annual report 2013 - acacia/media/files/a/acacia/documents... · annual report 2013. ......

Annual Report 2013

About ABG Maendeleo Fund................................................................................3Message from the CEO........................................................................................4The ABG Maendeleo Fund CommunityInvestment Committee..........................................................................................62013 Investment Summary...................................................................................8 ABG Maendeleo Projects and Beneficiaries........................................................10 ABG Maendeleo Fund Partners..........................................................................20Our approach to Corporate Social Responsibility (CSR)....................................21How to Apply for Funding ...................................................................................22

Table of Contents

2

3

About ABG Maendeleo FundWe 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.

4

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.

Message from the CEO

Brad Gordon, Chief Executive Officer

5

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.

Message from the CEO

Brad Gordon, Chief Executive Officer

6

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

ABG Maendeleo Fund Community Investment Committee

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 econ-omy. 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.

7

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.

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 envi-ronment for sustainable community development creates mutual benefit for us, our neighboring com-munities and our host countries. This is what CSR is all about and this is our approach at ABG.

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.

8

1

4

2 3

5

9

6

7

1. Training Clinical Officers in Emergency Dentistry at Kakola2. Bridge built on the Mavota - Nyampalahala road as part of the road upgrade3. Mkunkwa clinic built in Mkunkwa Village, Biharamulo district 4. “A desk for every child” project at Buzwagi5. Nyabichune Aggregate Crushing project6. Kamembo secondary school handover7. Pregnant women provided with RCH education, including PMTCT at Nyangoto Health Center (LAZHEDI) project

2013 INVESTMENT SUMMARY IN US$

1.0m Invested

12 Supported projects

4.4m Invested


2.6m Invested


1.5m Invested


1.4m Invested


0.6m Invested


11.5m Invested


Health Education W

ater & Sanitation Livelihood Infrastructure O

ther Total

10

ABG Maendeleo Fund Projects and BeneficiariesEducation projects

Project Amount spent in USD

REGIONAL AND NATIONAL1 School desk delivery programme in Kahama 575,224

BUZWAGI1 Building and repair of Chapulwa primary school 30,089

2 Mwendakulima primary school development 58,520

BULYANHULU1 Construction of Teacher’s houses at Busoka

secondary school 28,529

2 Completion of unfinished school buildings in Bugarama Ward

268,706

NORTH MARA1 School Desk supply for community schools 157,4422 Completion and upgrade of Ingwe secondary

school 735,895

3 Construction of Nyamwaga secondary school - Phase 1

378,671

4 Construction/renovation of Kemambo secondary school

565,997

5 Construction/renovation of Bong’enge’e primary school

516,913

11


EXPLORATION1 Partnership with Little Sports Organisation to

support education in Kenya 75,000

2 Procurement and supply of books to schools in Tanzania

5,977

TULAWAKA1 Two Staff houses and four classrooms (Mkunkwa

primary) 141,055

2 Two houses and three hostels (Mubaba secondary school)

121,755

3 Four teachers’ houses (Mavota primary school) 159,4954 Furnish of Nyantakara secondary school library 9,2745 Construction of kitchen and dining hall at Mubaba

secondary school 94,648

6 Construction of four teachers houses and 4 laboratories in Kagera region

374,817

7 Installation of solar power at Mubaba and Nyankatara secondary schools

71,348

8 Supply of books to Nyankatara secondary school 18,069 9 Construction/renovation of Biharamulo district

library 41,647

10 Equipping Nyankatara secondary school with a sports pitch

8,514

Education projects

12

Education projects

Case Study: School Infrastructure and Facilities UpgradeGoal: To upgrade infrastructure, facilities and provide educational materials to schools where we operateLocation: Mwanza, Shinyanga and Kagera

Issue OverviewABG 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 ImpactAs 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.

