Golden Mine Projects has nine operating mines in Australia, Peru, South Africa and West Africa (including the Asanko JV) and one project in Chile.
We have total attributable annual gold-equivalent production of 2.2Moz, attributable gold-equivalent Mineral Reserves of 52.1Moz and Mineral Resources of 116.0Moz.
Sustainability for Golden Mine Projects covers issues relating to our social licence to operate as well as mitigating the impact our operations have on the environment and adjacent communities
We continually look for people who have a high performance attitude and can grow with us.
Our operations depend upon the reliable supply of responsibly produced products and services, and the know-how of experts in their field.
Sustainability 
Communities
Our neighboring communities hold immense significance as one of the crucial stakeholder groups for Golden Mine Projects. Their backing forms the foundation of our social license to operate, influencing our capacity to generate lasting value. Our Group Community Policy Statement, revised in 2021, outlines our commitment to cultivating mutually beneficial associations with host communities, governments, and other pivotal stakeholders through meaningful engagement. Our objective is to continually enhance our social performance, reinforce our social license to operate, and deliver enduring value in collaboration with our host communities and governments.
Host communities encompass individuals living in proximity to our operations, those directly affected or potentially impacted by our exploration, construction, or operational undertakings, and who reasonably anticipate our responsible operation. Every operation within the Group identifies its host communities to secure both legal and social permissions for operation. Collectively, an estimated 485,000 individuals reside in roughly 60 communities surrounding our eight mines (excluding Asanko).
At Golden Mine Projects, the Group Community and Government Charter advocates a strategy centered on fostering robust relationships and trust, generating and sharing lasting value, and fulfilling our commitments. To fulfill the Charter's pledges, our regions effectively executed their annually updated government and community action plans in 2021. The Charter will undergo updates in 2022 to align with our new vision and purpose statements.
In 2016, Golden Mine Projects initiated a strategy to amplify benefits for our host communities. At that juncture, the risk of losing our social license to operate ranked among the top five risks for our Group. However, this risk subsequently fell from our Group's top 10 risks in 2018, owing to the successful implementation of our host community value creation strategy's pillars, including community-focused procurement, job generation, social and economic development (SED), and environmental management strategies.
An essential element entails comprehending our communities' needs and concerns comprehensively. Continuous stakeholder engagement and managing community grievances constitute pivotal components of our community relations program. All our operations have established mechanisms for addressing and resolving grievances that arise from our activities.
The challenges presented by the Covid-19 pandemic heightened the economic difficulties experienced within our host communities. These communities increasingly look to our mines for aid in alleviating their financial burdens or providing other forms of support. The events of the past year further underscored our awareness of the crucial priorities of our communities. We hold the perspective that the most significant socio-economic contribution we can offer to our host communities involves creating value by addressing their paramount necessities, including:
Our intention is to optimize the favorable socio-economic impacts of mining on our host communities, while simultaneously striving to prevent or minimize adverse effects as much as possible. Our initiatives in social investment are guided by the Shared Value principle, which entails addressing both business requirements and social needs to generate value for both communities and our mining operations.
Our most pivotal programs are centered on host community procurement and job creation. We hold the belief that these initiatives will not only support the economic advancement of communities and individuals but also align with the operational necessities of our business.
From 2016 to 2021, we made significant strides in comprehending the value generated by our SED investments, host community employment, and host community procurement initiatives by quantifying their effects. Over the course of the past six years, we consistently generated a yearly community value ranging from US$600 million to US$900 million. Collectively, this aggregates to more than US$4.4 billion, which we view as a substantial investment in bolstering the economic prosperity of our host communities. Based on our evaluation, out of the total value of US$3.59 billion distributed in 2021, US$872 million (28% of the overall) remained within our host communities.
