Barrick Gold Tanzania announced today the first gold pour at its new Buzwagi mine in Kahama District, Shinyanga Region. In production, the mine will be one of the country's largest mining operations. Buzwagi is the sixth Barrick project brought into production on time in the last six years.
"For any mining company, a new mine entering production is always an exciting time - particularly for the development team," said President and CEO Aaron Regent. "The team constructed Buzwagi on time and in line with its budget of about $400 million. They also successfully managed to do this with an outstanding safety record."
In 2009, Buzwagi is expected to produce approximately 200,000 ounces of gold at total cash costs of $320-$335 per ounce.
The Buzwagi project is a catalyst for economic growth with an initial investment of 450 billion shillings during its construction phase and over 1.3 trillion shillings when it becomes operational. During construction, Buzwagi provided more than 900 jobs and will cater for 700 jobs directly during operation.
Barrick expects to spent over 75 billion shillings on salaries during the construction of the mine and an estimated 130 billion will be paid out in salaries over the life of the mine.
Proven and probable gold reserves at Buzwagi are 3.3 million ounces as at year-end 2008.
Buzwagi is the first of the company's new generation of mines to enter production. Cortez Hills in Nevada is expected to come into production in the first quarter of 2010 and Pueblo Viejo in the Dominican Republic is targeted for the fourth quarter of 2011. Combined, the three projects represent almost two million ounces of production at lower cash costs than the current portfolio average.
Barrick's next project on the horizon is the Pascua-Lama project which lies on the Chile/Argentina border.
The Buzwagi Gold Mine required a substantial capital investment of approximately US $400 million. Buzwagi is referred to as a marginal mine because while requiring investment of $400 million to access 2.4 million ounces of reserves, a mine like Bulyanhulu required $280 million for over 10 million ounces of reserves. Hence the viability of Buzwagi Project is easily affected by small changes in price or cost.
About Barrick Gold
Barrick Gold Corporation is the world’s preeminent gold mining company. Barrick shares are listed on the Toronto and New York stock exchanges
Barrick Gold Tanzania operates three mines in Bulyanhulu, North Mara and Tulawaka and has reached advanced stages of construction of the Buzwagi project.
Teweli Kyara Teweli
PR & Communications
Barrick Gold Tanzania,
Plot 1736, Hamza Aziz Road,
Msasani Peninsular
P. O. Box 1081, Dar es Salaam
United Republic of Tanzania
Kwa sisi tuliofanya kazi ya kuanzisha huu mgodi ni furaha ya kweli kuona kazi imekamilika.
ReplyDeleteIt is a very nice story but i was in puzzle of $320-335 per ounce,Is it true to say Tanzanian Gold is of that low quality?.Now we have Canadians hope the company will not change the name like how we use to see and here.Let this be the moment of rising the name of our country instead of concentrating in issues which will hinder our development like East African community.Tanzanians need to enjoy the present Fruits of their resources,our eyes are open now"MUNGU IBARIKI TANZANIA,TUBARIKI NA WATU WAKE,AMEN"[dazd@windowslive.com]
ReplyDelete"Barrick expects to spend over 75 billion shillings on salaries during the construction of the mine and an estimated 130 billion will be paid out in salaries over the life of the mine"
ReplyDelete.....sounds great....would you mind also telling us an estimated amount of money you will 'reap' over the life of the mine?
Mengi Atauliza kama Rostam Aziz yumo? au atamuharibia mtu sasa hivi.
ReplyDeleteHivi ndivyo watanzania wanaibiwa angalia hapo chini
ReplyDeleteTotal cost of construction $400M
Cost to pay worker (Tanzanian) 75 billion shilling ($75 Million )
Total salary to Tanzanian 130 billion shilling ($130 million)
Mimi nafanya kazi engineering consulting and I am 100% sure engineering fees are not 25 million dollars and cost of moving equipment and construction material is not 300 million dollars.
Since they claim that the cost of construction to be $400M, they are entitled to claim a $400M tax deductible from TZ. In other words they will not pay any tax to TZ unless thy make $400M which was probably due to management salary (CEO of Bariki plus head office employee plus dividends). Since a personal income can be taxed in Canada it is the Canadian government which will make money out of this and not a single penny (Canadian cent ) for Tanzania.
Now here is where it get tricky 200,000 ounces a year equals to $185 M revenue in gold. If you deduct the cost of $64M for production you remain with $121M. For those who understands capitalist world the cooperation is answerable to share holders. They will pay dividends to share holders (In Canada) and claim it as expense (In Tanzania). In other words, the only thing Tanzania will gain is to keep people out of street who will take in $ 205M out of proven $3.05 billion from 3.3 million ounces that are a 6 percent income.
