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Barrick announces major social, skills and infrastructure investment in Tanzania

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(Kitco News) - Barrick Gold (TSX:ABX) announced today that it would spend $6 for every ounce of gold sold by its two mines in Tanzania on improving healthcare, education, infrastructure and access to potable water in the communities around them.

The company said that at the same time, it has committed up to $70 million for investment in value-adding national projects, including mining-related training, skills development and scientific facilities at Tanzanian universities, as well as road infrastructure.

"This is in accordance with the conditions underlying Barrick's framework agreement with the government, which included the establishment of their Twiga joint venture. Twiga oversees a 50/50 split of the economic benefits generated by the mines as well as their management," the company noted in its statement.

Barrick president and chief executive Mark Bristow added that the investment program was the latest evolution of the company's very successful partnership with the government.

"Since we took over the Tanzanian mines from their previous operator in 2019, we have rebuilt relations with the state and renewed our social licence to operate here. North Mara has been redesigned as an integrated underground/open pit mine and Bulyanhulu has been resuscitated as a long-life underground mine. Together they are expected to produce more than 500,000 ounces of gold per year at the lower end of the cost spectrum," he said.


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Barrick also pointed out it has spent more than $1.9 billion in taxes, salaries and payments to local businesses over the past two years, adding that at least 73% of the mines' goods and services are sourced locally and they give preference to the employment of Tanzanian nationals.

According to a press-release, Barrick has to date also paid the government $140 million of the $300 million settlement included in the framework agreement.

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