Pueblo Viejo Tax and Royalty Payment of $108 Million Brings Contributions to the Government to More Than $385 Million in 2020
PRESS RELEASE
All amounts expressed in US dollars unless otherwise stated.
Pueblo Viejo Tax and Royalty Payment of $108 Million
Brings Contributions to the Government to More Than
$385 Million in 2020
Santo Domingo, Dominican Republic – October 18, 2020 – The Pueblo Viejo mine, operated by Barrick Gold
Corporation, paid $108 million in taxes and royalties this month to the Dominican g overnment. This includes
advance payment of income tax, net profit interest and royalties, including an advance payment of the royalty for
the year 2021 estimated at $47 million.
This is the fourth tax payment the mine has made so far this year and brings its contribution to the Dominican
government for 2020 to $385 million. Pueblo Viejo has also agreed to advance the royalty payment for the years
2022 and 2023, estimated at $95 million, to support the government mission to combat the health and economic
crisis caused by Covid -19. Pueblo Viejo will not receive any discount or charge interest on the advance royalty
payments.
Taxes for 2020 have been significantly higher than the $195 million paid in 2019 due to the impact of the increase
in the price of gold. The tax regime set out in the Special Lease Agreement of Mining Rights with the government
is structured in such a way that if gross income and sales increase, the tax base also increases resulting in a
higher tax payment.
Pueblo Viejo has also paid $20 million in indirect taxes resulting mainly from withholding taxes for salaries, wages
and payments to foreign suppliers.
In addition to taxes, Pueblo Viejo has contributed to the Dominican economy through its support for the campaign
against Covid-19, local purchases and local employment. It has allocated $1 million to mitigate the impact of
Covid-19 in the country and in the communities around the mine. This includes the donation of tests, pulsometers,
masks, gowns, oxygen, antibacterial gel, non- perishable food kits and 83 thousand gallons of alcohol for
sanitization.
From 2013 to 2019, Pueblo Viejo has spent more than $2 billion with local suppliers and contractors. It employs
2,247 people, of whom 98% are Dominicans, and has been awarded the Igualando RD Seal, Gold Level and been
certified under NORDOM 775 for maintaining good employment practices and a culture of gender equality in the
workplace.
"Barrick Pueblo Viejo is committed to responsible mining and contributing to the development of the Dominican
Republic. Our contributions have not only been economic , but have also included the largest in-country
environmental clean-up, remediating environmental damage left by previous operations at the mine. Prior to
Barrick’s arrival, the water flowing from the Pueblo Viejo mine to the Margajita River was heavily impacted and
unable to sustain aquatic life. Since we took over the asset from the previous operator , Barrick has undertaken
extensive environmental remediation in and around the mine and the water quality now meets regulatory
standards and sustains life,” says Juana Barceló, president of Pueblo Viejo.
Water management is one of the key aspects of Pueblo Viejo’s environmental performance. For this reason, the
water that comes from the operational area is treated before discharge, in compliance with Dominican standards.
An extensive network of more than 100 monitoring wells and 90 surface water quality stations ensures compliance
with these standards. Results are reported every six months to the Ministry of Environment . In addition, since
2012 Pueblo Viejo has been inviting communities to participate in quarterly environmental monitoring, which
includes water sampling.
As part of the Barrick group, Pueblo Viejo is a supporter of the Extractive Industry Transparency Initiative (EITI)
and implements its standards in the Dominican Republic. Barrick discloses taxes, royalties and other payments
made to governments on its website. In its annual Extractive Sector Transparency Measure Act (ESTMA) report,
Barrick publicly discloses payments to governments on a country by country and project level basis. For more
information on this report, please visit Barrick’s website www.barrick.com.
ABOUT PUEBLO VIEJO
Pueblo Viejo is located in the Dominican Republic, approximately 100 kilometers northwest of the capital city of
Santo Domingo and is operated by the Pueblo Viejo Dominicana Corporation — a joint venture between Barrick
(60%) and Newmont (40%). Development of the Pueblo Viejo project started in 2009, with first production in
2012. The company’s workforce is 98% Dominican. Earlier this year, the conversion of the mine’s Quisqueya 1
power plant to natural gas was successfully commissioned. This will reduc e greenhouse gases by 30% and
nitrogen oxide by 85%, further reducing Pueblo Viejo’s impact on the environment. An agribusiness project is
also planned as an additional benefit for the local communities.
CORPORATE INCOME TAX AND NET PROFIT INTEREST PAID BY PUEBLO VIEJO (CASH TAXES PAID)
ROYALTIES PAID BY PUEBLO VIEJO
BARRICK ENQUIRIES
Kathy du Plessis
Investor and Media Relations
+44 20 7557 7738
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
Certain information contained in this press release, including any information as to Barrick’s strategy or future financial or
operating performance, constitutes “forward-looking statements”. All statements, other than statements of historical fact, are
forward-looking statements. The words “support”, “commit”, “aim”, “continue”, “contribute”, “provide”, “consider”, “will”,
“challenge” and similar expressions identify forward-looking statements. In particular, this press release contains forward-
looking statements including, without limitation, with respect to funds to be provided to help mitigate the impact of the Covid-
19 virus in the Dominican Republic and the communities near the Pueblo Viejo mine; ongoing environmental remediation and
water management initiatives in the area around the mine; Barrick’s contributions to the social and economic development of
the Dominican Republic; disclosure of payments to governments; proposed reductions in greenhouse gas emissions from the
Quisqueya 1 power plant; and the potential benefits of a proposed agribusiness project for local communities.
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 Barrick 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); changes in national
and local government legislation, taxation, controls, or regulations and/or changes in the administration of laws, policies, and
practices, expropriation or nationalization of property and political or economic developments in the Dominican Republic; the
speculative nature of mineral exploration and development; changes in mineral production performance, exploitation and
exploration successes; increased costs, delays, suspensions and technical challenges associated with the construction of
capital projects; operating or technical difficulties in connection with m ining or development activities, including geotechnical
challenges and disruptions in the maintenance or provision of required infrastructure and information technology systems;
non-renewal of key licenses by governmental authorities; risks associated with new diseases, epidemics and pandemics,
including the effects and potential effects of the global Covid-19 pandemic; f ailure to comply with environmental and health
and safety laws and regulations; lack of certainty with respect to foreign legal systems, c orruption and other factors that are
inconsistent with the rule of law; risks associated with illegal and artisanal mining; risk of loss due to acts of war, terrorism,
sabotage and civil disturbances; timing of receipt of, or failure to comply with, necessary permits and approvals; litigation and
legal and administrative proceedings; damage to the Barrick’s reputation due to the actual or perceived occurrence of any
number of events, including negative publicity with respect to the Barrick’s handling of environmental matters or dealings with
community groups, whether true or not; contests over title to properties, particularly title to undeveloped properties, or ov er
access to water, power, and other required infrastructure; employee relations including loss of key employees; increased costs
and physical risks, including extreme weather events and resource shortages, related to climate change; and availability and
increased costs associated with mining inputs and labor. 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 material ly
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 f orward-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.
Barrick disclaims 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.