My proposal is a 30% share to the Tanzanian government. Botswana has a 40 percent stake in all of its mining industry why not applying the same principle in TZ?
We cant charge them any taxes since they will claim a loss (they have $400M head start!!
I wonder what Mashaka will say about this since he is a champion of capitalism policies. Don’t get me wrong I do respect your opinion but you are an economist lets see where your loyalty lies!! And yes it is a challenge!!
And as I said I am an engineer not an art teacher so don’t waste your time criticizing my English since my career is based on numbers.
Hongereni, lakini mrahaba upatikane na isiwe kama tulivyo zoea, watanzania kuambulia vumbi tu. Tunataka kuona matunda ya huo mgodi na sio nyimbo zisizoridhisha
ReplyDeleteNi kweli Rostam yumo kwenye hiyo dili...kama unabisha tulia uone...manake naona sasa hamjui nini kinaendelea....tunaibiwa tuu,ni wizi mtupu
ReplyDeleteTUNATAKA KUJUA WATANZANIA TUNA PERCENT % NGAPI(ASILIMIA NGAPI) SIO MTUIBIE KAMA MGODI WAKWANZA!
ReplyDeleteALAFI NILIONA KIKWETE ALISEMA HII MIKATABA IPITIWE UPYA SASA NA HUU UMO AU NDO KAPUTI, WANAUME WANA ZOA TU!!!!!!!
Haya bwana....heri hayo kuliko tungekua tunatoana damu wenyewe kwa wenyewe.
ReplyDeleteNCHI NZURI LAZIMA WACHEKELEE, KAMA UNAWEZA KUINGIA NCHINI NA KUCHUKUA KISHA UKAONDOKA (MOVENPICK) TO BE CLEAR, MOVE AND PICK. DHAHABU HIZI HAZITUSAIDII WATANZANI KWANI BEI ZINAZOTAJWA NI ZA UONGO NA KIASI KINACHOCHIMBWA PIA CHA UONGO, JEMA NI KWAMBA VIONGOZI WA CCM NDIO WANAONEEMEKA KWENYE WIZI HUU KWANI SASA HIVI WAO NDIO MATAJIRI KULIKO WAFANYABIASHARA.
ReplyDeleteMdau namba mbili naomba tu kukuelewesha in Mining wanaposema
ReplyDelete"total cash costs of $320-$335 per ounce" haimaanishi hii ndo bei ya kuuzia dhahabu mpaka unajiuliza kuwa ina maana dhahabu yetu ni ya low quality hivi.
Cash Costs, in mining are the costs of production at site level per unit output...na itainclude operational cash costs at site level ambazo ni transport, refining, administration costs na royalties...
Kwa kufafanua kwa urahisi hiyo $320-$335 per ounce, ni gharama ya uzalishaji per ounce moja ya dhahabu, shughuli za uzalishaji ni kama nilivyotaja hapo juu....So ina maana siku dhahabu ikaja kushuka bei na kuwa chini ya hiyo cash costs ndio hapo watakapooperate kwa hasara....Hope imeeleweka.....
Umma wa Watanzania, bado unahitaji elimu zaidi juu ya shughuli za Mining..Bado uelewa ni mdogo sana. Ni biashara ngumu na nzito..sikatai kuwa huwa kuna mikataba mibovu lakini wapo ambao mainvestor wanaooperate kwa kufuata taratibu zitakiwazo...
Engineer, Nimekupenda. Yaani nimesoma comment yako nikajua straight wewe ni kichwa! In all I share your concern. Ngoja tuwasubiri "wachumi wa wall street" waje kutupa habari yao hapo..At times you wonder whether we Africans are cursed. Labda matatizo yetu yako kwenye DNA si bure..jamani hata kutumia kilicho chako kwa manufaa yako unashindwa? across the continent the situation is the same! with few exception. Duh..!
ReplyDeleteAgain, thanks Engineer for your splendid comment!
Masanja,
Kaka michuzi naomba unapotoa taarifa za mali za watanzania kama huo mgodi wa kahama, tafadhali sana tumia kiswahili kwa maana sio wote tunaojua maneno ya kitaalam ya kingereza na tunaposhindwa kuelewa matokeo yake ni kuendelea kuburuzwa, kuibiwa. naomba kuwasilisha.
ReplyDeleteEngineer, the only taxes that mining companies are exempted from before profit is 'corporate tax' otherwise all other taxes will be paid.
ReplyDeleteFurther clarification, the initial investment was 500 billion shillings during its construction phase and an additional injection of over 1.5 trillion shillings when it becomes operational (from July).
