2016▪ 1,360 employees in 2016▪ ISO 14001 and Cyanide Code certified
Pascua-Lama
▪ Project, temporarily suspended▪ 15 employees in 2016 on Argentina side of
the project
1 In April 2017, Barrick announced that it had entered into a strategic cooperation agreement with Shandong Gold Group Co., Ltd., the leading underground mining company in China, based in Jinan, Shandong province. As a first step in the new partnership, Shandong Gold Mining Co., Ltd., the listed company of Shandong Gold Group, will acquire 50% of Barrick’s Veladero mine in the San Juan province, Argentina.
Pascua-Lama
C H I L E
Veladero
0 miles 100 200 300 400
San Juan
La Serena
San Juan
A R G E N T I N A
Barrick’s Economic Investment in Argentina
92% of Barrick’s expenditure stayed in
Argentina in 2016
EXPENDITURES
$357M
$1.4M
$93M$109M
In Argentina, where does this money go?
Communityinvestments
Employee wages & benefits
Taxes & royalties to the Argentine
government
Purchasesfrom Argentine
businesses
$561M
Note: Total in-country expenditure includes $1M in royalties paid to third parties and land use & compensation payments
In-country
Out-of-country
$561 M
$48 M
$609 MTotal in 2016
Investing in Argentine Business
Purchasesfrom Argentine
businesses
$357M
In 2016, Barrick created a business incubator for Iglesia
entrepreneurs. This space offers local entrepreneurs
expert advice and the necessary funding to turn
their ideas into real businesses.
$229M $3.3BAmount Barrick has
purchased from Argentine businesses since 2012.
Average amount of annual spending at local and regional
Argentine businesses since 2012.
$6.08M
$164.7M$185.85M
$47.63M
Purchases of Goods and Services (2016)
Local (Jachal and Iglesia)
Regional (San Juan Province)
National
International
Taxes and Royalties in Argentina
Taxes, royalties to the Argentine
government
$109M
In February 2016, Argentina eliminated a
5% tax on mining exports.1
$187M $938MAmount Barrick has paid in royalties and taxes between
2012 and 2016.
Average amount of taxes and royalties paid per operation to
Argentine government between 2012 and 2016.
1 Source: EY
14%
69%
2%
15%
Taxes and Royalties (2016)
Income Taxes
Other Taxes
Royalties
Value Added Tax
Our Employees in Argentina
Employee wages & benefits
$93M
82% of senior site management at the Veladero mine are
Argentine nationals.
1:3 $607MAmount Barrick spent in
wages and related expenditures since 2012.
Every job that a mine creates is estimated to result in a further
three new jobs for the Argentine economy.1
Source: KPMG
15%
69%
14%2%
Local Employment (2016)
Local (Jachal & Iglesia)
Regional (San Juan)
National
Foreign Nationals
Investing in Argentine Communities
Community Investments
$1.4M
The Veladero mine is one of the largest private
sector employers in the province of San Juan,
creating opportunities for thousands of Sanjuaninos.
$210K $26MAmount Barrick has invested in community programs since
2012.
Amount invested in community infrastructure projects near our
Argentine mine sites in 2016.
$450 K
$370 K
$210 K
$180 K
$140 K
$50 K $20 K
Community Investments (2016)
Economic Development
Education
Infrastructure
Other Activities
Arts, Culture & Sports
Community Engagement
Health
Argentina
Economic Investments Report | 2016
Advancing. Together.