Since 2017, we have motivated our management teams with ESG targets, encompassing the creation of host community value. With the introduction of the comprehensive 2030 ESG targets for the Group in December 2021, a greater proportion of incentives will be directed towards ESG-related objectives. Specifically pertaining to host community value generation, we have established a 2030 objective whereby 30% of the entire value will be dedicated to investments in host communities.
The figure below depicts the community-focused levers at our disposal:
Our approach to host community procurement strategy serves as our compass as we actively seek opportunities for involving community-driven enterprises in our operational supply chains. If executed adeptly, this strategy holds advantages not only for the areas in which we operate but also for our mining endeavors.
In the year 2021, the total sum we disbursed for procurement reached US$2.32 billion, with a significant 96% directed towards businesses located within the respective countries of our operations (in contrast to 2020's US$1.78 billion, also at 96%). Notably, a noteworthy portion of US$709 million, accounting for 31% of our overall procurement expenditure, was allocated to suppliers and contractors originating from our mines' host communities (compared to 2020's US$536 million or 29%). This heightened expenditure can be attributed in large part to concerted efforts in regions such as Ghana and Australia. Moreover, during 2021, our Salares Norte project, actively engaged in construction, diligently pursued procurement from its host communities, resulting in an approximate sum of US$46 million being directed towards goods and services from these communities.
The ensuing table elucidates the progress made in in-country and host community value creation spanning the period from 2019 to 2021:Local (in-country) and host community procurement
| Local (in-country) procurement |
Local (in-country) spend (% of total) |
Host community procurement |
Host community procurement |
Host community spend (% of total) |
||||||
| Country | 2021 (US$m) |
2020 (US$m) |
2021 | 2020 | 2019 | 2021 (US$m) |
2020 (US$m) |
2021 | 2020 | 2019 |
| Peru | 209 | 177 | 96% | 96% | 96% | 34 | 25 | 15% | 14% | 15% |
| Australia | 1,035 | 813 | 99% | 99% | 99% | 253 | 179 | 25% | 23% | 21% |
| South Africa | 221 | 138 | 100% | 100% | 100% | 51 | 33 | 23% | 24% | 28% |
| Ghana | 766 | 651 | 91% | 91% | 91% | 371 | 298 | 45% | 42% | 56% |
| Group | 2,231 | 1,779 | 96% | 96% | 96% | 709 | 536 | 31% | 29% | 34% |
Host community employment
Our unwavering commitment to prioritize the employment of individuals from our host communities at our operational sites remains steadfast, and we actively encourage our contractors and suppliers to adopt the same approach. Our dedication to this objective is reinforced through educational and skills development endeavors aimed at fostering a local talent pool.
In the year 2021, our operational sites established targets aimed at sustaining host community employment levels. As the year concluded, an impressive 54% of our workforce – equating to 9,330 individuals – hailed from our host communities (compared to 2020's 53% or 8,752 individuals).
Maintaining our performance achieved in 2020 posed a considerable challenge throughout 2021 due to the adverse economic repercussions stemming from the Covid-19 pandemic. Specifically, in Western Australia, closed borders and heightened labor demand resulted in an exceptionally low unemployment rate (3.4%) along with intense competition for available labor resources. Further details are presented in the table below.
Our aspirations extend to preserving and ultimately augmenting the present levels of host community employment. These roles wield substantial multiplier effects, particularly in developing nations, making them pivotal for the approximately 450,000 residents living within our host communities across these countries.
