Local First Policy Drives Barrick’s Procurement Practices

The Lumwana copper mine has purchased approximately $4.3 billion in goods and services from Zambian registered businesses since it went into production, in line with Barrick Gold Corporation’s (NYSE:GOLD)(TSX:ABX) local procurement and economic development practices.

President and chief executive Mark Bristow said Lumwana’s local procurement expenditure in 2022 was $432 million, out of a total of $520 million, which represents 83% of the mine’s total procurement spend.

Since 2019, when Barrick was reconstituted following its merger with Randgold Resources, local expenditure has increased year on year.

Additionally, all Lumwana’s copper concentrates are delivered to Zambian smelters by a local transporter.

“Our procurement practices prioritize local companies, followed by those from the larger Zambian region. We only use international suppliers when the goods and services we require are not available in the country,” Bristow said.

In total, since Barrick assumed operatorship in 2011, Lumwana has contributed more than $8.2 billion to Zambia’s economy in the form of royalties and taxes, salaries and goods and services.

In 2022, Barrick launched the ‘Business Accelerator Program’ aimed at building business capacity for Zambian contractors in its mining supply chain and to support them in effecting their own growth plans and diversifying their markets to become independent and sustainable beyond Lumwana’s life of mine.

Barrick is also committed to local employment, with 99.3% of Lumwana’s employees and 98% of its contractors comprising nationals.

“Prioritizing the provision of jobs and business opportunities for our local communities and host countries is critical to the development of our social license to operate.

Local employees and business partners also bring diversity to our operations and business and help us better understand customs, cultural practices and the impact our activities have on host communities,” said Bristow.