Gold miner AngloGold Ashanti, in line with its strategy to ensure a sustainable contribution to the economies of host countries, has established the BG Umoja joint venture (JV), in Tanzania.
The JV has been awarded a $186-million two-year mining contract for the Nyankanga and Geita Hill underground mining projects.
The 80:20 JV 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.
The partnership is modelled on a similar underground mining JV at AngloGold Ashanti’s Obuasi Redevelopment Project, in Ghana, between AUMS Ghana and Accra-based Rocksure that is expected to help build local specialised mining capacity.
AngloGold Ashanti Africa COO Sicelo Ntuli says the company is working with its experienced mining contractors to assist in establishing local JVs for the long-term transfer of sustainable skills, and to continue building on its sustainable local procurement programmes.
“AngloGold is building sustainable local procurement programmes that will [enable] 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.”
Further, AngloGold’s yearly expenditure with indigenous Tanzanian suppliers has almost tripled, to $162-million, 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.
In line with the miner’s commitment to contribute to the economies of host communities, AngloGold’s Geita gold mine has awarded a two-year fuel transportation contract, worth about $10.8-million a year, to two local contractors – one of which is originally from Geita.
The Geita-based company was part of the Geita mine’s supply chain capacity building initiative for host community suppliers, a partnership between the mine and the National Economic Empowerment Council.
Meanwhile, to abate its Scope 3 emissions, AngloGold reports that Geita’s trucks are to be compliant with Euro IV emissions standards, that 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.
Further, 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 and participate in social initiatives aimed at uplifting the lives of host community residents.
Moreover, earlier this year, the government of Tanzania recognised AngloGold’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 2019/20.