Barrick Announces Major Social, Skills and Infrastructure Investment in Tanzania
May 27 2022 - 7:00AM
Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) announced today 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.
At the same time, it has committed up to $70
million for investment in value-adding national projects, including
mining-related training, skills development and scientific
facilities at Tanzanian universities, as well as road
infrastructure.
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 chief executive Mark
Bristow said today 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.
Barrick Enquiries
Investor and media relationsKathy du Plessis+44 20 7557 7738Email:
barrick@dpapr.com |
Country manager, TanzaniaGeorgia
Mutagahywa+255 754 711 215Email:
georgia.mutagahywa@barrick.com |
Head of sustainability, AMEHilaire Diarra+223 66 75 08 44Email:
Hilaire.diarra@barrick.com |
Website:
www.barrick.comEndnote 1
On a 100% basis.
Cautionary Statement on Forward-Looking
Information
Certain information contained or incorporated by
reference in this press release, including any information as to
our strategy, projects, plans, or future financial or operating
performance, constitutes “forward-looking statements”. All
statements, other than statements of historical fact, are
forward-looking statements. The words “would”, “commit”, “advance”,
“generate”, “expect”, “will”, “continue” and similar expressions
identify forward-looking statements. In particular, this press
release contains forward-looking statements including, without
limitation, with respect to: planned investments by Barrick in
Tanzania including to develop healthcare, education and
infrastructure; Barrick’s partnership with the Government of
Tanzania under the framework agreement; Barrick’s contributions to
the local economy, including local content programs and spending as
well as anticipated contributions to value-adding national
projects; and expected production and cost levels for the North
Mara and Bulyanhulu mines on a combined basis.
Forward-looking statements are necessarily based
upon a number of estimates and assumptions including material
estimates and assumptions related to the factors set forth below
that, while considered reasonable by the Company as at the date of
this press release in light of management’s experience and
perception of current conditions and expected developments, are
inherently subject to significant business, economic, and
competitive uncertainties and contingencies. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements, and undue reliance
should not be placed on such statements and information. Such
factors include, but are not limited to: fluctuations in the spot
and forward price of gold, copper, or certain other commodities
(such as silver, diesel fuel, natural gas, and electricity); the
speculative nature of mineral exploration and development; changes
in mineral production performance, exploitation, and exploration
successes; risks associated with projects in the early stages of
evaluation, and for which additional engineering and other analysis
is required; failure to comply with environmental and health and
safety laws and regulations; timing of receipt of, or failure to
comply with, necessary permits and approvals; uncertainty whether
some or all of the targeted investments and projects will meet the
Company’s capital allocation objectives and internal hurdle rate;
changes in national and local government legislation, taxation,
controls or regulations and/ or changes in the administration of
laws, policies and practices, expropriation or nationalization of
property and political or economic developments in Tanzania and
other jurisdictions in which the Company or its affiliates do or
may carry on business in the future; damage to the Company’s
reputation due to the actual or perceived occurrence of any number
of events, including negative publicity with respect to the
Company’s handling of environmental matters or dealings with
community groups, whether true or not; risks associated with new
diseases, epidemics and pandemics, including the effects and
potential effects of the global Covid-19 pandemic; litigation and
legal and administrative proceedings; employee relations including
loss of key employees; increased costs and physical risks,
including extreme weather events and resource shortages, related to
climate change; and availability and increased costs associated
with mining inputs and labor. Barrick also cautions that its
guidance may be impacted by the unprecedented business and social
disruption caused by the spread of Covid-19. In addition, there are
risks and hazards associated with the business of mineral
exploration, development and mining, including environmental
hazards, industrial accidents, unusual or unexpected formations,
pressures, cave-ins, flooding and gold bullion, copper cathode or
gold or copper concentrate losses (and the risk of inadequate
insurance, or inability to obtain insurance, to cover these
risks).
Many of these uncertainties and contingencies
can affect our actual results and could cause actual results to
differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, us. Readers
are cautioned that forward-looking statements are not guarantees of
future performance. All of the forward-looking statements made in
this press release are qualified by these cautionary statements.
Specific reference is made to the most recent Form 40-F/Annual
Information Form on file with the SEC and Canadian provincial
securities regulatory authorities for a more detailed discussion of
some of the factors underlying forward-looking statements and the
risks that may affect Barrick’s ability to achieve the expectations
set forth in the forward-looking statements contained in this press
release.
Barrick disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result
of new information, future events or otherwise, except as required
by applicable law.
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