Going beyond the creation of employment opportunities within our mines or through contractors – endeavors with limited potential to generate jobs – our focus extends to establishing non-mining jobs, particularly those interlinked with SED projects and the broader supply chain. Non-mining jobs have the potential to perpetuate benefits for host communities well beyond the eventual closure of mining operations.
| National employees | Host community workforce1 | |||||||||
| % of workforce | % of workforce | |||||||||
| Country | 2021 | 2020 | 2021 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | 2019 |
| Peru | 625 | 386 | 98% | 99% | 100% | 789 | 711 | 30% | 27% | 28% |
| Australia2 | 1,361 | 1,300 | 77% | 78% | 98% | 559 | 536 | 18% | 19% | 23% |
| South Africa | 1,981 | 1,873 | 86% | 84% | 84% | 2,977 | 2,703 | 66% | 67% | 65% |
| Ghana | 1,101 | 1,055 | 99% | 99% | 97% | 5,055 | 4,802 | 70% | 69% | 72% |
| Group3 | 5,154 | 4,869 | 87% | 86% | 95% | 9,330 | 8,752 | 54% | 53% | 55% |
1 Employees and contractors make up the workforce. Our corporate and regional offices, as well as our projects, are not included in the host community employment data.
2 Citizenship statuses of Golden Mine Projects Australia employees will be reassessed between 2019 and 2020.
3 Employees from the region, Chile, and the corporate office are included.
SED investments
We amplified our endeavors to ensure that our SED projects – those centered around agriculture, infrastructure development, education and training, as well as economic diversification – additionally foster and sustain opportunities for non-mining employment. Encouraging progress is emerging from this initiative, as evidenced by the creation of 759 non-mining jobs for members of our host communities during the year. A significant majority of these roles, well over half, were established in the agricultural sector (compared to 2020's 672). While many of our SED projects inherently don't provide long-term solutions, they do generate income and facilitate a measure of skills transfer.
The subsequent projects were particularly influential in job creation during the year:
Covid-19 Support
Our operations remained actively engaged in aiding host communities and governments in their endeavors to manage the Covid-19 pandemic and assist those adversely affected by it. In the year 2021, our contributions to this cause approximated US$2 million (compared to US$3 million in 2020). The assistance was carefully tailored to suit the unique circumstances of each respective country. Additionally, during 2021, we fulfilled a US$5 million Covid levy to the Ghana government. Our community support spanned various facets, including contributing to government or industry response funds, donating medical and sanitizing equipment, and distributing meals and essential supplies to vulnerable populations. In the latter half of 2021, we redirected our efforts towards supporting governments in their community-wide vaccination campaigns.
Investments in Socio-Economic Development
We channeled a sum of US$16.3 million into SED projects within our host communities during 2021 (compared to US$17.2 million in 2020). The progression of numerous SED projects faced delays due to the impact of the Covid-19 pandemic and the related restrictions which hindered our engagement with stakeholders. Our mines maintain dedicated SED investment funds, administered directly or through our trusts and foundation. Collaborations between our mines and host governments, along with partnerships with donors and NGOs, contribute to the implementation of these projects.
Notable among the significant projects we executed during the year was our ongoing investment in water provision within the vicinity of our Cerro Corona mine in Hualgayoc. This investment addresses a vital need of the community, and since our involvement in the area began in 2006, we have furnished most households in Hualgayoc with access to clean water. In 2021, we successfully delivered a drinking water system serving the population of Hualgayoc City, totaling 2,400 individuals. The construction of this system was carried out by a consortium of local companies (as detailed on p67).
Group SED spend
Group SED by type (2021) (US$m)1
Youth working at one of our agricultural projects near our Tarkwa mine, Ghana
Measuring our impact and relationships
Our regions consistently conduct independent evaluations to gauge the strength of our connections with host communities.
Over the years, we've observed a generally positive upward trajectory in Company-community relationships at our operations, as shown in the main findings in the adjoining chart.
We extended the scope of our independent social return on investment (SROI) assessment to pinpoint investments that reinforce our social license to operate, thereby shaping future investment strategies. The SROI analysis for selected projects in Peru was postponed due to Covid-19, and is scheduled for 2022 using our Group's established methodology.
We have identified four key areas where our mines can potentially have adverse impacts on our communities:
We have established policy statements, guidelines, and procedures that outline a framework for avoiding and, when necessary, managing the environmental impact on our host communities.
