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 
Government and public policy
The host governments, responsible for issuing mining licenses, setting policies, and enforcing regulations, hold a crucial role in Golden Mine Projects. Adhering to relevant laws, including tax payments, is paramount. We are dedicated to building strong and transparent relationships with governments at various levels (national, regional, local) to benefit both the countries we operate in and our host communities. This commitment became especially important during the Covid-19 pandemic, as our mining operations actively aided governments in managing the crisis.
Golden Mine Projects strictly follows its Code of Conduct and only contributes financially to political parties if approved by the Board of Directors. No political donations were made in 2021.
The company's tax strategy focuses on responsibly managing tax obligations while considering the interests of stakeholders.
In challenging economic times, many governments see the mining industry as a lucrative source of increased taxes and regulations. The Covid-19 crisis exacerbated this, as countries faced reduced tax revenues while metal prices, including gold, rose. To bridge the trust gap between the mining industry and governments, Golden Mine Projects takes several steps, including:
Regular independent resource nationalism assessments provide insights into enhancing trust with governments and communities. The suggested measures align with ongoing strategies, such as better government engagement, community value creation, and effective communication about mining's socio-economic advantages.
The Covid-19 pandemic prompted closer cooperation with governments. As governments grappled with reduced tax income, workforce and community education, and vaccination campaigns, Golden Mine Projects found common ground. The company and other miners supported governments by offering facilities, health resources, and funding. In 2021, our mines donated over US$2m (compared to US$3m in 2020) in medical supplies and goods to communities and governments. In the latter part of 2021, many of our mines aided local governments in vaccinating our host communities.
Payments to governments by Golden Mine Projects in 2021 (US$m)
| South Deep | Ghana | Peru | Australia | |
| Royalties | 3 | 54 | 6 | 46 |
| Income tax | – | 194 | 56 | 160 |
| Dividends1 | – | 47 | – | – |
| Dividend withholding tax | – | 24 | 3 | – |
| Total | 3 | 319 | 65 | 206 |
| % of profit before tax and royalties | 2 | 53 | 56 | 28 |
Our involvement in Peru centers on addressing operational, social, and sustainability matters at various government levels – local, regional, and national.
In July 2021, Pedro Castillo, a left-leaning figure, assumed the role of Peru's President for the next five years. The new leadership's selections for the Central Bank and Ministry of Economy indicate the intention to maintain macroeconomic stability. Nevertheless, Castillo's presidency has been marked by political instability and frequent changes in key cabinet positions.
In the mining sector, efforts to modify the regulatory and tax framework faced obstacles due to strong opposition from both congress and segments of civil society. Our involvement, primarily coordinated through the National Chamber of Mines, Oil, and Energy (SNMPE), is especially focused on regulatory issues.
We maintain positive relationships with pertinent public bodies across government levels – national and subnational. The foremost challenge is the heightened turnover of public officials at the national level due to political turbulence, a situation we are closely monitoring. President Castillo's election and his administration's declarations created high expectations among mining communities, leading to escalated conflicts mainly in southern Peru. However, these tensions have not significantly impacted the Cajamarca province, home to our Cerro Corona mine.
We persist in fostering trust between Cerro Corona and local communities through ongoing stakeholder engagement and Shared Value initiatives, including the implementation of comprehensive water infrastructure and other projects. Our response to the Covid-19 pandemic in the Cajamarca region during 2020 and 2021 allowed us to engage with communities, with positive results reflected in independent relationship assessment studies. Extending Cerro Corona's operation until 2030 will facilitate more extensive long-term community investment strategies.
In Chile, the majority of political and social stakeholders embraced our choice to advance with constructing the Salares Norte mine in the northern region. Despite challenges from a low-investment context affected by Covid-19, Salares Norte stood as one of Chile's major investment ventures during 2020 and 2021, positioned by the government as a key contributor to economic recovery in the Atacama region. The project is guided by a stability agreement with the Chilean government.
