Annual Report 2013
Table of Contents About ABG Maendeleo Fund...3 Message from the CEO...4 The ABG Maendeleo Fund Community Investment Committee...6 2013 Investment Summary...8 ABG Maendeleo Projects and Beneficiaries...10 ABG Maendeleo Fund Partners...20 Our approach to Corporate Social Responsibility (CSR)...21 How to Apply for Funding...22 2
About ABG Maendeleo Fund We established the ABG Maendeleo Fund in 2011 as part of our commitment to promoting sustainable development in Tanzania. ABG aims to commit US$10 million per year to the fund, making it the largest community development fund of its kind in Tanzania. Since its inception, the ABG Maendeleo Fund has committed US$20 million and as at the end of 2013 over US$18 million has been spent. We use the fund to support all of our community investments that support community development and capacity building, access to health, education and water and environment projects within communities surrounding our operations. 3
Message from the CEO Brad Gordon, Chief Executive Officer At ABG we believe our ability to be successful is rooted in maintaining a long-term social licence to operate. In 2013, through the ABG Maendeleo Fund, we continued to make significant strides in entrenching this crucial component of our success. We were especially active during 2013 and over the year invested US$11.5 million from the ABG Maendeleo Fund to support more than 70 key projects. The impact of this investment in infrastructure projects for the provision of clean water, medical care, schools and roads in the communities around our operations and our positive impact is being recognised both locally and nationally. Overall ABG made an investment of US$15.5 million in corporate responsibility projects during the year, an 8% increase from the US$14.4 million invested in 2012. I am also proud to report that all of our mines were recognised at the Tanzanian Presidential Awards for Corporate Social Responsibility and Empowerment in 2013. We won a number of awards across a range of categories, with our Bulyanhulu Gold Mine coming in 3rd place for its overall CSR programme within the Large Scale Mineral Company category. This report provides an insight into the type of project that the ABG Maendeleo Fund invested in during 2013. It important to note our project investment is an outcome of dialogue with our communities to identify areas where they see a need for investment. 4
Message from the CEO I would like to recognise our Community Relations teams at all our sites for their hard work over the year to ensure that money spent from the ABG Maendeleo Fund has a long term and sustainable impact to the community. I would also like to recognise my Community Investment Committee for managing the fund well and ensuring fairness in the selection of projects. We take great pride in being a responsible miner and are committed to investing in the communities around our operations through the ABG Maendeleo Fund. We will continue to deepen our relationships with our neighbours and the people of Tanzania in order to develop long term sustainable development for the benefit of us all. Brad Gordon, Chief Executive Officer 5
ABG Maendeleo Fund Community Investment Committee The Community Investment Committee is responsible for reviewing applications received for support and investment under the ABG Maendeleo Fund. The Committee ensures an application review process that is fair, timely and in line with the funds objectives. The Committee also determines the allocation of the Fund s budget on an annual basis. The budget allocation is split according to ABG Maendeleo funding priorities. Functions of the Committee: Deciding on project proposals Overseeing the implementation of projects Monitoring and evaluation and providing reports on the operations of the ABG Maendeleo Fund Community Investment Committee Members Deo Mwyanyika: Vice-President Corporate Affairs Our philosophy of Every person going home safe and healthy every day is what informs our approach to supporting communities access to healthcare. We believe that healthy communities are crucial to the overall development of society and that is what we are helping to bring about. Andrew Wray: Chief Financial Officer Education is a cornerstone of any successful economy. This is why at ABG, we have made sure that education is at the core of the support we provide to communities through the ABG Maendeleo Fund. 6