During construction, the Buzwagi project provided over 3000 jobs and will cater for 700 jobs directly (only 50 expatriates) and an estimated 2,800 in indirect employment during operation.
The PAYE taxes alone based on these numbers will exceed 28 billion per annum.
By the way cash costs means cost of producing an once.
Let's not be overly skeptical, if you do not have the details do the research. Too many things in our country are decided on heresay. Tushirikiane tujenge taifa.
Mdau ulie nijibu $320-$335 per ounce,nimekushukuru sana mimi ni mchumi mdogo kwani bado niko chuoni.Hapa ninachotaka kufahamu je serikali inapata kiasi gani,kwaajili ya miundo mbinu na maendeleo ya jamii kwa ujumla?.Nimeshituka kwani maelezo ya wawekezaji wote wanaokuja hapa nchini huwa hawajalikuwa serikali itapatakiasi gani?huwa kuna kuwa na estimations za mtaji na matumizi ya muwekezaji.Hakuna projections za profit,ambazo ziko wazi hata wewe Mdau ukiwekwahapo unaweza kutoa matumaini yakweli.
ReplyDeleteZaidi nashukuru kwa wote hapo juu michango yenu ni mizuri na inaonyesha Patriotism"Mungu Ibariki Tanzania,Wabariki na watu wake,Amen"[dazd@windowslive.com]
HAKI YA MAMA VILE,,,
ReplyDeleteaya PR tumepata lingine
Tanzania is a peaceful country
Anon 10;58
ReplyDeleteThese are issues that you address before being asked.
Utajenga Taifa kwa kuelimisha na kufahamisha jamii.
Do not wait until you are questioned or doubted to explain yourself.
Defence is not a way of communication. To avoid hearsay, communicate issues in an honest and transparent manner.
Tumia mtandao wa jamii kikamilifu
Kanzu mpya lakini sheikh ni yuleyule! HUU NI WIZI MTUPU. Toka mkataba unasainiwa mpaka sasa hivi wingu la wizi limetanda tuu! WATANZANIA TUTAENDELEA KUIBIWA MPAKA TUTAKAPOAMUA KUWA YATOSHA!!! By the way, hiyo mitarakimu kibao mliyotoa hapo kuonesha uwekezaji wenu haitusaidii chochote ambao hatuna ajira Buzwagi. Tupeni tarakimu kuwa Serikali itegemee kupata kuasi gani kipindi chote cha uhai wa mgodi ili nijue jinsi gani watanzania wa Mtwara, Bukoba, Wete na Pangani watafadika na sio blah blah zenu hizo! Tume...Tumechoka! Bora hata mngekaa kimya muendelee kuiba kimya kimya kama kawaida yenu!
ReplyDeleteHaya Kaka Teweli,
ReplyDeleteHIVI UNAOA LINI NA WEWE? Manake mchumba yupo sio ndio yule au bado uko majaribuni?
Sasa Rostam yupo tele kwenye deal yeyote bongo inayohusu mining; anakuwepo kwa kupitia kampuni yake ya Engineering and Mining Equipment inaitwa Caspian.
Michuzi.. you might wana put this on main page. i hate when a public relationship manager start lying!!
ReplyDeleteAnymous at 10:58 may 7 angalia jibu langu hapo chini
Engineer, the only taxes that mining companies are exempted from before profit is 'corporate tax' otherwise all other taxes will be paid.
Key word “Exempt before profit” Great so they don’t even pay a corporate taxes! That’s what I mentioned earlier before paying corporate taxes you are allowed to deduct expenses and those expenses are dividends paid to Canadian share holders and not in TZ plus any production cost incur during production. Remember I mentioned I am in Canada so I do understand their tax structure. Why don’t you tell us what other taxes they are supposed to pay. According to the wikipedia, Tanzania has only 4 tax structure VAT, Payroll tax (individual), corporate tax .
Bariki can not pay VAT in tz which is a sales tax, because they are not selling anything in TZ. Payroll taxes are from employee which is out of the $130 million salary. And they are exempted from Corporate Taxes. Even if they are not exempted from cooperate taxes they can claim a loss!! Did I mentioned expatriates don’t pay taxes!!!
Further clarification, the initial investment was 500 billion shillings during its construction phase and an additional injection of over 1.5 trillion shillings when it becomes operational (from July).
Please give me the breakdown of your figures it does not make sense. Construction cost is $75M so where did the $400M go?. Plus how is $1.3 billion get injected in Tanzania economy if the total salary during the entire life of operation is $130M.
During tconstruction, the Buzwagi project provided over 3000 jobs and will cater for 700 jobs directly (only 50 expatriates) and an estimated 2,800 in indirect employment during operation.
