In line with the government plan to increase participation of local community projects into the national economy, Anglogold Ashanti has launched a joint venture with BG Umoja in Tanzania that will run for two years at US $ 186 million.
The Nyankanga and Geita Hill mining projects in a 80/20 percent joint venture is a partnership share between Africa Underground Mining Services (AUMS) of Tanzania, a subsidiary of the Perenti Australia group as well a local mining and distribution services company of Geofields Tanzania Limited.
The partnership will be in line with the framework for the mining operation carried out at the Obuasi Mine in Ghana between AUMS Ghana and the Ghanaian-based Accra - Rocksure Company, a partnership that will build specific local mining capacity.
Commenting on the partnership, AngloGold Ashanti-Africa’s Chief Operating Officer, Sicelo Ntuli said; “We are working with experienced mining contractors who will help us facilitate the long-term transfer of sustainable skills, and continue to build sustainable local procurement plans. “AngloGold Ashanti is developing sustainable local procurement initiatives that will stimulate economic and social development in projects, witnessed by the significant contribution from Geita Gold Mining Limited which has contributed to the huge income of the Tanzanian people.” He said the annual use of AngloGold Ashanti for indigenous Tanzanian service providers has increased to $ 162 million since 2016.
“The domestic procurement management team has set itself a target of 60 to 70 percent of all expenditure made by Tanzanian companies in the country by 2025. ”AngloGold Ashanti - Geita Gold Mining Limited has also awarded a two-year oil transfer agreement worth $ 10.8 million a year to two Tanzanian companies. One of the two companies that will benefit from the agreement is of Geita origin and confirms GGML’s commitment to facilitating local economies, ” he said.