13

Health projects


REGIONAL AND NATIONAL1 Surgical missions and camps 69,7452 Procurement of Medical Supplies in collaboration with

Project CURE for Health Facilities in Tarime and Kahama districts

60,450

3 Partnership program with Bridge2AID to train clinical officers in the Lake Zone to deliver dental services and oral health care

422,000

4 Lake Zone Health and Economic Development program implemented in the Tarime in collaboration with USAID and Africare

20,000

BUZWAGI1 Completion of Mwendakulima Health Centre - Phase 1 51,043

NORTH MARA1 Upgrading of Genkuru dispensary 38,273

TULAWAKA1 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

clinic 36,714

5 Solar power installation at Mkunkwa clinic 35,795 6 Construction of one Doctor’s house at Mavota village 48,908

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 OverviewLAZHEDI 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 ImpactThe 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

15

Livelihood projects


NORTH MARA1 Support to artisanal & small scale mining 57,1352 Nyakegema Alternative Livelihood programme 157,8193 General community livelihood programme with

co-operatives 1,165,316

TULAWAKA1 Youth capacity building projects 47,6732 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 miningLocation: 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.

16

We established the ABG Maendeleo Fund in 2011 as part of our commitment to promoting sustainable development in Tanzania. African Barrick Gold (ABG) aims to commit US$10 million per year to the fund, making it the largest commu-nity development fund of its kind in Tanzania. 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.


BULYANHULU1 Community water boreholes project 75,0322 Payment towards the KASHWASA joint water

partnership project 9,305

3 Community water supply project 4,864

NORTH MARA1 2013 Community Water borehole programme 555,2212 Community and Sungusungu Hospital water supply

project 301,086

3 Community clean water supply with trucks project 810,000

EXPLORATION1 Community water boreholes in Kenya 15,0002 Community water boreholes in Tanzania 102,872

TULAWAKA1 Construction of 3 water dams in Mavota and Mkunkwa

villages 410,562

2 Rain water harvesting systems for Nyantakara & Mubaba secondary schools, Mavota & Mkunkwa primary schools

148,370

3 Construction of embankment at a water spring in Biharamulo for provision of clean water.

185,404

4 Installation of pumps at boreholes in Mavota and Mkunkwa villages

5,750

Water and sanitation projects

17

Case Study: Kenyamanyori, North Mara and Bulyanhulu Water

Boreholes ProjectGoal: Ensuring that communities within our operating areas have access to ample, clean and safe water.Location: Kenyamanyori, Mara and Shinyanga

Issue OverviewABG 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 ImpactSo 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.

Water and sanitation projects

18


BUZWAGI1 Alternative road development in Mwime village 46,1022 5.0 km Kahama tarmac road -

NORTH MARA1 Community road maintenance 293,1282 Electricity connection to Kerende and Matongo villages 295,013 3 Construction/rehabilitation of police stations and FFU Post in

Nyamongo 347,203

4 Construction of primary court and staff housing in Nyamongo 114,352

TULAWAKA1 Alternative road project connecting Mkunkwa and

Nyampalahala villages 257,973

Case Study: 5.0 KM Kahama Tarmac RoadGoal: 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 ImpactAs 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.

Infrastructure projects

19


BUZWAGI1 Community development contractual commitments 1,068

Outstanding RAP commitments close out 15,297

NORTH MARA1 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

Police station 21,289

3 Constr. Of Kaniha Ward Office 37,401 4 Construction of two houses at Mavota Police post 77,549

REGIONAL AND NATIONAL1 Donations to various initiatives 57,411

Other projects

20

African Barrick Gold would like to thank all its partners who allow us to fulfil ourCSR objectives and contribute to the economic development and sustainabilityof Tanzania. African Barrick Gold works with a range of stakeholders in theprivate, government, and development and NGO sectors.

ABG Maendeleo Fund Partners

21

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

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 KisakyeCorporate Manager – Community RelationsAfrican Barrick Gold,Plot 1736 Kahama Rd/Hamza Aziz Rd,Msasani Peninsula,Dar es Salaam,

How to Apply for Funding

22

24

African Barrick GoldPlot 1736 Kahama Rd/Hamza Aziz Rd,Msasani Peninsula,Dar es Salaam,Tanzania

Phone: +255 (22) 2164 257 Fax: 255 (22) 260 0210

Contacts

annual report 2013 - acacia/media/files/a/acacia/documents... · annual report 2013. ......

Documents