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 and incorporates local hiring and procurement initiatives, including training and 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.

Local Employment

In accordance with our SEMS, all our sites seek to hire local employees to fill job openings wherever possible. Our human resources and community relations teams collaborate to create and implement local hiring strategies. We train skilled and unskilled local recruits in a range of mine-related work and we provide apprenticeships and technical training support for other employment opportunities.

One example of job skills training is the Aboriginal Mining and Skilled Trades Entry Project (AMSTEP) at our Musselwhite mine. AMSTEP is a five-month program designed to prepare Aboriginal peoples with the foundational skills and industry knowledge necessary to enter the mining industry. The first intake of students completed training in July 2016, closing with the graduation of 13 participants. The participants had the opportunity to job shadow in the areas of the trades, mill, warehouse, security, exploration, environment, culinary and housekeeping. Some graduates have been offered employment with us or our contractors while others have chosen to continue their education.

In 2016, 80% of employees were drawn locally and regionally, only 19% were recruited nationally and 1% was recruited internationally.

Employees (%)

Operating Region Local Regional National International
2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014

Canada and US

52%

59%

72%

36%

31%

21%

12%

10%

6%

0%

0%

0%

Latin America

47%

41%

49%

25%

28%

26%

28%

28%

23%

1%

2%

1%

Total

50%

47%

56%

30%

29%

25%

19%

22%

18%

1%

2%

1%

We employ a total of 99 senior managers (department head or above) at our operating sites. Of these, 88% 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 2016, we paid an average annual wage of approximately US$35,600.1

Income per Capita and Average Annual Wage2 (US$)

Country Income per capita ($)3 Average annual wages
per employee ($)

Canada

47,500

68,952

Mexico

9,710

21,532

Guatemala

3,590

19,071

Argentina

14,510

32,847

Local Procurement

The presence of our mining activities both attracts and creates business opportunities in the regions in which we operate. We preferentially engage and support local services at each of our operations, and work closely with local partners to help grow firms and increase their capacity. The SEMS directs our sites to create strategies for local procurement while our Commercial Practices, policies and procedures provide additional sustainability considerations and help us manage supply chain risk.

We support the development of individual businesses and have created several business development funds to support local entrepreneurs on projects that may or may not be directly related to our mine activities.

In 2016, 23% of goods and services were purchased from local sources, accounting for more than US$600 million of spending. The graphic below summarizes some of the examples of the goods and services we procure from the local communities near our mines.

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 we pay are fixed in nature and do not fall as profits decrease. In 2016, we paid approximately US$134 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, 2016.

In support of our commitment to acting ethically and to fulfilling external reporting requirements, including Canada’s Extractive Sector Transparency Measures Act (ESTMA) and Québec’s Bill No. 55, An Act Respecting Transparency Measures in the Mining, Oil and Gas Industries, 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.4

For information about our ESTMA disclosure, please refer to our 2016 ESTMA report on our website.

Transparency Initiatives

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.

Goldcorp has sites in Canada, Mexico, Guatemala, Argentina, Chile 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. 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. To learn more about our commitment to the EITI, click here.

Government Financial Assistance

Government financial assistance includes grants, subsidies, or rebates received from governments. In 2016, we received CAD$11.1 million in rebates5 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 also received rebates from one of our government utilities in Ontario, which funds up to CAD$200,000 per site to advance energy management programs. In Québec, we received a CAD$3.4 million rebate to advance energy efficiency initiatives.

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).

Community Contributions

Community contributions support our vision of creating sustainable value by enhancing social and economic development opportunities and creating a lasting, positive impact in the communities where we work.

Community contributions at Goldcorp include donations, sponsorships, sustainability funds and investments made in and/or with local communities, stakeholder groups and partners. These contributions support our strategic objectives, benefit communities and aim to build trusting relationships. Community contributions extend beyond taxes, procurement and hiring to include meaningful projects and programs that enhance social and economic development, support the global Sustainable Development Goals (SDGs), and create lasting benefits and value beyond mine closure.

