Local Economic Impact
Goldcorp contributes to the economic development and wealth of host communities and countries through royalties and taxes paid directly to governments, as well as through:
- Wages and salaries paid to employees and contractors
- Job creation through the expansion of existing projects and new growth projects
- Payments to suppliers for goods and services
- Indirect job creation and small-business development in surrounding communities and towns
- Upgrades to local infrastructure
- Financial support for community development
- Direct voluntary royalty payments to local communities.
All of our operations have an impact on their local and regional economies. Therefore, we have not attempted to identify particular sites that may have a greater or lesser impact. We have defined our areas of influence as:
- Local: those communities immediately surrounding the mine
- Regional: the broader area surrounding the mine, often equating to a state or province, and usually including one or more large population centres
- National: the country in which the mine is located
- International: all countries other than the host country.
Goldcorp recognizes that we have the ability to impact local economies around our sites in a positive way. Through local hiring and procurement, we actively seek to extend the economic and social benefits of our operations beyond the mine boundary. We are in the process of developing policies and procedures that will help implement this goal. We have a number of site-specific programs already in place, such as the support for trade schools in Mexico and Argentina, which will contribute to a strong local skilled labour force.
We routinely pay entry-level wages that are significantly higher than those in the local community. This is particularly true for our mines located in areas that have a largely rural economy, but is also true (although to a lesser extent) in many Canadian and US locations.
The World Bank produces annual tables for gross national income per capita by country. Their most recent publication was per capita income for 2012. The table below compares the average wage per employee paid by Goldcorp in 2013 in our principal countries of interest, beside the respective World Bank national per capita income for 2012.
|Country||Goldcorp average wage (2013)||National income per capita (2013)1||Multiple|
We have also collected data on the ratio between the standard entry-level wages at our operations compared to local minimum wages. An entry-level wage is the full-time wage offered to an employee in the lowest employment category and minimum wage refers to the lowest level of compensation allowable under law.
The lowest ratio by site at our operations in 2013 is approximately equal to the local wage, and the highest ratio by site is 3.2 times the local wage, with a mean of 2.4.
|Operating region||2013 wage ratio2||2012 wage ratio2||2011 wage ratio2|
|Canada and US||2.4||2.5||2.3|
|Central and South America||1.9||1.6||1.1|
We give preference to local businesses wherever possible, provided they meet minimum safety, quality and cost requirements. However, we are always conscious of the potential distortion that our purchasing policy can have on local economies and we take care to keep unwanted impacts to a minimum.
In 2013, 42% of goods and services were purchased from local and regional sources3. This amount is a slight increase from what was reported in 2012. High-cost capital equipment (including trucks, shovels, mills and processing equipment) and most bulk reagents cannot be sourced locally. These major expenditures are reflected in the national and international percentages shown in the graph. The table below shows the percentage of goods and services purchased at the regional, national and international levels by operating region.
|Operating region||Purchase of goods and services (%)|
|Canada and US||61%||68%||70%||38%||30%||29%||1%||1%||2%|
|Central and South America||5%||4%||6%||77%||76%||69%||18%||19%||25%|
Goldcorp has a policy of hiring locally. Where particular skills and experience are not available locally or regionally, we will target national and international labour markets. We routinely train unskilled local recruits in a range of mine-related work categories and we provide apprenticeships and technical training support for a range of other employment opportunities. In 2013, 90% of employees were drawn from local and regional sources (an approximately 9% increase since 2012), with only 1% recruited internationally. The table below shows these percentages broken down by operating region.
|Operating region||Employees (%)|
|Canada and US||76%||74%||71%||20%||21%||25%||4%||4%||4%||0%||0%||0%|
|Central and South America||66%||65%||62%||10%||11%||12%||21%||20%||23%||3%||4%||4%|
Goldcorp employs a total of 107 senior managers (department head or above) at our operating sites. Of these, 83 (78%) are resident nationals of the country in which the mine is located (94% in 2012 and 91% in 2011).
For every employee Goldcorp pays employment taxes, which are an indication of the direct benefit brought to public finances for each job created or maintained by Goldcorp in the country where we operate.
Indirect Economic Impacts
As one of our Corporate Social Responsibility goals, we want to strengthen the breadth and depth of the local economy. Our programs vary, based on local resources, skills, traditions and many other factors, and we have achieved real successes. Our funding and support have helped establish a variety of locally owned small and medium-sized businesses. We share our equipment, administrative assistance and expertise to develop the capacity of local entrepreneurs. We facilitate workshops and programs in many communities to preserve and generate income from local traditions and skills.
We have not attempted to estimate the indirect economic benefits that flow to local and regional communities from our operations and development activities. The impact on regional economic activity will vary depending on local circumstances, but the potential economic stimulus is large.
We routinely contribute to the construction and maintenance of local infrastructure and services. The main areas of investment are education, health, local services (e.g., water supply, power, etc.) and roads.
1 World Bank (2013). Gross National Income per Capita 2011. The World Bank did not provide any data specific to Argentina, instead estimated it to be upper middle income of $4,036 to $12,475.
2 Based on an entry-level wage for an unskilled male worker.
3 In some cases, where a clear distinction cannot be made between local and regional, these areas of influence have been combined as regional.