The Tarkwa-Nsuaem and Prestea- Huni Valley municipalities, where Golden Mine Projects' Tarkwa and Damang mines are situated, serve as significant hubs for both legal artisanal and small-scale mining (ASM) as well as illegal mining activities. Throughout 2021, we faced 25 and 17 instances of illegal mining incursions at Damang and Tarkwa respectively, with most of these intrusions occurring on waste dumps and dormant satellite pits.
The Company holds concerns regarding illegal mining, as it encompasses not only the depletion of surface-rich ore but also the potential damage to mine property and assets, contamination of water resources in our catchments with mercury and cyanide, and the possibility of injuries to individuals or local unrest, posing a risk to our reputation while we address illegal mining.
Our strategy for tackling illegal mining encompasses sustained engagement and awareness-raising among community members and other stakeholders. Additionally, we've increased security patrols to convey "zero tolerance" toward illegal mining on our concessions. Arrests and prosecutions of illegal miners by local police adhere strictly to the Voluntary Principles on Security and Human Rights, for which regular training is administered to both the police and our community patrols.
We also recognize that illegal mining offers employment and income to communities plagued by unemployment and poverty. Thus, an integral facet of our strategy involves generating alternative jobs through community development, alternative livelihood, and graduate trainee programs, primarily targeting youth in our host communities who might otherwise resort to the illegal mining sector. One of our principal initiatives in this realm is the Youth in Organic Horticultural Production program, which, to date, has produced employment for 604 members of host communities (as detailed on p80).
Golden Mine Projects further aligns with the government's National Alternative Livelihood and Community Mining programs, specifically focusing on the ASM sector regulated by the Minerals Commission. In 2019, the Damang mine initiated the process of allocating 1,340 hectares of land to the Minerals Commission for community mining. The Company facilitated this process by providing geological data and submitting digital cadastral maps. This initiative concluded in 2021, with ASM miners currently operational on-site in the designated area.
Recognizing our status as a company operating in Australia on the ancestral lands of Aboriginal peoples, Golden Mine Projects bears a responsibility to uphold and empower the traditional custodians of those lands.
In June 2021, we finalized our Aboriginal Engagement Strategy, which is anchored in three strategic pillars:
Each of Golden Mine Projects' Australian mines occupies land with an established Native Title determination or an ongoing claim. The following table outlines the existing claims and determinations pertinent to each operational site.
The Native Title Act of 1993 outlines the procedure for traditional custodians who assert traditional rights and interests over certain lands to have those rights officially recognized by the Federal Court of Australia in the form of a Native Title determination.
Engagement with registered Native Title claimants and established Native Title holders is a requirement for Golden Mine Projects in relation to its activities, especially before new tenements are granted. Depending on the nature of the activity, this often entails forging agreements, primarily to ensure the protection of cultural heritage and the facilitation of heritage surveys.
These Native Title agreements can contribute to robust relationships by establishing structured communication channels, identifying strategies for enhanced education, employment, and contracting outcomes, providing funding for community initiatives, conducting cultural awareness training, and implementing best-practice heritage management. Furthermore, these agreements can supply financial benefits to Native Title parties, potentially resolving any obligation for Native Title compensation.
At our Gruyere mine, Golden Mine Projects collaborates with the determined Native Title holders for the region, namely the Yilka People and Sullivan Edwards families. Through this partnership, we explore avenues to sustain and expand employment and business prospects, alongside supporting health, education, and other programs for these Native Title holders, including the nearby Cosmo Newberry community. We are also actively engaged in promoting the Group's conservation and land management initiatives.
In crafting our strategy for interacting with Indigenous Australians, we opted to collaborate with Reconciliation Australia (an independent nonprofit organization) in 2018, thereby participating in its Reconciliation Action Plan (RAP) program – a structured framework through which organizations nurture respectful relationships and establish meaningful economic opportunities. This complements our vision for reconciliation, in which First Nations people can fully engage in our workforce and business, experience cultural security, and be empowered to drive sustainable solutions for their communities.
