�ݺ�ߣ

Responsible Gold Mining and Value
Distribution Report – 2013 data

Introducing the World Gold Council
• The gold industry’s market development organisation
• Recognised global authority on gold and its uses
• Active in stimulating and sustaining demand in the investment, jewellery,
central bank and technology sectors
• The Gold for Development programme focuses on gold’s role in
supporting socio-economic development
• Offices in London (head office), New York, Hong Kong, Singapore,
Shanghai, Tokyo, Mumbai and Chennai
World Gold Council | Responsible Gold Mining and Value Distribution | 22nd October 2014

World Gold Council members
20 member companies, representing the majority of global listed gold production

World Gold Council member projects

Responsible Gold Mining & Value Distribution report
Objectives
A report that quantifies the overall economic contribution made by leading
responsible gold mining companies. It analyses the value distributed to different
stakeholder groups – including employees, suppliers, governments, communities
and investors.
Why was it developed?
• To show how gold mining contributes to economic growth
and development
• To inform the debate about whether the benefits of mining
are fairly distributed.
• To promote co-operation and dialogue between key
stakeholders including government, communities, companies
and the investors who fund these companies.
• Update the insights generated by the first edition of the
report

Responsible Gold Mining & Value Distribution report
Methodology
• All gold-producing members of the World Gold Council invited to participate
• Companies provided information on payments (in-country and out-of-country)
and their recipients on an attributable basis
• Producing and non-producing operations included
• Data consolidated by country and globally
• Second edition – first edition published in October 2013
• Covers 15 companies with 147 operations in 26 countries, representing
24% of global gold output in 2013
• Report available in English, French and Spanish
“It is important to understand the distribution of economic benefits in mining, and this
report goes a long way towards that goal”
Scott Gilmore, Founder and CEO, Building Markets

What’s new
• Guidance Note on Expenditure Definition
• External commentaries
• Better accessibility

Guidance note on expenditure definitions
General definitions
Attributable basis
All data should be provided on an attributable basis – i.e. the data should reflect the
share of the operation owned by the company.
Reporting boundaries
It is recommended that companies apply reporting boundaries by country. Companies
should specify the names of the operations that are included for each country.
Producing operations
A producing operation is one that has achieved commercial production and reported
revenue during the review period specified.
Non-producing operations
Non-producing operations include all activities, projects, operations and facilities not
associated with producing operations.
Number of employees and contractors
The number of employees and contractors at the end of the review period. This should
include all contractors, regardless of the length of tenure.
In-country
Payments made ‘in-country’ are those where the recipient is located in the same
country. Payments to commercial enterprises should be considered as ‘in-country’ if the
commercial enterprise is registered in the country for tax purposes.
In-country employees
In-country employees are those who are permanently based in the country of
operation. Payments to ‘In-country employees’ should exclude payments to expatriates
and others who are not permanently based in the country of operation.
Gold output
Total gross ounces of gold sold on an attributable basis. This should not include ‘gold
equivalent ounces’ for sales of other metals.
Revenue from gold sales
Revenue realised through gross sale of gold. This should not include any profits or loss
on hedging activities related to gold.
Total mineral revenue
Revenue realised through sale of gold and other metals and minerals, net of applicable
charges related to further refining, transportation and marketing charges. This excludes
dividends and interest received or royalties related to processing of minerals on behalf
of other companies.
Payment recipient category definitions
Payments to employees
Payments to employees, including all compensation (including wages and bonus payments,
redundancy and severance payments and leave encashment, whether paid out as cash or
share-based) and benefits. Consistent with the GRI Indicator Protocols Set Economic (EC) this
should include amounts paid to government institutions (employee taxes, levies and
unemployment funds) on behalf of employees. Payments should include capitalised expenditure
on employees and contractors. Payments to companies supplying contractors should not be
included (these will be included in payments to suppliers). Consistent with the GRI Indicator
Protocols Set Economic
(EC), total benefits “…include regular contributions (e.g. to pensions, insurance, company
vehicles, and private health), as well as other employee support such as housing, interest-free
loans, public transport assistance, educational grants, and redundancy payments. They do not
include training, costs of protective equipment, or other cost items directly related to the
employee’s job function”.
Payments to suppliers
Payments to suppliers for goods and services, including rent and land-use fees, except to
government and communities. This should include procurement spend incurred as operating
expenses and in capital expenditure. Excludes all payments to government (including taxes),
payments to communities and community investments.
Payments to governments – royalties and land use payments
Payments to governments related to the right of the business to mine and retention of their
mining license, including mining, exploration and exploitation licenses.
Payments to governments – income and other corporate tax
Payments of taxes to governments on the basis of income; does not include dividend payments.
Payments to governments – employee taxes
Payments of taxes to governments related to employment, including employer-based taxes. All
employee-based taxes should be excluded (even if paid for by the company on the employee’s
behalf) as these are included in ‘Payments to Employees’.
Payments to governments – other
Payments of taxes to government related to procurement of goods and services, including
withholding taxes, import and fuel duties. Also includes indirect taxes (such as value-added tax)
where these are not repaid to the company over the review period. This also includes payments
of dividends to government, which are paid on the basis of ownership, rather than fiscal regime.
Payments to communities and community investments
Payments made to communities including community investments that may be either contractual
or discretionary. These payments may include payments related to infrastructure, health and
well-being, education and training, local environment, scholarships and donations. They may
also include donations to civil society organisations but should not include expenditure that is
primarily ‘advertising’ in nature. It should not include payments to suppliers of goods and services
for the functioning of the operation.
Payments to providers of capital
Payments to equity and debt holders, including dividends, interest and any fees and charges
related to provision (or availability) of the capital, including facility costs or costs paid on initial
raising of the capital. This does not include repayment of principal.

