FOUR years ago, Tanzania’s mining sector reached a pivotal milestone. After extensive negotiations, the government signed a transformative mining agreement that created a win-win situation for both Tanzania and Barrick Gold. This agreement reshaped the sector, with a focus on improving tax compliance, royalties, and ensuring meaningful investments that would benefit Tanzanians.

The agreement granted the government full visibility and participation in operational decisions, marking a groundbreaking shift in Barrick Gold Corporation’s policy with host countries. It ushered in a new era of collaboration between Tanzania and Barrick, accompanied by the introduction of regulations and new laws that made Corporate Social Responsibility (CSR) mandatory in the mining sector, with a strong emphasis on local content.

The overarching goal was to ensure that local Tanzanians reaped the benefits from the mining sector, particularly through major projects. The local content regulations were designed to stimulate growth within the mining sector, expand the value chain, and facilitate technology transfer, enabling Tanzanians to capture more benefits beyond royalties and corporate taxes.

At a recent training workshop on local content and CSR implementation at Barrick’s Bulyanhulu mining site in Kakola, Janet Lekashingo, Chairperson of the Mining Commission, explained that the regulations were designed to promote sustainability and inclusivity. She emphasized that these policies were aimed at ensuring communities near mining activities would be the primary beneficiaries of Tanzania’s natural resources.

“This is not just about fulfilling obligations. It’s about shaping a future where mining leaves a lasting positive impact. Since its inception, the Mining Commission has remained committed to ensuring Tanzanian goods and services take precedence in the mining sector,” Lekashingo said.

Barrick’s commitment to local content has been evident, with Barrick Twiga Minerals Corporation effectively implementing these policies. The company has focused on empowering local communities, creating jobs, and fostering local businesses. Lekashingo urged other mining companies to follow Barrick’s example and prioritize local content.

“The role of local content is crucial in unlocking Tanzania’s potential. It connects global expertise with local talent, ensuring that mining becomes the cornerstone of our national progress,” she added.

Lekashingo also praised Barrick for its leadership, which is largely Tanzanian, including its general managers. She encouraged other companies to empower local talent in a similar way.

Empowering local suppliers is critical to building capacity and fostering cooperation between the government and the mining industry. Lekashingo highlighted the importance of establishing local industries to support the mining sector and drive economic growth, rather than relying on imported machinery and equipment.

“The government is focused on seeing the establishment of industries that serve the mining sector, such as the special economic zone at Buzwagi, which aims to attract both local and foreign investors,” she said.

Venance Kasiki, Director of Mineral Audit and Trade at the Mining Commission, congratulated Barrick Twiga for its commitment to local content compliance. He also announced plans to amend CSR regulations to make them more accessible and effective for all stakeholders, ensuring the successful implementation of development projects.

Kasiki noted that approximately 96.6 billion Tanzanian shillings had been spent on CSR projects since 2018, but challenges in the current regulations hinder the effective delivery of benefits to local communities. He assured that the government would engage all stakeholders in the review process.

“We recognize the gaps in the current regulations, and we want to work with mining companies and local communities to create more effective, sustainable CSR strategies,” Kasiki said.

Kasiki also highlighted the government’s plans to introduce a digital procurement system to streamline local content and CSR implementation, replacing the current manual system. Additionally, efforts are underway to integrate local content and CSR teachings into higher education curriculums to raise awareness of their impact.

The review of CSR regulations will align with a five-year socioeconomic development plan, aiding the effective implementation of CSR projects.

“This workshop is an essential part of our commitment to ensuring that the Mining Act, Local Content Regulations, and CSR mandates are properly implemented. Together, we will explore the successes, challenges, and opportunities to make mining more sustainable in Tanzania,” Kasiki said.

Kasiki also explained that the review of CSR regulations would empower local communities to choose their own development priorities, ensuring that their needs are met through well-targeted projects.

Victor Lule, General Manager of Bulyanhulu, shared that the mine allocates about $1.2 million annually for CSR activities, which are part of Barrick’s broader commitment to supporting local communities. Since 2020, more than 200 productivity projects focusing on education and health, including malaria prevention programs, have been implemented.

“We provide training programs for local entrepreneurs, helping them utilize opportunities in the mining sector and explore business ventures with the company,” Lule said. “Currently, 82% of our procurement is done by local suppliers, with the remaining 12% sourced internationally.”

Lule also pointed out that 96% of the company’s employees are Tanzanians, with some holding management positions, underscoring Barrick’s commitment to promoting local content.

Barrick Gold and the Tanzanian government jointly own the Bulyanhulu mines through Twiga Minerals Corporation.