In 2021, our commitments in Chile were concentrated on supporting communities in partnership with regional and local authorities to assess the economic and social repercussions of the pandemic. This period also encompassed the meticulous execution of a permitting plan for Salares Norte. We secured all the necessary permits for the mine's construction as planned, without any delays.
The political situation in the nation heightened uncertainties surrounding the mining sector's regulatory framework on two fronts. Firstly, left-leaning Gabriel Boric secured the presidency and assumed office on March 11, 2022. His government's ability to enact its agenda will be constrained as negotiations and alliances must be established in the senate, where his party lacks a majority. President Boric appointed a respected economist as Finance Minister, indicating a continuation of macroeconomic stability.
Secondly, Chile is in the process of crafting a new constitution, with preliminary proposals hinting at a more rigorous regulatory framework for the mining sector. However, a considerable journey remains before a final constitution draft is agreed upon and subjected to a popular vote scheduled for September 2022. In the meantime, the construction of Salares Norte will proceed as intended, with operations anticipated to commence in Q1 2023.
As lawmakers shape the new constitution, we advocate for consideration of the merits of responsible mining. We highlight how a well-governed sector, featuring stable regulations and a competitive tax structure, can yield sustainable socio-economic advantages for all stakeholders within the nation.
The existing Labor Government in Western Australia (WA) significantly enlarged its majority in the state elections held in March 2021. While issues of public health and the economy stemming from the pandemic took center stage in the political agenda throughout 2021 and into 2022, the government also made advancements on critical legislative reforms initiated during its initial term.
The roll-out of the fresh Work Health and Safety (WHS) Act, replacing the current dual systems for general workplaces and mine sites, was postponed to early 2022. This Act fulfills important campaign pledges to simplify health and safety regulations across all sectors, emphasizes mental health and worker well-being, and introduces more substantial penalties for companies and officers who violate the Act's responsibilities.
Following a series of concerning media reports regarding sexual assaults and harassment against women employed in the WA mining sector, the WA parliament declared a bipartisan inquiry into the matter in 2021. This inquiry garnered input from numerous affected individuals, mining companies, the Chamber of Minerals and Energy (CME), as well as the state government. Although the findings from the inquiry are not anticipated before at least May 2022, it is expected that the new WHS Act will be employed to manage this matter more closely due to its significant physical and psychological safety implications. Golden Mine Projects actively participates in the CME's Safe and Respectful Behaviours working group and engages with the government on this issue independently.
Following intense scrutiny of the WA Aboriginal Heritage Act subsequent to the Juukan Gorge incident in 2020, the state government ratified the Aboriginal Cultural Heritage Act in late 2021, which will entirely supplant the prevailing legislative framework. This new legislation fundamentally alters the approach to Aboriginal cultural heritage management, introducing a risk-based strategy involving engagement, consultation, and approvals for activities with potential to harm cultural heritage values. The scope of violations and associated penalties also considerably broadened. The WA government is expected to undertake a 12 to 18-month collaborative process to design the supporting regulations and codes of practice for the new Act, after which implementation will occur. We actively contribute to this consultation through the CME.
Golden Mine Projects' investments in Ghana are governed by the 2016 Development Agreement (DA) with the government, encompassing both the Tarkwa and Damang mines. Under this agreement, Golden Mine Projects is obligated to invest US$500 million in each mine over an 11-year period for Tarkwa and nine years for Damang. The DA also entails a reduction in the corporate tax rate from 35% to 32.5%, along with a royalty tax linked to the gold price on a sliding scale. Moreover, the government retains a 10% interest in the entities overseeing the Tarkwa, Damang, and Asanko mines.
Since 2018, we have directed US$340 million towards Damang, underscoring our confidence in Ghana's fiscal and regulatory structure. The DA solidified our role as a major contributor to the country's revenue. In 2021, our contribution to national development amounted to US$319 million in the form of taxes, royalties, and dividends.