External commentaries from stakeholders
World Gold Council | Responsible Gold Mining and Value Distribution | 22nd October 2014 9

Better accessibility
World Gold Council | Responsible Gold Mining and Value Distribution Report | 22/10/2014 10

Suppliers are the biggest recipients of in-country
expenditure
In-country expenditure by recipient
“One of the interesting facts in the report is the relative level of payments to suppliers. …
In order to maximize mining’s contribution to development we need to focus on how these
payments to suppliers can benefit local business more and promote economic
diversification through the use of local content.”
Christopher Sheldon, Practice Manager, Extractive Industries, World Bank

Level of in-country expenditure has remained stable
17 20 21
83 80 79
Out-of country
In-country
2009 2012 2013
• Variations of payment patterns along the mine
life-cycle responsible for short-term shifts in
expenditure patterns:
- Early stages, such as exploration and site
design and construction will typically see
higher out-of-country spend
- As gold mining operations become more
established, expenditure tends to move in-country,
e.g. by establishing local supply
chains and training the local workforce
Percentage of in-country v. out-of-country expenditure
(in % of total expenditure)
“It is vital to understand the mining life-cycle to fully understand the contribution that the
industry can make, as this will vary from case to case.”
Randall Oliphant, Executive Chairman, New Gold

Example of Country Profile
Analysis of
survey data
Case studies
highlight examples of
benefit footprint on
the ground
Gold’s
importance to the
economy
Macroeconomic
data

Case studies highlight the variety of work by gold
mining companies on the ground
Environment Safety
Infrastructure
Mine rehabilitation Local entrepreneurship Training
“It is important that governments have the capacity not only to oversee minerals
agreements, but also to develop a more holistic policy, incorporating distribution of benefits,
environmental protection and, most of all, community engagement.”
Glenn Gemerts, Chair, Intergovernmental Forum on Mining and Sustainable Development

To view the reports, please visit:
www.gold.org/gold-mining/economic-contribution/value-distribution
World Gold Council
10 Old Bailey, London EC4M 7NG
United Kingdom
T +44 20 7826 4700
F +44 20 7826 4799
W www.gold.org

�ݺ�ߣ

2014 Responsible Gold Mining and Value Distribution report

More Related Content

2014 Responsible Gold Mining and Value Distribution report

Editor's Notes