African Barrick's power back-ups

Production and Markets

Publishing Date: 09 Dec 2011 3:04pm GMT
Author: Mining Journal

African Barrick Gold plc has released details of the measures taken to reduce its reliance on Tanzania's erratic power grid, following disruptions and production losses over the past year.

The company presently operates four gold mines in Tanzania, and said that its Buzgawi operation had been hardest hit by ‘significant and continual’ power failures throughout 2011. The failures have been partly attributed to prevailing drought conditions in East Africa: almost 50% of Tanzania’s electricity is generated by hydropower.

ABG has attributed an estimated 35,000-40,000 oz reduction in its total 2011 production to the power failures. The company says it is now likely to fall ‘just short’ of 700,000 oz for the year, compared with its half-year estimate of 700,000-760,000 oz for 2011.

The company, which is 73.9%-owned by Barrick Gold Corp, has announced a range of measures taken to mitigate the effect of future outages. Its Tulawaka mine is completely powered by diesel generators, both its North Mara and Buzgawi properties are now backed up, and it is anticipated that the Bulyanhulu mine will have 100% generator backup by the second quarter of 2012.

In related news, stock in ABG recently commenced trading on the Dar es Salaam Stock Exchange (DSE: ABG). The company’s primary listing remains in London (LSE: ABG).