Just like that way stars do not pull each other down to be more visible, they just shine brighter, so is the subsidiary of Barrick Gold, North Mara Gold Mine’s contributions to the economic development of the nation, is stands out of the crowd.
Barrick Gold Corporation has been recognized as the largest contributor to government revenue in 2021, substantiating its position as a key partner in the socio-economic development of Tanzania.
The Tanzania Revenue Authority (TRA) awarded a certificate to North Mara Gold Mine as a first winner in recognition of the company’s outstanding tax contribution in financial year 2021/ 2022 during the Taxpayers’ Appreciation Day 2022, last week.
This is the result of the establishment of Twiga Mineral Corporation, a joint venture between Barrick and the Government of Tanzania, that oversees the management of Barrick’s assets in Tanzania, North Mara and Bulyanhulu Gold Mines, as well as the implementation of the economic benefit-sharing agreement.
According to Barrick President and Chief Executive Officer, Mark Bristow, since the company took control of North Mara and Bulyanhulu in September 2019, its total in-country investment has totaled 1.995 billion US dollars. In the first half of this year, it has paid 158 million US dollars in taxes, royalties and levies, 42 million US dollars in distributions to the government in the form of dividends and shareholder loans as well as 210 million US dollars to local suppliers.
“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 re-engineered them, creating what are in effect two new mines. They are 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,” Bristow said.
The UNDP White Paper submitted to the World Economic Forum 2016 as contributions to its insight areas and interactions, titled Mapping Mining to the Sustainable Development Goals, says the mining industry can impact positively across the SDGs. “Mining can foster economic development by providing opportunities for decent employment, business development, increased fiscal revenues, and infrastructure linkages. Many of the minerals produced by mining are also essential building blocks to technologies, infrastructure, energy and agriculture”, states the paper. This is what North Mara has been manifesting.
The mining sector has been identified as vital for the achievement of the UN SDGs and the post-2030 sustainable development goals, not only for its role in providing the minerals needed to enable the green transition, but also because of its ability to drive socio-economic development and build resilience. As the world emerges from the specter of Covid-19 and confronts the reality of climate change, this contribution to development and resilience is more vital than ever before.
For Barrick in collaboration with Twiga Mineral creating long-term value and sharing economic benefits drives the company’s approach to sustainability, and community development. They strive to be a good corporate citizen and a genuine partner for the host communities in locally-led development, and to build resilience to global challenges. Barrick does this because it is the right thing to do and more important it helps to ensure the social license needed for the mines to operate.
Bristow says building and maintaining a social license to operate is critical to the success as a business and their long-term sustainability. The company’s approach to the development and maintenance of their social license to operate is underpinned by three core beliefs.
“The primacy of partnership, this means that we invest in real partnerships with mutual responsibility. It is not always easy, but it is at the heart of our approach. Sharing the benefits, we hire and buy local, wherever possible, as this injects and keeps money in our local communities and host countries. By doing this, we build capacity, community resilience and create opportunity,” says Bristow.
He says the third core belief is engaging and listening to stakeholders, “We develop tailored stakeholder engagement plans for every operation and the business as a whole. These plans guide and document who, how and how often we engage with our different stakeholder groups”.
These beliefs are simple concepts in theory, but the quality of their execution determines the success of the business and success that has been manifested North Mara Gold Mine, in taxpaying.
In line with Barrick’s policy of local employment, Tanzanian nationals now account for 96 percent of the two mines’ workforces and 64 percent of their senior management are Tanzanians. The mines are also driving the increased employment of women in a traditionally male dominated industry through targeted recruitment and development programs.
The company has also committed USD 6 for every ounce of gold sold by the two mines to improving healthcare, education, infrastructure and access to potable water in their communities. A further USD 70 million has been allocated to investment in value-adding national projects, including mining related training and scientific facilities at Tanzanian universities.
Apart from the taxpayers award Bulyanhulu Gold Mine, another Barrick subsidiary was named the overall winner of the Tanzanian Occupational Safety and Health Authority (OSHA) award for 2022 while North Mara received the award for the best community health outreach program.
Barrick Gold Corporation’s sustainability vision is to create long-term value for all our stakeholders and contribute to the social and economic development of actors.