In 2021, President Nana Addo Dankwa Akufo-Addo's government secured another four-year term following a narrow victory in the late 2020 elections. The government generally pursues steady, market-friendly policies, positioning Ghana as a prominent mining destination in Africa.
In response to an economic downturn caused by the Covid-19 pandemic, the government enacted several regulations affecting Golden Mine Projects and other mining firms. These measures encompass:
Furthermore, we are actively engaged with the government through the Ghana Chamber of Mines to discuss the sale of a portion of gold produced in Ghana to a local refinery for value-addition purposes. While the Chamber agrees to members selling a share of their production to the refinery, discussions revolve around ensuring this step doesn't adversely affect the mining industry and impose additional costs on individual companies.
Regarding regulations, the Mineral and Petroleum Resources Development Act, 38 of 2002 (MPRDA), primarily guides operations at Golden Mine Projects' South Deep mine. A significant requirement of the MPRDA, which Golden Mine Projects fully endorses, is to enable meaningful participation of Historically Disadvantaged South Africans (HDSAs) in the mining sector.
To provide direction for this broad mandate, the Mining Charter outlines various empowerment initiatives and community investment programs with corresponding timeframes. All mining rights holders must annually report on compliance progress against Charter targets. Golden Mine Projects remains committed to adhering to this process.
In September 2018, the Department of Mineral Resources and Energy (DMRE) introduced Mining Charter 3 (MC3). The Minerals Council South Africa (MCSA), representing the industry, views most aspects of the Charter as a framework that fosters industry growth and empowerment. Nonetheless, there were critical concerns raised by Golden Mine Projects and the industry. Specifically, the Charter does not fully acknowledge the Black Economic Empowerment (BEE) ownership credentials of previous BEE transactions.
In March 2019, the MCSA filed for a judicial review and the nullification of specific Charter clauses. A Supreme Court ruling in September 2021 upheld the MCSA's objections, an outcome accepted by the DMRE.
This ruling effectively validates South Deep's existing BEE ownership level at 35%, which we believe aligns with the principles and intent of the Mining Charter, setting the groundwork for South Deep's ongoing transformation.
Mining Charter Assessment
The Mineral and Petroleum Resources Development Act (MPRDA) mandates the submission of five-year cyclic Social and Labour Plans (SLP) as a prerequisite for mining rights approval. South Deep's Mining Right was granted in 2010, and it is currently in the third SLP cycle. A new SLP is scheduled for completion by the end of 2022, awaiting DMRE approval.
Over the past two years, executing South Deep's Mining Charter and SLP commitments faced substantial challenges due to the Covid-19 pandemic. Despite this, we have managed to remain largely on track in fulfilling our commitments. This accomplishment was facilitated by effective stakeholder relationships, including organized labor, communities, and relevant government departments.
Covid-19 not only exacerbated existing social issues, such as food insecurity, but also underscored the role businesses must play in communities. South Deep collaborated with stakeholders to provide support, including distributing protective equipment and implementing food security relief initiatives in kindergartens and primary schools. In Q4 2021, the mine was designated as a vaccination site, enabling us to administer vaccines to employees, their families, and the surrounding community. Monetary donations for Covid-19 relief totaled R156 million (US$10 million) during 2020 and 2021.
In 2021, we allocated over R14 million (US$1 million) for community socio-economic development projects, focusing on education, training, infrastructure, healthcare, and water and sanitation. An additional R14 million was directed through the South Deep education and community trusts. Expenditure on skills development in 2021 reached R44 million (US$3 million).
