Message from the Chief Executive Officer

Transcription

1 1

2

3 Table of Contents Message from the Chief Executive Officer Who We Are Where We Operate The ABG Maendeleo Fund Community Investment Committee Investment Criteria Projects Health Education Water Infrastructure Economic Empowerment Investment Recipients ABG s Corporate Social Responsibility Charter How to Apply... 22

4 Message from the Chief Executive Officer ABG Maendeleo Fund helps to transform lives in Tanzania Greg Hawkins Chief Executive Officer In September 2011, African Barrick Gold s (ABG) Board approved the establishment of a community investment fund to spearhead the company s community development initiatives. The ABG Maendeleo Fund (the Fund ) has been designed to finance and co-ordinate a wide range of sustainable development projects in communities near our four gold producing mines in Tanzania, as well as national initiatives. At ABG, we are committed to building enduring relationships with communities in which we operate over the entire life-cycle of our mines to share the benefits of our activities with them. Since its launch, the Fund has become the largest corporate community development fund of its kind in the country and its $10 million per annum budget significantly increased ABG s annual spending on community development. The Fund has helped to fulfil ABG s commitment to contribute to sustainable development in Tanzania and has already made tangible improvements to people s lives. Over the past year, the Fund has invested around $2.25 million for the improvement of community health near and around the four mine sites where we operate. Some of the key health-related projects financed by the Fund include supporting the fight against malaria in Lake Zone, training of dentists and medical students in the Lake Zone area and donating $500,000 to the Benjamin Mkapa HIV/AIDS Fellows Programme. The Fund has also donated $290,000 for the construction of two operating theatres and purchase of an endoscopy machine at the Bugando Medical Centre in Mwanza, funded the construction of Mwendakulima Health Centre valued at $390,000, Mwendekulima Dispensary in Kahama district and invested $550,000 for upgrading the Sungu Sungu health facility in Tarime district. In education, the Fund has announced an investment of $1,000,000 in a major initiative called ABG School Desk Programme, aimed at improving the learning environment in schools in the Lake Zone area of Tanzania, which face a critical shortage of desks. 4

5 Message from the Chief Executive Officer All construction projects are executed by local contractors sourced from around our operations or within the region in which we operate. We have also invested a total of $240,000 to improve facilities at the Chapulwa Primary School and Busoka Girls Secondary School near the Buzwagi mine, plus $300,000 for construction of hostels and staff houses at Mubaba Secondary School near the Tulawaka mine. ABG as well invests in water projects. At North Mara, some $800,000 has been committed for drilling water wells which provide communities near the mine with vital access to clean and safe drinking water. At our other mines, we have also made investments towards the provision of clean water to local communities. The initial stages of the Fund have been highly successful and we are committed to continue investing for the good of all of our stakeholders in Tanzania. As we look back over the past year and evaluate the achievements of the Fund, there is a notable sense of accomplishment. Going forward, the challenge is to build on our successes and work even harder to aid the delivery of vital community services. In order to ensure we continue to allocate funds effectively, we are also considering whether to expand the Fund s Community Investment Committee to include external expertise to provide an independent viewpoint on investments. I would like to thank all our partners and the local Government who have helped over the past 18 months and we look forward to working together as we evaluate more opportunities to support inclusive social development in Tanzania in 2013 and beyond. 5

6 Who We Are About African Barrick Gold ABG is Tanzania s largest gold producer and one of the five largest gold producers in Africa. We have three producing mines, all located in north-west Tanzania, and several exploration projects at various stages of development. We have a high-quality asset base, solid growth opportunities and a clear strategy to optimize, expand and grow our company. We are listed on the Main Market of the London Stock Exchange under the symbol ABG and have a secondary listing on the Dar es Salaam Stock Exchange. Historically and prior to our initial public offering (IPO), our operations comprised the Tanzanian gold mining business of Barrick Gold Corporation (Barrick), our majority shareholder. The key pillars to our strategy are: Driving operating efficiencies to optimise production from our existing asset base; Growing through near mine expansion and development of advanced-stage projects; and Organic greenfield growth and acquisitions in Africa. Maintaining our license to operate through acting responsibly in relation to our people, the environment and the communities in which we operate is central to achieving our objectives. 6

