Barrick, Twiga mines hailed for local content implementation

By Guardian Correspondent , The Guardian
Published at 09:10 AM Dec 10 2024
Mark Bristow, Barrick Gold Corporation’s Chief Executive Officer
Photo: File
Mark Bristow, Barrick Gold Corporation’s Chief Executive Officer

THE Mining Commission has commended Barrick and Twiga Mines for their effective compliance with local content regulations, enabling Tanzanians to actively participate in the mining business and improve their socio-economic well-being.

Speaking during a one-day training workshop on local content and corporate social responsibility (CSR) implementation at Bulyanhulu Mine over the weekend, Mining Commission Chairperson Janet Lekashingo emphasized that the government’s introduction of local content and CSR regulations aimed to foster sustainability, inclusivity, and the equitable sharing of mining benefits with local communities.

“This is not just about meeting workshop obligations; it’s about shaping a future where mining makes a lasting, positive impact. From its inception, the Mining Commission has been committed to ensuring Tanzanian goods and services take priority in the sector,” she said.

Lekashingo explained that by prioritizing local participation, the country had witnessed a significant increase in the number of Tanzanians benefiting directly from the mining sector, marking a substantial improvement compared to previous years.

She added that local content compliance is about empowering communities—creating jobs, supporting local businesses, and enhancing the lives of people living around mining areas by involving them in both business and mining activities.

“As we engage in this workshop, let us remember that local content is key to unlocking Tanzania’s potential. It acts as a bridge, connecting global expertise with local talent, ensuring that mining becomes a cornerstone of national progress,” she said.

The Chairperson also expressed her satisfaction at the fact that Barrick’s General Managers across all its Tanzanian mines are Tanzanians, encouraging other mining companies to follow suit in complying with local content regulations.

“It is crucial for companies to empower local suppliers, as this is part of a broader effort by both the government and mining companies to build capacity, foster mutual understanding, and promote cooperation,” she stated.

Lekashingo further advised Twiga Minerals Corporation to focus on sustainable projects that leave lasting impacts, rather than relying heavily on importing equipment such as machinery, bulldozers, and underground support machines for mining operations.

She emphasized the government’s commitment to establishing industries that support the mining sector, such as the creation of a special economic zone at Buzwagi. This initiative aims to attract local and foreign investors to set up industries that could act as game-changers for Tanzania’s mining sector.

The Chairperson urged stakeholders to explore alternative methods of establishing industries for mining equipment, which would not only create jobs but also reduce reliance on imports, boost government tax revenue, and stimulate broader socio-economic development.

Barrick Bulyanhulu Mine’s General Manager, Victor Lule, expressed gratitude to the government for its timely support in implementing CSR and local content compliance. He highlighted the company’s focus on empowering Tanzanians and building local capacity.

“To date, 82% of our procurement is done through local suppliers, with the remaining 12% sourced from foreign suppliers. We are walking the talk when it comes to local content compliance,” Lule said.

He further reiterated Barrick’s commitment to educating local businesspeople and suppliers on how to engage with mining companies, register their businesses, and participate in workshops, seminars, and conferences to build sustainable and mutually beneficial relationships.

Lule added that 96% of Barrick’s workforce is Tanzanian, including employees at management levels, underscoring the company’s commitment to promoting local content.

He also cautioned local suppliers to remain diligent and meet their contractual obligations. He noted that some local suppliers had failed to deliver on time or had provided substandard products.

Mining Commission Director of Mineral Audit and Trade, Venance Kasiki, congratulated Barrick and Twiga for their adherence to local content regulations but also urged them to focus on sustainable projects that would have a positive impact on local communities.

Kasiki also revealed that the Mining Commission had been in discussions with local banks, including CRDB and NMB, to explore financing options for local suppliers in the mining sector, such as offering loans to facilitate local content growth.

“We have had several meetings with banks in the country to highlight mining as a growing and promising sector, one that should not be seen as a risk but as a key driver of economic growth,” he said.

Bulyanhulu and North Mara mines are jointly owned by Barrick Gold Corporation and the government of Tanzania through Twiga Minerals Corporation.