Measuring our benefit footprint
The benefit footprint is our metric for tracking the distribution of our direct economic impact. The amount is significant: in 2013, about 78% of total expenditure by our operations was spent in host countries.
When compared with total revenue from gold sales, in-country spending by operations amounted to 88% of the total value we generated as a company. This reflects operating costs as well as capitalized spending, including investment at Tasiast. The 2013 Distribution of Economic Value table shows how spending was distributed between governments, employees, and suppliers in each of our countries of operation. The value retained column shows returns to the Company; negative totals in this column indicate areas where operating and capitalized spending exceeded revenue. In aggregate, the Company made net investments in our operations in 2013. In 2013, the Company also made payments of $171.4 million to providers of capital.
In addition to tracking in-country spending, we also track spending at the local, regional, national and international levels. In this case “local” applies for suppliers registered as businesses within the appropriate “local” administrative unit (this varies by site but generally corresponds to municipality, county, or district); as “regional” within the sub-national administrative unit (generally corresponding to state or provincial level); and as “outside region” for all other spending within the host country.
The 2013 Benefit Footprint graph shows the breakdown at the sub-national levels for 2013. In aggregate, 26% of our spending was at the local level, 11% at the regional level, and 42% elsewhere within host countries. About 22% of our spending was outside host countries.
Understanding our benefit footprint helps inform our strategies for community engagement, community investment, local procurement, and recruitment. We are also working to measure the social impact of the benefit footprint. For example, sociological surveys have shown reductions in poverty and unemployment in local households around Tasiast (see case study), and a review of our community contributions at Fruta del Norte has identified several tangible results as we wind down our activities in Ecuador (see Looking Back at Kinross in Ecuador).