WEDNESDAY March 12, 2025
By Deus Bugaywa
The Tranquility News Correspondent, Tanzania
Giraffe is known for its beauty, grace, and remarkable abilities, including of its powerful heart pumping between 60 and 75 litres of blood per minute.
A giraffe is also capable of running at the speeds of between 55 and 65 kilometres per hour, let alone its long neck reaching the highest tree leaves.
And so is its namesake – Twiga (giraffe) Minerals Corporation – imbued with a symbol of strength and transformation for Tanzania’s economy.
With its swift pace of change, Twiga Minerals Corporation is creating a win-win situation, significantly contributing to the national budget and GDP, thereby strengthening Tanzania’s economy just as the giraffe adorns the country’s splendid national parks.
True to its namesake, Twiga Minerals Corporation is at forefront in implementing the government’s vision to ensure the extractive industry benefits Tanzanians through taxes.
It also ensures locals benefit from business opportunities through local content, job creation, corporate social responsibility (CSR), and community services offered to the hosting community.
This has brought the industry closer to achieving its goal of contributing 10 per cent to the GDP.
This feat is largely due to Barrick accepting reforming industry and partnering with the government in forming the Twiga Minerals Corporation to oversee North Mara, Bulyanhulu, and Buzwagi mines.
The partnership plans to develop the latter into a Special Economic Zone.
Ever since Twiga Minerals Corporation took over operations of the trio in 2019, Barrick has injected over $4.24 billion into Tanzania’s economy through the joint venture, contributing $888 million in 2024 alone.
The partnership has become a leading model in the country’s extractive industry, creating thousands of jobs, supporting local businesses, and funding critical community projects.
The partnership remains one of the largest contributors to Tanzania’s economy through taxes, employment, community projects, and shareholder distributions.
Of the $4.24 billion invested, $2.3 billion, equivalent to 55 per cent, went to local national suppliers, $1.37 billion, equivalent to 32 per cent was paid in taxes, royalties, levies, and statements, $397 million, equivalent to 9 per cent was paid in employee wages, and $158 million, equivalent to 4 per cent, worth dividend was paid to the government.
Indigenous companies account for 83 per cent of total local spending, with 75 per cent of the payments going to suppliers, up from 34 per cent in 2019 when Barrick assumed operational control.
A total of 603 indigenous companies provide goods and services to the mines that directly employ 6,185 people, 96 per cent of whom are Tanzanians.
Additionally, $30 million has been spent on exploration to discover new mines, and $15.6 million has been invested in social projects.
No wonder two parliamentary committees, namely the Standing Committee for Energy and Minerals and the Standing Committee for Budget, have praised the government for effectively managing this partnership, given its clear benefits to the national economy.
Since the partnership’s formation, Barrick has maintained a quarterly reporting mechanism to detail production progress, tax payments, and other contributions to the government and the national economy.
In February 2025, the Standing Committee for Minerals visited the Bulyanhulu and Buzwagi mines, while the Standing Committee for Budget visited the North Mara mine in early March 2025.
Both committees commended Barrick’s transparency, urged other major mining investors to follow Twiga Mineral Corporations’ partnership model.
“One thing we’ve observed is their transparency. They provide quarterly reports, which is very important.
“Additionally, their contributions to our economy through taxes, employment, and local suppliers are commendable and should be maintained and improved,” said Kirumbe Ng’enda, Vice Chair of the Standing Committee for Minerals.
Twiga has received numerous accolades over the past year, including recognition for safety, top employer status, environmental performance, and community engagement.
In 2024, North Mara was recognised for being the largest economic contributor in Tanzania’s extractive industry, bagging several awards for occupational health and safety, corporate social responsibility, and local content compliance.
John Kandege, Vice Chair of the Standing Committee for Budget, praised Twiga Minerals Corporation for its contributions to the national budget and GDP, which have enabled the government to better serve its citizens.
“As Parliament, we’ve seen their contributions to the national output. We’re satisfied with these efforts, but we particularly commend them for going above and beyond by undertaking additional community projects that are not legally binding,” said Kandege.
According to the Tanzanian Mining Commission, the industry has registered remarkable growth, driven by enhanced regulatory frameworks, increased local participation, and better management practices.
Revenue increased by 20.7 per cent, from $237 million in the 2021/2022 financial year to $286 million in 2023/2024.
By October 21, 2024, $119 million had already been collected, equivalent to 31.28 per cent of the $379 million target for the 2024/2025 financial year.
The extractive industry has not only generated foreign currency, but also become a significant contributor to the country’s GDP, reaching 9.4 per cent by November last year, just 0.6 per short of the 10 per cent target set for this year in the National Development Vision 2025.
In his quarterly briefing in January, Barrrick president and Chief Executive Mark Bristow told reporters that the Twiga partnership is proving to be a perfect model for creating a win-win situation with a hosting country.
“We spent $573 million on national suppliers and service providers last year, equivalent to 83 per cent of our total in-country spending.
“In addition, 75 per cent of all payments to suppliers and service providers went to indigenous companies, exceeding our 61 per cent target,” Mark Bristow said.
Barrick’s policy on local employment and advancement has raised the number of local employees to 96 per cent of its 6,185 workforce being Tanzania nationals, with 53 per cent coming from communities near the mines.
Barrick also invested over $5 million in potable water, healthcare, and education in 2024, bringing the total investment in community projects to $15.8 million since the Twiga partnership began in 2019.
During that period Bulyanhulu and North Mara exceeded their 2024 production guidance of 500,000 ounces, maintaining their status as Tier One complexes. Both mines also achieved a full year without a Lost-Time Injury.
In the 2023/2024 fiscal year, the Mining Commission collected $286 million, an 8.6 per cent increase from the $257 million collected in 2022/2023.
The target for 2024/2025 is $379 million, with $$119 million already collected by October 2024.
Mineral sales in 2023/2024 totaled $982 million, with the government collecting $68 million in taxes and royalties—a 7.7 per cent rise from the previous year’s $62 million.
The mining industry employed 18,853 Tanzanians in 2024, representing 97.4 per cent of the industry’s workforce.
Between 2021 and 2024, the Mining Commission issued 34,348 mining licenses, recording 92 per cent of its target of 37,318 licenses, covering large-scale, medium-scale, and small-scale mining operationsΩ
