Barrick Gold invests US $2bn in mining activities in Tanzania

Barrick Gold Corp has invested a sum of US $2million (about 4. 65tri/-)  in mining activities in Tanzania since taking control of Tanzania operations from Acacia mine in 2019 to-date, cementing its position as a key socio-economic partner in the country.

Barrick’s President and Chief Executive Officer, Mark Bristow explained that the firm has in the first half of this year, paid US $158 million (368.4bn/-) as taxes, royalties and levies. It has also paid US $42 million (97.9bn/-) to the government for dividends and shareholders loans, as well as US $210 million (489.8bn/-) to local suppliers. The firm paid US $140 million (about 326.4bn/-) of its US $300 million (about 699.6bn/-) settlement with the government.

“When we took over these mines they were a moribund burden on the government and their investors. In a very short time, we redesigned and reengineered them, creating what are in effect two new mines,” said Bristow.

Tax dispute

Barrick Gold Corporation settled a long-running tax dispute between Tanzania and its then subsidiary Acacia in 2019. The agreement includes the payment of 300 million US dollars to settle outstanding tax and other disputes, the lifting of a concentrate export ban, and the sharing of future economic benefits from mines on a 50-50 basis. They agreed also to form a new operating company named Twiga Minerals to manage the Bulyanhulu, North Mara and Buzwagi mines and for the government to buy a shareholding of 16 per cent in each of the mines.

Mr Bristow said the mines were well placed to deliver their annual production guidance and have the potential to achieve a combined Tier One2 status in Barrick’s portfolio, meaning that they are capable of producing at least 500,000 ounces of gold annually for more than 10 years at the lower end of the cost spectrum as a combined complex.

“We are continuing to replace resources depleted by mining and we are targeting new opportunities as well, increasing our footprint around Bulyanhulu through the acquisition of six highly prospective licences. We’re also updating the geological models in the North Mara region and identifying potential targets elsewhere in Tanzania.In line with Barrick’s policy of local employment, Tanzanian nationals now account for 96% of the two mines’ workforces and 64% of their senior management are Tanzanians,” he said.