African Barrick Gold in Tanzania

Transcription

1 African Barrick Gold in Tanzania Maendeleo Fund Launch September 2011

2 Disclaimer This presentation has been provided for information purpose only. It does not constitute an offer, solicitation or inducement to purchase, subscribe or otherwise acquire, sell, or dispose any securities of African Barrick Gold plc ( ABG ) or engage in any investment activity in connection with the capital of ABG in any jurisdiction. The information and opinions contained in this presentation are provided as of the date of this presentation and are subject to change without notice. ABG explicitly disclaims any responsibility, obligation or undertaking to revise any information contained in this presentation after its date, whether as a result of new information, future events or otherwise. No reliance may be placed for any purpose whatsoever on the information or the opinions contained in this presentation or on its completeness. In addition, this presentation contains information that has been has been extracted from a variety of sources released by public and private organisations. As far as ABG is aware and is able to ascertain from information published by such sources, no facts have been omitted which would render the reproduced information materially inaccurate or misleading. Individuals should refer to the primary source for further information in each case. This presentation may contain forward-looking statements. Forward-looking statements are statements that are not historical facts. They are generally identified by the words "plans," "expect," "anticipates," "believes," "intends," "estimates" and other similar expressions. All forward looking statements involve a number of risks, uncertainties and other factors. Although ABG s management believes that the expectations reflected in forward-looking statements are reasonable, these statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of ABG, that could cause actual results and developments to differ materially from those expressed in,or implied or projected by, the forward-looking information and statements contained in this presentation. Accordingly, individuals should not place reliance on forward-looking statements contained in this presentation and ABG explicitly disclaims any obligation or undertaking publicly to update or revise any forward-looking statements contained in this presentation, whether as a result of new information, future events or otherwise. All amounts are in US dollars unless expressed otherwise. 2

3 Overview of ABG LSE listed gold mining company with significant production and reserve base 2010 production of 701 koz Reserves and resources of 26.9 Moz 1 Four producing mines in Tanzania and significant land holdings Growth driven by organic expansion projects and African consolidation opportunities Targeting 1 Moz production by 2014 Aiming to double production over 10 years Experienced management team with strong operational track record Successful IPO and FTSE index inclusion in Figure as at 31 December 2010 Location of assets North Mara Bulyanhulu Tulawaka Buzwagi Dar es Salaam Mining operations 3

4 ABG in Tanzania Presence in Tanzania for over 10 years Mine History 1999: Purchased Bulyanhulu from Sutton Resources 2001: Bulyanhulu start of production 2006:Acquisition of Placer Dome (owner of North Mara mine) by Barrick. 2009: Buzwagi starts production 2010: ABG created : Acquired Pangea Minerals Ltd 2004: Tulawaka start of commercial open pit production 2010: Acquisition of Tusker Gold

5 Public Market Leader ABG has a market capitalization of approximately Commitment to list on DSE Barrick Gold retains 73.9% shareholding

6 ABG Contribution in 2010 In 2010 ABG added value of $548m in Tanzania (1) in wages and salaries, taxes and royalties, local and regional goods and services and community investment 1 Source: Barrick 2010 Responsibility Report

7 Tax Payer In 2010 ABG paid in taxes and royalties

8 Employer In 2010 ABG paid in wages and benefits to Tanzanians alone!

9 Employer ABG currently employs over employees and contractors

10 Employer Tanzanians currently form over of ABG s workforce

11 Employees Over $1 million invested per annum in skills development for existing employees 87 graduates undertaking our Graduate Training Program (at a cost of over $1 million per annum) Local employment is a key expectation but a challenge due to rural illiteracy rates 149 (2) local community students receiving vocational training scholarships on the Integrated Mining & Technical Training Program (1) As at 30 June 2011 (2) As of May

12 Host Communities: Key Initiatives District health authorities USAID EnGender Health Population Services International Malaria No More Touch Foundation Volunteer Surgical Missions SHIDEPHA and Bristol Myers Squibb Red Cross Bridge2Aid African Medical & Research Foundation Search for Common Ground Prevalence Rates HIV Malaria* Kagera Mara Mwanza Shinyanga *Children of 6 59 months tested Source: Tanzania HIV/AIDS and Malaria Indicator Survey (preliminary report) 12

13 Governance & Ethics ABG fully supports the Extractive Industries Transparency Initiative in Tanzania Barrick Gold Corporation joined the EITI in 2006 Tanzania became an EITI candidate country in 2009 In October 2010 ABG hosted a multi-stakeholder event for the EITI Board to further dialogue ABG supports improved governance through the full publication and verification of government revenues generated by mining 13

14 ABG Approach to Community Investment We are often asked to support a number of community based efforts, particularly in the context of health, education, environment, development & training ABG intends to support such requests and programmes wherever practical, to enable the fulfilment of community development plans and objectives We have adopted a specific Community Investment and Donations Policy for the assessment of requests for donations, sponsorship, partnerships or any other form of assistance In addition to this Policy we have established: a Community Investment Committee to assist our Community Relations team with the management of our community investment and donation programmes a Community Investment Fund, the MAENDELEO FUND, for purposes of allocating funds to meet our community investment commitments 14

15 The Maendeleo Fund Aggregate amount of USD$10 million per annum. The purpose of the Fund is to enable ABG and each of its operations to appropriately fund community development plans and projects. The allocation of Fund commitments between the following areas will be determined on an annual basis by ABG s Committee Investment Committee: expenditure within the host communities around each of the ABG operations and projects ABG initiatives in relation to community development and improvement (i.e. initiatives in multiple areas such as surgical missions and other NGO partnerships) philanthropic donations and expenditure educational and training sponsorships to build capacity in the Tanzanian mining sector 15

16 The Maendeleo Fund cont... The Maendeleo Funding priority will be given to programs that are: developed from participatory needs assessment and planning conducted in accordance with communities, government and other stakeholders; aligned with village and District development plans; prioritize mitigation of social impacts and risks; includes fulfilment of existing social obligations; leverages ABG s core business and comparative advantage including in relation to infrastructure and existing facilities and services; maximizes inclusivity and minimizes dependency; and balances visible short-term projects with longer-term development programmes 16