Please do not include guards and cleaners as a legitimate justification to claim 3000 jobs created. Only 50 expatriates? who will be paid over $100K a year that is over $5M a year. Assume ten year operation so they will get $50M out of the $130M supposedly paid as salary in TZ. This is ridiculous!! Canadian company do have restriction on investing in Canada if your are not aware of it please follow the link bellow http://investincanada.gc.ca/eng/establish-a-business/start-business-canada/foreign-ownership-restrictions.aspx so why we are not imposing the same principles in TZ
The PAYE taxes alone based on these numbers will exceed 28 billion per annum.
Here we go again I am not DUMB! 28 billion shilling is only $2.8 M per year so for a ten years life span Tanzania will make only $28M pluss the $ 130M minus the expatriate salaries out of the proven potential of $3.05billion
By the way cash costs means cost of producing an once.
Please review my previous comments again. The price of gold as of today it stands at $917 per ounce. So they will cash in $ 590 per ounce as profit!!!
Let's not be overly skeptical, if you do not have the details do the research. Too many things in our country are decided on heresay. Tushirikiane tujenge taifa.
I am sorry I can’t claim that najenga taifa while I don’t see any money. I am on the loosing end here. I did not sign any contract no owning any Bariki shares pluss I am not a FISADI who can get the peace of the PIE. This is not fair to Tanzanian people. Bariki is one of the biggest company in Canada. The Norweign government pulled out of it because of the way it steels money out of poor peole pluss poisoning the environment For more info see bellow
Pull out of Norwegian government http://www.canada.com/Technology/story.html?id=1237355
Frestriction to foreign ownerships in Canada http://www.tc.gc.ca/pol/en/report/research/tp14500e/tp14500e.pdf
Bariki global performance
http://www.google.ca/finance?q=TSE:ABX
Canadian non resident policy on uranium mining
http://www.nrcan.gc.ca/eneene/sources/uranuc/uranium/respol-eng.php
sisi tunafurahia picha tu, urithi wetu unaondoka hivihivi hata senti hatupati. Mungu atusaidie kuondokana na udhaifu huu wa akili uliodumu toka kipindi cha akina Kimweri!
ReplyDeleteBaada ya miaka 25 hakutakuwa na dhahabu...mashimo tu na kemikali za zabaki kutuachia!
ReplyDeleteTeweli Teweli kumbuka wewe ni Mtanzania
ReplyDeleteTUNAIBIWA NYIE MNASHANGILIA.........KWELI WAJINGA NDIO WALIWAO!!!!
ReplyDeleteMiaka 400 iliyopita waingereza walikuwa na dhahabu kibao, pia tin minerals ambazo walifanya biashara hadi na watu wa north Africa kuja kwa majahazi. Lakini sasa waulize, wamebakia mashimo.
ReplyDeleteUingereza kaskazini hadi uingie Scotland walikuwa wanaongoza kwa migodi ya makaa ya mawe barani ulaya, lakini sasa vyote vimekwisha.
Wazungu hao hao wanahamia kwentu kuja kukomba urithi wetu na sie tunafurahia. Waangalieni wa suadia sasa wameamua kutochimba mafuta baadhi ya maeneo sababu wanaogopa watoto na vitukuu vya watakosa urithi huo. Tutafute njia nyingine ya kulipatia taifa pesa kwani hiyo migodi tunaibiwa tu, angalia dhahabu zimejaa kwenye mabenki mataifa ya magharibi. Wanatupa misaada wapate kutibiwa kiurahisi, ama kweli ukisikia kula na kipofu ndio huko.
Baba wa Taifa alisema, "Kama hatuna uwezo wa kuchimba dhahabu yetu wenyewe sasa tuiache mpaka tuwe na uwezo huo kama sio sisi basi vitukuu vyetu vije kufanya kazi hiyo" Nyerere alijua kabisa kuita wazungu waje kuchimba ni wizi mtupu !!! Ila watu hatusikii kama tuna laana !!
ReplyDeleteinahuzunisha jinsi mali asilia zinavyokwenda kuwatajirisha watu/nchi nyingine na sio wazawa.
ReplyDeletekweli ng'ombe wa maskini hazai:(
jamani nlikuwa nauliza bei
ReplyDeleteya dhahabu na almasi ni shilingingapi?
Hey engineer i have read all
ReplyDeleteof your comments on how bariki
try's to make alie and still to our
people im in georgia im just trying
to assume how tanzania is going to be
in the future.But the problem is this
our leaders don't make any investigation
while they conduct such serious deals like
this.They don't know if something went
wrong the one's who will be affected
is us because that is our country so
im with you mr.engineer if there is any way we can try to convince our people
not to be fooled
by those foreigners.mr. your realy good with you'r points