Community Investment Committee Members Nector Pendaeli Foya: PR & Communications Manager Water scarcity is a real issue for rural Tanzanians. Families are forced to travel miles away to get water. At ABG, we see this and we are committed to doing something about it. Katrina White: General Counsel and Company Secretary Female empowerment is something that we believe in deeply at ABG. And with the ABG Maendeleo Fund we have made sure that female economic empowerment is incorporated in our community support. Steve Kisakye: Corporate Manager Community Relations We believe that equitable sharing of benefits from mining is key to our responsible mining ethos. True community empowerment and creating an environment for sustainable community development creates mutual benefit for us, our neighboring communities and our host countries. This is what CSR is all about and this is our approach at ABG. 7
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2013 INVESTMENT SUMMARY IN US$ Health Education Water & Sanitation Livelihood Infrastructure Other Total 1.0m Invested 12 Supported projects 4.4m Invested 22 Supported projects 2.6m Invested 15 Supported projects 1.5m Invested 5 Supported projects 1.4m Invested 7 Supported projects 0.6m Invested 9 Supported projects 11.5m Invested 70 Supported projects 1. Training Clinical Officers in Emergency Dentistry at Kakola 2. Bridge built on the Mavota - Nyampalahala road as part of the road upgrade 3. Mkunkwa clinic built in Mkunkwa Village, Biharamulo district 4. A desk for every child project at Buzwagi 5. Nyabichune Aggregate Crushing project 6. Kamembo secondary school handover 7. Pregnant women provided with RCH education, including PMTCT at Nyangoto Health Center (LAZHEDI) project 6 7 9
ABG Maendeleo Fund Projects and Beneficiaries Education projects Project Amount spent in USD REGIONAL AND NATIONAL 1 School desk delivery programme in Kahama 575,224 BUZWAGI 1 Building and repair of Chapulwa primary school 30,089 2 Mwendakulima primary school development 58,520 BULYANHULU 1 Construction of Teacher s houses at Busoka secondary school 2 Completion of unfinished school buildings in Bugarama Ward 28,529 268,706 NORTH MARA 1 School Desk supply for community schools 157,442 2 Completion and upgrade of Ingwe secondary 735,895 school 3 Construction of Nyamwaga secondary 378,671 school - Phase 1 4 Construction/renovation of Kemambo secondary 565,997 school 5 Construction/renovation of Bong enge e primary school 516,913 10
Education projects Project EXPLORATION 1 Partnership with Little Sports Organisation to support education in Kenya 2 Procurement and supply of books to schools in Tanzania Amount spent in USD 75,000 5,977 TULAWAKA 1 Two Staff houses and four classrooms (Mkunkwa 141,055 primary) 2 Two houses and three hostels (Mubaba 121,755 secondary school) 3 Four teachers houses (Mavota primary school) 159,495 4 Furnish of Nyantakara secondary school library 9,274 5 Construction of kitchen and dining hall at Mubaba 94,648 secondary school 6 Construction of four teachers houses and 4 374,817 laboratories in Kagera region 7 Installation of solar power at Mubaba and Nyankatara 71,348 secondary schools 8 Supply of books to Nyankatara secondary school 18,069 9 Construction/renovation of Biharamulo district 41,647 library 10 Equipping Nyankatara secondary school with a sports pitch 8,514 11
Education projects Case Study: School Infrastructure and Facilities Upgrade Goal: Location: To upgrade infrastructure, facilities and provide educational materials to schools where we operate Mwanza, Shinyanga and Kagera Issue Overview ABG operates in areas where local schools have extensive challenges in the areas of infrastructure, facilities and lack sufficient educational materials. Supporting projects that increase access to education is a primary objective of the ABG Maendeleo Fund. A number of schools surrounding our operations were selected in collaboration with our host communities and local government to undergo renovations, construction of new buildings and provide them with much needed facilities and educational material. Progress and Impact As a result of our continuous efforts in increasing access to education, 14 schools were upgraded last year. Laboratories and teachers houses were constructed in 8 schools around the Kagera region, new classrooms were constructed in 3 schools around Bulyanhulu Gold Mine, a dining hall was built at Mubaba secondary school in Kagera region, we completed a library and equipped it with books at Nyantakara secondary school in Biharamulo Disrict, hostels were built at Nyantakara and Mubaba secondary schools, 2360 desks were delivered to 15 schools in Kahama district. 12