Total community contributions amounted to approximately US$20 million in 2016.6 The table below provides detailed information on some of our 2016 contributions.

Donations and Community Contributions in 20167

Category Importance Our Contribution Example Community Impact

Health

We support local sports and recreation programs, medical research and infrastructure, local hospital foundations, and health and sanitation awareness campaigns.

US$1.5 million

We contributed $500,000 to the Timmins and District Hospital Foundation, bringing our total contribution to $1.5 million. These contributions have been made as a part of a campaign to raise funds for a new MRI machine at the Timmins and District Hospital.

The Timmins and District Hospital is the largest hospital in northeastern Ontario and serves over 115,000 people. In 2015 alone, the MRI was used almost 10,000 times and the machine will come to the end of its life span by the end of 2016. The purchase of a new MRI machine will allow the Timmins and District Hospital to continue to provide life-saving services to the community, including many of our employees and their families.

Education

Educational programs and initiatives support childhood, youth and adult development in the communities where we operate.

US$3.5 million

We contributed $200,000 to the Mâyâupiu Training Institute of Wemindji as a part of a five-year, $1 million commitment ending in 2019. It provides technical training for adults, specifically Wemindji Cree students.

In 2016 the Mâyâupiu Training Institute opened and two training programs were held. A welding course and a course called “How to Start a Business” were completed at the Institute.

Community Development

Community development contributions improve the capacities of local communities and promote sustainable value beyond the mine life.

US$13 million

Starting in 2015, we committed $500,000 over four years to support Pathways to Education’s program in Vancouver’s Downtown Eastside (DTES). The DTES is one of Canada’s lowest-income communities, with many of its residents affected by drug addiction, mental illness, crime, homelessness and unemployment. During 2016, Pathways Vancouver supported over 100 grade-school students to receive academic, social and financial supports to help overcome the systemic barriers to education that they face.

The Pathways’ DTES program has provided one-on-one support to youth in Vancouver and has helped students stay on track with assignments, be accountable for class attendance, and, often in the face of pressure from peers, focus their attention in positive areas that can help break the systemic barriers that make regular school attendance difficult. Participants report having earned better grades, in addition to experiencing greater confidence and motivation to do well in school.

We are proud to support Pathways Vancouver and its volunteers and program facilitators as they make lasting positive impacts in the DTES and beyond.

Arts and Culture

Arts and culture help strengthen the cultures and diversity of communities while preserving heritage and promoting traditions.

US$1 million

We provided $250,000 to the Eenou-Eeyou Community Foundation in support of the Aanischaaukamikw Cree Cultural Institute, the central museum and cultural institute of the Cree Nation of Eeyou Istchee. The funds will be used to acquire artifacts and secure the museum’s long-term sustainability.

The Aanischaaukamikw Cree Cultural Institute is a museum, archive, library and teaching centre – the cultural hub of the Cree Nation of Eeyou Istchee. Every week, busloads of visitors from all over North America visit the UN award-winning village of Oujé-Bougoumou to experience the institute and learn about Cree culture and history. As a result of the success of this fundraising campaign, the foundation was able to expand its mandate and increase its support for Cree social and cultural development goals throughout Eeyou Istchee.

Other

This includes support to disaster relief, environmental investments and other miscellaneous initiatives.

US$1 million

Perito Moreno, a community near our Cerro Negro mine, faced a power emergency when overloaded electrical generators failed during the winter months. The electricity outage resulted in successive and prolonged cuts, leading to school suspensions and reduced operating capacities for local services such as hospitals and banks. The power cut also affected the accessibility and distribution of potable water to nearby residents. In partnership with two local operators, Minera Santa Cruz and Patagonia Gold, Cerro Negro contributed US$60,000 to provide an interim generator.

The interim generator that the community received provided consistent electricity services while a commission investigated the existing generator issues. As a result, access to local services and potable water were restored for three months while an investigation was conducted to improve future power service delivery.