Barrick’s Twiga JV produces at top end of 2020 guidance as firm readies gold complex for growth

North Mara, Tanzania

BARRICK Gold’s Tanzanian assets, held in the Twiga Joint Venture with the government, produced 462,472 ounces of gold in the group’s 2020 financial year which was at the top end of guidance.

A $250m maiden dividend was also paid out by the joint venture whilst capital investment during the period totalled $180m, of which half was on growth.

This is a far cry from the days when the mines – consisting of North Mara, Bulyanhulu, and Buzwagi – were operated by Acacia Mining, a UK-listed firm that became embroiled in a long-standing dispute over taxes due with the Tanzanian government.

Following a two-year export embargo, Acacia was bought out by Barrick Gold which then formed the Twiga joint venture, agreeing to pay $300m to the Tanzanian government as reparation for unpaid taxes. Some $100m has been paid to date.

Mark Bristow, CEO of Barrick Gold, said the company was now focused on lowering costs at the mines in order to transform them into a tier one asset.

“North Mara’s life of mine production profile has been vastly improved and implementation of its comprehensive water management plan is on track,” he said in a statement.  “Bulyanhulu’s resurrection was a particularly exceptional achievement, considering that both its shaft and plant had to be refurbished extensively.”

Past grievances with the Tanzanian government had also been settled, he said.

“Tanzania’s large-scale mineralised systems held the potential for world-class discoveries and, in addition to brownfields exploration designed to increase and convert the existing mines’ resources, Barrick had also initiated greenfields programs to generate new targets,” the group said.