Barrick Gold said on Tuesday that it had successfully transferred its North Mara and Bulyanhulu mines in Tanzania from "moribund" assets to tier one assets.
Barrick, which took over the operations after re-acquiring Acacia Mining in September 2019, said its total production last year exceeded 500000 ounces, qualifying for a first-tier mine.
To be considered a top asset, the asset must have reserve potential with a life span of at least 10 years, annual production of at least 500000 ounces of gold and the total cash cost per ounce over the life of the mine is on the industry cost curve, Barrick said at a media conference.
With the planned commissioning of the Nyabirama mine this quarter, North Mara is expected to become a fully integrated mine. Operations are scheduled to begin in the third quarter of 2022, the company said.
Bulyanhulu has achieved stable production following an increase in mining and metallurgical operations in December 2021 and has been re-established as a world-class, low-cost, long-life underground mine.
Barrick predicts that mineral reserves (excluding depletion) in both mines will increase significantly by 2021.
The Toronto-based miner signed an agreement with Tanzania last year to allow the government to take stakes in three gold mines. The agreement ends long-standing tax disputes and sets a template for negotiations with other companies.
Since taking control of the mines, the gold producer has expanded its footprint around Bulyanhulu by acquiring six potential licenses bordering the asset. The company's exploration team is also looking for new opportunities elsewhere in Tanzania.
CEO Mark Bristow told local media that the two mines also continued to recruit locals and improve their skills. Tanzanian nationals now account for 96 per cent of their labour force, of which 41 per cent come from surrounding villages.