Recently, South Deep initiated a People With Disabilities (PWD) learnership agreement with an independent service provider, resulting in 82 learnerships. This effort raised PWD representation at the mine to 3.3%.
| Year (2020) target1 | ||||||||
| Element | Description | Compliance target | Five-year implementation plan requirement | Target | Golden Mine Projects target |
Measure | Year (2020) progress1 | |
| Ownership | Representation of HDPs | 26% | Meaningful | 35% | ||||
| Full shareholder | ||||||||
| Inclusive procurement | Inclusive procurement | South African manufactured goods must account for 70% of mining goods procurement spend (60% local value equals South African manufactured goods). | Yes | 10% (local content verification not required for years 1-3) | 20% | The whole mining goods procurement budget must be spent on South African manufactured goods produced by the following categories, as a proportion of the total budget: | ||
| HDSA-owned and controlled company 21% | 40% | |||||||
| 5% on women- or youth-owned and managed businesses | 10% | |||||||
| 44% on BEE compliant company | 54% | |||||||
| 80% of service procurement cost must be spent with South African enterprises. | 70% | 80% | The whole services budget must be spent on services provided by the following categories, in the following percentages: | |||||
| 50% by HDPs | 69% | |||||||
| 15% by women-owned and controlled company | 26% | |||||||
| 5% by youth-owned and controlled company | 0% | |||||||
| 10% by BEE compliant company | 90% | |||||||
| Research and 90% development (R&D) | A minimum of 70% of the overall R&D budget must be spent on R&D firms domiciled in South Africa. | 100% (R409,552) |
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| Sample analysis across the mining value chain | Use South African facilities or firms to analyse 100% of all mineral samples. | 99.99% (40,241 samples) |
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| Employment equity | Board | % Black persons | Yes | 67% | 50% | 67% | ||
| % Black women | 33% | 20% | 33% | |||||
| Executive management | % Black persons | 67% | 50% | 67% | ||||
| % Black women | 33% | 20% | 33% | |||||
| Senior management | % Black persons | 47% | 60% | 32% | ||||
| % Black women | 12% | 25% | 5% | |||||
| Middle management | % Black persons | 64% | 60% | 62% | ||||
| % Black women | 25% | 25% | 17% | |||||
| Junior management | % Black persons | 67% | 70% | 71% | ||||
| % Black women | 18% | 30% | 16% | |||||
| Employees with disabilities | 1.5% of all employees | 1.3% | 1.5% | 0.6% | ||||
| Core and critical skills | HDPs are represented in the pool of core and critical abilities. | 77% | 60% | 79% | ||||
| Human resources development (HRD)2 | HRD spending as a percentage of total annual leviable amount (excluding of required skills development levy) | 5% leviable amount | Invest a percentage of the leviable amount, as stated in the HRD component, in proportion to the relevant demographics. | South Deep plans to invest 3% of its annual payroll in talent development projects by 2021. This expenditure was for training and development activities for personnel (permanent and contract) and residents of the South Deep host communities. Covid-19 caused a reduction in HRD spending. | ||||
| Mine community development (MCD) | Meaningful contribution to MCD with a focus on mine communities, both in terms of impact and in accordance with the criteria of the social licence to operate | 100% compliance with approved SLP MCD commitments | Yes | N/A | Publication of the SLP in two languages (dominant community language and English) is recommended. | Yes | ||
| Mine community development (MCD) | Implement all approved SLP obligations.3 | South Deep continued to work on the following projects in 2021, which are in varying states of completion:
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| Residential and habitation conditions2 | Enhancing the quality of housing and living conditions for mine employees | Full compliance with obligations outlined in the Residential and Habitation Conditions Standard (H&LCS) | Submission of a Housing and Living Conditions Plan by the mine, following Section 4 of the updated H&LCS for the mining sector. | Maintaining a one-to-one ratio of individuals to rooms | Execution of all commitments as per the H&LCS | The occupancy rate recorded for 2021 stood at 0.32. South Deep continues to enforce single occupancy per room, a practice consistently monitored. | ||
| BEE – Black Economic Empowerment |
| HDP – Historically Disadvantaged Person |
| H&LCS = Housing and Living Condition Standard |
| 1 | The column tracks the performance of the mining rights holder in relation to the Mining Charter scorecard targets. |
| 2 | The element has not been assured externally |
| 3 | Only the number of Community Development Commitments and their development are guaranteed from the outside. |
