Barrick Gold Corporation UN Global Compact 2007 Communication on Progress (COP) Report "Barrick has long been committed to the principles articulated in the United Nations Global Compact (UNGC). We have been proud signatories to this international voluntary initiative since 2005 and financially support the Foundation for the Global Compact. As we celebrate our 25th anniversary, Barrick continues to integrate best practices in human rights, labour standards, environment and anti-corruption into its culture and day-to-day operations. The following Communication on Progress provides an overview of Barrick’s 2007 key actions and outcomes aligned with the UNGC principles. The Barrick website, annual Responsibility Reports and Beyond Borders quarterly stakeholder publications provide further detailed information.” - Kelvin Dushnisky, Executive Vice President, Corporate Affairs, Barrick Gold Corporation Global Compact Principle: Practical Actions (including Policies, Systems, Commitments) Human Rights PRINCIPLE 1 Businesses should support and respect the protection of internationally proclaimed human rights. PRINCIPLE 2 Businesses should make sure they are not complicit in human rights abuses. Outcomes or Expected Outcomes HUMAN RIGHTS Barrick’s contribution to human rights includes providing access to education, water and health services for the communities neighboring our mines; promoting health & safety practices for our employees; and adhering to security practices based on the Voluntary Principles on Security and Human Rights (VPSHR). Our Policies, Systems and Commitments that support this principle include: Barrick’s Corporate Social Responsibility Charter affirms our commitment to observe the fundamental tenets of human rights. This commitment is imbedded in our corporate culture and is aligned with the principles in the Universal Declaration of Human Rights. Barrick’s Code of Business Conduct and Ethics outlines the company’s commitment to act in accordance with all applicable laws, rules and regulations and high ethical standards. The Code applies to all employees and directors. All supervisory and administrative employees are required to complete training seminars on the Code of Business Conduct All supervisory and administrative employees are required to formally register their compliance with the Code of Business Conduct and Ethics. Systems are in place for all supervisory and administrative employees to formally register their compliance with the Code of Business Conduct and Ethics. Community In 2007, Barrick and CARE International Tanzania announced the results of a six-year partnership where Barrick invested US$2 million in 2001. This initiative dramatically improved education for thousands of children living near the company’s Bulyanhulu mine, where primary school enrolment has increased by 75 per cent to over 7,000 children. Building on the success of our first program with World Vision Canada, in 2007 Barrick contributed a further US$1.3 million to launch community projects near its Lagunas Norte mine in northern Peru. To date our partnership has included the following results: 1,669 people have access to two newly Global Compact Principle: Practical Actions (including Policies, Systems, Commitments) Human Rights Outcomes or Expected Outcomes and Ethics. Employees can anonymously report Code violations or express concerns and ask questions about ethical issues through our confidential Compliance Hotline, available to all employees 24 hours a day, even from remote locations, and in the language of their choice. refurbished health centers in Taricá; 732 children, ages 6 to 12 years, have participated in summer school programs; 800 children have benefited from improved school infrastructure conditions, carried out in 7 pre-school level schools; and, 370 families have improved their farming techniques. In 2007 Barrick reconstructed a health clinic providing HIV/AIDS voluntary counseling & training services to employees and communities neighboring the Porgera mine. In 2007, Barrick announced an additional US$100,000 investment in water projects for communities surrounding its Bulyanhulu mine in Tanzania. This latest investment builds on the company’s successful water infrastructure program that is already serving more than 10,000 people in villages surrounding the mine. The Bulyanhulu mine has completed a number of water projects in local communities, including the construction of 23 boreholes and wells at a cost of approximately US$555,000. The most recent contribution will be used to drill more boreholes for nearby villages, particularly at schools and medical clinics. These upgrades will significantly improve water access for local residents. Barrick is expanding a successful oral hygiene campaign launched in the San Juan Province of Argentina near our Veladero mine. Working with OSDE (Organización de Servicios Directos Empresarios), a private sector health service provider, Barrick is funding a dental health specialist to work within the school system to promote preventative measures and good oral hygiene. To date, 2,000 children at 12 district schools have participated. Fluoride treatments and toothbrushes are also provided during the annual school visits. Community Since 1999, Barrick has worked with the African Medical Research Foundation (AMREF) and community leaders to build medical clinics, create awareness and encourage people to test, treat and seek counseling for HIV/AIDS. Health services are provided to employees and local communities near