Barrick Gold commits to pump $70million on Tanzania community projects

By Osoro Nyawangah, MWANZA Tanzania

Barrick Gold Corporation announced yesterday, it has committed up to $70 million (0ver 160 billion shillings) for investment in value-adding national projects, including mining-related training, skills development and scientific facilities at Tanzanian universities, as well as road infrastructure.

The world gold giant elaborated that it would spend $6 for every ounce of gold sold by its two mines in the country on improving healthcare, education, infrastructure and access to potable water in the communities around them.  

This is in accordance with the conditions underlying Barrick’s framework agreement with the government, which included the establishment of their Twiga joint venture. 

Twiga oversees a 50/50 split of the economic benefits generated by the mines as well as their management.
 
Barrick President and CEO, Mark Bristow said the investment program was the latest evolution of the company’s very successful partnership with the government.
 
“Since we took over the Tanzanian mines from their previous operator in 2019, we have rebuilt relations with the state and renewed our social licence to operate here.  North Mara has been redesigned as an integrated underground/open pit mine and Bulyanhulu has been resuscitated as a long-life underground mine.  Together they are expected to produce more than 500,000 ounces¹ of gold per year at the lower end of the cost spectrum.” He said.
 
Barrick has spent more than $1.9 billion in taxes, salaries and payments to local businesses over the past two years.  At least 73% of the mines’ goods and services are sourced locally and they give preference to the employment of Tanzanian nationals.
 
Barrick has to date also paid the government $140 million of the $300 million settlement included in the framework agreement.