Tanzania and Barrick demonstrate the value creation capacity of
All amounts are expressed in US dollars, unless otherwise indicated
DAR ES SALAAM, Tanzania, July 07, 2021 (GLOBE NEWSWIRE) – Tanzanian President Samia Suluhu Hassan and President and CEO of Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX) Mark Bristow met today to to review the progress of Twiga Minerals Corporation, the joint venture established in October 2019 to manage the company’s gold mines in the country and to discuss future plans and prospects for the partnership.
Since Barrick took over management of the mines in September 2019, the then moribund North Mara and Bulyanhulu have been relaunched, returned to profitability and are now world-class assets, with the potential to become Barrick’s seventh Tier One. .1 gold complex. It has also made significant progress in addressing legacy social and environmental issues and is delivering substantial value to its Tanzanian stakeholders.
In 2020, the government received more than $ 370 million (TSh 856 billion) in cash flow from the Twiga partnership in the form of taxes, dividends and the first tranche of $ 100 million (TSh 231 billion) of the settlement agreement.
Barrick also invested $ 800 million (TSh1851 billion) in the country’s economy, spent $ 2 million (TSh4.6 billion) on community development and recruited 600 new local employees, with Tanzanian nationals representing now 96% of the mining workforce. Tanzanians appointed to key managerial and technical positions include Managing Director Apolinary Lyambiko, National Director Georgia Mutagahywa, and National Financial Director Melkiory Ngido. Barrick continues to work closely with the Mining Commission on its local content program, and local content spending already accounts for 73% of mine purchases.
Bristow later said that the meeting had been very constructive in which both sides agreed that the success of the Twiga joint venture – a first for Africa – demonstrated the value that could be created by a genuine partnership for sharing economic benefits between a mining company and its host country.
“I have confirmed that Barrick is in Tanzania for the long term and that we will use our North Mara-Bulyanhulu complex as a base for further investments in the country, which is very promising but still largely unexplored. We see the potential for more world-class gold discoveries here, but to be successful in exploration we must continue to surrender our licenses and assess new lands. The process of acquiring new licenses is underway, ”he said.
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A level 1 gold asset is an asset with reserve potential to provide a minimum life of 10 years, annual production of at least 500,000 ounces of gold and total cash costs per ounce over the life of the asset. of mine that fall in the lower half of the industry cost curve.
Caution regarding forward-looking information
Certain information contained or incorporated by reference in this press release, including any information regarding our strategy, projects, plans or future financial or operational performance, constitute “forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements. The words “progress”, “future”, “projects”, “prospects”, “potential”, “continue”, “long term”, “further”, “prospective”, “evaluate”, “process” and ” will ”and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements, including, without limitation, regarding: the potential for North Mara and Bulyanhulu to become a Level 1 gold complex; progress made towards solving social and environmental problems inherited from the past; planned exploration activities and potential discoveries; and contributions to the local economy, including local content programs and spending.
Forward-looking statements are necessarily based on a number of estimates and assumptions, including significant estimates and assumptions relating to the factors set out below, although believed to be reasonable by the Company as of 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 forward-looking statements, and such statements and information should not be relied on unduly. These factors include, but are not limited to: fluctuations in spot and futures prices for gold, copper or certain other commodities (such as silver, diesel fuel, natural gas and electricity) ; the speculative nature of mining exploration and development; changes in the performance of mineral production, mining and exploration successes; risks associated with projects in the early stages of assessment, and for which additional engineering and other analyzes are required; failure to comply with environmental, health and safety laws and regulations; the time of receipt or failure to comply with the necessary authorizations and approvals; uncertainty as to whether some or all of the targeted investments and projects will meet the capital allocation objectives and the critical internal rate of return of the Company; changes in national and local laws, 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 subsidiaries operate or may operate in the future; damage to the Company’s reputation as a result of the actual or perceived occurrence of a number of events, including negative publicity regarding the Company’s treatment of environmental issues or relations with community groups, whether true or not; the risks associated with new diseases, epidemics and pandemics, including the effects and potential effects of the global Covid-19 pandemic; litigation and judicial and administrative proceedings; employee relations, including the loss of key employees; increasing costs and physical risks, including extreme weather events and resource shortages, associated with climate change; and the increased availability and costs associated with mining inputs and labor. Barrick is also warning that its forecast could be affected by the unprecedented business and social disruption caused by the spread of Covid-19. In addition, there are risks and dangers associated with exploration, development and mining activities, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, collapses, floods and gold bullion, copper cathode or gold or copper concentrate. losses (and the risk of inadequate insurance, or the 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 forward-looking statements made by or on our behalf. Readers are cautioned that forward-looking statements are not guarantees of future performance. All forward-looking statements contained in this press release are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F / Annual Disclosure Form filed with the SEC and Canadian provincial securities regulatory authorities for a more detailed discussion of some of the factors underlying forward-looking statements and risks that could affect Barrick’s ability to meet the expectations set forth in the forward-looking statements contained in this press release.
Barrick disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.