Underground at Acacia Mining's Bulyanhulu mine
Underground at Acacia Mining’s Bulyanhulu mine

Tanzania – A report recently released by EY has demonstrated the significant impact that African gold miner Acacia Mining’s activities in Tanzania continue to have on the country’s economic development.

Entitled Acacia Mining Total Economic and Tax Contributions in Tanzania, 2014, the report demonstrated that in in 2014, Acacia purchased US$488 million of goods and services from suppliers located in Tanzania. This represented 71% of Acacia’s total spend on goods and services in 2014, a significant increase from 58% in 2013.

Acacia made a total contribution of over $675 million to the Tanzanian economy, which represents around 2% of total Tanzanian gross domestic product (GDP). This contribution to GDP was comprised of a direct contribution of $190 million, and indirect and induced contributions of $488 million.

In addition Acacia made a total tax contribution of $179 million, which comprises direct tax contributions of US$118 million and indirect and induced contributions of $61 million.

The report also highlighted that Tanzanians now make up 94% of Acacia’s workforce in Tanzania, an increase on 2013 and that Acacia is a high-wage employer, paying each employee an average of $16 400 per annum, which is more than 11 times the average wage in Tanzania.

In total Acacia’s operations support approximately 54 000 jobs in Tanzania. In 2014, Acacia produced 718 000 oz from its mines in Tanzania—a significant increase from 2013, when production was 642 000 oz. This was in spite of the closure of the Tulawaka mine in July 2013.

North Mara the true winner

Acacia’s North Mara mine has also been named as the overall winner of the 2014 Presidential Awards for Corporate Social Responsibility and Empowerment (CSRE) in Tanzania. In addition to being named as the overall winner, North Mara was also awarded the large scale mining CSRE Presidential Award and Buzwagi was awarded the CSRE Presidential Award for Infrastructure as a result of its investment in improving the road network close to the mine.

The awards are part of a programme jointly run by the Tanzanian Ministry of Energy and Minerals and the Extractive Inter-Stakeholders Forum and were launched in 2012 to recognise the CSR performance of companies operating in the extractive sector.

Commenting on the awards, Acacia CEO Brad Gordon says: “We are delighted that North Mara has been recognised as having the leading CSR programme of any extractive operation in Tanzania in 2014. Improving our relationships with the communities around our mines has been a key focus for Acacia, and these awards highlight the progress we have made to date and are testament to the efforts of the leadership teams at the mines.”

“We believe all of our stakeholders should benefit from our operations and will continue to work with the communities around all of our mines to provide further opportunities for alternative livelihoods and infrastructure improvements.”

*Home page photo is a view of the North Mara pit

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