Health projects Project Amount spent in USD REGIONAL AND NATIONAL 1 Surgical missions and camps 69,745 2 Procurement of Medical Supplies in collaboration with 60,450 Project CURE for Health Facilities in Tarime and Kahama districts 3 Partnership program with Bridge2AID to train clinical 422,000 officers in the Lake Zone to deliver dental services and oral health care 4 Lake Zone Health and Economic Development program implemented in the Tarime in collaboration with USAID and Africare 20,000 BUZWAGI 1 Completion of Mwendakulima Health Centre - Phase 1 51,043 NORTH MARA 1 Upgrading of Genkuru dispensary 38,273 TULAWAKA 1 Construction of Mkunkwa village s clinic 82,673 2 Contribution/rehabilitation of Biharamulo district theatre 12,639 3 Construction of two doctor s houses at Mavota clinic 94,914 4 Installation of solar power and water heater at Mavota s 36,714 clinic 5 Solar power installation at Mkunkwa clinic 35,795 6 Construction of one Doctor s house at Mavota village 48,908 13
Health projects Case Study: Lake Zone Economic Development Initiative (LAZHEDI) Goal: This project is focused on improving the health of women and families within the mining communities of Tarime. Another goal is to promote economic opportunities and more diverse livelihoods. Location: Tarime District Issue Overview LAZHEDI mobilises community members for HIV counseling and testing at health facilities, increases access to care and treatment clinics (CTCs) by providing mobile CTC and Prevention of Mother to Child Transmission (PMTCT) services in underserved areas. African Barrick Gold partners with US Agency for International Development (USAID), Tarime District Council, Tanzania Chamber of Minerals and Energy (TCME), and Africare Tanzania to support the mining communities through this initiative. Progress and Impact The LAZHEDI initiative has made great progress in HIV prevention programmes in Tarime, providing a total of 23,296 (10,236 males and 13,060 females) people; with HIV prevention education and referral for HIV testing and counseling (HTC). The Prevention of Mother to Child Transmission (PMTCT) services have reached 3,382 pregnant women. The expectant mothers have received HIV testing as well as counselling. 14
Livelihood projects Project Amount spent in USD NORTH MARA 1 Support to artisanal & small scale mining 57,135 2 Nyakegema Alternative Livelihood programme 157,819 3 General community livelihood programme with co-operatives 1,165,316 TULAWAKA 1 Youth capacity building projects 47,673 2 Alternative Livelihood initiatives: Interlocking brick making and Cassava planting projects 62,354 Case Study: Nyakegema co-operative society Goal: Development of safe and sustainable livelihoods beyond illegal mining Location: North Mara Issue Overview Most mine operations in Tanzania are challenged with intrusions that leads to trespassers and illegal miners entering active mining areas; North Mara Gold Mine is no exception. Nyakegema co-operative society was established with a key focus to develop safe and sustainable livelihoods beyond illegal mining. Progress and Impact Nyakegema has registered over 1,000 former illegal miners from the 7 villages around North Mara. In 2013, ABG provided support to the group in regard to training on management and entrepreneurship, support for opening of a head office in Nyamongo and satellite offices across the 7 villages, contracting for community road cleaning and support for development of a model green house for horticultural products targeted at the local market and the mine s consumption. The group will be embarking on dairy and fish farming projects. 15
Water and sanitation projects We established Project the ABG Maendeleo Fund in 2011 as part of our Amount commitment to promoting sustainable development in Tanzania. African Barrick spent Gold in (ABG) USD aims BULYANHULU to commit US$10 million per year to the fund, making it the largest community 1 development Community water fund of boreholes its kind in project Tanzania. 75,032 We 2 use Payment the fund towards support the KASHWASA all of our community joint water investments that 9,305 support community partnership development project and capacity building, access to health, education and water 3 Community and environment water supply projects project within communities surrounding 4,864 our operations. NORTH MARA 1 2013 Community Water borehole programme 555,221 2 Community and Sungusungu Hospital water supply 301,086 project 3 Community clean water supply with trucks project 810,000 EXPLORATION 1 Community water boreholes in Kenya 15,000 2 Community water boreholes in Tanzania 102,872 TULAWAKA 1 Construction of 3 water dams in Mavota and Mkunkwa villages 2 Rain water harvesting systems for Nyantakara & Mubaba secondary schools, Mavota & Mkunkwa primary schools 3 Construction of embankment at a water spring in Biharamulo for provision of clean water. 4 Installation of pumps at boreholes in Mavota and Mkunkwa villages 410,562 148,370 185,404 5,750 16
