Peru Economic Investments Report...Taxes and Royalties in Peru Taxes, royalties to the Peruvian...
Transcript of Peru Economic Investments Report...Taxes and Royalties in Peru Taxes, royalties to the Peruvian...
![Page 1: Peru Economic Investments Report...Taxes and Royalties in Peru Taxes, royalties to the Peruvian government $118M $1B Taxes and royalties Barrick has contributed to Peru since 2012.](https://reader034.fdocuments.in/reader034/viewer/2022050422/5f9194561b753408862eb0de/html5/thumbnails/1.jpg)
Peru
Economic Investments Report | 2016
Advancing. Together.
![Page 2: Peru Economic Investments Report...Taxes and Royalties in Peru Taxes, royalties to the Peruvian government $118M $1B Taxes and royalties Barrick has contributed to Peru since 2012.](https://reader034.fdocuments.in/reader034/viewer/2022050422/5f9194561b753408862eb0de/html5/thumbnails/2.jpg)
The Mining Context in Peru
~59%
Share of Peru’s exports from the
mining sector(2016)
Source: EY
2,800Tons of gold
reserves estimated to be
found in Peru (2015)
25%
Share of Peru’s total foreign
direct investment is in the mining
sector (2016)
$46B
Estimated value of mining
projects pending development in
Peru(2016)
Note: All figures in USD
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Barrick in Peru
Lagunas Norte
▪ Operational since 2002
▪ Produced 435,000 ounces of gold in 2016
▪ Accounted for 7.9% of Barrick’s total gold production (2016)
▪ ISO 14001 and Cyanide Code certified
Pierina
▪ Began operations in 1996
▪ Currently in closure
▪ ISO 14001 and Cyanide Code certified
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Barrick’s Economic Investment in Peru
98% of Barrick’s expenditures stayed in Peru in 2016 ($502M)
EXPENDITURES
$297M
$7M
$80M
$118M
In Peru, where does this money go?
Communityinvestments
Employee wages & benefits
Taxes & royalties to the Peruvian
government
Purchasesfrom Peruvian
businesses
$502M
In-country
Out-of-country
$502 M
$9 M
$511 MTotal in 2016
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Investing in Peruvian Business
Purchases from Peruvian
businesses
$297M
Barrick increased its purchases from local
businesses by ~50% in the past three years.
97% $1.4BAmount Barrick has
purchased from Peruvian businesses since 2012.
Percentage of Barrick’s purchases that went to
Peruvian businesses in 2016.
$9.8 $9.4
$12
$14
$0
$2$4$6
$8$10
$12
$14
$16
2013 2014 2015 2016
Mill
ions
LOCAL1 PURCHASES (2013-2016)
1 For Pierina, local includes 11 population centers and rural communities (Huanja, Mataquita; Atupa, Antahurán, San Miguel de Tinyash, Mareniyoc and Chaquecyaco, San Isidro de Pacollón, Ramón Castilla, Miguel Grau de Shecta and Andres Avelino Cáceres de Cuncashc).For Lagunas Norte, local includes 14 population centers (El Sauco, Chuyugual, Cushuro, Pampa Verde, Corral Grande, Los Loros, Totoras, San Pedro, Yanivilca, La Victoria, Santos Genoveva, Canibamba Alto, Quesquenda and Quiruvilca).
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Taxes and Royalties in Peru
Taxes, royalties to the Peruvian
government
$118M$1B
Taxes and royalties Barrick has contributed to Peru
since 2012.
An EITI member country since 2012, each year all extractive companies in Peru publicly report their payments
to the government.
1. Source: EY
In 2016, local and regional governments
spent 83% of income from mining levies and
royalties on infrastructure.1
$397
$186 $202
$125 $118
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
2012 2013 2014 2015 2016
Mill
ions
TAXES AND ROYALTIES (2012-2016)
Taxes and royalties decrease as price of gold falls and the Pierina mine enters closure
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Our Employees in Peru
Employee wages & benefits
$80M$515MAmount Barrick has paid in
wages and related expenditure since 2012.
The Pierina mine uses a rotational work schedule for
remediation work to maximize local employment.
11%
27%
62%
0.39%
EMPLOYMENT IN PERU (2016)
Local Communities
Host Region
National
Foreign National
1 Source: KPMG2 For Pierina, local includes 11 population centers and rural communities (Huanja, Mataquita; Atupa, Antahurán, San Miguel de Tinyash, Mareniyoc and Chaquecyaco, San Isidro de Pacollón, Ramón Castilla, Miguel Grau de Shecta and Andres Avelino Cáceres de Cuncashc). For Lagunas Norte, local includes 14 population centers (El Sauco, Chuyugual, Cushuro, Pampa Verde, Corral Grande, Los Loros, Totoras, San Pedro, Yanivilca, La Victoria, Santos Genoveva, Canibamba Alto, Quesquenda and Quiruvilca).3 For Pierina, regional includes the rest of the district of Jangas and Independencia, the Province of Huaraz, and the Region of Ancash. For Lagunas Norte, regional includes the rest of the districts of Quiruvilca, Sanagoran and Usquil; the Provinces of Santiago de Chuco, Sanchez Carrion and Otuzco; and the Region of La Libertad.
2
3
As of February 2015, more than 190,000 people in Peru were employed by
the mining industry.1
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Investing in Peruvian Communities
Community Investments
$7M$61MBarrick’s investment in
community projects in Peru since 2012.
Barrick has invested more than $6.7 million in educational
programs since 2012.
As the Pierina mine closes, the site works closely with local suppliers to further enhance
their skills. As part of this program, 84% of leaders from 19 local companies have been trained in production, finance,
and sales.
$3.11M
$580K
$1.03M
$230K$50 K
$30K
COMMUNITY INVESTMENTS (2016)
Economic Development
Infrastructure
Other Activities
Education
Community Engagement
Environment
Health
$1.6M
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Peru
Economic Investments Report | 2016
Advancing. Together.