Sustainable Benefits for Communities
We contribute to the economic development of host communities and countries through a variety of methods. We recognize that we have the ability to impact and influence the local and regional economies around our sites. This is why we are working to create sustainable value – long-term social and economic benefits that do not leave a legacy of dependence. Our approach is multifaceted, embedded in our new CSR strategy, and incorporates: local hiring and procurement initiatives, including training, capacity building; direct community contributions through donations and investments; and infrastructure investment. We also contribute through the payment of taxes and royalties to various levels of government in the communities and regions where we operate.
In accordance with our SEMS, all Goldcorp sites seek to hire local employees to fill job openings when possible. Our human resources teams create and implement local hiring strategies with support and engagement from community relations. We routinely train skilled and unskilled local recruits in a range of mine-related work and we provide apprenticeships and technical training support for a range of other employment opportunities. Where particular skills and experience are not available locally or regionally, we will target national and international labour markets.
In 2015, 76% of employees were drawn locally and regionally, with only 22% recruited nationally and 2% recruited internationally.
Due to different Goldcorp assets progressing through the mining lifecycle, annual local employment decreased in 2015 compared to 2014. Completion of construction of our Cerro Negro and Éléonore mines as well as the closure of El Sauzal contributed to this decrease.
We employ a total of 97 senior managers (department head or above) at our operating sites. Of these, 91% are nationals of the country in which the mine is located.
We routinely pay entry-level wages that are significantly higher than those in the local community. In 2015, we paid an average annual wage of approximately $62,656.4 Typically, wherever we operate, we pay an average entry-level wage 2.4 times more than the local minimum wage.
Income per Capita and Average Annual Wage5 (US$)
|Country||Income per capita ($)6||Average annual wages
per employee ($)
In sourcing the goods and services necessary to run our operations, where possible we give preference to local businesses, provided they meet minimum safety, quality, ethical, and cost requirements. The SEMS directs our sites to create strategies for local procurement while our Commercial Practices7 policies and procedures provide additional sustainability considerations and help us manage supply chain risk.
In 2015, 91% of goods and services were purchased from regional and national sources, accounting for more than $1 billion of spending. The table below shows the percentage of goods and services purchased at the regional, national and international levels by operating region.
Purchase of Goods and Services By Operating Region (%)
Contributions to and from Government
We make a very sizable contribution to public finances in the countries in which we operate. While corporate income tax and mining taxes vary with mineral prices and profitability, and can be volatile from year to year, many of the other taxes paid by Goldcorp are fixed in nature and do not fall as profits decrease. In 2015, we paid approximately $101 million in income taxes. Further information regarding taxes and payments to government is available in our Management’s Discussion and Analysis (MD&A) for the year ended December 31, 2015.
In support of our commitment to acting ethically and to fulfilling external reporting requirements, including Canada’s Extractive Sector Transparency Measures Act (ESTMA), Québec’s Bill No. 55, An Act Respecting Transparency Measures in the Mining, Oil and Gas Industries and section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), we have created a new global Government Payments and Contributions Policy. This new policy dictates how we identify, approve and report on payments and contributions made to government entities and/or government officials ("government payees") globally. This policy covers both “routine” and “non-routine” payments and contributions to government.8
We actively support the objectives of the Extractive Industries Transparency Initiative (EITI), the International Council on Mining and Metals (ICMM), the Global Reporting Initiative (GRI), the United Nations Global Compact (UNGC), and the World Gold Council (WGC), among other initiatives that support transparency in payments to government. In 2015, Goldcorp created an internal working group to provide feedback to Natural Resources Canada on the implementation of the ESTMA. We have begun to set up internal processes and systems to meet the 2017 ESTMA disclosure requirements.
Goldcorp has mining operations in Canada, Mexico, Guatemala, Argentina and the Dominican Republic. Of these countries, Guatemala has adopted the EITI. Montana Exploradora de Guatemala, S. A., a subsidiary of Goldcorp, operates the Marlin mine in Guatemala, which was designated an EITI-compliant country in 2015. We continue to record payments according to the EITI standards and reporting country requirements and are engaging directly with EITI in Guatemala and are one of the industry representatives on the EITI National Working Group in Guatemala. Learn more about our commitment to the EITI by clicking here.
Government Financial Assistance
Government financial assistance includes grants, subsidies, or rebates received from governments. In 2015, we received $11.1 million in rebates9 from Ontario’s Northern Industrial Electricity Rate Program (NIER), which assists Northern Ontario’s largest industrial electricity consumers to reduce energy costs, sustain jobs and maintain global competitiveness. This program is part of the Ontario government's plan to strengthen the economy and support a dynamic and innovative business climate that attracts investment and helps create jobs. We do not have any direct joint venture relationship in which any government holds a position of shared ownership. However, we do on occasion have state-owned institutional investors (for example, public pension funds).
Our economic impacts extend beyond taxes, procurement and hiring, and also include community contributions. Total community contributions amounted to approximately $27 million in 2015.10
Donations and Community Investments in 201511
|Health||The health and well-being of the communities around our operations continues to be a key priority. We support local sports and recreation programs, medical research and infrastructure, local hospital foundations, and health and sanitation awareness campaigns.||$2.2 million||We contributed $605,000 to support the Heart and Stroke Foundation’s awareness initiatives across Canada to reduce death and disability from stroke in remote and northern communities.|
|Education||Educational programs and initiatives support childhood, youth and adult development in the communities where we operate.||$2.5 million||We contributed $420,000 towards a new Industrial Mechanics program at Alto del Carmen Technical High School, launched in July 2015. The course is open to 15,000 young people across northern Chile, with 80 students projected to graduate by 2018.|
|Community development||Community development donations and investments promote sustainable value beyond the mine life and create a vibrant local culture.||$12.1 million||We contributed over $160,000 to support the Aboriginal Mining and Skilled Trades Entry Project (AMSTEP) near our Musselwhite mine in Canada. AMSTEP is a partnership between Oshki-Pimache-O-Win Education and Training Institute (OSHKI) and Goldcorp to provide career skills to Aboriginal youth.|
|Arts and culture||Arts and culture help strengthen the cultures and diversity of communities while preserving heritage and promoting traditions.||$0.8 million||We donated $500,000 to the Arts Club Theatre Company and Bard of the Beach Shakespeare Festival in Vancouver, which was used towards the construction of a new facility that will enable both organizations to better serve the community.|
|Infrastructure||We support local development through infrastructure projects, which provide a shared benefit to the operation and the community.||$3.9 million||We supported the refurbishment of a hospital in Perito Moreno, Argentina, by providing US$470,500 in infrastructure and equipment funding, plus a US$3,800 monthly top-up fund over one year. This enabled the hospital to upgrade its operating room, obtain equipment for performing emergency surgeries, and expand services to serve neighbouring communities up to 60 kilometres away.|
|Other||This includes support to disaster relief, environmental investments and other miscellaneous initiatives.||$5.3 million||Éléonore mine collaborated with FaunENord and local school children to participate in a carbon-offset project involving mature tree planting and the creation of green islands in Chibougamau, Québec.|