Water and sanitation projects Case Study: Kenyamanyori, North Mara and Bulyanhulu Water Boreholes Project Goal: Location: Ensuring that communities within our operating areas have access to ample, clean and safe water. Kenyamanyori, Mara and Shinyanga Issue Overview ABG operates in regions where water scarcity is prominent. Thus water accessibility is a critical concern to our stakeholders. In some areas women and girls bear the burden of walking over 5 kilometers at a time to gather water from streams. By providing potable water sources in these communities we feel we are bringing relief to communities around these villages who suffer needlessly from a lack of access to clean water and proper sanitation. Progress and Impact So far, two boreholes have been drilled in Kenyamanyori, and a handover to the community was completed in December 2013, twelve other boreholes were drilled in the year and are in operation in different villages around North Mara Gold Mine. In areas surrounding Bulyanhulu Gold Mine, 9 boreholes were drilled in 2013 and 6 are currently in operation. With access to new water boreholes, the time and effort by community members to access water has been dramatically reduced. Insome cases, we have brought down water access to a radius of 400 metres from each household. The access to water also mitigates health risks by reducing the presence of water-borne diseases throughout the targeted communities. This has a significant impact on reducing mortality of under 5s related to water-borne diseases. 17
Infrastructure projects Project Amount spent in USD BUZWAGI 1 Alternative road development in Mwime village 46,102 2 5.0 km Kahama tarmac road - NORTH MARA 1 Community road maintenance 293,128 2 Electricity connection to Kerende and Matongo villages 295,013 3 Construction/rehabilitation of police stations and FFU Post in 347,203 Nyamongo 4 Construction of primary court and staff housing in Nyamongo 114,352 TULAWAKA 1 Alternative road project connecting Mkunkwa and Nyampalahala villages 257,973 Case Study: 5.0 KM Kahama Tarmac Road Goal: To increase mobility of people and services and hence improve economic status of the district. Location: Kahama District Issues Overview Kahama district being among the fast growing districts in Tanzania with a number of business opportunities, roads and roads condition has been a big factor which pull back economic development within the district. By assisting the district with a network of tarmac roads totaling to 5km. Progress and Impact As of December 2013 a contract between Kahama town council and contractor has been signed, and the addendum MOU between PML Buzwagi and Kahama town council has been prepared. The construction of roads has increased mobility in the region and allowed ABG build stronger relationships with stakeholders. 18
Other projects Project Amount spent in USD BUZWAGI 1 Community development contractual commitments 1,068 Outstanding RAP commitments close out 15,297 NORTH MARA 1 Street cleaning program 340,261 TULAWAKA 1 Construct of Mavota village office 38,088 2 Installation of solar power at two staff houses at Mavota 21,289 Police station 3 Constr. Of Kaniha Ward Office 37,401 4 Construction of two houses at Mavota Police post 77,549 REGIONAL AND NATIONAL 1 Donations to various initiatives 57,411 19
ABG Maendeleo Fund Partners African Barrick Gold would like to thank all its partners who allow us to fulfil our CSR objectives and contribute to the economic development and sustainability of Tanzania. African Barrick Gold works with a range of stakeholders in the private, government, and development and NGO sectors. 20
Our Approach to Corporate Social Responsibility (CSR) At African Barrick Gold, we believe in creating an equitable distribution of benefits for investors, communities and host countries through safe, profitable and responsible mining. We aim to maintain our licence to operate through acting responsibly in relation to our people, the environment and the communities in which we operate. We do this by finding, building and operating world class mines which serve to stimulate sustainable economic growth. Our CSR strategy is built around four branches: Definition and management of social risks Equitable distribution of benefits Creating sustainable development Fulfillment of our obligations 21
How to Apply for Funding Anyone interested in applying for funding from the ABG Maendeleo Fund can find information and application forms on ABG s website www.africanbarrickgold.com/corporate-responsibility/ maendeleo-fund.aspx Applicants for the ABG Maendeleo Fund should download the application from the website and send to: Stephen Kisakye Corporate Manager Community Relations African Barrick Gold, Plot 1736 Kahama Rd/Hamza Aziz Rd, Msasani Peninsula, Dar es Salaam, 22
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Contacts African Barrick Gold Plot 1736 Kahama Rd/Hamza Aziz Rd, Msasani Peninsula, Dar es Salaam, Tanzania Phone: +255 (22) 2164 257 Fax: 255 (22) 260 0210 24