7 Where We Operate Kagera Mara North Mara Tulawaka Mwanza Shinyanga Bulyanhulu Buzwagi Dar es Salaam Mine Sites Country Office 7

8 The ABG Maendeleo Fund Community Investment Committee ABG has established a Community Investment Committee which is responsible for reviewing applications received for support and investment under the ABG Maendeleo Fund to ensure that all applications are reviewed in a fair and timely manner. The Committee s primary function is: Making decisions on project proposals; Overseeing implementation of various projects; Coordinating monitoring and evaluation, and providing reports on the fund s operations. The Committee is comprised of ABG s Vice-President of Corporate Affairs, General Counsel, Head of Corporate Development and Investor Relations, PR & Communications Manager and Corporate Manager - Community Relations. Deo Mwanyika Vice-President Corporate Affairs. We aim to be leaders in responsible mining and fostering social and economic development in the communities in which we operate. We go over and above basic compliance... building trust, credibility and engaging communities is part of our business. Katrina White General Counsel and Company Secretary. We are proud to say that we have seen many of our host communities prosper, showing visible signs of an improved quality of life and standard of living 8

9 The ABG Maendeleo Fund Community Investment Committee Nector Pendaeli Foya PR & Communications Manager Andrew Wray Head of Corporate Development and Investor Relations We understand the importance of building partnerships to help improve facilities for local people in education, health, water and infrastructure We are committed to inclusive and transparent community engagement in order to build and maintain trust with our host communities Steve Kisakye Corporate Manager - Community Relations We address true community needs and give priority to projects that fit into the national development strategies. ABG Maendeleo Fund also focuses on funding projects that create shared value between the company and the communities 9

10 Investment Criteria Investments made by the ABG Maendeleo Fund focus on community development, health, education, water projects, skills and training programmes, and include support to non-governmental organisations with demonstrated capacity to deliver on community development initiatives. As part of ABG s commitment to corporate social responsibility, the Fund also finances various philanthropic initiatives, donations, sponsorships, partnerships and other forms of support and public investment. Due consideration is given to broader development initiatives that support Tanzania s national development strategy. Priority is given to programmes that: Are developed from participatory needs assessment, and planned in consultation with the community, government and other stakeholders; Are aligned with village and district development plans; Prioritise mitigation of social impacts and risks; Include fulfilment of existing social obligations and commitments; Leverage ABG s core business and comparative advantage including in relation to infrastructure and existing facilities and services; Maximise inclusivity and minimise dependency; and Balance visible short-term projects with longer-term development programmes The allocation of the Fund s budget is determined on an annual basis by the Community Investment Committee and is split between: Expenditure within the host communities around each of the ABG operations and projects ABG initiatives in relation to community development and improvement at a National level Philanthropic donations and expenditure Educational and training sponsorships to build capacity in the Tanzanian mining sector. 10

11 Health Projects Nothing is more important to ABG than the safety, health and well-being of our employees and their families. Our motto is Every person going home safe and healthy every day. Community health is a natural extension of employee health, as many of our employees live in the local communities around our mine sites. ABG believes that to have a positive impact on employees health, we have to address health issues in the communities in which our employees live. ABG works with other private sector partners, NGO s and government partners to develop comprehensive health management plans and programmes in the communities around our operations. Regional Investments Malaria Prevention We are supporting malaria prevention in the Lake Zone through two initiatives Zinduka! Malaria Haikubaliki and NightWatch Programme with a commitment of $96,600 and $100,000 respectively Zinduka outreach campaign visited 23 schools in the Lake Zone districts in collaboration with THT and Malaria No More NightWatch radio episodes are being broadcast on local stations in the Lake Zone Treat and Train We committed $130,000 towards the Treat and Train programme with our collaborating partner, the Touch Foundation. The programme links the Catholic University of Health and Allied Sciences (CUHAS) and Bugando Medical Centre (BMC) students with collaborating hospitals within the Lake Zone to provide clinical training in maternal health. Funding goes towards construction of student accommodation at the Sengerema hospital and the establishment of an M&E system for the whole programme. 11

