Barrick Gold Corporation (NYSE:GOLD) (TSX:ABX) says it has made
significant progress in reshaping the Tanzanian operations it
consolidated through the take-over of Acacia Mining in September
last year in order to create a sustainable business capable of
long-term value creation for its stakeholders.
At a signing ceremony with the President of the
United Republic of Tanzania, Dr John Pombe Magufuli, to formalize
the establishment of a joint venture between Barrick and the
government, Bristow said the joint venture, which will give the
government full visibility of and participation in operating
decisions made for and by the North Mara, Bulyanhulu and Buzwagi
mines, was a pioneering move which would take Barrick’s policy of
partnership with its host countries to a new level.
The agreement also ratifies the creation of
Twiga Minerals Corporation, the management company jointly owned by
the government and Barrick, that will oversee the management of
Barrick’s local operations, which are now owned 84% by Barrick and
16% by the government. The deal provides for a 50/50 sharing in the
economic benefits generated by the mining operations after the
recoupment of capital investments.
Following today’s ceremony, there are a number
of matters which Barrick and the government will work together to
implement. In particular, Barrick will partner with the University
of Dar es Salaam and commit up to $10 million in funding over a
10-year period for training and skills development in the mining
industry, and will also commit up to $40 million to upgrade the
road between Bulyanhulu and Mwanza as well as constructing a
housing compound and related infrastructure.
“Since taking over the operatorship, we have
been engaging with local communities to restore the mines’ social
license to operate and we are cooperating closely with the
authorities to address the environmental issues at North Mara. In
addition, we are working on a local supplier strategy as well as a
community development plan to create sustainable economic
opportunities for the people around our mines”, Bristow said.
Bristow said that there was a strong focus on
rationalizing and optimizing mine plans. Following the successful
transition to owner mining at North Mara, this has already
delivered a reduction in costs and an increase in free cash flow. A
similar result is expected at Bulyanhulu, where an integrated study
aimed at optimizing the complete orebody should kick-start the
resumption of mining operations there later this year.
“Reflecting our confidence in the potential of
this highly prospective gold region, we have budgeted $50 million
for brown and greenfields exploration here in 2020 alone and are
looking at various opportunities to sustain and expand our
operations,” Bristow said.
In line with Barrick’s commitment to employing
and advancing locals at its mines, Tanzanian nationals are being
recruited and trained to replace expatriate employees as has been
successfully done at Barrick’s other African operations. In
addition, Acacia’s offices outside the country have been closed,
and company records and day-to-day decision-making and
accountability have been moved back to the operations in
Tanzania.
Barrick Enquiries
President and chief executiveMark
Bristow+1 647 205 7694+44 788 071 1386 |
COO, Africa and Middle EastWillem Jacobs +44 779 557 5271+243 820
678 040 |
Investor and media relationsKathy
du Plessis+44 20 7557 7738Email: barrick@dpapr.com |
Website: www.barrick.com
Cautionary Statement on Forward-Looking
Information
Certain information contained or incorporated by
reference in this press release, including any information as to
Barrick’s 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 “will”, “would”, “should”,
“expect” and similar expressions identify forward-looking
statements. In particular, this press release contains
forward-looking statements including, without limitation, with
respect to long-term value creation for the stakeholders of
Barrick’s Tanzanian operations; the Tanzanian government’s
visibility and participation in operating decisions; the sharing of
future economic benefits with the Tanzanian government on a 50/50
basis; Barrick’s strategies with respect to engaging with local
communities, addressing environmental issues including at North
Mara and creating sustainable economic opportunities; expected
optimization at Bulyanhulu and the timing of resumption of mining
operations; and opportunities for brown and greenfields
exploration.
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: the Company’s ability to
successfully re-integrate Acacia’s operations; timing of receipt
of, or failure to comply with, necessary permits and approvals;
non-renewal of key licenses by governmental authorities; 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; lack of certainty with respect to
foreign legal systems, corruption and other factors that are
inconsistent with the rule of law; litigation and legal and
administrative proceedings; 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;
diminishing quantities or grades of reserves; increased costs,
delays, suspensions and technical challenges associated with the
construction of capital projects; operating or technical
difficulties in connection with mining or development activities,
including geotechnical challenges and disruptions in the
maintenance or provision of required infrastructure and information
technology systems; failure to comply with environmental and health
and safety laws and regulations; the impact of global liquidity and
credit availability on the timing of cash flows and the values of
assets and liabilities based on projected future cash flows;
fluctuations in the currency markets; 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 or human rights matters or
dealings with community groups, whether true or not; risk of loss
due to acts of war, terrorism, sabotage and civil disturbances;
contests over title to properties, particularly title to
undeveloped properties, or over access to water, power and other
required infrastructure; 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. 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 Gold Corporation 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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