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.