May 17, 2020

Barrick Gold Considers Selling Assets, Hints at Mick Davis Deal

Barrick Gold
John Thornton
Mick Davis
2 min
Barrick Gold Considers Selling Assets to Reduce Debt, Hints at Mick Davis Deal
Like most people in the world,Barrick Goldis trying to reduce debt.The Toronto-based gold miner is attempting to cut its debt by $3 billion and has made...

Like most people in the world, Barrick Gold is trying to reduce debt. The Toronto-based gold miner is attempting to cut its debt by $3 billion and has made it very clear they are open to a wide range of asset sales and joint ventures.

Barrick has even hinted at a possible deal with former Xstrata chief executive, Mick Davis.

According to the Financial Times, the company's chairman, John Thornton, said it would be a “good example” to assume that Barrick Gold go into partnership with someone such as Mick Davis, whose company, X2 Resources, is currently looking for investments.

“I could imagine a joint venture in which, let’s say, we sold a minority interest to a party [with] a world-class chief executive and that chief executive was going to run the copper business the way he thought made sense,” Thornton said in an interview with the Financial Times.

• Pressure Mounting for Mick Davis to Find New Mining Deals

“We would build the business with him. We would be majority owner or even 50-50 owner. It would build value for us.”

Thornton also said Barrick is open to finding a strategic long-term partner interested in selected stakes in a cluster of assets.

Thornton, a former Goldman Sachs banker, said Barrick is confident of meeting its target to cut $3 billion this year from its net debt of more than $10 billion. Barrick, which has been one of the worst-performing large miners of the past two years, is desperately trying to rebuild its reputation with investors.

• Barrick Gold Orders All New 2015 F-150 Pickups

The company is also in the advanced stages of selling two gold mines -- Cowal in Australia and Porgera in Papua New Guinea – and is reportedly considering selling its Zaldivar copper mine in Chile.

On a side note, Thornton did confirm with the Financial Times that Barrick has no plans to try and revive a merger with its US rival Newmont Mining. 

(Source: Financial Times)

WATCH: [VIDEO] Ford Tests New 2015 F-150 at Barrick Gold Mine


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Apr 19, 2021

AngloGold Ashanti establishes BG Umoja JV in Tanzania

Daniel Brightmore
3 min
AngloGold Ashanti, Geita, Tanzania, BG Umoja
AngloGold Ashanti’s BG Umoja JV has been awarded a $186mn two-year contract for the Nyankanga and Geita Hill underground mining projects in Tanzania...

AngloGold Ashanti, in line with it s strategy to ensure a sustainable contribution to the economies of host countries, has established the BG Umoja joint venture (JV), in Tanzania.

Awarded a $186m two-year mining contract for the Nyankanga and Geita Hill underground mining projects, the 80/20 joint venture is a partnership between Africa Underground Mining Services (AUMS) Tanzania, a subsidiary of Australia’s Perenti Group, and local drilling services and mining- supply company, Geofields Tanzania Limited. 

The partnership is modelled on a similar underground mining joint venture at the Company’s Obuasi Redevelopment Project in Ghana between AUMS Ghana and Accra-based, wholly Ghanaian-owned Rocksure and will help build local specialised mining capacity.

AngloGold Ashanti

“We’re working with our experienced mining contractors to assist in establishing local joint ventures for long-term transfer of sustainable skills, and to continue building on our sustainable local procurement programmes,” commented Sicelo Ntuli, AngloGold Ashanti’s Chief Operating Officer: Africa. 

“AngloGold Ashanti is building sustainable local procurement programmes that will allow it to stimulate economic and social development at all of its operations, evidenced by the significant contribution Geita has made to the fiscus and people of Tanzania.”

AngloGold Ashanti’s annual expenditure with indigenous Tanzanian suppliers has almost tripled to $162mn since 2016. The company’s local team in Tanzania has set itself an ambitious target of 60% to 70% of all expenditures with indigenous Tanzanian companies, by 2025.

Scope 3 Emissions

In addition, AngloGold Ashanti’s Geita Gold Mine has awarded a two-year fuel transportation contract, worth approximately $10.8m a year, to two local contractors - one of which is originally from Geita. This is in line with the mine’s commitment to contribute to the economies of host communities. The Geita-based company was part of Geita Mine’s supply chain capacity building initiative for host community suppliers, a partnership between the Mine and the National Economic Empowerment Council.

To influence Scope 3 emissions, trucks are to be compliant with EURO IV emissions standards, tankers are to be made of an aluminium alloy material to reduce weight and the age of the fleet will be maintained at less than six years.

Diversity & Inclusion

The contractors already employ women fuel tanker drivers, fulfilling the Mine’s requirements for diversity and inclusion. The two contractors both own workshop facilities in Geita town and participate in social initiatives aimed at uplifting the lives of host community residents.

AngloGold Ashanti has been operating at Geita Gold Mine for more than 20 years, with the project initially a single pit mine, evolving now to a predominantly underground operation, employing 5,700 employees and contractors.

Earlier this year, the Government of Tanzania recognized AngloGold Ashanti’s contribution to the economy of the country, awarding it for its outstanding performance in a number of areas, including environmental and safety performance, corporate social investment, the best taxpayer in the mining sector, the runners up in local business content and overall best performer in the mining sector in Tanzania in 2019/2020.

Geita Gold Mine

Geita, one of AngloGold Ashanti’s flagship mines, is located in north-western Tanzania in the Lake Victoria goldfields of Mwanza region, about 120km from Mwanza and 4km west of the town of Geita. It has been in operation as a large-scale mine since 2000.

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