Barrick Opens Academy at Closed Buzwagi Mine
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Insights
The establishment of the Barrick Academy and the conversion of the Buzwagi mine into a Special Economic Zone (SEZ) represent strategic initiatives that can have substantial economic implications for the region. The training academy is set to develop a skilled workforce, which is a fundamental aspect of fostering sustainable economic development post-mining. The anticipated job creation from the SEZ, totaling 3,000 jobs annually, along with the projected service levies and employment taxes, indicate a significant positive shift in the local economy. The diversification from a single-industry reliance on mining to a multifaceted economic zone can stimulate local entrepreneurship and attract external investment, potentially leading to a more resilient economic structure.
In addition, the construction of an airport terminal and the introduction of a scheduled airline service are likely to enhance connectivity and accessibility, further supporting regional economic growth. These developments could attract more businesses and tourism, broadening the economic base beyond the immediate impact of the SEZ. However, the long-term success of such initiatives will depend on consistent management, the adaptability of the workforce and the actualization of the forecasted financial benefits.
The transition of the Buzwagi mine into an SEZ and the launch of Barrick Academy aligns with the growing trend of environmental sustainability and responsible mine closure practices. Repurposing the mine site for economic activities can mitigate the environmental impact often associated with mine closures, such as land degradation and loss of biodiversity. The initiative indicates a proactive approach to environmental stewardship and community engagement, which can enhance the corporation's reputation and stakeholder relations.
However, the environmental implications of the new SEZ and its associated industries must be monitored closely. The introduction of manufacturing industries could potentially lead to new environmental challenges, such as increased pollution or resource consumption. It is important that environmental assessments and sustainable practices are integrated into the development of the SEZ to ensure that the positive legacy intended by Barrick is achieved without compromising environmental integrity.
From a market perspective, Barrick Gold Corporation's initiative to open a training academy and establish an SEZ might reflect positively on the company's stock market performance. Investors often look favorably upon companies that demonstrate a commitment to corporate social responsibility and long-term strategic planning. The ability to leave a positive legacy and contribute to regional economic growth can be seen as indicators of a company's sustainability and ethical governance.
Moreover, the training academy could be a strategic move to enhance the company's competitive advantage by investing in human capital. Skilled managers and workers are key assets that can drive performance and innovation. The market will likely monitor the outcomes of these initiatives in terms of productivity gains and cost efficiencies. Any positive results could potentially be reflected in the company's financial performance and, consequently, investor sentiment.
All amounts expressed in US dollars
KAHAMA, Tanzania, March 18, 2024 (GLOBE NEWSWIRE) -- Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) has officially opened its world class training academy at the old Buzwagi mine, in line with Barrick’s mine closure objective of leaving a positive legacy after mining has finished.
Launched today, the Barrick Academy is designed to offer tailor-made training programs aimed at developing Barrick’s frontline managers to grow both as individuals and as leaders in their fields, while equipping them with the skills to manage their teams more effectively and to improve performance.
The Barrick Academy will be training more than 2,000 foremen, supervisors and superintendents from the Africa and Middle East region in the next 24 months. Looking ahead, we are also gearing up to include our contractors and expand the curriculum to cover wider disciplines, including financial leadership, advanced computer literacy and safety courses.
The opening of the Barrick Academy follows the construction of an airport terminal at Buzwagi’s Kahama airstrip in January this year, which has paved the way for a scheduled airline service that can serve more than 200 passengers at a time. It is expected to be a major catalyst for economic growth in the region.
According to Barrick’s chief operating officer for the Africa and Middle East region, Sebastiaan Bock, the airport terminal and Academy form part of Barrick’s plan to turn Buzwagi into a Special Economic Zone (SEZ). A feasibility study commissioned in 2021 showed that the creation of the SEZ had the potential to replace the mine as the region’s economic driver and could sustainably create 3,000 jobs annually, generate more than
“How we close our mines is just as important to us as how we build and operate them. Our Buzwagi mine was a significant economic powerhouse in the region for nearly 15 years before it poured its last gold in 2021. From our perspective, however, that is not the end of the story for Buzwagi as we transform it into an alternative productive asset that will serve the community for decades to come,” Bock said.
Barrick Enquiries
Tanzania country manager
Melkiory Ngido
+255 686 945 222
Corporate communications and country liaison manager
Georgia Mutagahywa
+255 754 711 215
georgia.mutagahywa@barrick.com
Group investor and media relations
Kathy du Plessis
+44 20 7557 7738
barrick@dpapr.com
Website: www.barrick.com
Cautionary Statement on Forward-Looking Information
Certain information contained or incorporated by reference in this press release, including any information as to our strategy, projects, plans, or future financial or operating performance, constitutes “forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements. The words “design”, develop”, “expect”, “plan”, “potential” “generate”, “deliver”, “transform”, “growth”, “progressing”, “can”, “could”, “would”, “will”, and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements including, without limitation, with respect to: Barrick’s mine closure objectives, including the Barrick Academy and training initiatives; the ability to transform the Buzwagi mine into a Special Economic Zone; opportunities for further growth in Tanzania; Barrick’s partnership with the Government of Tanzania; Barrick’s sustainability initiatives in Tanzania and continued investments in community projects; and Barrick’s contributions to the local economy including its tax contributions, education funding, local hiring and procurement programs and spending.
Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by the Company as at the date of this press release in light of management’s experience and perception of current conditions and expected developments, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: changes in national and local government legislation, taxation, controls or regulations and/ or changes in the administration of laws, policies and practices; expropriation or nationalization of property and political or economic developments in Tanzania and other jurisdictions in which the Company or its affiliates do or may carry on business in the future; the possibility that future exploration results will not be consistent with the Company’s expectations; disruption of supply routes which may cause delays in construction and mining activities, including disruptions in the supply of key mining inputs due to the invasion of Ukraine by Russia; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; failure to comply with environmental and health and safety laws and regulations; timing of receipt of, or failure to comply with, necessary permits and approvals; uncertainty whether some or all of Barrick’s targeted investments and projects will meet the Company’s capital allocation objectives and internal hurdle rate; damage to the Company’s reputation due to the actual or perceived occurrence of any number of events, including negative publicity with respect to the Company’s handling of environmental matters or dealings with community groups, whether true or not; risks associated with new diseases, epidemics and pandemics, including the effects and potential effects of the global Covid-19 pandemic; litigation and legal and administrative proceedings; employee relations including loss of key employees; increased costs and physical and transition risks related to climate change, including extreme weather events, resource shortages, emerging policies and increased regulations relating to related to greenhouse gas emission levels, energy efficiency and reporting of risks; and availability and increased costs associated with mining inputs and labor. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion, copper cathode or gold or copper concentrate losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks).
Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All the forward-looking statements made in this press release are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a more detailed discussion of some of the factors underlying forward-looking statements and the risks that may affect Barrick’s ability to achieve the expectations set forth in the forward-looking statements contained in this press release.
Barrick disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
FAQ
What is the purpose of Barrick Gold opening the Barrick Academy at the Buzwagi mine?
How many managers will the Barrick Academy train in the next 24 months?
What additional disciplines will the Barrick Academy cover in its curriculum?
What infrastructure development has Barrick Gold undertaken at Buzwagi's Kahama airstrip?
What is the potential economic impact of turning Buzwagi into a Special Economic Zone (SEZ)?