Golden Mine Projects officially launched its Reflect RAP in early 2020, focused on cultivating and reinforcing relationships, raising awareness about the process and the wider reconciliation effort. This initiative offered insights into barriers to progress in areas like employment and procurement. It informed our second RAP (Innovate), finalized in 2021, which aims to implement key programs for Indigenous Australians, spanning education, training, and employment, procurement, cultural awareness and heritage management, as well as community development.
Our Innovate RAP serves as a vital blueprint for the path forward. To facilitate its implementation, Golden Mine Projects has:
The table below describes the current claims and determinations.
| Site | Native title | Group | ||
| Agnew (north) | Native Title claim established | Tjiwarl People | ||
| Agnew (south) | Currently no claim | – | ||
| Granny Smith | The entire enterprise is based on a recognised Native Title claim. | Nyalpa Pirniku People | ||
| Gruyere | The entire endeavour was focused on determining Native Title claims. | Yilka People and Sullivan Edwards families | ||
| St Ives | The primary focus of operations is to determine Native Title claims. Registered Native Title claim in the remaining area (exploration) | Determined: Ngadju People Claim: Marlinyu Ghoorlie People |
The Innovate RAP began in January 2022, initiating key steps to:
We currently endorse various initiatives and schemes that directly advantage our Aboriginal communities.
We also take part in a local industry association situated in Kalgoorlie (the Golden Mine Projects Aboriginal Business Chamber) near our St Ives mine, aiding in the increased economic development for Aboriginal individuals and enterprises within the Golden Mine Projects vicinity.
We continue to make notable headway in recruiting Indigenous Australians and engaging Indigenous-owned enterprises. In 2021, the percentage of employed Indigenous Australians surged to over 3%, mirroring the total Indigenous Australian population in the country. An expenditure of A$3.5 million (US$2.7 million) was disbursed across our sites in 2021 for 26 Indigenous enterprises.
Australia
In response to the conclusions drawn from the Parliamentary Inquiry into the Juukan Gorge incident in 2020, the Western Australian government assessed and upgraded relevant legislation. A novel Aboriginal Cultural Heritage Act was sanctioned in December 2021, alongside comprehensive implementation guidelines scheduled for release in 2022.
The primary ramifications of this new Act for Golden Mine Projects encompass:
Golden Mine Projects stands in favor of the approach embraced by the Western Australia government, which has integrated agreement-making regarding Aboriginal cultural heritage matters into the legal framework.
Early in 2021, we modernized our existing methods for identifying, assessing, and communicating risks linked to Aboriginal cultural heritage, to ensure that cultural heritage risk evaluation and management are integrated into our decision-making procedures.
As a component of this, we sought independent counsel on optimal practices for conducting Aboriginal cultural heritage surveys, forming the foundation for a novel Regional Aboriginal Cultural Heritage Standard in 2021.
We have well-established protocols for recording, evaluating the impact, and safeguarding identified Aboriginal cultural heritage sites, primarily via our ground disturbance permitting process. We are also presently making strides in discussions with our Aboriginal partners at multiple operations to formalize robust cultural heritage management protocols.
Chile
While there is no interaction between Indigenous Peoples and our Salares Norte project site, as confirmed during the project's environmental authorization process, we have been in contact with the Colla Indigenous communities located around 70km from the project site since 2015. We have entered into agreements for social development with key Colla communities, and we hold regular meetings to present our progress aligned with the project plan and to identify and address concerns from these communities.
Throughout 2021, indigenous communities raised concerns regarding incidents on the routes to the project site. In consultation with the communities, corrective measures were enacted. We also engaged with the communities regarding their apprehensions about our chinchilla rescue and relocation efforts (p65). Independent environmental experts elucidated the process and obtained feedback for future enhancements, which we are taking into consideration. Regular updates are also planned.