12 Health Projects Lake Zone Health and Economic Development Initiative The Lake Zone Health and Economic Development Initiative (LAZHEDI) is a 3-year project (Oct.2011 Sept.2014), primarily targeting an improvement in health outcomes among households within artisanal and small-scale mining communities and the initiation of diversified economic activities to increase average household monthly income. We are co-funding this initiative alongside USAID with an investment of $300,000 in Tarime district The programme is overseen by the Tanzania Chamber of Minerals and Energy (TCME) and implemented by Africare Mkapa Fellows Programme The Benjamin William Mkapa HIV/AIDS Foundation is a trust, non-profit making organisation, established in 2006 focused on enhancing the delivery of quality HIV and AIDS care, treatment and other related services including Reproductive and Child Health to Tanzanians. We committed $500,000 to the implementation of this programme in Biharamulo district Needs assessment study is being undertaken that will enable training and mentoring of doctors to reduce maternal deaths and HIV/AIDS prevalence Emergency Dentistry The programme focuses on training of clinical officers in emergency dentistry in partnership with national, regional and district governments. We committed funds to support a 3-year programme run by Bridge2Aid(B2A) In 2012, we funded 3 training programmes in Shinyanga rural district (Shinyanga region), Musoma rural district (Mara region) and Bukoba district (Kagera region) 12

13 Health Projects Lake Zone Bugando Medical Centre Bugando Medical Centre is a consultant and teaching hospital for the Lake and Western Zones of Tanzania. It is the main referral centre for tertiary specialist care for six regions, including Mwanza, Mara, Kagera, Shinyanga, Tabora and Kigoma. It serves a population of approximately 13 million people. We committed $290,000 to the construction of two operating theatres and purchase of an endoscopy machine North Mara Sungu Sungu Health Facility The facility is recognised as key to delivering health care to the community around the North Mara Gold Mine We committed $550,000 for the rehabilitation of the Sungu Sungu health centre in North Mara Rehabilitation entailed upgrade of wards, toilets and power installation (back up generators) Water supply efforts are ongoing together with provision of hospital equipment Buzwagi Mwendakulima Health Centre Mwendakulima Health Centre is an initiative aimed at servicing communities around Buzwagi mine in Kahama township, Shinyanga region. The centre will primarily focus on the critical public health areas of HIV/AIDS, malaria and child illness. We committed $390,000 towards the construction of the health facility over two phases The health centre will serve a population of over 12,000 from Mwendakulima ward 13

14 Education Projects ABG believes that education and economic progress go hand in hand. We work closely with the Tanzanian government and communities around our mine sites to support their education priorities. Buzwagi Chapulwa Primary School The Chapulwa school project was implemented in partnership with the Kahama District Council in Shinyanga region. We committed $120,000 towards the project The number of classrooms and teachers houses has been increased after the rehabilitation of various buildings Education is the key for success, no matter where one lives. One of the most meaningful and lasting benefits that ABG can provide to its host communities is support for education. Regional Investments ABG School Desk Programme ABG Maendeleo Fund committed $1,000,000 to furnish school desks around our mine operations and the entire Lake Zone. This unique initiative will be implemented over the next year. To date, over 1,000 desks have been donated to 10 schools around the North Mara mine Another 5,000 desks will be donated in early 2013 to more schools in the Lake Zone Busoka Girls Secondary School A total of $120,000 was committed to support the Kahama district s efforts to address girls access to quality education. Further construction of a dining hall and kitchen will be completed by the end of

15 Education Projects Tulawaka Mavota Primary School We committed $115,000 for the construction of 4 teachers houses Mkunkwa Primary School We committed $135,000 for the construction of 3 additional classrooms and a further 2 teachers houses Nyantakara Secondary School We committed $41,000 for the construction of a modern library 15

16 Water Projects ABG operates in regions where there is major scarcity of water and so water availability is a critical concern to our stakeholders. We are focused on minimising our impact on local water tables and ensuring that communities around our mine sites have access to clean water and safe drinking water. North Mara Kewanja Dam This project was initiated to refurbish a community dam that holds water for domestic use and cattle. The project was successfully completed and commissioned. The ABG Maendeleo Fund committed $94,000 in order to complete the works Borehole Drilling Project We commited $800,000 to the drilling of water wells for communities around the North Mara mine. To date 14 boreholes are operational within Tarime District with a further 17 to be drilled by end of

