Tanzania Maendeleo Fund Launch September 2011 Disclaimer This - - PowerPoint PPT Presentation

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Tanzania Maendeleo Fund Launch September 2011 Disclaimer This - - PowerPoint PPT Presentation

African Barrick Gold in Tanzania Maendeleo Fund Launch September 2011 Disclaimer This presentation has been provided for information purpose only. It does not constitute an offer, solicitation or inducement to purchase, subscribe or otherwise


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September 2011

African Barrick Gold in Tanzania

Maendeleo Fund Launch

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Disclaimer

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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

  • r 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

  • therwise.

All amounts are in US dollars unless expressed otherwise.

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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 Moz1

  • 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
  • perational track record
  • Successful IPO and FTSE index inclusion in

2010

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Location of assets

Dar es Salaam Buzwagi Bulyanhulu North Mara Tulawaka

Mining operations

1 Figure as at 31 December 2010

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  • Presence in Tanzania for over 10 years

Mine History

2000: Acquired Pangea Minerals Ltd 2001: Bulyanhulu start of production 2001 1999: Purchased Bulyanhulu from Sutton Resources 1999 2004 2004: Tulawaka start of commercial open pit production 2000 2006 2006:Acquisition

  • f Placer Dome

(owner of North Mara mine) by Barrick. 2007 2009 2009: Buzwagi starts production 2008 2010 2010: Acquisition of Tusker Gold

2010: ABG created

ABG in Tanzania

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Public Market Leader

  • Commitment to list on DSE
  • Barrick Gold retains 73.9% shareholding
  • ABG has a market capitalization of

approximately

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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

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Tax Payer

in taxes and royalties

  • In 2010 ABG paid
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Employer

in wages and benefits to Tanzanians alone!

  • In 2010 ABG paid
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Employer

  • ABG currently employs over

employees and contractors

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Employer

  • f ABG’s workforce
  • Tanzanians currently form over
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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

11 (1) As at 30 June 2011 (2) As of May 2011

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Host Communities: Key Initiatives

Prevalence Rates HIV Malaria* Kagera 3.4 41.1 Mara 5.3 30.3 Mwanza 5.0 31.4 Shinyanga 7.6 29.5

*Children of 6–59 months tested Source: Tanzania HIV/AIDS and Malaria Indicator Survey 2007-8 (preliminary report)

  • 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
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Governance & Ethics

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  • 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

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ABG Approach to Community Investment

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  • 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

  • ther 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

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The Maendeleo Fund

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  • 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

  • perations 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

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The Maendeleo Fund cont...

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  • 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