our mine sites, with a focus on HIV prevention, voluntary counseling and testing, as well as treatment and care for those infected by AIDS. Barrick is a member of the Global Business Coalition on HIV/AIDS, Tuberculosis and Malaria, which harnesses the power of the global business community to fight these diseases worldwide. Barrick signed a global memorandum of understanding with World Vision Canada in 2007, formalizing a long term partnership which includes child nutrition projects in Peru near our Pierina and Lagunas Norte mines. The partnership began in May 2003, when Barrick made an initial commitment of US$1million over five years to help impoverished families near its Pierina mine. Global Compact Principle: Practical Actions (including Policies, Systems, Commitments) Human Rights Outcomes or Expected Outcomes Security Security Commitment to continue implementing the Voluntary Principles on Security and Human Rights (VPSHR). Development of a company-wide Security Policy in 2007. Commitment to continue advancing our multidisciplined approach to improve illegal/artisanal mining issues. Human rights impact assessments were conducted for all ‘atrisk’ sites in 2007, including follow-up work on gap analysis. As a result of security gap analysis conducted at all ‘at-risk’ sites, we developed and rolled out company-wide use-of-force guidelines aligned with the VPSHR in 2007. All Barrick security officers who carry firearms received human rights training based on the VPSHR in 2007. Barrick provides human rights training materials to police officers who operate in precincts neighboring the Porgera mine in Papua New Guinea. Health and Safety Barrick’s Health & Safety System features nine core elements including Leadership & Commitment; Training and Competence; Risk Management; Operational Controls; Health and Wellness; Contractor Controls; Incident Investigation; Emergency Preparedness; and, Performance Measurement and Assessment. Health and Safety The Courageous Safety Leadership training fosters a shared common vision on safety and health as well as the personal behaviors necessary to achieve that vision. The initial training is mandatory for all new employees at our operations and business offices around the world. At the end of the Courageous Safety Leadership training, employees sign their commitment to our vision “Every person going home safe and healthy every day”. Company-wide Drug & Alcohol Policy and SmokeFree Policy were put in place in 2007. Continued Courageous Leadership training throughout 2007, providing refresher courses and 1- or 2-day course for new workers. Total injury frequency rate decreased by 9% in 2007. Global Compact Principle: Practical Actions (including Policies, Systems, Commitments) Outcomes or Expected Outcomes Labour PRINCIPLE 3 Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining. PRINCIPLE 4 Businesses should uphold the elimination of all forms of forced and compulsory labour. PRINCIPLE 5 Businesses should uphold the effective abolition of child labour. PRINCIPLE 6 Businesses should uphold the elimination of discrimination in respect of employment. LABOUR The Powerful Leadership Program was delivered to 2000 supervisors and managers company-wide, exceeding targets for participation, skills transfer and participant satisfaction. We have developed a self-certification system for suppliers based on our Supplier Code of Ethics. Currently we have 20% of Barrick suppliers certified under the Code. Barrick’s Code of Business Conduct and Ethics and Corporate Social Responsibility Charter both include explicit commitments to fair employment practices, non-discrimination and a workplace where employees are treated with dignity and respect. Production and roll-out of video featuring senior management promoting the importance of ethics and integrity Senior managers across the company participated in new ethics and integrity leadership seminar Our Powerful Leadership Program strengthens leadership skills of our superintendents and managers, developing skills for providing feedback and coaching, leading change, delegating, resolving conflict, managing performance problems, and motivating high performance teams. Training is ongoing throughout the company. In late 2007, in collaboration with the government of Tanzania, Barrick initiated a comprehensive program to assist the artisanal and small scale miners near our North Mara mine. The program features an additional forum on the eradication of child labour in small-scale mining. In our Australia-Pacific region, we hosted the 2007 Women in Barrick Forum to identify ways to encourage women to seek employment with the Company. We are committed to treating all our employees with respect and dignity, providing equal opportunity and freedom from discrimination for all our employees and contractors, to uphold the elimination of all forms of forced and compulsory labor and to support the effective abolition of child labor. Our Policies, Systems and Commitments that support this principle include: A Supplier Code of Ethics was approved and rolledout across the company, ensuring that our suppliers comply with all national or local laws on the equal and fair treatment of their workers. This policy identifies the minimum level of ethical performance required of our suppliers and has an audit feature to monitor compliance with our policy. We respect the rights of our employees to freedom of association and collective bargaining. We have a number of facilities around the world with unions or Global Compact