17 Infrastructure Projects ABG believes that supporting community development is a vital element of creating sustainable improvements to people s lives. In tandem with investments in water, health, education and infrastructure, the Fund has invested in the construction of roads and other vital community facilities. North Mara Nyamongo Court House and staff quarters We believe that the presence of law and order is key to sustainable development. To further this we have committed a total of $174,000 towards the construction of the court house and staff quarters at Nyamongo area in Tarime district. An MOU has been signed between ABG and District Registrar High Court of Mwanza as the first step of implementation Road Maintenance We finance road maintenance in the four villages surrounding the North Mara mine (Nyamwaga, Kewanja, Kerende, Genkuru). This maintenance is undertaken twice a year subject to the requirement of the villagers. 17

18 Economic Empowerment Projects ABG is committed to building trust and mutually beneficial relationships with our host communities. This engagement is a fundamental element of how we do business; ensuring that the potential impacts of mining are adequately addressed, while fostering community empowerment and self-sufficiency. Buzwagi Community Farm Development Programme We committed $50,000 to the establishment of a community farm for Mwime, Mwendakulima and Chapulwa villages. This livelihoods programme has pioneered the establishment of six producer groups (split across the villages) who have been trained on various agriculture and livestock skills. Tulawaka Modern Bee-keeping Project for Mkunkwa and Mavota Villages We provided $41,000 for the establishment of a modern bee-keeping project for groups in Mkunkwa and Mavota villages in Biharamulo district, Kagera region. Training in bee-keeping skills and business planning to Mavota and Mkunkwa bee-keeping group was conducted by Tanzania Wildlife Research Institute (Tabora Research Station) and 100 beehives (fabricated by the same institute) were delivered to the group in July

19 Investment Recipients Community Infrastructure Court House Nyamongo - Tarime district Staff Quarters Court - Tarime district Tushikamane Pamoja NGO - Construction of elderly home Tanzania Health Promotion Initiative(THPI) - Constructions of Maternity Ward at Temeke Municipal Hospital CCBRT - Construction of the Baobab Maternity Hospital Disaster Relief Same District Council - Flood Relief Zanzibar ferry disater fund Food support to Kahama district Economic Empowerment Community Farm Development Programme, Kahama township Modern Bee-keeping Project for Mkunkwa and Mavota Villages, Biharamulo district Education Busoka Girls Secondary School, Kahama district - Construction of dining hall and kitchen Chapulwa Primary School - Construction of classrooms and teachers houses Mubaba Secondary School, Biharamulo district - Construction of student hostels and staff housing Mavota Primary School, Biharamulo district - Construction of teachers houses Mkunkwa Primary School, Biharamulo district - Construction of classrooms and teachers houses Nyantakara secondary school, Biharamulo district - Construction of library Kipawa Constituency - School desks Makuburi primary school - School desks Kurasini secondary school - Construction of science lab Hassan Maajar Trust ABG School Desk Programme, Lake Zone Health Sungu Sungu Health Centre upgrade - Tarime district Benjamin Mkapa HIV/AIDS Foundation - Mkapa Fellows Programme phase II Vodacom Moyo Project - Maternal health Malaria No More - Malaria awareness programme in the Lake Zone MEWATA/Tanzania Breast Cancer Foundation THT Zinduka - Malaria prevention in the Lake Zone Tarime district hospital - Donation of X-ray machine Coalition for Rural Resource, Research and Action Networks (CORRA) - Drug control programme in Tarime district Human Capital - Female genital mutilation intervention in Mara region Mwendakulima Health centre construction, Kahama township Bugando Medical Centre - Construction of operating theatre and endoscopy machine Bridge2Aid - Emergency Dentistry Programme Touch Foundation Treat and Train Programme Kahama district hospital renovation - Kahama district Lake Zone Health and Economic Development Initiative (LAZHEDI) Clean Water (IFOSEMO) - Mara Rural Water Project Water borehole drilling - Tarime district Kewanja Dam - Tarime district Other Recipients Diplomatic Spouses Group Mwanza annual charity ball Jaza Kikapu Campaign Village of Hope Orphanage, Dodoma - transportation bus Tarime Journalists Association Tanzania Chamber of Commerce Industry and Agriculture (TCCIA) Elimika Musoma Mjini Mining Inter-Stakeholders Forum AIESEC Tanzania International Federation of Medical Students Association AGGY Classic Entertainment - Sports Gala Uhuru Torch - Shinyanga region Food Relief - Kahama district 19

