Tanzania has reaped the benefits of a historic partnership between its government and one of the world’s leading gold mining companies, Barrick Gold Corporation.
The partnership, known as Twiga Minerals, was formed in 2019 after Barrick acquired the troubled North Mara and Bulyanhulu gold mines from Acacia Mining. Since then, Barrick has transformed the two mines into a world-class complex that produces gold at a Tier One level, meaning it has a low-cost, long-life operation with significant exploration potential.
Twiga Minerals has also delivered on its promise to share the economic and social value of the mines with the Tanzanian people. Barrick Tanzania has become the largest contributor to the government’s revenue, through taxes, employment, payments to local suppliers, community projects, and distributions to shareholders. Its investment in the economy to date totals more than $3.4 billion (on a 100% basis).
A Model for Mining in Africa
Mark Bristow, president and chief executive of Barrick, said the success of Twiga Minerals shows what can be achieved when mining companies and their host governments partner to deliver real value to their stakeholders.
“The Twiga partnership has not only transformed Tanzania’s gold mining industry, it has also re-established the country, well-known as one Africa’s most popular tourism attractions, as a prime investment destination that has a wealth of metal and mineral resources,” Bristow said.
Bristow said Twiga Minerals has also set a high standard for environmental, social, and governance (ESG) performance in the mining sector. Barrick Tanzania has been certified as a Top Employer by the global Top Employer Institute for its people management programs and has received several awards for its health and safety, social responsibility, and crisis management initiatives.
Future Forward Education and Infrastructure
Twiga Minerals has also invested in improving Tanzania’s educational infrastructure and transportation system. The first phase of its $30 million Future Forward education initiative is nearing completion. The program will significantly improve Tanzania’s educational infrastructure by delivering classrooms, dormitories, and washroom facilities for an additional 49,000 pupils.
Twiga is also progressing its $40 million pledge to build a world-class 73 km road to the Kahama airport, which will boost the economic growth of the region.
As part of the Buzwagi mine closure plan, Barrick’s Buzwagi gold mine in partnership with the Tanzanian Airport Authority funded the building of a new terminal at the Kahama airport. The new airport terminal building will serve more than 200 passengers at a time and has a full range of facilities.
Bright Prospects for Gold Production
Bristow said the two mines have sustained their strong performance and achieved their production guidance for 2023. Conversion drilling at both mines has again replenished their reserves after depletion. At Bulyanhulu, there are near-surface opportunities with the potential for increasing production and mining flexibility.
Bristow said Barrick remains committed to exploring and developing new gold resources in Tanzania, as well as supporting the country’s economic and social development.
“Barrick has made an enormous difference for the better on every front in Tanzania. We are proud to be part of this nation’s bright future,” he said.
Source: Mining Review