Principle: Practical Actions (including Policies, Systems, Commitments) Labour bargaining associations. We have worked and continue to work closely with these groups over the years to develop and manage effective labor relations programs. Outcomes or Expected Outcomes Global Compact Principle: Practical Actions (including Policies, Systems, Commitments) Outcomes or Expected Outcomes Environment PRINCIPLE 7 Businesses should support a precautionary approach to environmental challenges. PRINCIPLE 8 Businesses should undertake initiatives to promote greater environmental responsibility. PRINCIPLE 9 Businesses should encourage the development and diffusion of environmentally friendly technologies. ENVIRONMENT At Barrick, our goal is to minimize our environmental footprint and safeguard the environment, now and for future generations. Our Environmental Policy Statement outlines its commitment to proven natural resource management practices for the protection, reclamation and enhancement of the environment. Our Policies, Systems and Commitments that support this principle include: We take a precautionary approach throughout the life of a mine by first assessing potential impacts, then evaluating how to avoid, mitigate or control these impacts. Controls typically include putting into place multi-layers of environmental protection and robust environmental management systems that include advanced planning against possible future events. Barrick is a signatory to the International Cyanide Management Code. Barrick contributed to development of the Code which is aimed at improving the global management of cyanide. Barrick is committed to state-of-the-art controls on all point sources of mercury air pollution. We worked with the State of Nevada, the US Environmental Protection Agency and the Nevada Mining Association to develop the Nevada Mercury Air Emissions Control Program. This program is among the most stringent in the world. Our Environmental Management System Standard (EMSS) addresses 15 elements of environmental management, including environmental technology and life-cycle planning. Measurement, tracking and reporting of energy use established at all sites. Implementation of the International Cyanide Management Code is underway and will be ongoing until 2009. As of December 31, 2007, seven mines had been certified under the Code. In the first quarter 2008 an additional 3 mines were certified. In 2007, four sites were certified compliant with ISO-14001. Barrick installed new controls and reduced combined mercury emissions at two mines. We are pursuing further mercury reduction opportunities at all sites. Site-level environmental audits are conducted regularly at all sites based on Barrick’s environmental management systems and controls. 29 comprehensive site-level environmental audits were conducted in the last year. Continued implementation of the EMSS, Leadership and Legal obligations register elements were introduced to the system in 2007. To further develop our draft Water Conservation Policy and Program. Global Compact Principle: Practical Actions (including Policies, Systems, Commitments) Environment Barrick finalized the company-wide Climate Change Program, which includes Energy Management Policy and Guidelines. Outcomes or Expected Outcomes Global Compact Principle: Practical Actions (including Policies, Systems, Commitments) Outcomes or Expected Outcomes Corruption PRINCIPLE 10 Businesses should work against corruption in all its forms, including extortion and bribery. ANTI-CORRUPTION Barrick is committed to the highest standards of corporate governance and professional integrity. We conduct our business around the world in an ethical, honest and accountable manner and in accordance with all applicable laws, rules and regulations. We value and are committed to transparency in our business practices, consistent with good governance and commercial confidentiality. Our Policies, Systems and Commitments that support this principle include: The Code of Business Conduct and Ethics includes enhanced reporting provisions and a standard of conduct on financial controls and records. Barrick has an Anti-Bribery and Anti-Corruption Policy which explicitly addresses the issues of corruption and bribery and provides guidelines for compliance with the Corruption of Public Officials Act (Canada), the Foreign Corrupt Practices Act (USA), and local anti-corruption laws. We also have a Disclosure Policy and an Insider Trading Policy. Continued implementation of Anti-Fraud Policy across the company. The policy applies to all employees and sets out Barrick’s requirements relating to the prohibition, recognition, reporting and investigation of suspected fraud, corruption, misappropriation and other similar irregularities. Barrick was one of the first Canadian corporations to endorse the Extractive Industries Transparency Initiative (EITI). Maintain high level employee compliance with Code of Business Conduct and Ethics, Anti-Bribery and AntiCorruption Policy and the Anti-Fraud Policy. All supervisory and administrative employees are required to formally certify their compliance with the Code of Business Conduct and Ethics and the Anti-Fraud Policy, which included issues of corruption and bribery. Training on the revised Code of Business Conduct and Ethics was completed for all new employees in 2007. Global Compact Principle: Practical Actions (including Policies, Systems, Commitments) Corruption Barrick is a member of Transparency International Canada. Outcomes or Expected Outcomes