20 ABG s Corporate Social Responsibility Charter We are determined to work with the utmost respect for individuals, our employees, and the communities and environments in which we operate, while pursuing value for our shareholders. Our Corporate Social Responsibility Charter guides our conduct in the fields of: Ethics We conduct our business with the highest ethical standards and in accordance with all applicable laws, rules and regulations. Generally, we strive to act as a responsible corporate citizen and lend our expertise to help engage in constructive public dialogue and informed debate on issues of importance to us as a company, the mining industry and the communities in which we operate. Our Employees We are committed to developing the full potential of our employees. We respect and value each of our employees and observe the fundamental tenets of human rights, safety and non-discrimination in the workplace. We fairly compensate our employees for their contributions, provide meaningful performance feedback to them and offer them professional development and training opportunities. We encourage accountability and employee involvement in issues affecting the workplace to help improve safety and work conditions, as well as our efficiency and our business. We also recognise that best practices in this important area continue to evolve and that, accordingly, we must learn and evolve as a business as well. 20

21 ABG s Corporate Social Responsibility Charter Our Communities We fully consider social, cultural, environmental, governmental and economic factors when evaluating project development opportunities. We interact with residents, governments, and governmental organisations in our local communities, international agencies and other interested groups to facilitate long-term and beneficial resource development. We give priority to building partnerships in entrepreneurial endeavours that contribute to enhancing local capacity and we also commit to providing financial support of organisations through our charitable donations, budgets and policies. The employment of indigenous peoples and local community members is also a priority. We respect the interests of all members of the communities in which we conduct business and encourage open and constructive dialogue and interaction with them. We take the responsibility to listen carefully, be responsive and provide information that is accurate, appropriate and timely. The Environment We have a responsibility to protect, reclaim and enhance the environment in which we operate. We encourage wise environmental stewardship and diligently apply proven management controls to achieve this goal. Through our comprehensive environmental management programmes, we are committed to ensuring that environmental effects are being adequately addressed. Controls are in place to ensure compliance with corporate environmental policies and obligations, and environmental management activities are supported by adequate resources and financial provisions. We have plans in place to ensure that the environment is protected for future generations; and that the sustainability of nearby communities are safeguarded. Health and Safety Our goal is to have every employee go home in good health and uninjured, after every shift, each and every day and we are committed to performing every job in a safe and healthy manner. We expect all employees and contractors to work in accordance with our safety and occupational health management policies, for the benefit of each one of our colleagues, families, communities and business. Through our health and safety systems, we provide the equipment, training and resources necessary to enable employees to work safely. Security and Human Rights We believe that effective security controls, standards, policies and procedures contribute to the safety and protection of our employees, assets and reputation and the communities in which we operate. In addition to compliance with all applicable laws and regulation, it is imperative that our security function adheres to our commitments for the protection of human rights and respect for people. Above all, we respect the human rights of all individuals impacted by our operations and we do not tolerate any violations of these rights. 21

22 How to Apply Anyone interested in applying for funding from the ABG Maendeleo Fund can find information and application forms on ABG s website Applicants for the ABG Maendeleo Fund should download the application forms from the website and send to: Steve Kisakye Corporate Manager - Community Relations African Barrick Gold, Plot 1736 Kahama Rd/Hamza Aziz Rd, Msasani Peninsula, Dar es Salaam, Tanzania 22

23 23

24 Contact Details Address: Plot 1736, Hamza Road Msasani Peninsula Road Dar es Salaam Tanzania Phone Number: Fax Number: